If you work with payroll at a Danish company, you know that the Danish Holiday Act is based on vacation being accrued per calendar month. If your company has an offset payroll period, for example the 21st to the 20th, vacation accrual in Flex HRM has until now followed the payroll period.
Vacation accrual is now always calculated per calendar month, fully automatically.
Applies to Danish companies with an offset payroll period
The change applies only to Danish companies that have an offset payroll period. If your company already uses the calendar month as its payroll period, the result is the same as before.
Vacation days are added on the first of the month
Vacation accrual is now calculated per full calendar month, from the first to the last day, regardless of when the payroll period starts and ends. For employees, this means that vacation days are added on the first of the month. Previously, they were added on the 21st if the payroll period was the 21st to the 20th.
If an employment starts or ends in the middle of a calendar month, only the time the person was actually employed during that month is counted.
Other balance adjustments follow the payroll period as before
The change applies only to vacation (ferie). Your other fixed balance adjustments continue to follow the offset payroll period, just as before.
No setup required
The new calculation applies automatically from now on. Vacation that has already been accrued is not recalculated.
Vacation accrual in step with the calendar month
With accrual per calendar month, the vacation balance follows the logic of the Danish Holiday Act, even when the payroll period is offset. You get a vacation balance that follows the calendar, and you can keep working with your payroll period just as usual.
