If you have any questions that haven’t already been answered below, please feel free to contact us.
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The holiday allowance funds that you, as an employer, have reported to the Holiday Allowance Fund were accrued during the pay period from 1 September 2019 to 31 August 2020 – equivalent to one year’s holiday entitlement. They were accrued during the transitional year following the introduction of the new holiday legislation.
On virk.dk, as an employer, you can view the reports you have submitted via eIndkomst.
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You can choose to keep your employees’ frozen holiday allowance within your company for as long as your employees remain in the labour market. When you have employees who have reached state pension age or have left the labour market, you will receive an invoice for their frozen funds. You will receive an invoice once a year.
You can also choose to make voluntary payments at any time, subject to a minimum total per person, and, as a business, you must decide for yourself which employees you wish the payments to cover.
Every year in July, you will receive an invoice for employees who are entitled to have their accrued holiday allowance funds paid out by the Holiday Allowance Fund. That is, employees who have reached state pension age or have left the labour market.
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As an employer, you can choose whether you wish to make contributions for some groups of your employees and defer contributions for other groups. The full balance must always be paid in for each employee. This means that, once you have decided to make a payment, you cannot simply pay in half of an employee’s accrued holiday allowance funds.
Payments must be made no later than when your employee reaches state pension age.
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It makes no immediate difference to your employees whether you choose to keep the holiday allowance within the company or pay it into the Holiday Allowance Fund. All employees have the same percentage added to their savings each year, regardless of where the Holiday Allowance is held. However, as the return on investment is expected to exceed wage growth, the proportion paid into the Employees' Holiday Allowance Fund does have an impact on employees as a whole.
