Wages increased by 3.5% from the previous quarter
Wages have increased by 3.5% on average from the previous quarter according to the quarterly wage index in 3rd quarter 2015. Annual increase from the 3rd quarter 2014 was 7.9% on average, 8.3% in the private sector and 6.7% in the public sector. The annual increase was 6.0% for the central government employees and 7.4% for the local government employees.
Largest wage increase in Construction
From previous quarter, wages by occupational group have increased by 1.7% for Professionals to 6.0% for General, machine and specialized workers. The annual change of the wage index ranged from 5.3% for Managers and Professionals to 11.0% for General, machine and specialized workers.
Wages in the economic activities Construction increased by 5.2% from previous quarter while wages in Financial intermediation increased by 2.0%. Annual change ranged from 4.7% in Financial intermediation to 9.4% in Transport, storage and communication.
Collective agreements
Collective agreements in the Icelandic labour market affect the wage index in the 3rd quarter of 2015. Firstly, collective agreements between the Confederation of Icelandic Employers and the largest member unions of the Icelandic Confederation of Labour were signed 29 May 2015 affecting the wage index in the 3rd quarter. Secondly, the wage index in the 3rd quarter is affected by an arbitration of the Court of Arbitration for the Icelandic Nurse´s Association and 18 member Unions within the Association of Academics (BHM).
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.