We are currently in the peak season for vacation planning and administration. It is not the easiest puzzle to solve – especially not for companies operating across several countries. At Azets, we have a Nordic payroll department, and we often hear that managing vacation rules across borders is challenging.
In this article, you can see the key differences between the countries and compare the rules for vacation and leave in Norway, Sweden, Denmark, and Finland.
The Nordic countries share many similarities, such as linguistic commonalities and similar business cultures, and all are protected by employment legislation. However, there are some important differences – particularly regarding vacation and public holiday regulations – that employers should be aware of.
Vacation legislation in the Nordic countries is designed to ensure that all employees receive annual leave and can take vacation with financial security, but the methods vary from country to country.
Let’s start with the vacation rules in Norway
- According to the Norwegian Holiday Act, employees are entitled to 25 working days of vacation, equivalent to 4 weeks + 1 day (Saturday counts as a vacation day).
- The standard holiday pay rate is 10.2%. However, many companies apply 12%, which is typically linked to a fifth vacation week through collective agreements.
- Employees may, by agreement, transfer up to 12 vacation days (working days) to the following vacation year.
- The Norwegian Holiday Act counts weekdays from Monday to Saturday.
- Employees who have not earned sufficient holiday pay may, in certain cases, choose not to take vacation.
- Employees are entitled to take three consecutive weeks during the main holiday period (1 June – 30 September).
- The remaining 7 vacation days (working days) may be required to be taken consecutively.
- Holiday pay is typically paid out in one lump sum, often in June.
- It is the employer’s responsibility to ensure that employees take vacation.
Here are the most important vacation rules in Sweden
- All employees are entitled to 25 vacation days per vacation year.
- Employees are entitled to 4 consecutive weeks of vacation during the period from June to August.
- Through collective agreements or contracts, employees may be entitled to more vacation days, but never fewer than 25.
- The Swedish Holiday Act counts weekdays from Monday to Friday (unless the employee works weekends).
- The accrual year normally runs from 1 April to 31 March, followed by the vacation year.
- However, many companies use concurrent vacation accrual through agreements.
- Employees may carry over up to 5 vacation days per year for up to 5 years.
- Holiday pay is paid in connection with taking vacation.
- Upon termination of employment, employees are entitled to compensation for unused vacation, which must be paid as soon as possible and no later than one month after termination.
Vacation rules in Denmark
In Denmark, we have what is known as “concurrent vacation,” meaning that employees earn and take vacation during the same period. This means that all employees can take paid vacation already in their first year of employment – the same year the vacation is earned. For new hires, this means they do not have to wait until the following year to take paid vacation.
- All employees are entitled to 25 vacation days per year.
- Employees are entitled to 3 consecutive weeks of vacation during the main holiday period, which runs from 1 May to 30 September.
- Vacation is accrued from 1 September to 31 August.
- Vacation can be taken on an ongoing basis but must generally be used no later than 31 December of the year following the accrual period.
- For example, vacation earned from 1 September 2025 to 31 August 2026 must be taken no later than 31 December 2026.
- Up to 5 vacation days may be transferred or paid out by agreement.
- The Danish Holiday Act is based on a 5-day workweek (Monday–Friday).
- Monthly salaried employees typically receive paid vacation and a vacation supplement, while other employees earn holiday pay.
- In addition, companies may offer extra vacation days, care days, or a sixth vacation week, which are not regulated by the Holiday Act.
Vacation rules in Finland
Finland differs the most from the other Nordic countries.
- The vacation year runs from 1 April to 31 March.
- Vacation is accrued according to either the 14-day rule or the 35-hour rule.
- Employees typically earn 24–30 vacation days, depending on seniority.
- New employees earn fewer vacation days than employees with longer service.
- If an employee works only a few days, vacation can still be earned through the 35-hour rule.
- The employer determines the timing of vacation but must take the employee’s wishes into account.
- The employer must notify employees of vacation no later than 1 month in advance, or 2 weeks in advance if that is not possible.
- As a general rule, 24 vacation days must be taken during the summer period, with the remainder taken as winter vacation.
- Finland counts vacation days from Monday to Saturday, meaning that one vacation week typically equals 6 vacation days.
Nordic Payroll Expertise
Azets provides comprehensive payroll services across Norway, Sweden, Denmark, and Finland from a single point of contact. Payroll is our core expertise, and we offer specialized assistance in HR and payroll matters throughout the Nordic region.
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