This spring, it will be possible to apply for the payouts for the last two weeks of frozen holiday allowance. The Government has reached a broad political agreement on the early payouts for the remaining holiday allowance funds.
Payouts are expected to begin at the end of March 2021. As with the 2020 payouts, a self-service option will be available on borger.dk.
As with the payouts for up to three weeks of holiday allowance funds in autumn 2020, it will be optional whether you wish to have your holiday allowance funds paid out. If you choose to leave your holiday allowance in the scheme, it will continue to be held in The Holiday Allowance Fund.
All five weeks in one go
If, as an employee, you have already been paid up to three weeks’ holiday allowance in autumn 2020, you can have the remaining two weeks paid out in spring 2021. If you chose not to have your holiday allowance funds paid out in autumn 2020, you can have all five weeks’ holiday allowance funds paid out in one go in spring.
In connection with the autumn payouts, up to 700,000 employees chose to leave the money in The Holiday Allowance Fund, which is managed by LD Pensions.
The same rules will apply
The payouts for the remaining holiday allowance funds will be based on reports from employers. Employers must inform the Holiday Allowance Fund by 31 December 2020 at the latest of the amount of holiday allowance each employee has accrued during the transitional year to the new Holiday Pay Act.
The same rules will apply to the payouts as in autumn 2020. This means that the amounts paid out will be subject to standard income tax, and the payouts will not be used to offset public benefits.
The agreement must now be transposed into law. This will be done in collaboration with the social partners.
