Applications for holiday allowance (feriepenge) in Denmark

Application for holiday allowance (feriepenge) in Denmark

Denmark is one of the few countries where the Feriepenge system is applied. This social benefit significantly raises the standard of living of workers and plays a key role in shaping the labor market. Anyone who has worked, is working or is planning to start working in Denmark should be aware of Feriepenge, a vacation benefit. Feriepenge is additional money paid by the state to our NemKonto, to which we are entitled, provided that the employer has made regular contributions. However, there are several important factors and conditions that we must meet in order to receive these funds.

The Feriepenge vacation benefit is available to employees employed by Danish employers. From each paycheck, a certain percentage of salary is paid into a vacation fund. The funds can be used to finance a vacation or can be reclaimed when the employee leaves Danish employment. If you work in Denmark, having a good understanding of feriepenge (holiday allowance) rules will help you plan your time off during the summer and throughout the year.

The Feriepenge system also brings many benefits to the Danish economy. Improved quality of life for employees translates into better health and well-being, which can have a positive impact on their performance and productivity. In addition, Feriepenge helps ensure a work-life balance, which attracts professionals from different fields to Denmark.

Our company specializes in supporting employees in obtaining vacation benefits in Denmark. Take advantage of our professional assistance in completing your Feriepenge application. We guarantee a fast, safe and hassle-free process for getting the benefits you are due.

What is feriepenge?

Feriepenge is a Danish vacation benefit given to employees to finance their vacation. It is designed to help working people accumulate funds for their vacation without straining their budget. The amount of Feriepenge depends on the employee’s gross salary, averaging around DKK 10-15 thousand. With Feriepenge, employees can enjoy a variety of vacations, from vacations abroad to visiting tourist attractions in the country.

This benefit is available to any person working legally in Denmark. The employer pays 12.5% of the employee’s gross salary to the Danish FerieKonto. Labor market contributions and any income tax are deducted from the gross amount of feriepenge. FerieKonto directly transfers the employee’s vacation money to his NemKonto.

For each month worked, the employee acquires about 2.08 days of vacation, which amounts to a total of 25 days, or 5 weeks, per year. Vacation leave can be taken with some time off. For example, if you have worked the entire year 2024, the earned vacation can be used from May 1, 2025 to the end of April 2026. It is important that 3 weeks of vacation be taken during the so-called holiday period, which runs from May 1 to September 30.

Danish holiday act
The Danish Holiday Act governs vacation days and holiday allowances, setting out the rules and requirements for vacation entitlements. In September 2020, Denmark introduced new regulations to ensure that all employees receive the same level of holiday allowance.

The act specifies how vacation days can be accrued and paid out. Every employee in Denmark is entitled to a minimum of 25 vacation days per year.

Generally, employees earn vacation days at a rate of 2.08 days per month worked. Depending on the collective agreement, some employees may be entitled to more than five weeks of vacation.

Under the new Danish Holiday Act, if you are an employee not covered by the collective holiday agreement, you are entitled to a specific amount of holiday allowance to supplement your income during your vacation.

Individuals employed by a company registered in Denmark and who pay Danish taxes are generally entitled to holiday pay, as they fall under the regulations of the Danish Holiday Act (ferieloven). However, you are not considered an employee if, for example, you are self-employed, serve as a board member for the company you work for, or are unemployed.

What are the requirements for Feriepenge?

What documents are required to apply for Feriepenge payment?
To apply for Feriepenge payment, you will usually need a completed application form and documents proving your employment and vacation leave entitlement. The exact requirements may vary from one Feriepenge fund to another, so we recommend contacting your fund for details. Required documents:

• If you do not have a NemID, you will need a copy of the employment contract to which the paid vacation funds apply.
• Information about the first day of vacation and the number of vacation days.
• If the Feriepenge payment is related to leaving the Danish labor market, the date of your last day of work will be necessary.

Can Feriepenge be paid out earlier?
Normally, Feriepenge is paid during the summer. However, if you urgently need an earlier payout, it is advisable to contact the relevant Feriepenge fund and discuss your situation. Some funds may offer flexible withdrawal policies to accommodate exceptional circumstances.

Is it possible to opt out of Feriepenge?
If you do not wish to receive Feriepenge and prefer another option, contact the relevant Feriepenge fund and inform them of your decision. There may be alternative options, such as donating the benefit to charity or other forms of social support. In any case, it is a good idea to consult directly with the Feriepenge fund to discuss your preferences and find the best solution.

Do I have to be a Danish citizen to receive Feriepenge?
You do not need to be a Danish citizen to receive Feriepenge, but you do need to be employed in Denmark and pay contributions to the Danish social security system.

Can I receive Feriepenge for previous years?
The possibility of receiving Feriepenge for previous years depends on the individual circumstances and regulations of the Feriepenge fund in question. In some cases, there is a specific time limit within which you can claim the benefit for previous years. We recommend that you contact your Feriepenge fund directly for details.

