Sickness benefit ("sygedagpenge") is for employees who are not paid during absence due to sickness. According to the Sickness Benefit Act ("sygedagpengeloven"), the employer must pay sickness benefit, the two first weeks when an employee is sick. The sickness benefit is not regarded as a salary and for that reason, is not included in the salary when calculating the vacation base ("ferieberettigende løn").

The sickness benefit is to protect employees, who are not paid during sickness against losing their the vacation pay earnings during absence due to sickness.

The sickness vacation benefit ("sygedagpenge") is equal to 12.5 percent of the average monthly salary. The average salary is calculated on the basis of the past four weeks' salary/wage prior to the sickness.

Salaried employees ("funktionærer") are entitled to their salaries during sickness and vacation, and are therefore earning vacation pay during sickness.

According to the Vacation Act ("Ferieloven") certain conditions have to be fulfilled before the employer has to pay a sickness benefit or sickness vacation benefit to the employee during absence due to sickness:

• The employee must have been employed in the company for at least 12 months before the sickness. This condition does not apply if the employee is injured while working.
• The employee must be absent due to sickness for more than three days.
• The maximum payment of vacation pay is up to four months within the year of earning vacation ("optjeningsår") and a maximum four months for the same sickness or injury.