The transition period started on the 1st September 2019 and will last until the 31st August 2020. Holiday accrued during this period will be paid out once the employee leaves the labour market. The fund for Employees' Foundation for Receivable Holiday Pay is in charge of managing and paying the holiday pay accrued during the transition period.READ MORE
The new holiday act
Denmark has a new holiday act that will enter into force on the 1st September 2020. This has led to some changes in how to save and take a holiday. The most important change in the holiday act is the introduction of concurrent holidays. After the start of the new holiday law it will be possible to take a holiday already after the first accrual month.READ MORE
Accruing and taking holiday
Before the new holiday act and concurrent holiday comes into force, there are several holiday accrual and spending periods that you should be aware of. The holiday year 2019 is as we know it, with a spending period from the 1st May 2019 to 30th April 2020. The holiday year 2020, on the other hand, has a shorter accrual and spending period - holiday accrued in the period from the 1st January 2019 to the 31st August 2019 has to be spent between the 1st May 2020 and the 31st August 2020. On the 1st September 2020, the new holiday act steps into force, meaning that holiday accrued in one month can be taken the following month.
Beneath, we have made an overview showing accrual and usage of holiday up until the new holiday act comes into effect.
Overview of functions
With Zenegy, it is easier than ever to administrate and pay out salaries - both in the transition period and when the new holiday act becomes effective. We have made a series of functions that make it easy for company owners and bookkeepers to pay-out the correct pay on time.
Personal guide to the new holiday act via the app
With the Zenegy App, it becomes easy to understand the new holiday act, the transition scheme and the frozen period. The employee gets a personalised guidance regarding holiday accrual and usage periods, as well as accrued and spent holiday. The guidance is tailored specifically to the individual employee, based on their actual balances.
Fully updated overview of the employee’s holiday balance. Both the employees and the companies get the full holiday balance overview for each specific holiday year. What’s more, Zenegy provides an updated overview of balances regarding the employee’s holiday accrual in the frozen period. Everything is available for the employee via Zenegy payroll system and the Zenegy App.
Automatic split of supplements
For employees with certain collective agreements, where the holiday supplement or holiday pay percentage is above the standard rates of 1% and 12.5% respectively, holiday funds will automatically be split. The funds that exceed the standard rate shouldn’t be frozen but instead needs to be sorted out of the frozen amount. In Zenegy, these funds get automatically transferred to a special account.
Automatic filing to eIncome
Filings and payments to the holiday funds happen continuously and automatically here at Zenegy. For the FerieKonto, 3F and HORESTA holiday funds, payment to the Holiday Foundation happens automatically. If using “Other Holiday Plan” - where the company keeps the holiday funds - the funds get filed automatically to eIncome, while you as a company must make sure to make the payments to the Holiday Foundation on time.
A timeline of important dates regarding the new holiday act
Get an overview of the full journey from when the new holiday act was put into place to important dates and deadlines that you need to be aware of throughout the process.
Holidays are taken as usual according to the old holiday act01. May 2019 - 30. April 2020
During this period holidays taken are according to the old holiday act. This means that holidays, that are accrued in the holiday year 2018, must be taken in the period from the 1st May 2019 to the 30th April 2020. In some cases, it may be possible to transfer up to 5 days of holiday to the next period.
1st instalment of payment of the special holiday allowance31. May 2021
The employees’ special holiday allowance can be paid in two different ways and it is up to the company to decide which model they want to use. The special holiday allowance can either be paid in two instalments per year (on the 31st May and the 31st August), or it can be paid on an ongoing basis as the employee takes the holiday.
Indexation of holiday pay31. May 2021
For the companies that have ‘Other holiday scheme’ and therefore choose to keep the employees’ accrued holiday day in the company, must pay an annual indexation corresponding to the salary development. The indexation reflects the pay development the previous year and is determined once a year. The indexation is determined by the Foundation no later than the 31st May and it is valid in the period from the 1st June to the 31st May. In 2017, the pay indexation rate was 2.2%.
Collection of payable holiday pay01. July 2021 - 31. July 2021
For companies that choose to keep their employee’s accrued holiday pay in the company, an obligation for holiday pay will be sent out every year in July. Here the company must decide whether they want to pay the funds into the Employees' Foundation for Receivable Holiday Pay (Holiday Foundation) or whether they want to continue to keep holiday pay in the company.
Deadline for indicating whether holiday pay will remain in the company31. August 2021
The Holiday Foundation must be notified no later than the 31st August 2021 and each year thereafter, on whether the company still wishes to keep the holiday pay. If you make payments to the Holiday Funds, filing and payment will happen as before and the holiday fund will make sure the filing and payment to the Holiday Foundation happens.
2nd instalment of payment of the special holiday allowance31. August 2021
The special holiday allowance can be paid in two different ways and it is up to the individual company to decide which model they want to use. The special holiday allowance can either be paid in two instalments per year on the 31st May and the 31st August, or it can be paid on an ongoing basis as the employee takes the holiday.
First payment from the Holiday Foundation01. October 2021 - 31. October 2021
The first payments from the Holiday Foundation will be made in October 2021. The payments will happen automatically 1) at the applicable national pension age at any given time 2) if the employee steps down to retire despite not being at the national pension age In addition, you can get the holiday pay paid out to you when you leave the labour market, by going on early retirement / efterløn / special benefits / permanent stay abroad. Furthermore, automatic payment will be made in October 2021 if the holiday pay is less than 1,500 DKK at the time of reporting on 31st December 2020.
Holiday as told by the new holiday act31. December 2021
Holidays accrued in the period from the 1st September 2020 to the 31st August 2021 must be used before the 31 December 2021. The 5th holiday week is paid out automatically after the 31st December when the holiday period expires - if no transfer has been agreed. It can also be agreed with the employer that the 5th holiday week can be paid out already on the 1st September when the holiday year ends.
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