Can I receive Feriepenge if I work part-time?
Yes, if you work part-time, you may also be eligible to receive Feriepenge. The amount of the benefit paid will be proportional to your employment and the amount of time worked in a given year. We recommend contacting the relevant Feriepenge fund for exact information.

How to fill out a holiday allowance (Feriepenge) application?

Applying for Feriepenge payout is simple – just fill out the relevant documents, provide the date you finished working in Denmark or, if you are still working, provide the days of annual leave taken. An additional requirement is that you have a CPR tax number. Our specialists check the correctness of the documents, send them to the Danish office and contact the officials on behalf of our clients. The entire procedure finalizes with the withdrawal of Feriepenge funds to the taxpayer’s NemKonto.

The application is done electronically by logging on to borger.dk with your NemID. You then complete the step-by-step instructions displayed. The application is sent to the payer of vacation benefits, which can be the employer or the Feriekonto organization. Once the application is approved, the money will be sent to your NemKonto (the designated account for settlements with Danish authorities).

If you did not receive the money automatically, you can have your vacation funds paid out by filling out an application and submitting it via the application at blanket.virk.dk.

Filling in the employee data:

• Name of the employee: details of the person applying for Feriepenge payment.
• CPR No.: the employee’s personal number consisting of 10 digits.
• Employee number: enter the employee’s number if it was provided on the vacation statement you received from Feriepengeinfo (skip if you do not have a number).
• Employer’s name: found on each contract (stamped in the upper left corner).
• SE No. (Danish Taxpayer Identification Number): the CVR number of the company you worked for appears on the contract (stamp in the upper left corner).
• Paid by: type FERIEKONTO.
• Choice of reason for claiming holiday pay (fill in only one of the following):
  • I am on vacation/have been on vacation: enter the first day of vacation and the number of vacation days (you are entitled to 2.08 vacation days for one month of work).
  • Leaving the Danish labor market: select the reason for leaving the labor market (last day of work is the date according to the notice or last day of work according to the contract).

Additional information:

• Central Population Register: refers to persons who have registered their residence with a municipality in Denmark and obtained registration there.
• Date: the date of submission of the application.
• Signature: the employee’s own handwritten signature.

Shipping of the application:

• By mail
• Address: Feriepengeinfo Kongens, Vænge 8, 3400 Hillerød, Denmark

By application at blanket.virk.dk:

• Skriv din besked: type the message “Application for payment of feriepenge”.
• Vedhæft dokument: attach the completed application.
• Kontaktoplysninger: enter contact information (name, CPR, address, phone, email).
• Opsummering: check that all information is correct and click SEND

Where to apply for Feriepenge?
The correct place to submit the application is specified in the letter from the Feriekonto office. The applicant should receive this correspondence at the turn of the year or in the first few months of the year. The letter contains information about the number of days to be used, the daily rate and the total accumulated funds. It also tells whether the application should be submitted to the Feriekonto office or directly to the employer. In this way, funds can be recovered for a period of 2-3 years back.

Feriepenge application waiting time
The waiting time for the Feriepenge application to be processed depends on where it is submitted:

• Application at the employer’s premises: it may take several days to process.
• Application at Feriekonto: usually takes 1 to 3 weeks to process.
• Application at private funds: processing time is difficult to determine, as it depends on the number of applications submitted and the capabilities of the company in question.

General process for applying for Feriepenge
To apply for a Feriepenge payment, you must contact the relevant Feriepenge fund that handles the payment of these benefits. These funds are the organizations responsible for managing and paying Feriepenge.

The process of applying for Feriepenge is as follows:

1. Check which Feriepenge fund you are registered with.
2. Contact the fund and ask for a Feriepenge payment request form.
3. Carefully fill out the form and deliver it to the Feriepenge fund by the specified deadline.
4. Wait for confirmation of receipt of the application and Feriepenge payout information.

If you do not meet the requirements to receive Feriepenge, you can consider other options:

• Check whether you qualify for other vacation benefits or forms of financial support.
• Consult with the Feriepenge fund to find out if there are alternative programs or solutions for those who do not meet the standard requirements.
• Plan your vacation expenses in advance to be prepared for a possible lack of additional financial support.

Who is entitled to Feriepenge?

Anyone legally employed in Denmark is entitled to Feriepenge. According to the Danish labor law, employees receive 12.5% of their annual gross salary in the form of Feriepenge. That is, all working people are entitled to an additional financial benefit that they can use during their vacations. These funds are subject to taxation in the amount of about 8%, which means that the employee receives 92% of the amount in their bank account. Employers are required to report the Feriepenge to the relevant tax authority. This benefit is part of a broad social package to protect employees and their families in case of illness or loss of work.

