Holiday pay (feriepenger): rates, calculation and payout

Updated June 4, 2026

Holiday pay is salary you accrue one year and receive the next, normally in June. The statutory minimum is 10.2% of the holiday-pay basis, while many have 12% through a five-week holiday agreement. Employees over 60 get an extra week and a 2.3 percentage-point higher rate.

What is holiday pay?

Holiday pay ensures you have income while on holiday. It accrues in the accrual year (the year before) and is paid in the holiday year. The basis is the salary you received the previous year — holiday pay on holiday pay is not included.

How much is holiday pay?

  • 10.2% – statutory minimum (4 weeks + 1 day of holiday)
  • 12% – with an agreement for five weeks of holiday
  • +2.3 percentage points for employees over 60 (on basis up to 6G)

When is holiday pay paid out?

Holiday pay is normally paid in June and replaces ordinary salary for the holiday. If you leave the job, all accrued holiday pay is paid out in the final settlement.

Although tax is usually not withheld from the June payment, holiday pay is taxable income. The “tax-free” June salary is simply a practical way to spread the withholding across the rest of the year.

How Kantax handles holiday pay

Kantax calculates holiday pay at the correct rate in every payroll run and tracks the accrual, so the provision for next year’s payout always adds up.

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FAQ

How much is holiday pay?

At least 10.2% of last year’s holiday-pay basis under the Holidays Act, or 12% with a five-week holiday agreement. Employees over 60 get an extra 2.3 percentage points.

When do I receive holiday pay?

Normally in June the year after it is accrued. If you leave the job, accrued holiday pay is paid in the final settlement.

Is holiday pay taxable?

Yes. Holiday pay is taxable income. Tax is usually not withheld from the June payment, but the amount is part of the total tax calculation for the year.

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