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WORKING IN DENMARK

Feriepenge: Denmark’s vacation pay rules explained

If you work for a company in Denmark, your yearly time off is likely to be provided for by the 'feriepenge' accrual system for paid annual leave.

If you work in Denmark, a good understanding of 'feriepenge' (holiday allowance) rules will help you plan time off in the summer and around the calendar.
If you work in Denmark, a good understanding of 'feriepenge' (holiday allowance) rules will help you plan time off in the summer and around the calendar. Photo by Felipe Correia on Unsplash

One of the perks of being a full-time employee in the country, Danish holiday usually adds up to five weeks of vacation annually. There are also nine days of public holidays, which everyone benefits from.

The Danish Holiday Act (Ferieloven) provides the basis for paid holiday through accrued feriepenge (‘vacation money’ or ‘vacation allowance’). This covers most salaried employees, although some people, such as independent consultants or freelancers, are not encompassed.

What is feriepenge?

‘Holiday money’ or feriepenge is a monthly contribution paid out of your salary into a special fund, depending on how much you earn.

You can claim back the money once per year, provided you actually take holiday from work. It is earned at the rate of 2.08 vacation days per month.

If you are employed in Denmark, you will be notified when the money can be paid out (this is in May under normal circumstances) and directed to the borger.dk website, from where you claim it back from national administrator Udbetaling Danmark.

Anyone who is an employee of a company registered in Denmark and who pays Danish taxes is likely to receive holiday pay, as this means you will be covered by the Danish Holiday Act (ferieloven). You are not an employee if, for example, you are self-employed, are a board member on the company for which you work or are unemployed.

How do I save up time off using feriepenge?

The law, which covers the five standard weeks or (normally 25 days) of paid vacation, states that you are entitled to take vacation during the vacation year period. You earn paid vacation throughout a calendar year at the rate of 2.08 days per month.

You earn vacation time in the period September 1st-August 31st. You can then use your vacation in the same year that you earn it and up to December 31st the subsequent year – in other words, over a 16-month period.

These rules also mean that holiday earned during a given month can be used from the very next month, in what is referred to as concurrent holiday (samtidighedsferie).

So when can I take time off using this accrued vacation?

The Danish vacation year is further broken down so that there is a “main holiday period” which starts on May 1st and ends on September 30th. During this time, you are entitled to take three weeks’ consecutive vacation out of your five weeks.

A lot of people take three weeks in a row while others break it up – which is why you often hear Danish people who work full time wishing each other a “good summer holiday” as if it’s the end of the school term.

Outside of the main holiday period, the remaining 10 days of vacation can be taken whenever you like. You can take up to five days together but may also use the days individually.

If your employer wants to decide when you should take any of your vacation days, they have to let you know at least three months in advance for main holiday, or one month in advance for remaining holiday (barring exceptional circumstances, such as an unforeseen change to the company’s operations or if the company closes for the summer shortly after you begin employment).

If you have not earned paid vacation, you still have the right to take unpaid holiday.

Public Holidays

In addition to the vacation days, there are also public holidays. These are bunched up mostly in the early part of the year and around Christmas. However, the period inbetween June and Christmas includes the above-mentioned main annual leave, so there’s not usually long to wait until you can take time off.

Denmark has public holidays on:’

  • New Year’s Day  
  • Maundy Thursday
  • Good Friday
  • Easter Monday  
  • Great Prayer Day (Store Bededag)
  • Ascension Day
  • Whit Monday
  • Christmas Day
  • Boxing Day

In addition to the usual public holidays, companies can choose to give extra time off, for example on Christmas Eve or New Year’s Eve. There are also differences regarding Labour Day and Constitution Day, depending on where you work or what kind of work you do.

Sometimes you can get a whole day off for these extra holidays, sometimes just a half day. Check with your employer for details.

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For members

WORKING IN DENMARK

Can foreigners lose their Danish work permits if they take part in strikes?

Membership of a trade union in Denmark can occasionally result in your union requiring you to take part in industrial action by going on strike. But can that put foreign workers at risk of losing their work permits?

Can foreigners lose their Danish work permits if they take part in strikes?

Around two-thirds of people in employment in Denmark are members of a trade union.

Union membership forms a core part of Denmark’s “Danish model” by which the labour market regulates itself through collective bargaining agreements between the trade unions and employer organisations.

These agreements form the basis of salaries – rather than laws – and also ensure standards for working hours and vacation time under the agreements made in various labour market sectors.

As such, it’s common to be a union member in Denmark and foreign nationals working in the country are also likely to find it in their interests to join a union.

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One aspect of union membership is that members may be required to participate in industrial action, such as strikes, blockades, or solidarity actions.

For example, the 2021 Danish nurses strike organised by the Danish Nurses’ Organisation (DSR), which represents 95 percent of nurses in Denmark.

“The nurses’ strike is an example of the results of unsuccessful negotiations on the renewal of their collective agreement,” Peter Waldorff, international consultant at FH, Denmark’s largest trade union confederation, told The Local.

In this case, he continued, DSR called the strike and decided which members would be required to withdraw from work to join the strike. As the strike continued from June to August 2021 (one of the longest strikes in recent Danish history), an increasing number of union members were called to strike until the dispute was resolved. 

In such a situation, it is conceivable that some of the workers asked to take part in the strike would be foreign nationals from countries outside of the EU or EEA, who need a work permit to take employment in Denmark.

READ ALSO: How can you get a work permit in Denmark if you are not an EU national?

Foreign employees who are union members would participate in the strike just as Danish members would.

Although the employees involved in the strike would stop receiving their salaries they would instead receive conflict aid from the union, “meaning the person would not need to receive dagpenge or other social aid,” Stine Lund, senior legal consultant at the Danish Society of Engineers (IDA), a trade union for engineering, science, and IT professionals, told The Local

That is an important distinction for internationals working in Denmark because receiving social benefits can impact the ability to fulfil work permit criteria.

The employer would also be required to re-employ all employees once the conflict is resolved, Lund added. 

According to FH’s legal department, Waldorff said, participation in legally-called industrial action should not affect work permits. 

The Danish Agency for International Recruitment and Integration (SIRI) confirmed this to be the case.

“Third-country citizens will not have their residence permit revoked on the basis of employment, if they don’t work at their employer due to the reason that they participate in a legal labour dispute during their employment. EU/EEA citizens residing in Denmark will not lose their right to reside in Denmark on the basis of participating in a legal labour dispute,” SIRI said in a statement to The Local.

Although foreign workers can be asked to strike, the likelihood they will have to remains relatively low.

“In Denmark, strikes are relatively rare,” Waldorff said.

In the academic labour market, collective agreement conflicts almost never happen, according to Lund.

“We haven’t been in a situation where that measure has been taken for many, many years,” she said.

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