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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 S'well 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 between 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, what kind of work you do, or the collective bargaining agreement under which you are employed.

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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WORKING IN DENMARK

Danish businesses repeat call for foreign workers amid labour shortage

Local authorities and a major business interest organisation have urged Denmark’s government to address a labour shortage.

Danish businesses repeat call for foreign workers amid labour shortage

Unmet demand for labour in both private businesses and the public sector has reached a crisis point, according to an appeal to the government to reach a broader labour agreement. 

Parliament must renew its efforts to find a new national compromise which will secure more labour, the National Association of Municipalities (Kommunernes Landsforening, KL) and the Confederation of Danish Industry (Dansk Industri, DI) said according to financial media Finans.

“The parties [in parliament] must be honest with voters and start a completely different and strict prioritisation of what the public sector can offer people,” mayor and KL chairperson Martin Damm told news wire Ritzau.

“Otherwise, the parties must find the labour needed for private companies to provide growth and wellbeing, and for us at municipalities to have the staff and economy to deliver the services people expect,” he said.

The municipalities will need 44,000 additional employees by 2030 due to increasing numbers of children and elderly in the population, according to KL.

Short the lack of labour persist, municipal governments could be forced to reduce the priority of services such as cleaning for elderly residents, according to Damm.

Danish businesses are finding it harder than ever to recruit staff and could hire 38,000 new workers immediately if they were available, according to DI, which represents the interests of about 19,000 Danish companies. 

Lars Sandahl Sørensen, managing director of DI, firmly believes the answer to the labour shortage lies outside Danish borders. 

“We will need many more foreigners,” Sørensen told Finans.

“It is not about getting cheap labour, but about getting people at all. We are in a situation where we do not have employees to carry out the things on green conversion that we have already decided to do, and that we would like to do on health and welfare,” he said.

Employment minister Peter Hummelgaard told Finans that the government agreed a deal on international recruitment shortly before the summer break.

READ MORE: How can you get a work permit in Denmark if you aren’t an EU national? 

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