Wages have increased by 1.7% on average from the previous quarter according to the quarterly wage index in 2nd quarter 2015. Annual increase from the 2nd quarter 2014 was 5.7% on average, 4.8% in the private sector and 7.8% in the public sector. The annual increase was 5.1% for the central government employees and 11.0% for the local government employees.
Largest wage increase in Retail and Transportation
From previous quarter, wages by occupational group have increased by 0.8% for Service and sales workers to 3.3% for Craft workers. The annual change of the wage index ranged from 2.7% for Craft workers to 6.8% for Service and sales workers.
Wages in the economic activities Wholesale and retail trade and Transport, storage and communication increased by 2.7% from previous quarter while wages in Financial intermediation increased by 0.8%. Annual change ranged from 3.7% in Financial intermediation to 7.0% in Transport, storage and communication.
Collective agreements
Collective agreements in the Icelandic labour market affect the wage index in the 2nd quarter of 2015. Firstly, collective agreements signed in 2014 between the Icelandic Teachers’ Union and the Minister of Finance, on behalf of the State Treasury and the municipalities affect the wage index in 2nd quarter 2015. Secondly, collective agreements between the Confederation of Icelandic Employers and the largest member unions of the Icelandic Confederation of Labour were signed 29 May 2015. Effects of these agreements are present in the wage index in 2nd quarter but will also affect the wage index in 3rd quarter.
About the wage index
The wage index is a quarterly index and shows the changes of regular hourly wages. Data for the private sector are published by occupational group and economic activity. Data for the public sector are published by administrative level. Employees in the public sector work for the municipalities and the central government. Other employees belong to the private sector.