To qualify for Feriepenge:

• An employee must work a minimum of 240 hours per year.
• Feriepenge is not paid if the employee does not plan leave or uses unemployment benefits.
• Employees contracted for the contract or contracted for the contract does not receive Feriepenge, unless these contracts include a clause ensuring the payment of these measures.
• Employees who resigned from work or were exempted, Feriepenge also not eligible. In the event of a change of employment, the money is paid by the previous employer.
• Employees who are paid in the form of piecework or commission may encounter difficulties in receiving Feriepenge. It is a good idea to consult your situation with your employer or consult a labor law specialist.
• Persons employed on temporary contracts can receive Feriepenge if they have worked the appropriate number of hours during the calendar year.

Feriepenge payment

Feriepenge is accumulated throughout the working year and then paid to the employee before the vacation begins, usually in June or July. The exact timing of the payment of this benefit depends on the employer and the individual agreements between him and the employee. However, it is worth remembering that a change in the type of employment or place of work may extend the Feriepenge payment date. The employee should write a short form in Danish or English detailing the months for which they wish to receive Feriepenge. It is also a good idea to attach a scan of an ID card to the form.

How to Claim Your Feriepenge (Holiday Pay) Refund
To apply for your Feriepenge refund, you will need to receive a letter from FerieKonto (National Fund for Holiday Pay) at the end of your employment.

This letter will detail:

• The amount of holiday pay you have accrued
• The number of holiday days you have
• The employers who have contributed to your holiday pay

Vacation funds are automatically paid to NemKonto for those without permanent residence in Denmark. The money is paid 8-10 weeks after the end of the pay month. It is also possible to carry over unused vacation pay to the following year. After the end of work, you can apply for a Feriepenge payment.

Create a NemKonto to Receive Your Holiday Pay
Your holiday compensation or holiday pay is deposited into a NemKonto. A NemKonto is one of your regular bank accounts used primarily by the government to pay you money. This includes payments like tax refunds, child benefits, or pensions. To set up a NemKonto, you can inquire at your Danish bank or visit nemkonto.dk for more information on how to do it

Feriepenge payout dates
Feriepenge pays out the money at the earliest one month before your planned vacation after you submit your application. If you reserve vacation funds less than four weeks before the first day of your vacation, the money will be paid out within four business days.

What does the amount of Feriepenge depend on?
The amount you can claim back depends on several factors. It is important whether you want to cover vacations you have already taken, or whether you are terminating your employment in Denmark and want to be paid all the money you have accumulated.

How is the Feriepenge amount calculated?
If you have taken a vacation, the Feriepenge amount covers the actual number of vacation days for the year. The total funds received is the number of possible days multiplied by the “value” of each day.

The authority determines the value of a given day by dividing the sum of accumulated funds by the number of possible vacation days. Experience shows that the value of a day can range from several hundred to several thousand Danish kroner.

How do I recover Feriepenge after working in Denmark?
Recovering funds after termination of work in Denmark consists in applying for withdrawal of all funds accumulated in the holiday fund due to leaving the Danish labor market. In this case, all funds, regardless of the vacations taken, should be paid out.

If you want to recover funds for earlier years, you should apply to one of the private vacation funds. There are many of them, so it’s worth finding out individually which fund your funds went to and applying accordingly.

Didn’t receive your salary or vacation benefits?
As an employee, you may find yourself in a situation in which your employer fails to pay you your salary or vacation pay on the agreed date. In addition to misunderstandings or technical errors, the reason may be the employer’s unwillingness or inability to pay. The next steps to recover your outstanding dues will depend on the reason why the employer is not paying.

To determine why you have not been paid, contact your employer. Regardless of the answer, it is important that you act on the matter as soon as possible. Delay may result in the loss of your entitlement in the Wage Guarantee Fund (Lønnsgarantien). If it turns out that the actual reason is different than you initially thought, you must adjust your actions to the new situation.

Can I Receive a Holiday Allowance Payout Without Taking a Holiday?
Generally, you need to take a holiday to receive your holiday allowance. However, there are certain situations where you may qualify for a holiday allowance payout without actually taking time off.

You accrue holiday from September 1 to August 31 of the following year (12 months). However, you can take the holiday anytime between September 1 and December 31 of the following year (16 months).

Unused Holiday Allowance Payout
If you have accrued holiday between September 1 and December 31 that you haven’t used, you can apply for a payout of the holiday allowance for the unused days, provided you have left your job by December 31, when the holiday period ends.

To receive the holiday money from your previous employer, you must apply for a payout via borger.dk by September 30 of the following year.

What happens with my transferred holidays during a job change?
You need to take up to 20 days of holiday between September 1 and December 31 (16 months). These days can only be transferred if you have a valid reason preventing you from taking your planned holiday, such as illness or parental leave.

If you do not take the 20 days of holiday and do not have a valid reason, you will lose them. If you have transferred up to 20 holiday days due to a valid reason, your employer must pay out your holiday allowance directly when you resign. If you have transferred more than 20 holiday days and have not taken them when you resign, your employer must pay out the holiday allowance for the period directly to you.