What is Feriepenge and How Do Holiday Pay Rules Work?

What is Feriepenge?

Feriepenge, or holiday pay, is a mandatory benefit in Denmark that allows employees to accumulate funds specifically for vacation expenses. This system helps workers cover their vacation costs without financial strain, promoting a healthy work-life balance.

How does it work?

Calculation	12.5% of the employee’s gross salary
Annual Amount	Between DKK 10,000 and DKK 15,000

Common rules or requirements

Employees must be legally employed in Denmark.
Regular contributions to the Danish social security system are required.
Employers must report vacation information to the relevant Feriepenge fund.
Registration with the Danish labor office (Jobcenter) is necessary.

Example

Imagine you are an expat working in Denmark. You earn a gross salary of DKK 400,000 per year. Your Feriepenge would amount to DKK 50,000 (12.5% of your salary), which you can use for your vacation expenses. If you plan to take a trip during the summer, you can apply for your Feriepenge in June to cover your costs.

Quick Tips for Expats

Check your Feriekonto balance regularly through the Borger.dk portal.
Apply for early payouts if you have planned vacations to ensure you have funds available.