Holiday

Holidays: Payment of frozen holiday pay

Do you have questions about the new Holiday Act and frozen holiday money? Here you can find the answers to a number of questions about the payout.

Disclaimer: This page has been automatically translated. It may contain grammatical inaccuracies, but the content is guaranteed to be correct.

Payment of frozen holiday pay:

In the period 1 September 2019 - 31 August 2020, you have earned holiday pay, which is frozen in a special fund, Lønmodtagernes Feriemidler. The reason is that in the period 1 January 2019 - 31 August 2020, we have had a transitional arrangement in connection with a new holiday law coming into force on 1 September 2020.
 
The frozen holiday pay is paid out when you:
  • transfer to a national pension
  • leave the labour market to receive payment from a pension scheme financed by your employer
  • are granted early retirement or senior pension
  • are transferred to early retirement pay
  • are granted flexi-benefits

In other words, the condition is that you must have left the labour market permanently. 

However, the Folketing passed a new law, which means that 3 weeks of holiday pay saved in the period 1 September 2019 - 31 March 2020 could be applied for in the autumn of 2020.

The last 2 weeks of holiday pay earned in the period 1 April - 31 August 2020 or the full amount for the entire period 1 September 2019 - 31 August 2020 can now be applied for this spring at the end of March. The exact date has not yet been announced and therefore keep an eye on Lønmodtagernes Feriemidler (borger.dk)
 
You must actively apply for payment of the amount and if you do nothing, the amount will remain standing and will not be paid out until you become a national pensioner or leave the labor market.

When can you apply for disbursement of your holiday pay?

Once you have requested payment, you will receive a letter stating the amount and time of payment. The amount is transferred to your NemKonto approx. 2 weeks after you requested payment.

If you do not apply for payment within the said deadline, the amount will only be paid when you retire or leave the labour market. The amount is taxed as ordinary A-income.

The first payment in the autumn

If you applied for payment of frozen holiday pay in the autumn, this amount was calculated from your AM income incl. The AM contribution. The reason was that the employer had a deadline of 31 December 2020 for reporting your holiday pay, which is why the Employees' Holiday Fund did not know your holiday pay in connection with the early payment of your holiday pay.
 
This approach means that the basis for calculating your holiday pay in connection with the first payment did not take into account e.g. the holiday that you took in the period September 2019 - August 2020 or whether you were on maternity leave during the period. 
At the beginning of 2021, you will receive a statement from the Employees' Holiday Fund on the basis of the report from the employer. If you cannot get the amount to match your pay slips, you must first contact your employer. 

How is your holiday pay calculated?

Your holiday pay is calculated from your salary incl. your possible pension contribution (employer's contribution must not be included), any benefits such as free telephone, free car, fixed allowances, bonus / commission, one-time allowance, overtime pay and similar wage shares that you receive as wages for work performed.

Please note that the bonus is included based on when you earned the bonus and not based on when the amount was paid out. If you have earned a bonus in the period 1 September 2019 - 31 August 2020, which you only received payment after the end of the period, the amount must be included in the basis for calculating your holiday pay. If you have received a bonus payment in the period earned before 1 September 2019, this amount must not be included. 

Holiday supplements that you have received in the period 1 September 2019 - 31 August 2020 must not be included. Holidays taken during the period must also not be included in the calculation basis. The reason is that you are not entitled to holiday pay from paid holiday or holiday pay. 

 

This means that the holiday you have taken must be deducted with a value of 4.8% of your monthly salary per. held holiday. 

Example:

Your monthly salary is DKK 40,000.00, and in October 2019 you took a 1-week autumn holiday.
This entails the following deductions:
  • 40,000.00 x 4.8% = DKK 1,920.00 x 5 days = DKK 9,600.00 
  • Salary for October, of which holiday pay must be calculated, amounts to: 40,000.00 - 9,600.00 = DKK 30,400.00.

Have you applied for payment of fund holiday pay?

If you have earned 8.32 or fewer holidays in the period 1 January - 31 August 2020 and have been in work in the period 1 September - 30 December 2019, you can apply for up to 8.32 fund holiday days, which you can take in the short holiday year 1 May - 31 August 2020.

If you have received payment of foundation holiday days, the amount will be deducted from the holiday pay that you have earned in the period 1 September 2019 - 31 March 2020. The amount that you can apply for payment of until October will then be a lower amount.

Are you unemployed or on early retirement?

If you have been in a job in the period 1 September 2019 - 31 August 2020 and are now unemployed or on early retirement pay, you can apply for payment of the holiday pay without offsetting your unemployment benefit or your early retirement pay. As an unemployed person, you do not earn frozen holiday pay, as holiday pay is only earned from salary and not from unemployment benefits.

Have you been on maternity leave?

Read more about maternity leave and frozen holiday pay here.