FAQ: Free choice account for public sector employees

One of the improvements in your new collective agreement as a public sector academic is the Free Choice Account – a scheme already known from the private sector.

The Free Choice Account, in Danish Fritvalgs Lønkonto, will take effect on 1 January 2028 and is part of the collective agreements for the state, municipalities, and regions agreed in the 2026 collective bargaining round (OK26).

Here is an overview of how the scheme works:

What is the Free Choice Account?

The Free Choice Account consists of funds – also referred to as free choice contributions – paid in by your employer. In other words, it is a financial savings account and is not in itself linked to time-off entitlements. Your right to time off from work is governed by other agreements.

You decide how to use the funds. You can choose to receive them as:

• additional salary paid monthly
• increased pension contributions
• payments when taking time off (e.g. free choice days, senior days or other days off under the collective agreement)

However, the portion of funds originating from special holiday days will always be saved in your Free Choice Account.

Each year, before 1 October, you must choose how you want to use your funds. The first time you will make this choice is in autumn 2027, as the scheme takes effect on 1 January 2028.

What funds are included in the account?

The Free Choice Account includes both existing and new funds:

• Existing funds from special holiday allowance, special holiday days (the sixth week of holiday), and senior bonus/senior days
• New funds, consisting of: a general percentage contribution for all employees and an additional percentage contribution for specific employee groups, which finances either one free choice day or two senior days, depending on whether you are employed by the state, a municipality, or a region, and your stage of career

The funds in the Free Choice Account are not pensionable.

Funds can be paid out when you take annual holiday, special holiday days, free choice days off, senior days, or other leave under the collective agreement. You decide how much to withdraw from the account.

How much time off am I entitled to when working in Denmark?

You still have the right to take five special holiday days each year.

If you are employed by the state, you are entitled to one annual free choice day from the calendar year in which you turn 41.

If you are employed by a municipality or region, you are entitled to one annual free choice day if you do not receive care days or senior days. From the calendar year in which you turn 62, you are entitled to four senior days per year. This takes effect from 1 January 2028.

Your time-off entitlements are further regulated by the following agreements:

• The Holiday Agreement, Chapter 4 (special holiday days)
• The Agreement on senior bonus and senior days (to be replaced by an agreement on free choice day and senior days)

What is the free choice period?

The free choice period runs from January to December (the calendar year).

Each year, before 1 October, you must decide how to use your funds in the following free choice period – i.e. the following calendar year.

How does the scheme differ across sectors?

The Free Choice Account is structured slightly differently in the state, municipalities, and regions. Below you can see how it applies in your employment area: