Foreigner's Advantage: Leveraging Danish Welfare's Flexibility for Non-Nationals
Living it Up in Denmark: Richard Orange Scoop!
Looking to make the most of your time working in Denmark? The fritvalgskonto is the ultimate perk you'll want to know about! Let's break down what it is and how you can maximize your benefits as a foreigner in Denmark.
Wonder What's the Fuss about the Fritvalgskonto?
The fritvalgskonto (free choice account) is a fantastic perk introduced in Denmark's job market through collective bargaining. A percentage of your salary, around 9% in 2024, but projected to rise to 10 or 11% in the 2025 agreement, goes straight into this account. This account helps you cover various expenses, making job and life easier!
So, What Can the Fritvalgskonto Fund?
- Kid Time: Have little ones at home? With the fritvalgskonto, you get two paid days off work annually to spend with your children under 14!
- Sick Kid Days: Save for those tough days when your child is under the weather. The account can help cover unpaid parental leave, but did you know you can get reimbursed if you ask?
- Extra Holiday Sunshine: Need a quick break? With the fritvalgskonto, take advantage of twice-yearly extra cash for vacations or time off!
- Senior Freedom: Starting to think about retirement? Five years before retirement age, you can use the account's funds for days off or reduced weekly hours!
- Pension for the Future: Want to be prepared for your golden years? You can choose to allocate some of the savings in your account to your pension.
What's Next for the Fritvalgskonto?
The unions are seeking further improvements to the fritvalgskonto this year. Here's what's on the table:
- Increasing the salary percentage paid into the account from 9% this year, to 10% in 2026 and 11% in 2027 (still to be finalized).
- Allowing money from the account to be used for paid leave when a child is ill on the third day.
- Offering grandparents up to two paid grandchild care days yearly.
- Providing up to two days a year to accompany relatives on health visits, or in critical illness cases, up to five days annually.
Keep an Eye on Your Fritvalgskonto!
Looking for your fritvalgskonto balance? Check your monthly pay slip!
Ask for Your Fritvalgskonto Rewards!
Remember to notify your employer by August 1st each year about how you'd like to use your account's funds. When asking for payments for holidays or time off, please do it no later than the 10th of the month in question. In cases of a sick child, simply inform your employer when you decide to stay home, choosing to use money from your fritvalgskonto.
Don't miss out on the benefits of the fritvalgskonto! Make the most of your time working in Denmark and take charge of your finances.
Remember, the more you know, the better you can use this amazing benefit. Happy planning!
Evidence:1. https://www.hays.dk/about-hays/careers/dk-jobby-hays2. https://www.ikea.com/dk/da/careers3. https://www.kpmg.com/dk/en/careers.htm
- The fritvalgskonto is a perk in Denmark's job market that contributes to personal-finance, providing benefits such as paid days off work and covering various expenses.
- The fritvalgskonto can fund personal activities like vacations, reduced weekly hours prior to retirement, and even allocating some savings to one's pension for future personal-finance benefits.
- The fritvalgskonto is projected to have an increased percentage of salary contributions steadily from 9% in 2024 to potentially 11% in 2027.
- The unions are advocating for additional benefits for the fritvalgskonto, including using account funds for paid leave when a child is ill on the third day and offering grandparents up to two paid grandchild care days yearly.
- Senior citizens and foreign workers in Denmark would greatly benefit from understanding and utilizing the fritvalgskonto for personal, family, and retirement-related financial needs.
