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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.

Member comments

  1. Want to mention that for those on sponsored visas you can’t necessarily take unpaid holiday as SIRI may then question your visa status.

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For members

WORKING IN DENMARK

Foreign workers report increased appeal of Denmark and Copenhagen in study

A new study has placed Denmark first in the Nordic region and 17th in the world in terms of popularity among foreign workers.

Foreign workers report increased appeal of Denmark and Copenhagen in study

A global study by Boston Consulting Group and The Network, in which Danish jobsearch site Jobindex participates, found that Denmark is punching above its weight globally when it comes to presenting itself as an attractive option for foreign staff.

A high ranking in the study is good news given Denmark’s high employment rate and difficulty reported by businesses filling long and short-term positions, the Boston Consulting Group said in a press release.

The study, Decoding Global Talent 2024, was released on Wednesday. The study has been conducted on repeated occasions since 2014, gauging the preferences of international workers.

It is the largest study of its kind in the world and with over 150,000 respondents from 185 countries including 11,000 from Denmark.

“It’s very impressive that Denmark takes a top position on the list. We are far from being the 17th-largest country in the world. The highest places naturally go to the English-speaking countries where most people have the language,” Boston Consulting Group’s Managing Director and Senior Partner Andreas Malby said in the statement.

“But foreign labour wants to go to Denmark because of quality of life and security in this country,” Malby added.

Individual countries’ performance in the study is based on the subjective perceptions of workers around the world, who submit votes. In addition to quality of life and security, other factors such as economic growth, tax, healthcare and work permit and visa processes can all influence the perceptions of survey respondents of how countries brand themselves.

Denmark’s ranking this year is an eight-place improvement since the last time the study was conducted in 2021. The 17th spot achieved this year puts it ahead of Nordic neighbours Sweden, Norway and Finland in the ranking.

Copenhagen also popular

Capital city Copenhagen rates well on the city version of the list, its 28th place also ahead of Nordic rivals.

“It reflects Denmark’s good image that manages to attract international labour,” the CEO of Jobindex, Kaare Danielsen, said in the statement.

Danielsen described the study as “big and good news for Danish employers who face a shortage of staff in the short and long terms”.

“We are looking at an international shortage of labour in areas like green transition and AI where it is hugely important for us to attract international labour,” he said.

Danielsen noted that the results of the study point to a potential for Denmark to recruit more labour from southern Europe, where it has a high level of appeal for skilled workers.

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