Feriepenge, which translates directly to holiday money, is the foundation of holiday pay Denmark offers to all its wage earners. It is a mandatory financial benefit designed to ensure that employees, including foreign workers and international students, receive an income while taking time off work. The Danish holiday system is strictly regulated to protect workers from burnout and financial instability during their vacations.
Every person legally employed in Denmark earns the right to paid time off, regardless of their nationality or the type of contract they hold. The system can initially seem highly complex to expats who are used to simply receiving a set number of paid days off per year. In Denmark, holiday pay is treated as a distinct financial asset that you accrue month by month.
Depending on your employment contract, your holiday pay will either be managed directly by your employer or deposited into a central public registry. Understanding how this system operates is crucial for expats. Failing to understand the rules can result in lost payouts, missed deadlines, or confusion when transitioning between jobs.
Danish Terminology: Core Holiday Pay Concepts
To navigate the Danish labor market, you must understand the specific vocabulary used by employers and public authorities. The table below breaks down the most important terms related to the Danish holiday system.
| Danish Term | English Translation | Brief Explanation |
|---|---|---|
| Feriepenge | Holiday allowance | A financial compensation equal to 12.5% of your gross wage, earned by hourly workers and deposited into a public account. |
| Løn under ferie | Salary during holiday | The right to receive your normal monthly salary while taking time off, typically granted to salaried white-collar workers. |
| FerieKonto | Holiday Account | The central public registry managed by the Danish government where employers deposit holiday pay for hourly workers. |
| Ferieår | Holiday year | The 12-month period running from September 1 to August 31 during which you earn your holiday days. |
| Ferieafholdelsesperiode | Holiday taking period | The 16-month period running from September 1 to December 31 of the following year during which you can spend your earned days. |
| Ferietillæg | Holiday supplement | A mandatory extra bonus of at least 1% of your annual gross salary, paid to salaried employees who receive normal pay during holidays. |
The distinction between these terms dictates exactly how and when you receive your money. If your contract states you are an hourly worker, you will interact heavily with FerieKonto to claim your funds. Your employer calculates 12.5% of your gross earnings every month and sends this money to the public registry.
If you are a salaried employee, you will rarely interact with FerieKonto. Instead, your employer simply continues to pay your normal monthly wage while you are on vacation. You will also receive the mandatory holiday supplement, usually paid out in May and August, as a small financial bonus for your time off.
The Concurrent Holiday Act (Samtidighedsferie)
Denmark operates under the Concurrent Holiday Act, known locally as Samtidighedsferie. This system allows you to earn and spend your holiday days at the same time. You do not have to work for a full year before you are allowed to take paid time off.
As soon as you earn holiday days in one month, you can spend them in the following month. This is highly beneficial for newly arrived expats and international students. If you start a new job in January, you will have already earned enough paid days to take a short vacation by March or April.
The Holiday Year vs. The Holiday Taking Period
The Danish holiday calendar does not follow the standard calendar year. The “Holiday Year” (Ferieår) strictly runs from September 1 to August 31. This is the 12-month window during which you actively accrue your holiday days.
However, the “Holiday Taking Period” (Ferieafholdelsesperiode) is 16 months long. It starts on September 1 and extends all the way to December 31 of the following year. This four-month overlap gives employees flexibility. It ensures you have ample time to use the days you earned late in the summer without losing them immediately.
How You Earn Holiday Days in Denmark
Every employee in Denmark earns exactly 2.08 holiday days for every month of employment. Over a full 12-month holiday year, this perfectly totals 25 days, which equates to five weeks of mandatory paid vacation.
This accrual rate applies to everyone, regardless of whether you work full-time, part-time, or hold a student job. If you work a part-time job of 15 hours a week, you still earn 2.08 days per month. However, when you take one of those earned days off, it simply covers the value of your normal part-time shift, not a full 37-hour working day.
If you do not work a full month, your earned days are calculated proportionally. For example, if you start a new job halfway through the month, you will earn roughly 1.04 days for that specific month. Employers are legally required to report these earned days to the Danish tax authorities every month.
Two Different Systems: Salaried vs. Hourly Workers
Your employment contract determines how your holiday pay is processed. The Danish labor market divides workers into two main categories regarding vacations: those who receive salary during holiday and those who receive a separate holiday allowance.
You must check your contract to see which category applies to you. This distinction dictates whether you need to actively claim your money from the government or if your employer handles everything internally.
Salaried Employees and Funktionærloven
If you are hired as a white-collar worker, such as an office worker, IT professional, or manager, you are likely covered by Funktionærloven. This is the Salaried Employees Act, a specific set of Danish laws designed to protect administrative and professional workers.
Under this act, you are entitled to your normal monthly salary while you are on vacation. You do not lose any income when you take time off. Because you are simply paid your regular wage, your employer does not send 12.5% of your salary to FerieKonto.
Additionally, Funktionærloven guarantees you a holiday supplement (Ferietillæg). This is an extra payment of at least 1% of your total gross salary earned in the previous qualifying year. Employers typically pay this supplement directly into your bank account in two installments, usually in May and August.
Hourly Workers and FerieKonto
If you work in retail, hospitality, cleaning, or hold a typical student job, you are usually classified as an hourly worker. Hourly workers are not covered by Funktionærloven. Instead of receiving your normal pay when you take time off, you earn a separate holiday allowance.
For every hour you work, your employer must calculate 12.5% of your gross wage. This money is deducted and sent to the public registry, FerieKonto. When you want to take a vacation, you will not receive a paycheck from your employer for those days. Instead, you must log into the public system and request your accumulated funds to cover your living expenses during your time off.
