Summary
Earmarked parental leave means that part of the leave is tied to the individual parent and cannot be transferred. Under the new rules (for children born on or after 2 August 2022), each parent is entitled to 24 weeks’ leave, 11 of which are earmarked. If these weeks are not taken, the parent loses both the weeks and their entitlement to daily benefits.
What is earmarked parental leave?
Earmarked parental leave means that part of the leave is tied to the individual parent and cannot be transferred to the other parent. If the parent does not take their earmarked parental leave, they lose the entitlement to those weeks – and to parental leave benefit during that period. The rules stem from an amendment to the Maternity Leave Act, which is based on an EU directive, and apply to children born on or after 2 August 2022.
The new parental leave scheme: 24 weeks for each parent
Following the birth, the parents are jointly entitled to 48 weeks’ leave with maternity/paternity benefit. If the parents are living together at the time of the birth, the weeks are, as a general rule, divided equally, so that each parent is entitled to 24 weeks. Of these 24 weeks, 11 weeks are earmarked and cannot be transferred, whilst the remaining 13 weeks may be freely transferred to the other parent.
In addition, the mother is entitled to four weeks’ maternity leave before the birth and is required to take two weeks’ leave immediately after the birth.
Which weeks are earmarked?
For employees, 11 of the 24 weeks are earmarked:
- 2 weeks’ leave to be taken in connection with the birth
- 9 weeks to be taken before the child turns 1
The remaining 13 weeks are not earmarked and can be allocated between the parents as best suits the family.
What happens if you don’t take the earmarked maternity leave?
The earmarked weeks are forfeited if the parent does not take them. This means that you lose both the weeks and the entitlement to maternity/paternity benefit during that period. It is therefore important to plan how the earmarked maternity/paternity leave is to be taken before the child turns 1.
Special circumstances
The rules regarding the 11 earmarked weeks apply to employees. If a parent is self-employed, unemployed or a student, only 2 weeks are earmarked, and the parent may transfer up to 22 weeks to the other parent. Special rules apply to single parents and families with co-parents (e.g. LGBT+ families), whereby part of the leave can be transferred to a close relative or to several parents. These situations can be complex, so it is a good idea to seek specific guidance at borger.dk.
Why have we earmarked funds for maternity leave?
The aim of earmarked parental leave is to promote greater equality between parents – both at home and in the workplace. By allocating a portion of the leave to each parent, the aim is to encourage more fathers and co-mothers to take a larger share of the parental leave, strengthen their bond with the child and make it easier for mothers to return to work sooner.
What do the maternity leave rules mean for you as an employer?
As an employer, you must always report an employee’s maternity leave in NemRefusion – regardless of whether you pay wages during the leave or not. If you do pay wages, you can apply for a refund if the employee meets the conditions for maternity benefit. Please note that the right to pay during maternity leave is not governed by the Maternity Leave Act, but by the employee’s collective agreement or employment contract. The new rules also introduce new notice periods, which it is important to be aware of.
We can help you with maternity leave and reimbursement
Maternity leave is one of the most complex areas of payroll administration – and one where it is easiest to miss out on reimbursement or make mistakes. At Dansk Løn Service, we keep track of reporting, notifications and reimbursements, so you don’t lose out on money or time. If you want your maternity leave arrangements to run smoothly and without any worries, then Read about outsourcing payroll or Contact us.