Wages increased 0.4% from previous quarter
Wages increased by 0.4% on average between the 3rd and the 4th quarter of 2008 according to the quarterly wage index. During the same period wages in the private sector decreased by 0.5% but increased by 2.7% in the public sector. Wages increased by 8.3% from the previous year, 6.4% in the private sector and 12.7% in the public sector.

Manager’s wages 2.6% lower than in previous quarter
Wages for Managers decreased by 2.6% from previous quarter, while wages for General workers increased by 1.0%. Annual increases ranged from 2.9% for Managers to 10.0% for General workers.

Wages in Financial intermediation down by 3.0%
From the previous quarter, wages increased by 0.9% in the economic activity of Manufacturing, but decreased in other economic activities. In the economic activity of Financial intermediation wages decreased by 3.0% from previous quarter. The annual increase of the wage index ranged from 2.7% in the economic activity of Financial intermediation to 8.6% in Construction.

Collective agreements
A collective agreement between the Icelandic Medical Association and the Minister of Finance, stipulated an average increase in wages by 6% from 1 September 2008. 

A collective agreement between the Icelandic Association of State University Professors and the Minister of Finance from 26 September 2008, stipulated an increase in basic wages by a fixed amount, 20,300 ISK from 1 May 2008 and by 2.42% on 1 September 2008.

According to an agreement between the Icelandic Police Union and the Minister of Finance, wages increased by a fixed amount, 20,300 ISK from 1 November 2008. A comparable agreement was made between the Association of Customs Officers and the Minister of Finance.

According to an agreement between the Association of Local Authorities and its main signatory’s, wages increased by a fixed amount of 20,300 ISK from 1 November 2008. Comparable agreements were made between other signatories at the local government level.

According to an agreement between the Confederation of Icelandic Employers and the Confederation of Icelandic Bank and Finance Employees, monthly wages below 450,000 ISK increased by a fixed amount of 20,500 ISK from 1 November 2008.

Number of collective agreements between trade unions and individual employers also came into effect in the 4th quarter 2008, e.g. in Construction.