Salary during holiday in Denmark is a specific legal right that allows employees to receive their standard monthly pay while taking time off from work. If you have this right, your employer continues to pay your normal salary when you are on vacation, just as if you were working. You do not lose income when you take your legally mandated rest days.
This concept is primarily tied to your employment contract and your job category. In the Danish labor market, workers are generally divided into two groups regarding holiday compensation. You either receive your regular salary during your holiday, or you receive a separate percentage-based payout to cover your time off.
For many foreign workers and expats, the Danish holiday system can seem highly complex. The rules dictate exactly how you earn your paid time off, when you can spend it, and what happens to your money if you change employers. Understanding these rules is vital to ensure you receive the correct compensation.
Danish Terminology: Holiday Pay Concepts
To navigate the Danish labor market, you must understand the local terminology. The system relies on specific legal concepts that do not always have a direct equivalent in other countries.
| Danish Term | English Translation | Brief Explanation |
|---|---|---|
| Løn under ferie | Salary during holiday | Receiving your normal monthly salary while you are on vacation. |
| Feriepenge | Holiday allowance | A 12.5% payout earned by hourly workers instead of paid time off. |
| Ferietillæg | Holiday supplement | An extra 1% bonus paid to employees who receive salary during holiday. |
| Ferieloven | The Holiday Act | The national law dictating that all workers get 5 weeks of holiday. |
| Feriefridage | Extra holiday days | A 6th week of holiday often granted through collective agreements. |
| Funktionær | Salaried employee | A white-collar worker covered by specific protective labor laws. |
The distinction between these terms dictates how your finances are handled when you take time off. If your contract states you get “løn under ferie”, you will not receive the 12.5% “feriepenge”. Instead, your monthly paycheck remains unchanged when you go on vacation, and you receive the smaller “ferietillæg” as a bonus.
Understanding your exact status is the first step in verifying your payslip. Many expats mistakenly look for large holiday payouts in their bank accounts, not realizing that their holiday compensation is already built into their uninterrupted monthly salary.
Who is Entitled to Salary During Holiday?
Your right to receive your normal salary while on vacation is determined by the Salaried Employees Act (Funktionærloven). This is a foundational piece of Danish labor law that protects white-collar workers.
To be classified as a salaried employee under this act, you must meet specific criteria. You must work at least 8 hours per week on average. Your work must be of a commercial, administrative, technical, or clinical nature. You must also work under the instruction and supervision of your employer.
If you meet these criteria, you are legally entitled to receive your normal salary during your holiday. Your employer cannot force you to accept a different primary holiday compensation model. This applies regardless of whether you are a Danish citizen or an international worker.
Hourly paid workers, such as those in construction, hospitality, or manufacturing, are typically not covered by this act. Instead of receiving their normal wage during time off, they earn a 12.5% holiday allowance Denmark. This money is paid into a central system and disbursed when the worker actually takes their vacation.
How Earning and Taking Holiday Works
Denmark operates under a concurrent holiday system (samtidighedsferie). This means you earn your paid holiday and can spend it almost immediately. You do not have to work for a full year before you are allowed to take paid time off.
Every employee in Denmark earns 2.08 days of paid holiday for every month of employment. This adds up to 25 days, or 5 full weeks, over a 12-month period. If you start a new job on September 1st, you will have earned 2.08 days of paid holiday by the end of September, which you can use in October.
The Danish holiday system operates with two specific timeframes. The “Holiday Year” (Ferieåret) runs from September 1st to August 31st. This is the 12-month period during which you earn your 25 days of holiday.
The “Holiday Taking Period” (Ferieafholdelsesperioden) is longer. It runs from September 1st to December 31st of the following year. This gives you 16 months to spend the 25 days of paid holiday you earned during the 12-month Holiday Year.
Taking Paid Holiday in Advance
Because expats often arrive in Denmark without any saved holiday from a previous Danish employer, the concurrent holiday system includes a helpful provision. You can make an agreement with your employer to take paid holiday in advance (forskudsferie).
If you want to take a week off for Christmas but have only earned a few days since starting your job in November, your employer can allow you to “borrow” paid holiday days. You will receive your normal salary during this time off.
The borrowed days will then be deducted from the holiday days you earn in the subsequent months. If you resign from your job before you have earned back the borrowed days, your employer has the right to deduct the value of those days from your final paycheck.
The Holiday Supplement (Ferietillæg)
If you receive your normal salary during your holiday, the Danish Holiday Act states that you are also entitled to a special holiday supplement. This is known as “ferietillæg”.
The legal minimum for this supplement is 1% of your gross salary earned during the qualifying year. It serves as a small financial bonus to help cover the extra expenses typically associated with taking a vacation, such as travel or leisure activities.
Employers usually pay out this supplement in two fixed installments. The first installment is paid with your May salary and covers the holiday earned from September to May. The second installment is paid with your August salary and covers the holiday earned from June to August.
Some employers choose to pay the supplement concurrently when you actually take your holiday days, but the fixed payouts in May and August are the most common standard in the Danish labor market.
The Role of the Danish Model and Collective Agreements
To fully understand your holiday rights, you must understand “The Danish Model” (Den Danske Model). In Denmark, the labor market is largely regulated by agreements between employer associations and trade unions, rather than by strict statutory laws dictated by the government.
These agreements are called Collective Agreements (Overenskomst). While the national Holiday Act guarantees 5 weeks of paid holiday, a collective agreement will often grant you a 6th week of paid time off. These extra days are known as “feriefridage”.
