Arbejdsmarkedsbidraget

Arbejdsmarkedsbidraget, often abbreviated as AMB, is a Danish term that translates to "labor market contribution" in English. It is a tax levied on employers and employees in Denmark, with the primary purpose of funding the Danish unemployment insurance system, known as "arbejdsmarkedets udbetalinger" (AMU). This system provides financial support to unemployed individuals who are actively seeking work.

The Arbejdsmarkedsbidraget is calculated as a percentage of the employee's salary. As of recent updates, the rate is typically around 8% of the gross salary, with both the employer and the employee contributing to this amount. The specific rates can vary depending on the type of employment and the relevant collective agreement.

The revenue generated from the Arbejdsmarkedsbidraget is managed by the Danish state and is used to fund various unemployment benefits, including daily allowances for unemployed individuals, educational grants, and other labor market initiatives aimed at promoting employment and reducing unemployment rates.

The system is administered by the Danish Agency for Labour Market and Recruitment (Styrelsen for Arbejdsmarked og Rekruttering), which ensures that the funds are distributed appropriately and that the unemployment insurance system operates efficiently. The Arbejdsmarkedsbidraget plays a crucial role in maintaining the financial stability of the Danish unemployment insurance system, providing a safety net for workers during periods of unemployment.