A year has passed with the new Danish Holiday Act, and it has been a period of many new rules, deadlines and conditions that companies, payroll administrators and employees all had to get to grips with. A new holiday year starts on 1 September, and we've gathered a number of important dates and rules you need to be aware of during the year.
The holiday year's most important periods
There are two important periods to keep track of in a holiday year – the accrual period and the period for taking holiday.
The accrual period runs for one year – from 1 September to 31 August the following year – during which employees accrue days of holiday every month.
The period for taking holiday runs for 16 months – from 1 September to 31 December the following year.
In practice, this means that holiday accrued in the period from 1 September 2021 to 31 August 2022 can be taken until 31 December 2022.
If an employee has days of holiday left from the year before, there will be an overlap between “old” days of holiday and new days of holiday accrued after 1 September. As a payroll administrator, you need to be aware that the days of holiday from the year before are used first when the employee takes holiday in the period September – December.
In Zenegy, the system sets this order for you, so the holiday balance from the year before is automatically used first when the employee registers holiday.
Payment of holiday pay – the most important dates
Your employees accrue holiday through their employment.
Holiday allowance:
Salaried employees who are paid during their holiday accrue a holiday allowance of typically 1% of their holiday-entitled pay. The holiday allowance is typically paid in 2 instalments during the year – in May and August. This is typically done with the pay.
The payment in May covers the holiday allowance accrued in the period 1 September – 31 May.
The payment in August covers the holiday allowance accrued in the period 1 June – 31 August.
As a payroll administrator, you therefore need to remember to calculate and pay the holiday allowance twice a year. In Zenegy, you can easily pay holiday allowance to all employees. The system calculates the accrued holiday allowance as you go, and you simply choose to pay the holiday allowance with the pay in May and August. Read more about paying the holiday allowance. Read more about paying holiday allowance here.
Holiday pay:
Hourly paid employees typically accrue holiday pay of 12.5% of their holiday-entitled pay. The deadlines for paying it to Feriekonto or a holiday fund depend on the pay period your company uses.
The following deadlines apply to payment and reporting:
- The pay period ends on the 15th – the deadline is the last banking day of the same month.
- The pay period ends on the 16th – the deadline is the 15th of the following month. (If the deadline falls on a weekend or public holiday, the deadline is the banking day before)
Special rules for salaried employees:
Employees who are paid during their holiday receive holiday pay when they leave.
The employer is then obliged to pay 12.5% of the holiday-entitled pay to Feriekonto. The deadline for reporting and paying the holiday pay is the last banking day of the month in which the employee leaves. In Zenegy, the holiday pay is reported and paid to the holiday fund automatically with the last pay transfer to the employee who has left.
Special rules for the 5th holiday week
Employees accrue 2.08 days of holiday per month, which equals 25 days of holiday in a holiday year – or, put another way, 5 weeks. Under the Holiday Act, the employee must take at least 4 weeks of holiday during the period for taking holiday. The 5th holiday week, on the other hand, is optional and can either be paid out or transferred to the next holiday year. For salaried employees who haven't agreed to transfer or pay out the 5th holiday week, it is automatically set to be paid out with the March pay.
Holiday in advance
If your company has chosen to let your employees take holiday in advance, it's important to keep an eye on each employee's holiday balance when the holiday year changes on 1 September. Under the Holiday Act, holiday in advance depends on the employee being able to accrue the borrowed days of holiday before the holiday year ends on 31 August. In other words, the employee must accrue the borrowed days taken in advance within the same holiday year. It is the company's responsibility to keep track of the employees' holiday registrations, so that the holiday balance isn't negative when the new holiday year begins.
Also read our company guide to the Holiday Act.
If you'd like an even more detailed overview of holiday terms and deadlines in holiday administration, we've taken care of that for you too.
