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By 5 min readLast Updated: 26. June 2023

Mini-guide: Holiday money as a freelancer

As an employed employee and wage earner, holiday pay is automatically calculated and paid out of the salary you earn - But what about holiday pay when you are self-employed or a freelancer? 

Here, there is little difference between whether you are an independent freelancer or a freelance employee, but regardless, it is important that you have control of your holiday money, so that your income is always covered during holidays.

What is holiday pay?

Holiday pay is money that you, as an employee, earn in order to be guaranteed an income while on holiday. The holiday pay amounts to 12.5% of an employee's salary in a year, and the holiday pay is taxed in the same way as ordinary pay.

It is the employer's responsibility to set this portion of the salary aside and to pay it into a holiday account, so that the employee can request to have it paid out in connection with taking a holiday.

You earn 2.08 vacation days for each month you are employed, which means that if you are employed for a whole year, you earn 25 vacation days. This falls under the Holiday Act, where holiday pay is also called holiday allowance.

Holiday pay as a freelance employee

If you work as a freelance wage earner or are employed as a freelancer, you are covered by the Holiday Act, which means that your employer is obliged to put holiday money aside from the salary you earn.

As a freelance employee, it is the employer who bears the financial responsibility, regardless of how much you work or earn. Here, the holiday pay works as with a normal employment relationship, and you will be able to get paid your holiday pay via Borger.dk as normal.

Holiday pay as an independent freelancer

If, on the other hand, you are an independent freelancer, you yourself bear full financial responsibility. This means that it is entirely up to you whether you want to put money aside for vacation, how much you want to put aside and how much vacation you want to take.

As a self-employed person, you are not covered by the Holiday Act, and you therefore have full responsibility, but also full freedom. Of course, this does not mean that you, as an independent freelancer, do not need a holiday, and it is therefore recommended that you plan ahead and make sure that you put money aside for the holiday yourself.

Put vacation money aside as an independent freelancer

It is a good idea to include holiday pay in the budget or to include it as part of your hourly rate, so you are sure you can afford to take a holiday.

You decide entirely yourself how much you want to set aside, and you can e.g. choose to base this on how much holiday you would like to take during the year.

As a rule of thumb, however, you can start from putting 12.5% of the income aside for holiday pay if you want to achieve the same conditions as wage earners. This will give you approx. 25 holiday days per year.

Include holiday pay in your price

It is also important to include holiday pay in your hourly rate or flat rate, so that you are sure that you can afford both living expenses and taking a holiday when necessary. 

Therefore, one works independent freelancer's hourly rate also in a different way than salaried employees' hourly wages and is often much higher, as holiday pay, administration fees and pensions etc. must also be taken into account here.

Holiday pay from former employer as self-employed

Have you previously been employed as an employee and earned holiday pay, but have now started as an independent freelancer? Then you can easily have holiday money to your credit if you have not been paid this yet.

Even if you are an independent freelancer, you will still be able to claim the holiday pay you are entitled to from a previous employer. You can therefore easily have these paid out to take a holiday for.

To check whether you have holiday pay or to request a payment of your holiday pay, you can go to Borger.dk.

After having been paid your holiday pay from a previous employer, as an independent freelancer it is your own responsibility to set aside holiday pay.

Is it necessary to put holiday money aside as a self-employed person?

Even if you are passionate about your work and may not be planning a vacation right now, it is still recommended to put vacation money aside. As a self-employed person, it is extra important that you do not go down with the flag, as your income here is not guaranteed in the same way as with an employee.

That's why it's important to remember to take a holiday to recharge your batteries, so you can come back to your business and customers with renewed energy. And although it may seem difficult and unmanageable to have to take a holiday, this can be a good investment and can be managed with a little planning in advance.

Holiday money with Factofly

If you use Factofly to handle your invoices and other administration, you are still not covered by the Holiday Act. 

You must therefore, as a general rule, be aware of putting money aside for holidays, unless you mark when creating an invoice that you want Factofly puts holiday money aside for you. 

If you have marked when creating the invoice that you want Factofly to set aside holiday pay for you, 12.5% of your salary will be transferred to your holiday account - That way you don't have to think about holiday pay yourself as a self-employed person .

create free user

Get control of holiday money with Factofly

Factofly is Denmark's leading freelance solution that helps freelancers and self-employed people get paid without their own CVR number.

