In Denmark, employees are entitled to 25 working days (five weeks) of paid annual leave per year under the Holiday Act (Ferieloven). The new Holiday Act (effective 2020) introduced concurrent accrual and consumption of leave, replacing the previous system where leave was earned one year and taken the next.
Statutory entitlement
25 working days (5 weeks) of paid annual leave per year. Holiday allowance (feriepenge) of 12.5% of the previous year's earnings.
Eligibility
All employees are entitled to annual leave. Leave accrues concurrently — employees earn 2.08 days per month worked.
Legal basis
Ferieloven (Holiday Act), LBK nr. 1003 of 2019.
Employer obligations
- Grant 25 working days of paid annual leave per year.
- Pay holiday allowance (feriepenge) of 12.5% of the previous year's earnings.
- Allow the employee to take at least three consecutive weeks of annual leave between May 1 and September 30.
- Pay for unused annual leave on termination of employment.
Employee rights
- Right to 25 working days of annual leave.
- Right to holiday allowance (feriepenge) of 12.5% of earnings.
- Right to take at least three consecutive weeks during the summer.
- Right to paid leave payout on termination.
Common pitfalls
- Not understanding the concurrent accrual system — leave is now earned and taken in the same year.
- Not paying holiday allowance (feriepenge) — this is a mandatory entitlement.
Concurrent accrual system
Since 2020, Denmark uses a concurrent accrual system where employees earn 2.08 days of leave per month worked and can take the leave during the same year.
Holiday allowance (feriepenge)
Holiday allowance is 12.5% of the employee's earnings. It is held in a special account (FerieKonto) and paid out when the employee takes their leave.
Frequently asked questions
What is FerieKonto?
FerieKonto is a system where holiday allowance is held and paid out when employees take their annual leave.
Sources
This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.