Collective agreements
You get a choice – but what does it mean?
One of the key outcomes of the 2026 collective agreement negotiations is that public employees will gain access to a free choice account (fritvalgslønkonto). The scheme is new to the public sector – but what does it mean for you? Casper Gad, Head of Legal at Pharmadanmark, explains.
By: Maria Trustrup, journalist, Pharmadanmark
You can decide for yourself. You are in control. You have a choice.
There are many ways to say it, but the message is the same.
When the new flexible system is introduced, it will give you – if you work for the state, a region or a municipality – greater freedom to decide how your salary is used.
You can choose whether the money in your free choice account (fritvalgslønkonto) is spent on additional time off, extra salary or pension contributions.
“The freedom of choice means you can use the account differently depending on your stage of life,” says Casper Gad, Head of Legal at Pharmadanmark.
Imagine three people in very different phases of their lives: Pernille, aged 28, Henriette, aged 42, and Bent, aged 63.
Here is how they might use the free choice account in different ways.
Pernille, 28
Pernille is young and recently graduated. She still lives with a couple of friends from university but dreams of buying her first home. She does not have children or major commitments yet, and she is eager to make the most of her first full-time job. She does not need much time off, so she prefers to receive as much money as possible to grow her savings.
Pernille's choice: She chooses to have all the money from her free choice account paid out as additional salary.
Henriette, 42
Henriette has a busy family life with two children, and balancing everything can be a challenge. She and her partner bought their home in their mid-thirties. Time has become increasingly important to her. Although she enjoys her job, spending time with her family matters most.
Henriette’s choice: She uses the money in her free choice account to take time off. She takes five additional holiday days each year, as well as the extra flexible day available to employees aged 41 and above.
Bent, 63
Bent has spent many years working, and his three children have moved out. He would like more time for his hobbies and to help care for his grandchildren. With retirement approaching, he also wants to boost his pension savings before he leaves the workforce.
Bent’s choice: He uses his four senior days, available from age 62, and takes three of the five additional holiday days. The remaining balance is paid into his pension.
New system in 2028
The new system will be implemented from 1st og January 2028.
Until then, public sector workplaces need to establish systems to manage the scheme. This is a major administrative task, which is why the launch is set for a later date.
We will share more information about the scheme and what you, as a public sector employee, need to be aware of as the introduction of the free choice account approaches in 2028.
A choice that reflects your stage of life
Time off, extra salary or pension. The choice is yours – and that is exactly the point of the scheme.
“These examples show how the free choice account can be used in different ways to support your life situation,” says Casper Gad.
“A more flexible working life, where choices reflect different life stages, has been in demand for years. We are pleased that this scheme is now becoming a reality for many of our members.”
Free choice account – key facts
What is a free choice account?
A free choice account is an account where part of your salary is set aside. You can use the money for:
Time off
Additional salary
Pension
Who is eligible for the new free choice account?
All employees in the state, municipalities and regions will have a free choice account. The system starts in January 2028.
How do I use my free choice account?
Each year, you decide whether to use the money for time off, extra salary or pension contributions.
If you choose time off, your salary is reduced, but the amount is covered by your account.
If you choose extra salary, the money can be paid out monthly or when you take time off.
If you choose pension, contributions are paid into your pension scheme each month.
Any remaining balance on 31st of December will either be paid out with your December salary or transferred to your pension. The balance cannot be carried over to the next year.
How much time off are you entitled to?
Each year, you are entitled to:
Five additional holiday days
If you are aged 41–61: one flexible day
If you are aged 62 or above: four senior days
All days are taken with a salary deduction, which can be covered by your free choice account.
What about the additional holiday days (særlige feriedage)?
The additional holiday (særlige feriedage) is also known as the sixth week of holiday. The entitlement remains unchanged.
What is new is that these days are now included in the system. This means that you “pay” for the additional holiday days using funds from your free choice account. It also means that instead of taking time off, you can choose to receive the money as salary or have it paid into your pension.
You can choose to take the days off, receive the money as salary or pay it into your pension.
When do I need to decide how to use my free choice account?
You must decide how to use your free choice account for the coming year before 1st of October each year.
If you do not make a choice, the money will automatically be paid out with your salary.
What happens to my free choice account if I leave my job?
If you leave your position, any remaining balance will be paid out.
Inspired by the private sector
The free choice account is not a new idea. It was first introduced in 2007 as part of several collective agreements in the industrial sector.
At the time, the contribution was modest – just 1% of salary. Today, it plays a much bigger role. In 2026, 10% of salary is allocated to the free choice account in many private sector agreements, and this share continues to grow.
The public sector has not previously had such a scheme. It takes time to build, which is why the public version will initially differ from the private one.
At first, a smaller share of salary will be allocated. Over time, we expect public employees to push for expansion, increasing flexibility between time off, salary and pension.