Wages increased by 2.8% on average between the 4th quarter of 2007 and the 1st quarter of 2008 according to the quarterly wage index. During the same period wages in the private sector increased by 2.6% and by 3.1% in the public sector. Wages increased by 7.1% from the previous year, 7.5% in the private sector and 6.1% in the public sector.
Wage index in the private sector by occupational group
Wage increases in the private sector ranged from 2.1% for Craft workers to 3.8% for Professionals, from the previous quarter. Annual increases ranged from 5.7% for Craft workers to 10.9% for Professionals.
Wage index in the private sector by economic activity
From the previous quarter, wage increases ranged from 2.3% in the economic activity of Transportation (I) and Manufacturing (D) to 3.5% in Financial intermediation (J). The annual increase of the wage index ranged from 5.7% in the economic activity of Manufacturing (D) to 11.8% in the economic activity of Financial intermediation (J).
Collective agreements
According to collective agreements in the public sector, wage rates increased by 2%-3% on 1 January 2008. A collective agreement between the Association of Local Authorities in Iceland and the Association of Teachers in Primary and Lower Secondary Schools and the Association of Head Teachers also stipulated wages increase by 3% on 1 March 2008.
The wage index also reflects the effects of a collective agreement between the Confederation of Icelandic Employers and the Icelandic Confederation of Labour (on behalf of its member unions), which was concluded earlier this year but came partly into effect at the end of the 1st quarter 2008. The agreement was signed on 17 February 2008 and ratified by the trade unions on 12 March. The agreement stipulates, i.a. an increase in general wages by a fixed amount, 18,000 ISK from 1 February 2008, and a special 5.5% wage increase guaranty from January 2007 to the date of the introduction of the agreement.
According to a collective agreement between the Confederation of Icelandic Employers and the Confederation of Icelandic Bank and Finance Employees, wage rates increased by 2.25% 1 of January 2008.
| Wage index for the private and the public sector 2006-2008 | |||||||||
| Average | Total | Private sector | Public sector | ||||||
| 2005=100 | Change | Change | Change | ||||||
| from | Change | from | Change | from | Change | ||||
| previous | from | previous | from | previous | from | ||||
| Wage | quarter, | previous | Wage | quarter, | previous | Wage | quarter, | previous | |
| index | % | year, % | index | % | year, % | index | % | year, % | |
| 2006 | |||||||||
| 1st quarter | 106.8 | 4.2 | 9.7 | 106.7 | 4.1 | 9.3 | 107.2 | 4.5 | 10.6 |
| 2nd quarter | 108.7 | 1.7 | 9.4 | 108.2 | 1.4 | 8.9 | 109.8 | 2.4 | 10.6 |
| 3rd quarter | 112.0 | 3.0 | 11.0 | 112.1 | 3.6 | 11.4 | 111.6 | 1.7 | 10.1 |
| 4th quarter | 114.0 | 1.8 | 11.2 | 114.3 | 1.9 | 11.5 | 113.2 | 1.4 | 10.3 |
| Average | 110.3 | . | 10.3 | 110.3 | . | 10.3 | 110.4 | . | 10.4 |
| 2007 | |||||||||
| 1st quarter | 118.6 | 4.1 | 11.0 | 119.1 | 4.2 | 11.7 | 117.4 | 3.7 | 9.5 |
| 2nd quarter | 120.2 | 1.4 | 10.6 | 120.9 | 1.5 | 11.7 | 118.6 | 1.1 | 8.1 |
| 3rd quarter | 121.8 | 1.3 | 8.8 | 122.6 | 1.5 | 9.4 | 119.9 | 1.0 | 7.4 |
| 4th quarter | 123.6 | 1.5 | 8.4 | 124.8 | 1.8 | 9.2 | 120.8 | 0.8 | 6.7 |
| Average | 121.0 | . | 9.7 | 121.8 | . | 10.4 | 119.2 | . | 7.9 |
| 2008 | |||||||||
| 1st quarter | 127.0 | 2.8 | 7.1 | 128.1 | 2.6 | 7.5 | 124.6 | 3.1 | 6.1 |
Statistics