The wage index in June 2015 is 517.1 points, 2.3% higher than in the previous month. In the last twelve months the monthly wage index has risen by 7.1%.
Real wages are 2.0% higher than in the previous month
The real wage index in June 2015 is 123.6 points, 2.0% higher than in the previous month. In the last twelve months the real wage index has increased by 5.5%.
| Wage Index 2014-2015 | |||||
| December 1988=100 | Change from previous month, % | Annual rate based on the change in the last |
|||
| Index | 3 months, % | 6 months, % | 12 months, % | ||
| 2014 | |||||
| June | 482.7 | 0.5 | 6.4 | 8.3 | 5.4 |
| July | 484.7 | 0.4 | 5.4 | 7.0 | 5.9 |
| August | 487.4 | 0.6 | 6.0 | 7.3 | 6.3 |
| September | 490.6 | 0.7 | 6.7 | 6.5 | 6.2 |
| October | 493.8 | 0.6 | 7.7 | 6.5 | 6.6 |
| November | 494.7 | 0.2 | 6.1 | 6.0 | 6.6 |
| December | 494.6 | 0.0 | 3.3 | 5.0 | 6.6 |
| 2015 | |||||
| January | 498.1 | 0.7 | 3.5 | 5.6 | 6.3 |
| February | 500.8 | 0.5 | 5.0 | 5.6 | 6.4 |
| March | 502.1 | 0.3 | 6.2 | 4.7 | 5.6 |
| Apríl | 503.2 | 0.2 | 4.2 | 3.8 | 5.2 |
| May | 505.7 | 0.5 | 4.0 | 4.5 | 5.3 |
| June | 517.1 | 2.3 | 12.5 | 9.3 | 7.1 |
| Notes: The wage index is calculated and published according to law no 89/1989. The wage index is based on regular hours earnings each month, calculated and published in the following month. | |||||
Collective agreements
Agreements in the private sectors affect the wage index in June. The agreements stipulate a special wage increase for the lowest wage tables and a general wage raise of minimum 3.2% in May 2015.
Agreements between the Minister of Finance, on behalf of the State Treasury, and Icelandic Teachers' Union on one hand and the Icelandic medical association on the other hand signed in the second quarter of 2014 and January 2015 affect the wage index in June.
About the wage index and the real wage index
The wage index is a price index based on data from the Icelandic survey on wages earnings and labour cost. The purpose of the index is to reflect changes in wages paid for fixed working hours. The index is based on earnings for contractual working hours and includes all wages paid for day time and fixed overtime hours, including additional payments and bonuses. Irregular payments and employers' social contributions and taxes are excluded.
The real wage index shows changes in wages in relation to changes of the consumer price index. In general, real wages increase when wages increase more than price levels, but decrease when inflation is higher than wage rises. Real wages are not the same as disposable income of households. Information on disposable income of the household sector can be found here.