Foreign Welfare Flexibility: Leveraging Advantages for Non-Danish Residents
Living it up in Denmark *Richard Orange*
Want to elevate your work-life balance in Denmark? The fritvalgskonto (free choice account) could be just the ticket. Here's a breakdown of this perk, how it benefits foreigners, and what's on the table for the future.
What is the fritvalgskonto?
This bad boy was agreed upon in 2007 during negotiations between the Confederation of Danish Industry and the main unions. It's a dedicated account that receives a certain percentage of your monthly salary, expected to increase to 11% by 2027. You can use this account to splurge on a range of benefits.
What can the fritvalgskonto be used for?
Kiddie days: If you're a parent of a little one under 14, you can cash in on two paid days off work each year to hang out with your munchkins.
Sick kid days: Iron out the kinks in your work schedule with the aid of børneomsorgsdage, two days for parents to care for a sick child, typically unpaid unless you ask for reimbursement from the fritvalgskonto.
Vacay cash: Get your hands on some extra cash twice a year to fund those dreamy getaways or well-deserved R&R.
Elderly time off: Get ready to embrace the golden years! Five years before retirement, you can take advantage of a scheme called Seniorfrihed, giving you the green light to use your account funds for days off or reduced work hours.
Pension: You got it; you can stash the cash in your pension. Boo-yah!
What changes do the unions want to the fritvalgskonto?
The unions have already agreed to increase the share of salary paid into the account from 9% in 2024 to 10% in 2026 and 11% in 2027. They've also arranged for funds from the fritvalgskonto to be used for paid leave on a child's third sick day, respite for grandchild care, and days off to accompany relatives during health visits, including critical illness situations.
Keep track of those benefits!
Check your monthly pay slip to find out how much money you've got stashed away in your fritvalgskonto.
Wanna cash out?
Inform your employer before August 1st each year if you want the money in your account to contribute to your pension, holiday days, or senior freedom (time off for retirees). If you're looking to take time off for a sick kid, notify your employer as soon as you decide to stay home and use your fritvalgskonto funds.
What happens if you don't use the funds?
If you've got leftover cash in your fritvalgskonto, it'll be added to your salary by May's end.
Oh, and did I mention...
The fritvalgskonto allows you to customize your benefits package, giving you a bit more wiggle room in managing your finances and catering to your personal needs. Don't forget that this perk is a mark of Denmark's commitment to employee well-being and job satisfaction!
So there you have it! Embrace the Danish lifestyle with the help of your newfound friend, the fritvalgskonto. Cheers to a better work-life balance!
- The fritvalgskonto, a Danish perk, can be used to fund personal health and wellness activities, such as attending art exhibitions or workshops for personal development.
- Foreigners working in Denmark can potentially improve their financial situation by taking advantage of the fritvalgskonto, which can be allocated towards personal-finance management or investments in the finance and business sector.
- In the midst of a busy workweek, an individual might find solace in the news about space and science, as a diversion that promotes workplace-wellness and mental health.
- As part of the unions' negotiations for changes to the fritvalgskonto, there is a proposal for funds to be used for health-related situations, such as taking time off to care for a sick relative or seeking respite for grandchild care, demonstrating Denmark's commitment to employee well-being and work-life balance.