And among other things, it also helps to keep track of the holiday money. Create a free user and see how it works.

create free user
By 5 min readLast Updated: 26. June 2023

Mini-guide: Holiday money as a freelancer

As an employed employee and wage earner, holiday pay is automatically calculated and paid out of the salary you earn - But what about holiday pay when you are self-employed or a freelancer? 

Here, there is little difference between whether you are an independent freelancer or a freelance employee, but regardless, it is important that you have control of your holiday money, so that your income is always covered during holidays.

What is holiday pay?

Holiday pay is money that you, as an employee, earn in order to be guaranteed an income while on holiday. The holiday pay amounts to 12.5% of an employee's salary in a year, and the holiday pay is taxed in the same way as ordinary pay.

It is the employer's responsibility to set this portion of the salary aside and to pay it into a holiday account, so that the employee can request to have it paid out in connection with taking a holiday.

You earn 2.08 vacation days for each month you are employed, which means that if you are employed for a whole year, you earn 25 vacation days. This falls under the Holiday Act, where holiday pay is also called holiday allowance.

Holiday pay as a freelance employee

If you work as a freelance wage earner or are employed as a freelancer, you are covered by the Holiday Act, which means that your employer is obliged to put holiday money aside from the salary you earn.

As a freelance employee, it is the employer who bears the financial responsibility, regardless of how much you work or earn. Here, the holiday pay works as with a normal employment relationship, and you will be able to get paid your holiday pay via Borger.dk as normal.

Holiday pay as an independent freelancer

If, on the other hand, you are an independent freelancer, you yourself bear full financial responsibility. This means that it is entirely up to you whether you want to put money aside for vacation, how much you want to put aside and how much vacation you want to take.

As a self-employed person, you are not covered by the Holiday Act, and you therefore have full responsibility, but also full freedom. Of course, this does not mean that you, as an independent freelancer, do not need a holiday, and it is therefore recommended that you plan ahead and make sure that you put money aside for the holiday yourself.

Put vacation money aside as an independent freelancer

It is a good idea to include holiday pay in the budget or to include it as part of your hourly rate, so you are sure you can afford to take a holiday.

You decide entirely yourself how much you want to set aside, and you can e.g. choose to base this on how much holiday you would like to take during the year.

As a rule of thumb, however, you can start from putting 12.5% of the income aside for holiday pay if you want to achieve the same conditions as wage earners. This will give you approx. 25 holiday days per year.

Include holiday pay in your price

It is also important to include holiday pay in your hourly rate or flat rate, so that you are sure that you can afford both living expenses and taking a holiday when necessary. 

Therefore, one works independent freelancer's hourly rate also in a different way than salaried employees' hourly wages and is often much higher, as holiday pay, administration fees and pensions etc. must also be taken into account here.

Holiday pay from former employer as self-employed

Have you previously been employed as an employee and earned holiday pay, but have now started as an independent freelancer? Then you can easily have holiday money to your credit if you have not been paid this yet.

Even if you are an independent freelancer, you will still be able to claim the holiday pay you are entitled to from a previous employer. You can therefore easily have these paid out to take a holiday for.

To check whether you have holiday pay or to request a payment of your holiday pay, you can go to Borger.dk.

After having been paid your holiday pay from a previous employer, as an independent freelancer it is your own responsibility to set aside holiday pay.

Is it necessary to put holiday money aside as a self-employed person?

Even if you are passionate about your work and may not be planning a vacation right now, it is still recommended to put vacation money aside. As a self-employed person, it is extra important that you do not go down with the flag, as your income here is not guaranteed in the same way as with an employee.

That's why it's important to remember to take a holiday to recharge your batteries, so you can come back to your business and customers with renewed energy. And although it may seem difficult and unmanageable to have to take a holiday, this can be a good investment and can be managed with a little planning in advance.

Holiday money with Factofly

If you use Factofly to handle your invoices and other administration, you are still not covered by the Holiday Act. 

You must therefore, as a general rule, be aware of putting money aside for holidays, unless you mark when creating an invoice that you want Factofly puts holiday money aside for you. 

If you have marked when creating the invoice that you want Factofly to set aside holiday pay for you, 12.5% of your salary will be transferred to your holiday account - That way you don't have to think about holiday pay yourself as a self-employed person .

create free user

Get control of holiday money with Factofly

Factofly is Denmark's leading freelance solution that helps freelancers and self-employed people get paid without their own CVR number.

And among other things, it also helps to keep track of the holiday money. Create a free user and see how it works.

create free user