Brief and to the point about FeriePenge and Ferielov:
Feriepenge is a.k.a. vacation pay, which every person working legally in Denmark is entitled to. Approximately 2.08 days of vacation are accrued for each full month worked. On an annual basis, this makes a total of 25 days, or 5 weeks of vacation. For more information on FeriePenge, how they are calculated, how to pay them, etc., click here. What you need to know about FeriePenge .
The law governing FeriePenge is called Ferielov. September 1, 2020 There are important changes regarding the accrual and payment of FeriePenge. Below you will find information on what they affect and what they mean for you.
Why these changes ?
The reason for the changes was the European Commission's recognition in April 2015 that Denmark's vacation law violates EU Law. In January 2018. The Danish parliament passed a new vacation law.
It said that the previous law was most unfair to people who start working or leave the Danish labor market (the time lag in question).
Such persons became eligible from January 1 to December 31 of a given calendar year so that they would go on leave from May 1 of the following year (until April 30 of the following year). Example: Mr. Janusz K. worked in Denmark from 01.01.2018 to 31.12.2018, he can go on paid leave from 01.05.2019 to 30.04.2020.
What will change and when?
What will not change ?
At first, a little perversely. The new vacation law retains the same rights, the amount of money set aside and the number of vacation days you are entitled to.
So what will change ?
The period of vacation entitlement and when you can take vacation. Previously, you acquired vacation rights from January 01 to December 31 of a given year. The new law changes these dates to September 01 to August 31 of the following year. You can choose vacation money from 01. September to 31. December of the following year that is for 16 months (previously it was 12 months - from 01. May to 30. April of the following year).
What does it mean for you ?
You will be able to use your vacation pay on an ongoing basis, in short, after you have worked for a month such as September, you will be able to go on vacation in October. In practice, you will be able to use your new vacation entitlement from September 01, 2020.
Complications and problems
In order for the law to take full effect, i.e. on September 1, 2020, the legislator introduced the so-called transition period, which can be complicated and raise problems in understanding it. Therefore, we decided to discuss it with examples.
We are already back to the aforementioned Mr. Janusz K. Mr. Janusz worked all of 2019 and continues to work in 2020.
For what period and when can FeriePenge pay out ?
- for the period of work from January 1, 2019 year to 31st August 2019 year Mr. Janusz can pay FeriePenge in the period from 01 May 2020 year to 31. august 2020 year exactly he is due 16.64 leave,
- for the period of work from September 1, 2019 year to 31. august 2020 year Mr. Janusz will not immediately receive the paid feriepenge,
- for the period of work from 01rzęsnia 2020 to 31. august 2021 Mr. Janusz can already go on leave from 1 Sep 2020 to 31. December 2021. In practice, in the first year of the new law, Mr. Janusz can go on vacation as of October 1, 2020, as it needs to acquire rights to the first days off.
Where is the money for the work period from September 1, 2019 to August 31, 2020 ?
The legislator of the new law has decided to “freeze” it. The money will be paid upon retirement or leaving the Danish labor market permanently but not before October 1, 2021.
The money will be administered by the Lønmodtagernes Feriemidler office . The office will send you a letter in the first half of 2021 telling you what amount has been frozen.
A time diagram showing the changes below (click to enlarge)
Our comments
The new vacation law will certainly be more favorable and understandable, as it resembles the Polish system.
Above all, it harms Us foreigners in the interim period, since retirement is far away and the frozen money cannot be used for the upcoming vacation.
Outrage at the new law is also not hidden by many Danes, who have submitted citizen proposals in opposition. The support of more than 50,000 citizens (collected in 180 days) entitles the Danish parliament to take up the matter. First reading on February 28, 2020.
NOTE.: Due to the outbreak of the cornavirus, the Danish government has released the payout of 3 of the 5 weeks of frozen FeriePenge.
The FeriePenge order should be placed by December 1, 2020 Otherwise, FeriPenge will be frozen.
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