Definition

Holiday pay

What does it mean?

Holiday pay is the payment you receive in connection with your holiday. In Denmark the holiday system is regulated by the Holiday Act, and all employees earn holiday rights continuously.

You earn 2.08 holiday days per month employed — 25 days per holiday year in total. The holiday year runs from 1 September to 31 August. Holiday pay is calculated as 12.5% of your pay in the earning year.

When you take holiday, your employer pays holiday allowance. If you leave your job, any accrued but unused holiday pay is paid out. As an employee you cannot generally receive holiday pay as cash instead of taking time off, except upon termination.

Special rules apply to salaried employees (funktionærer) who may receive a fixed monthly salary including holiday. Check your contract and the Holiday Act for details on concurrent holiday and payout timing.

Magnus Villumsen, Content Creator at Arbejd.com
Defined by Arbejd.com

Magnus Villumsen

Content Creator
Last updated
March 7, 2026