Wages have increased 1.4% on average from the previous quarter according to the quarterly wage index in 3rd quarter 2014. From the previous year the increase was 6.3% on average, 5.9% in the private sector and 7.6% in the public sector. The annual increase was 6.8% for central government employees and 8.4% for local government employees.
Wages in the private sector by economic activity and occupational group
From the previous quarter, the largest wage increase was in Transport, storage and communication where wages increased by 1.7%. During the same period, wages increased the least in Manufacturing or by 0.1%. The annual change of the wage index ranged from 4.3% in Manufacturing to 7.9% in Construction.
Wages for General, machine and specialized workers increased by 0.1% while wages for Clerks increased by 1.1% between quarters. Annual change ranged from 5.2% for General, machine and specialized workers to 6.9% for Service workers and Shop and market sales workers.
Collective agreements in the Icelandic labour market affect the wage index in the third quarter of 2014. Firstly there are agreements between the Minister of Finance, on behalf of the State Treasury, and the municipalities on one hand and teachers on the other hand, signed in the first semester of 2014. Secondly there are agreements between the Minister of Finance, on behalf of the State Treasury, and the municipalities on the one hand and some state workers member unions on the other hand, signed in the 2nd quarter of 2014.
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.