The Employees' Holiday Allowance Fund manages assets totalling DKK 23.3 billion on behalf of 625,000 members. The funds stem from a political decision to freeze one year’s holiday pay for all employees during the transition to a new holiday pay law, which came into force in 2020.
The frozen holiday allowance is held both by the Holiday Allowance Fund and by employers.
In 2020–2021, a significant proportion of the assets held by the Holiday Allowance Fund was paid out. A broad political majority had decided that all employees could have their recently frozen holiday allowance paid out in order to stimulate the Danish economy, which had been severely affected by Covid-19. Approximately 3 million employees had their holiday allowance frozen during the transitional period from September 2019 to August 2020. 665,000 employees chose to retain their new pension savings with The Holiday Allowance Fund despite the option for payouts in 2020–2021.
Members’ savings with the Holiday Allowance Fund can be paid out as a lump sum when the member leaves the labour market.
- Attributable return after costs and pension return tax in 2025: 8.0%.
- Total return in 2025: DKK 1.7 billion.
- Number of members (31 December 2025): 625,000
- Members’ assets (31 December 2025): DKK 23.3 billion
- Payouts to members in 2025: DKK 0.7 billionÂ
- 22 per cent of members’ assets are held with employers; 78 per cent are invested by LD Pensions.
- Payouts: A lump sum payable when the member leaves the labour market.
- Costs in 2025: Total investment costs amounted to 0.38 per cent. Administrative costs amounted to just 0.04 per cent. The low costs are partly due to the fact that a portion of the administrative costs is covered by employers.
