DO YOU NEED ACCOUNTING?
NEED A QUOTE:
All rights reserved © 2024
Denmark has a system called feriepenge, which is a form of vacation fund for employees. It is mandatory for all employees, where employers are responsible for contributing to this fund. The funds accumulated in the feriepenge are accumulated throughout the year, and the amount depends on the employee's salary. Based on the amount accumulated, employees can draw on additional funds during their vacation, enhancing the quality of their vacation.
The system is part of a broader social security program aimed at supporting employees during their breaks from work. Thanks to feriepengene, working people can enjoy a more comfortable vacation with financial stability. Such a mechanism plays an important role in the Danish welfare model, which strives for work-life harmony. Feriepenge, as one of its key elements, emphasizes the importance of rest and balance in employees' lives.
If you need assistance in obtaining Feriepenge, we encourage you to use our services. The documents are handled by our experienced specialists, who help you fill out all the forms and send them on to the relevant authorities. We also correspond with the authorities on behalf of our clients.
Feriepenge is a form of vacation support that is designed to help employees taking a job in Denmark cover vacation expenses. This benefit makes it possible for employees to choose from a rich spectrum of leisure activities. This type of arrangement avoids putting a strain on employees' personal finances, providing them with a stress-free rest and the opportunity to gather their strength before returning to work.
The official FerieKonto account receives 12.5% of the employee's gross salary, which is transferred by the employer. Labor market contributions and possible income tax are deducted from this amount. The rest of the funds, after deducting these fees, are sent directly to the employee's NemKonto account through FerieKonto.
Each month an employee earns about 2.08 days of vacation, which translates into 25 days per year, or 5 weeks. Vacation leave can be taken with some delay. For example, after working the entire year 2024, accumulated vacation days will be available from May 1, 2025 to the end of April 2026. It is important that at least three weeks of vacation be taken during the holiday period, which, according to established Danish law, runs from May 1 to September 30.
Feriepenge is usually paid out in the summer, allowing employees to use the money during the vacation. However, if for some reason you need an earlier payout during a different period, you should contact the Feriepenge fund appropriate for you to do so. Some funds offer flexible payouts that can accommodate extraordinary and/or unexpected circumstances, such as financial emergencies or special vacation plans. Each situation is unique so to be sure how this can be resolved in your case, it is necessary to provide details of your situation to the office staff member.
The amount of Feriepenge you are entitled to depends directly on the length of your employment and the time worked in a given year. The average amount of this benefit is usually between DKK 10,000 and 15,000. Individual circumstances and the regulations governing each Feriepenge fund affect your ability to receive Feriepenge for previous years. Sometimes there is a specific time limit for claiming outstanding benefits from previous years in which you worked for a Danish employer. To find out details about your Feriepenge benefit, we recommend that you contact the relevant fund dealing with this benefit.
In order to receive the Feriepenge benefit, it is necessary to meet several important conditions. It is granted to persons who:
1. Are legally employed in Denmark, even on a part-time basis.
2. Regularly pay contributions to the Danish social security system.
3. Are registered with the Danish labor office (Jobcenter).
4. They are entitled to annual leave.
5. They have made sure that their employer has reported their vacation information to the appropriate Feriepenge fund.
6. They have worked at least 240 hours during the year.
You are not required to be a Danish citizen to qualify for Feriepenge. In fact, even if you are not a Danish citizen, you may be eligible for this benefit, provided you meet the above employment criteria.
Feriepenge may not be granted in several cases:
- Persons with commission or work contracts: You are not entitled to Feriepenge if you are an employee with a commission or work contract, unless your contract contains appropriate provisions for this benefit.
- Lack of vacation planning: If an employee does not plan to take vacation, Feriepenge will also not be paid.
- Receipt of unemployment benefits: Individuals who receive unemployment benefits are not eligible to receive Feriepenge.
- Resignation or dismissal: Employees who have resigned or been laid off are also not entitled to this benefit.
- Piecework or commission pay: Difficulties in obtaining Feriepenge may arise for those who are paid on a piecework or commission basis.
In the event of a change of employment, the responsibility for the payment of accumulated Feriepenge funds rests with the previous employer. This means that it is the employer with whom the employee was employed before the change of employment who is obligated to transfer the accumulated funds. He or she should settle any Feriepenge-related claims until the employment relationship ends.
If you are not eligible to receive Feriepenge, it is worth considering alternative options. Checking available forms of financial support or other vacation benefits may be helpful. Also, it is a good idea to inquire with the Feriepenge fund about possible alternative programs for those who do not meet the standard requirements. In addition, planning your vacation expenses in advance will allow you to better prepare for a possible lack of additional financial assistance from the state.
Feriepenge is an allowance that is collected throughout the working year and, in the vast majority of cases, given to employees before the start of their vacation, usually in the summer, during months such as June or July. The payment of this benefit is dependent on the employer and on arrangements made individually between the employer and the employee.
Under Danish labor law, employees are entitled to a Feriepenge of 12.5% of their gross annual salary. Tax of about 8% is deducted from this amount, which means that 92% of the amount due goes into the employee's bank account.
The amount an employee can receive depends on several factors. It mainly depends on whether you are trying to recoup funds for leave that has already been taken, or whether your stay in Denmark in the course of your work is coming to an end and for this reason you want to pay out all the funds you have accumulated so far.
- Feriepenge, when it covers the cost of vacation taken, corresponds to the number of vacation days in a given year, and the payout amount depends on the value of each day, which is determined by dividing the total accumulated funds by the number of possible vacation days. The value of one day can vary considerably, ranging from several hundred to even several thousand Danish kroner, depending on individual circumstances.
