Contributions
Each year in July, you will get a payment order from Lønmodtagernes Feriemidler.
Here you will also be able to see what options you have for keeping or paying the rest of the holiday pay from the transition year. You will therefore be notified if there is something that you need to do or decide upon.
Annual payment orders
Each year in July you will receive an annual payment from Lønmodtagernes Feriemidler.
You will be asked to pay in holiday pay for the transition year for employees who are entitled to have the holiday pay disbursed by Lønmodtagernes Feriemidler. This will happen completely automatically if the employee:
reaches the state retirement age
has applied for payment of the holiday pay
has accrued holiday pay that is under DKK 1,500 in the transition year
has passed away.
You must pay the payment order no later than 1 September of that same year.
If you do not pay
If you do not pay the annual payment order on time, you must pay all holiday pay from the transition year to Lønmodtagernes Feriemidler. You will receive a new payment order for the entire amount.
If you do not pay the new payment order for the whole amount, you will hear from LG (the Employee’s Guarantee Fund) which will be charged with collecting and recovering the amount. Unpaid interest will be collected by Gældsstyrelsen (The Danish Debt Collection Agency).
If your debt is to be collected and recovered by LG, you might be nominated to pay a fine.
Keeping the remaining holiday pay
You have the option of keeping the holiday pay that you do not have to pay via the annual payment order sent in July. When you pay the payment order, you will automatically confirm that you want to keep the remaining holiday pay from the transition year in the company.
If there are years in which you do not receive an annual payment order (because you do not have employees in the abovementioned circumstances), then you must state so by no later than 31 August if you still wish to keep the remaining holiday pay in the company.
If you do not notify us before the deadline
If you do not notify us by 31 August at the latest that you still wish to retain the holiday pay in your company, you will receive a reminder letter with a new deadline for notifying us.
If you still fail to notify us, all holiday pay will be due for payment and you will receive a payment order for all holiday pay from the transition year.
If you do notify us
If you choose to keep the money, you will need to pay an annual indexation. An indexation is a kind of interest that you pay to keep the holiday pay. The indexation is added on top of the holiday pay that you have chosen to keep in the company.
Each year in July, you will receive a letter where you will be able to see:
the amount that you must pay by no later than 1 September
what options you have for paying the rest of the holiday pay
how to notify of it if you wish to keep the holiday pay
information on the indexation of holiday pay that you have already chosen to keep.
If you shut down the company or move away
If you shut down the company or move away from Denmark, you must pay the remaining holiday pay for the transition year to Lønmodtagernes Feriemidler immediately.
Indexation
If you choose to keep the money, you will need to pay an annual indexation. An indexation is a kind of interest that you pay to keep the holiday pay. The indexation is added on top of the holiday pay that you have chosen to keep in the company. Each year in July you will receive a letter with information on the indexation for the past year.
Indexation rate
The rate of indexation is calculated based on the amount that you have chosen to keep. The indexation reflects salary developments in the previous year and is calculated and fixed once per year before 31 May.
Voluntary contributions
Even though you have chosen to keep the holiday pay in the company, you can always choose to pay them. You can pay year-round.
Each year in July, you will receive a payment order from Lønmodtagernes Feriemidler. Here you will also be able to see what options you have for keeping or paying the rest of the holiday pay from the transition year. You will therefore be notified if there is something that you need to do or decide upon.
You can choose to pay some or all the remaining holiday pay via the self-service platform. The remaining holiday pay is the holiday pay from the transition year that you are not paying via the annual payment order. For example, you can choose to pay when an employee is dismissed or resigns. If you want to shut your company down, you must remember to pay holiday funds for all employees.
Via the self-service platform you can opt for a mixed approach where you pay for some employees but not for others. You can do so on an ongoing basis. For example, you can choose to pay holiday pay for employees over the age of 50 and keep the holiday pay for the rest of your employees. You can also choose to stop paying holiday pay for employees who stop working for you.
You must pay an annual indexation of the holiday pay that you choose to keep.
Legislation etc.
Here you can find information on legislation, how to complain and read about how we process personal data.
Legal guidance
How to complain
How we process personal data
In the following, you can learn more about what data Lønmodtagernes Feriemidler processes, how we process the data and your rights in that connection.