Because feriefridage are not governed by the national Holiday Act, the rules for earning and using them depend entirely on your specific collective agreement or individual employment contract. Some agreements allow you to carry these days over to the next year, while others allow you to have them paid out in cash if unused.
Furthermore, collective agreements often increase the holiday supplement. While the law mandates a 1% supplement, many collective agreements dictate a supplement of 1.5%, 2%, or even higher for employees receiving salary during holiday.
What Happens When You Change Jobs?
A common concern for expats is what happens to their earned paid holiday when they resign or are terminated. You do not lose the value of the holiday you have earned, even if you leave the company before taking the time off.
When your employment ends, your right to receive “salary during holiday” from that specific employer ends. Instead, your employer must calculate the value of your unused holiday days. This is converted into a cash value equal to 12.5% of your qualifying salary.
Your former employer transfers this money to FerieKonto, the national Danish holiday fund. When you take time off at your new job, you will request this money from FerieKonto to cover your income, since you will not have earned enough paid days at the new company yet.
Your new employer will deduct your pay for the days you take off, and the money from FerieKonto will replace that lost income. This ensures your holiday finances remain intact across different employments.
Illness Before or During Your Holiday
Danish labor law provides strong protections if you fall ill in connection with your planned holiday. If you become sick before your holiday begins, you are not required to use your paid holiday days while you are ill.
You must notify your employer about your illness before your normal working hours begin on the first day of your planned holiday. Your holiday is then officially suspended. You will receive your normal sick pay, and you retain the right to take your paid holiday at a later date.
If you fall ill after your holiday has already started, the rules are slightly different. You must report your illness to your employer immediately. You are subject to a “waiting period” of 5 holiday days per holiday year.
This means the first 5 days of illness during your holidays are at your own expense (you consume your holiday days). After these 5 days, you are entitled to replacement holiday days for the remaining duration of your documented illness. You will need a medical certificate from a doctor to prove your illness.
Company Shutdowns During Holidays
Many Danish companies shut down completely during specific periods, most commonly between Christmas and New Year, or for a few weeks in July. This is known as a “virksomhedslukning”.
If your company shuts down, your employer can dictate that you must take your paid holiday during this period. However, they must give you proper notice. For the main summer holiday, they must notify you 3 months in advance. For other holidays, they must notify you 1 month in advance.
If your employer forces you to take holiday during a shutdown, but you have not earned enough paid holiday days to cover the period, your employer must generally pay your salary anyway. They cannot force you to take unpaid leave due to their decision to close the office, provided you have been employed for the entire holiday year up to the shutdown.
A-kasse and Trade Union Roles in Holiday Disputes
Foreign workers often confuse the different labor organizations in Denmark. If you experience issues with your holiday pay, you must contact the correct organization for help.
If you are wondering what is an a-kasse, it is an unemployment insurance fund. An A-kasse is responsible for paying out unemployment benefits if you lose your job. If you are unemployed and take a holiday, you must notify your A-kasse, as you cannot receive what is dagpenge (unemployment benefits) while you are on vacation.
An A-kasse does not help you sue your employer or negotiate your contract. If your employer refuses to pay your salary during your holiday, or miscalculates your holiday supplement, your A-kasse cannot intervene.
For legal disputes with your employer, you need to join trade unions in Denmark (fagforeninger). A trade union provides legal representation, reviews your employment contract, and ensures your employer complies with the Salaried Employees Act and the Holiday Act. They will take your employer to court if your holiday rights are violated.
Financial Deductions and Taxes on Holiday Pay
Your salary during holiday is taxed exactly like your regular working salary. Because you are simply receiving your standard monthly paycheck, your normal tax deductions apply automatically.
You will pay the labor market contribution (AM-bidrag), which is an 8% tax deducted from your gross salary before other income taxes are calculated. After the AM-bidrag is deducted, your standard A-tax (A-skat) is applied based on your personal tax card.
The holiday supplement (ferietillæg) is also fully taxable. When it is paid out in May and August, it is added to your gross salary for that month. AM-bidrag and A-tax are deducted from the total amount before it reaches your bank account.
If you resign and your unused holiday is converted into 12.5% feriepenge, your employer will deduct AM-bidrag and A-tax before transferring the net amount to FerieKonto. When you later request the money from FerieKonto, it is paid out tax-free, as the taxes were already settled upon your resignation.
Common Misconceptions for Expats
The Danish holiday system is highly structured, leading to several common misunderstandings among international workers.
A frequent misconception is that you can simply choose to work through your holiday and get the days paid out in cash as a bonus. Danish law strictly prohibits this. The Holiday Act exists to ensure workers rest and recover. You are legally required to take at least 4 weeks of holiday per year. You cannot exchange these mandatory rest days for a cash payout while remaining employed.
Another misunderstanding occurs when expats start their first job in Denmark. Many assume they immediately have 5 weeks of paid holiday available. Because Denmark uses a concurrent earning system, you start with zero days. You must work to earn the days, accumulating 2.08 days per month. If you take a 3-week vacation in your second month of employment, the majority of that time off will be unpaid.
Finally, expats often misinterpret their final paycheck when leaving a job. They expect their normal monthly salary plus a massive bonus for unused holiday. Instead, the final paycheck covers the days worked in the final month, while the value of the unused holiday is sent directly to FerieKonto. You do not get this money in hand immediately; you must claim it when you actually take your next vacation.