The Danish Model and Collective Agreements
To fully understand the Danish labor market, expats must understand “The Danish Model” (Den Danske Model). Unlike many other countries, Denmark has very few strict labor laws dictating things like minimum wage or exact notice periods. Instead, the labor market is regulated through collective agreements known as Overenskomst.
These agreements are negotiated directly between employer associations and trade unions in Denmark. If your workplace is covered by a collective agreement, you will often receive benefits that go far beyond the legal minimums set by the government.
Extra Holiday Days (Feriefridage)
The national law guarantees five weeks of paid holiday. However, many collective agreements secure a sixth week of paid vacation for employees. These extra days are known as Feriefridage or the 6th holiday week.
Because these extra days are born from union negotiations and not national law, the rules for using them vary wildly. Some workplaces allow you to transfer them to the next year, while others require you to use them or have them paid out as a cash bonus. You must consult your specific contract or union representative to understand how your Feriefridage are managed.
How to Claim Your Feriepenge via Borger.dk
If you are an hourly worker, your holiday pay sits in the public FerieKonto system until you claim it. You cannot simply ask your employer for the money. You must follow a strict digital process to have the funds released to your bank account.
You must claim the money before you actually go on vacation. The system is designed to ensure you have the funds available to support yourself while you are not receiving a regular paycheck.
Step-by-Step Claiming Process
First, you must agree on the vacation dates with your employer. Once your time off is approved, you log into the public portal Borger.dk using your MitID. This is your secure digital signature in Denmark.
Navigate to the Feriepenge section. The system will show you exactly how many days you have earned and the total monetary value attached to them. You then input the specific dates you will be away from work and specify how many of your earned days you wish to spend.
Once you confirm the request, the government processes the payment. The money is automatically transferred to your NemKonto, which is your designated primary Danish bank account. The funds usually arrive a few days before your first day of vacation.
A-kasser, Trade Unions, and Holiday Pay
Foreign workers often confuse the roles of an A-kasse (unemployment insurance fund) and a Fagforening (trade union). Both organizations play entirely different but crucial roles regarding your holiday pay and your overall security in the Danish labor market.
A trade union is an organization that negotiates your collective agreement and provides legal support. If your employer goes bankrupt or illegally refuses to pay your earned holiday allowance, your trade union will provide lawyers to fight for your stolen wages. Trade unions cater to specific industries, meaning you must choose one that aligns with your profession.
Conversely, you might wonder what is an a-kasse and how it relates to holidays. An A-kasse is a financial institution that provides unemployment benefits. If you lose your job, the A-kasse ensures you still have an income. They cater to all workers, though some specialize in specific educational backgrounds.
Taking Holidays While Unemployed (Feriedagpenge)
If you are unemployed, you are required to be actively seeking work and available for the labor market. This means you cannot simply take a vacation whenever you want. If you wish to travel or take time off from job hunting, you must notify your A-kasse and the job center.
When you take approved time off while unemployed, you stop receiving standard unemployment benefits. Instead, you may be eligible for Feriedagpenge (holiday unemployment benefits). This is a specific type of holiday pay administered by your A-kasse.
To receive this, you must have earned the right to it during previous employment or previous periods of unemployment. Understanding what is dagpenge is essential here, as the holiday version of this benefit follows strict daily rates and eligibility rules set by the government, not your former employer.
Taxation and Deductions on Holiday Pay
Holiday pay is considered standard income in Denmark, which means it is fully taxable. Expats are sometimes surprised to see that the amount deposited into their FerieKonto is lower than they calculated. This is because taxes are deducted before the money reaches the public registry.
The first deduction is the AM-bidrag (labor market contribution). This is a mandatory 8% gross tax applied to all income in Denmark. Your employer deducts this 8% before calculating your 12.5% holiday allowance.
After the AM-bidrag is removed, your standard A-tax (income tax) is also deducted based on your personal tax card. The final amount that appears on Borger.dk is your net holiday pay. Because the taxes have already been paid, the amount you see on the screen is exactly what will be transferred to your bank account.
Rules for Expats Leaving Denmark
When international students or foreign workers decide to leave Denmark permanently, they often leave behind unspent holiday pay. The Danish system has specific protocols to ensure you do not lose the money you have legally earned.
If you are deregistering your Danish CPR number and moving abroad, you are entitled to have all your accrued holiday pay paid out as a lump sum. You do not need to take actual time off to claim this money.
To trigger this payout, you must officially deregister from the national registry (Folkeregisteret). Once the system registers that you have left the country, you can log into Borger.dk and request a final payout of your FerieKonto balance. You must ensure your NemKonto remains active long enough to receive the final transfer.
Common Pitfalls for Foreign Workers
The Danish holiday system is rigid, and missing deadlines can result in the permanent loss of your earned money. The most common pitfall for expats is forgetting the December 31 deadline.
The holiday taking period ends on December 31. If you have unspent holiday days remaining in your account after this date, the money is typically transferred to a national holiday fund (Arbejdsmarkedets Feriefond). You lose the right to claim it unless you have made a prior written agreement with your employer to transfer the days to the next holiday year.
Another frequent misunderstanding involves the transition from a student job to a full-time salaried position. As a student, you earn hourly holiday pay deposited into FerieKonto. When you graduate and start a salaried job, you begin earning paid time off under Funktionærloven. However, you can still claim the FerieKonto money earned during your student job while taking paid days off at your new job, provided you follow the correct digital reporting steps.
