When you work through Factofly, we become your legal employer. This means that we are obligated to pay a number of statutory employer contributions to various funds and schemes in Denmark.
Therefore, a separate contribution of 1.5% of your invoice is included, which we have grouped under the term social contributions – also known as Samlet Betaling. This is a fixed part of the financial structure of your salary payment and ensures that your employment through Factofly complies with current labor market regulations.
What do the social contributions cover?
The contribution goes to a range of schemes that support both employees and the labor market as a whole:
Barsel.dk (Maternity Fund) – ensures reimbursement to employers during employee parental leave.
AUB (Employers’ Education Contribution) and Apprenticeship AUB – funds internships and continuing education.
AES (Occupational Injury Insurance) – covers work-related injuries and occupational diseases.
AFU (Labour Market Fund for Posted Workers) – protects employees posted within the EU.
ATP (Labour Market Supplementary Pension) – provides the right to an ATP lifelong pension.
Feriekonto and Holiday Funds – administration and safeguarding of holiday pay.
Financing Contribution (FIB) – a general contribution to labor market financing schemes.
Why is this important?
These payments are mandatory for all Danish employers and form a central part of the Danish labor market system. They contribute to security, education, and rights for all employees – including you as an employee through Factofly.
By collecting them into a single 1.5% contribution, we make it simple and transparent. (You can always rely on Factofly to handle these payments correctly, so you can confidently focus on your work and your clients.)
How are social contributions different from Factofly’s service fee?
How are social contributions different from Factofly’s service fee?
Our service fee covers administrative costs and insurances related to providing our service. Social contributions are payments to the labor market, similar to the labor market contribution (AM-bidrag).