Summary
Public holidays that fall on a weekday are known as ‘Søgnehelligdage’. Employees on a monthly salary receive the same fixed salary regardless of the number of public holidays, whilst those paid by the hour are only entitled to SH pay if this is stipulated in a collective agreement or contract – typically via a public holiday savings scheme, where a percentage of the pay is set aside and paid out on public holidays. Great Prayer Day has been abolished from 2024
Short answer
Public holidays that fall on a weekday – such as Maundy Thursday, Good Friday, Easter Monday, Ascension Day and Whit Monday. For those on a monthly salary, this makes no difference: the salary remains the same regardless of the number of public holidays. For those paid by the hour, whether they are entitled to pay on public holidays depends on their collective agreement – typically via a ‘SH’ savings scheme. There is no law that, in itself, entitles those paid by the hour to pay on these days.
What are public holidays?
Church holidays – often abbreviated to SH days – are religious holidays that fall on an ordinary weekday when people would otherwise be at work. The fixed church holidays are Maundy Thursday, Good Friday, Easter Monday, Ascension Day and Whit Monday. In addition, there are Christmas Day, Boxing Day and New Year’s Day, when they fall on a weekday. Days such as 1 May, Constitution Day, Christmas Eve and New Year’s Eve are not public holidays, but may be days off under a collective agreement or by custom. In a normal working year, there are typically between six and nine public holidays.
Monthly-paid staff: pay as usual
An employee on a monthly salary – typically a white-collar worker – receives the same fixed salary every month, regardless of how many public holidays fall within that period. This means they have time off with full pay on public holidays and receive no separate public holiday pay.
Hourly-paid workers: it depends on the collective agreement
An hourly-paid employee is normally only paid for the hours actually worked. If a public holiday falls on a working day, the employee therefore loses hours – and consequently pay. Many collective agreements address this by providing a right to SH payment, so that income does not fluctuate too much over the course of the year. However, SH payment is not laid down by law: it is provided for in a collective agreement or a clause in the employment contract. The aim is to put hourly-paid and monthly-paid employees on a more equal footing, so that a week with several public holidays – for example, Easter with three public holidays in a row – does not result in a significant drop in income.
How an SH savings account works
The typical model is an SH savings scheme. With each payroll run, you set aside a percentage of the employee’s holiday-eligible pay into an SH account, and the money is paid out when public holidays fall – often as a fixed amount on account per day. The savings percentage and the method of payment are set out in the collective agreement, so you should always check there. Because the savings are based on a percentage of the salary, whilst the payment is often a fixed amount, the figures rarely balance out exactly – therefore, the SH account is typically settled once a year, and any surplus is paid out to the employee. The SH payment is taxable in the same way as ordinary wages, and tax is deducted at source upon payment.
What if there is no collective agreement?
If an hourly-paid employee is not covered by either a collective agreement or a contractual provision regarding public holidays, they are, as a general rule, not entitled to pay for days on which they do not work. It is therefore important to be clear about what applies to each individual employee.
Working on a public holiday
If an employee is required to work on a public holiday, they are always entitled to at least their usual pay for those hours. Any additional payment for working on a public holiday requires that this has been agreed in the collective agreement, the employment contract or the staff handbook.
The Day of Great Prayer has been abolished
From 1 January 2024, Great Prayer Day is no longer a public holiday and is now a normal working day. Monthly-paid employees will be compensated for the increased working hours with a pay supplement of 0.45 % of their annual salary, paid either on an ongoing basis or twice a year. For hourly-paid employees, the SH savings rate remains unchanged, and they will receive their normal pay for the hours they work on that day.
We’re here to help you with public holidays
SH payments are one of the areas where rates and rules vary from collective agreement to collective agreement – and where errors can easily creep into payslips. At Dansk Løn Service, we keep track of SH savings and payments as an integral part of the payroll process. Read more about the flexible savings account, or Contact us.
The rules have been simplified here and, for hourly-paid staff, depend on your collective agreement. Please seek specific guidance if you are in any doubt.