Wages rose by 2.2% between the 2nd and the 3rd quarter
Wages increased by 2.2% on average between the 2nd and the 3rd quarter of 2008 according to the quarterly wage index. During the same period wages in the private sector increased by 1.1% and by 4.8% in the public sector. Wages increased by 9.4% from the previous year, 8.9% in the private sector and 10.7% in the public sector.

Wage index in the private sector by occupational group
Wage increases in the private sector ranged from 0.8% for Technicians and associate professionals to 1.5% for General workers, from the previous quarter.  Annual increases ranged from 6.8% for Managers to 11.0% for General workers.

Wage index in the private sector by economic activity
From the previous quarter, wage increases ranged from 0.6% in the economic activity of Wholesale and retail trade; repair to 2.2% in Construction. The annual increase of the wage index ranged from 8.1% in the economic activity of Wholesale and retail trade; repair to 11.6% in Construction.

Collective agreements
Collective agreements between the largest signatories in the private sector came mainly into effect in the 1st and 2nd quarter of 2008 while corresponding agreements in the public sector came into effect in the 3rd quarter.

A collective agreement between the Association of Teachers in Upper Secondary Schools and the State stipulates an increase in general wages by a fixed amount, 20,300 ISK from 1 June 2008. A corresponding agreement was made between the Association of Academics (BHM), on behalf of 20 of its member unions and the State. A collective agreement between the Icelandic Nurses Association and the State stipulates i.a. an increase in general wages by 14-15% from 1 July 2008. According to a collective agreement between the Association of Local Authorities in Iceland and the Association of Teachers in Primary and Lower Secondary Schools, general wages increased by a fixed amount, 25,000 ISK from 1 July 2008 and 9,000 ISK from 1 August 2008. The agreement also stipulates a decrease in the number of wage scales based on seniority. A collective agreement between the Icelandic Midwives Association and the State stipulates i.a. an average increase in wages by 22.6% from 1 August 2008. A decision of Senior Civil Servant Salary Board no. 2008.001 stipulates an increase in basic wages by a fixed amount, 20,300 ISK from 1 May 2008. According to a statement made by the Minister of Education, in relation to a collective agreement between the Icelandic Teachers´ Union and the State, a total wage contribution to Upper Secondary Schools increased by 4%.