On 1 April 2022 new rules on senior bonus came into effect. The purpose of the new rules is to support a good work life for seniors. The rules on senior bonus can be found in this link (in Danish).
Employees who are paid by the month, who turn at least 62 years during 2022 are entitled to receive a payment of 0.8% of the annual salary in January 2023 (bonus earned in 2022). Employees who meet the terms for the right to receive senior bonus and begin employment at SDU during the calendar year have a right to a proportional part of the bonus. Employees, who have not been employed for an entire calendar year can maximally earn one senior day. Employees, who have been employed under six months cannot convert the senior bonus to freedom, but can get it paid as salary or converted to an extraordinary pension contribution.
Through the salary system SDU has implemented a running calculation of the senior bonus of 0.8% of the usual annual salary for employees who are paid by the month and who turn at least 62 years during 2022. The running accrual appears on the salary slip every month. The first time it was visible on the salary slip was in January 2022. The bonus will automatically be paid in January 2023 to everyone covered by the rules. If an employee leaves SDU before then the accrued amount will automatically be paid by the end of the employment after deduction of tax and labour market contribution.
In accordance with the wishes of the employee the senior bonus can be converted to an extraordinary pension contribution equalling 0.8% of the usual annual payment or to 2 senior days per year.
If the employee chooses senior days, then these will be allocated and available in HCM from January 1st 2023.
If the employee wishes to convert the senior bonus accrued in 2022 to the options mentioned above the employee must inform SDU of the choice they have made via HCM before 1 October 2022. A guide can be found at HCM pages.
Please note! The choice is made for one year at the time. If the employee does not do anything the bonus will be paid out in January 2023.
SDU HR has registered the employees who meet the conditions for the right to senior bonus and those employees have been informed directly via mail in September 2022.
Questions about senior bonus can be directed to pers@sdu.dk
News as of 1 January 2024
Bonus is paid regularly with monthly salary
As of 1 January 2024, a new circular on senior bonus comes into force. This means that all employees automatically receive a 0.8% senior bonus from the year they turn 62. The bonus is calculated as 0.8% of the fixed salary and is pensionable and included in the calculation of holiday allowance and special holiday allowance. Variable benefits are no longer included in the calculation, even if they are fixed.
The bonus is paid monthly along with the fixed salary.
Entitlement to paid time off
Bonuses can no longer be converted to either pension contributions or senior days off. It will still be possible to take two senior days off per year, which will be with payroll deduction. Agreements on self-paid senior days are made with your immediate manager and registered in HCM.
- For employees who will not turn 62 until 2024, the following applies:
- Employees who turn 62 in the period 1 January – 30 June 2024 are entitled to two senior days with payroll deduction
- Employees who turn 62 in the period 1 July – 31 December 2024 are entitled to one senior day with payroll deduction
The employee can choose to contribute an amount corresponding to the senior bonus to the pension scheme which they are covered by.
Senior bonus earned in the calendar year 2023 can either be paid out or converted to pension contributions or a combination of both.
Here you can find the new circular (in Danish only)
Questions about the rules can be directed to the SDU HR Staff Office