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Generic Tax Name Labour market contribution
Tax name in the national language Arbejdsmarkedsbidrag
Tax name in English Labour market contribution
Member State DK-Denmark
Tax in force since 1994/01/01
If abolished, date on which the tax ceases to apply 2011/01/01
Business version date 2012/01/01
Version date 2012/02/22
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

The Statutory Notice No 961 of 25th September 2008 no longer applies as the labour market contribution is now regarded as a PIT. Please find the new labour market contribution under personal income taxes. Statutory Notice No 471 of 6th December 2009 is in effect as of 2011.

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



Geographical Scope


Wage and salary‑earners, self‑employed persons and employers.

Tax object and basis of assessment

The gross earning for wage and salary‑earners and profits for self‑employed persons. Transfers such as social pensions, unemployment benefits etc. are not subject to this tax.

Deductions, Allowances, Credits, Exemptions


The contribution is calculated on the basis of wages and salaries, etc. Therefore, no contribution is payable on the basis of following income:

-grants from the State Education Fund;

-sickness and unemployment benefits;

-certain kinds of pensions and life assurance schemes;

-public service pensions;

-certain kinds of social benefits and other transfer income;

-national retirements pensions;

-interest, dividends and other capital income.


There is no deduction in the contributions, but the contribution is deducted before personal income tax is assessed.

Rate(s) Structure

In 2010 the tax is 8 % for wage and salary‑earners and self‑employed persons.

From 1999 a special contribution of 1 % of the same basis of assessment is paid by wage and salary earners and self employed persons to the Supplementary Pension Fond. However, since 2004 this special contribution has been suspended.

Tax due date

Tax collector

The contribution is withheld by the employer and the pension institutes.

Special features

The tax is essentially a gross labour income tax.

Economic function


Environmental taxes

Tax revenue
ESA95 code d51ai

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2010 80,797.48 DKK 4.49
2009 79,599.40 DKK 4.64
2008 80,213.13 DKK 4.46
2007 76,515.24 DKK 4.40
2006 71,612.32 DKK 4.26
2005 67,569.62 DKK 4.26
2004 64,780.16 DKK 4.30
2003 62,282.40 DKK 4.33
2002 61,265.20 DKK 4.34
2001 59,274.70 DKK 4.32
2000 56,738.20 DKK 4.28
1999 53,967.10 DKK 4.35
1998 51,506.60 DKK 4.34
1997 48,606.40 DKK 4.24