- In the event of termination of employment, the employee can apply for payment of cash equivalent for unused Feriepenge, allowing the accumulated funds to be recovered. If one leaves the Danish labor market permanently, one must apply for payment of the entire accumulated amount from the vacation fund, regardless of the number of vacations taken.
In order to obtain Feriepenge, you should first draw up a short document detailing the months for which you expect to receive the benefit. It should be drawn up in either Danish or English. It is also necessary to attach to the form a scan of a valid identity document, such as an ID card. In addition, you need to provide documents confirming your entitlement to annual leave and current employment. Required documents include information on the number of vacation days and the first vacation day, the date of your last day of work if you are leaving the Danish labor market, and a copy of your employment contract if you do not have a NemID to confirm your entitlement to the payment.
As requirements may vary depending on the Feriepenge fund in question, it is advisable to contact the fund directly to receive detailed information.
When requesting a Feriepenge disbursement, an employee can receive the funds at the earliest one month before the planned vacation. Normally, the disbursement of funds takes place 8-10 weeks after the end of a given pay month. However, if the reservation of vacation funds is made less than four weeks before the planned vacation, the money will be paid out within four working days. Also note that if you change your place of work or type of employment, the Feriepenge payment deadline may be extended.
In order to recover funds from previous years, it is necessary to contact one of the private vacation funds. As there are many such funds, you must make sure yourself which one your money has been transferred to, and make the appropriate request for payment there. In Denmark, many people choose to carry over unused vacation pay to the next year, which is also worth considering.
If you prefer an alternative solution instead of receiving Feriepenge, you should contact the relevant fund directly and inform them of your decision. Other options are possible, such as donating the benefit to charity or social support, for example. It's also a good idea to consult directly with your Feriepenge fund to discuss your individual situation and find the best solution tailored to you.
As an employee, you may find yourself in a situation in which your salary or vacation pay is not paid on the agreed date, as previously agreed with your employer. The reasons for this situation can range from a lack of willingness or ability to pay on the part of the employer to technical errors. In order to recover the outstanding funds, further steps must be taken, which will depend on the reason for the delay. Direct contact with the employer will help determine why the salary has not been paid. Regardless of the answer given, it is crucial to act quickly to avoid delays that may subsequently result in the loss of rights to the Wage Guarantee Fund (Lønnsgarantien).
The letter from the Feriekonto office provides instructions on where to submit the application. This document should be delivered to the applicant at the beginning of the year or at the end of December. The letter indicates whether the application should be submitted to the Feriekonto office or directly to the employer. In addition, the letter contains data on the amount accumulated, the daily rate and the number of vacation days to be taken. Under Feriekonto, we can apply for payments for up to 2-3 years back.
Here are the steps to apply for a Feriepenge payment:
1. To begin with, identify the Feriepenge fund to which you have been assigned for a benefit claim form.
2. In the form, provide all the required information and then send it to the fund according to the specified deadline. When completing the form for an employee, follow the instructions below:
- Enter the name of the person applying for Feriepenge.
- If the employee's number is on the vacation statement received from Feriepengeinfo, enter it.
- Make sure that the CPR number (the Danish equivalent of the PESEL, consisting of 10 digits) is also listed on the form.
- You will find the information about the employer's name on the contract, in most cases it is located in the upper left corner, near the stamp.
- You will also need to enter the SE number on the form, which is the Danish equivalent of the NIP and is also found on the contract (in the upper left corner).
- At the end, in the “Paid by” field, write FERIEKONTO.
- At the end of the application should be the employee's handwritten signature.
3. After submitting your application, you should await confirmation of its receipt by the fund and further instructions on the status of your Feriepenge payout.
When selecting a reason for applying for Feriepenge payment, be sure to select only one of the available options:
I. If you are currently on vacation or have had a leave of absence, indicate this reason with the first day of your leave and the number of days you have taken. You are entitled to 2.08 days of vacation for each month of work.
II. If you are terminating your employment in the Danish market, select the appropriate reason for termination. Your last day of work should correspond to the date of termination or the date specified in your contract.
It is also possible to apply for Feriepenge payments electronically. To do this, log on to borger.dk using your NemID and fill out the forms available on the site. If you are still employed, the documents should indicate the days of vacation leave that have been taken. Otherwise, indicate the date you stopped working in Denmark. To fill out the application correctly, simply follow the on-screen instructions. Your application will then be sent to the vacation payer. This can be either the Feriekonto organization or your employer. To learn more about this, log into your account. Once the application is approved by the vacation benefit payer, Feriepenge funds will be transferred to your NemKonto, the account for receiving benefits from Danish institutions.
You have two options when it comes to sending in your application to receive Feriepenge:
1. One solution is to apply via an application at blanket.virk.dk. Enter the message “Application for payment of feriepenge” in the appropriate field, and be sure to include your contact information, such as name, CPR, address, phone number and email. The completed form should be attached as an attachment. After verifying that all information is correct, click the SEND button.
2. Another option is to send the application by traditional mail to: Feriepengeinfo Kongens, Vænge 8, 3400 Hillerød, Denmark.
The waiting period for the Feriepenge application to be processed depends on where it was submitted. If the application was submitted directly to the employer, in many cases the processing takes only a few days. When documents are submitted to Feriekonto, the waiting time is usually between 1 and 3 weeks. In the case of applications directed to private funds, the processing time can be difficult to predict, as it depends on the number of applications and the servicing capacity of the specific entity.
If the automatic disbursement of funds does not take place, you have the option of initiating the disbursement of vacation funds yourself. In this case, it is necessary to fill out the appropriate form and submit it through the application, which can be found at blanket.virk.dk.
At our company, we offer professional support in obtaining vacation benefits in Denmark. Our experts are happy to help you fill out the Feriepenge forms and answer any questions you may have. With our services, you can count on getting your due benefits in Denmark efficiently.