arbejdsmarkedsbidrag

Arbejdmarksbidrag (AMB) is a compulsory payroll tax in Denmark designed to fund the national unemployment insurance and active labour market policies. The contribution is calculated as a percentage of gross earnings and is currently set at 8 percent. The tax is collected by employers on behalf of the state and remitted to the Danish Tax Agency (Skattestyrelsen). It is separate from the general income tax, and for tax purposes it reduces the gross wage that is used to determine personal income tax.

Most individuals with employment income are subject to AMB; self-employed persons and certain other income types may be exempt or handled differently depending on the rules in force. The AMB is part of the payroll tax system and is distinct from other social security contributions in Denmark.

The revenue from AMB supports unemployment benefits, job placement services, training programs, wage subsidies, and other labour-market measures intended to increase employment and mobility in the workforce. The legal basis for AMB is established in Danish tax legislation and administered by Skattestyrelsen.

History and debate: AMB was introduced in the early 1990s as part of reforms to finance unemployment insurance and active labour market policy. The rate has remained around eight percent, subject to parliamentary adjustments. Proponents argue it is essential for funding a flexible welfare state; critics contend it adds a burden on low-income workers and increases employer labour costs.