New statistics on wage development, the Basic Wage Index, has been published. The index will be released monthly on the same day as the Wage Index. Basic Wage Index data is available from January 2015.
The data and methods to calculate The Basic Wage Index is the same as for the Wage Index, except the Wage Index is based on earnings for contractual working hours and includes all wages paid for daytime and fixed overtime hours, including shift payments and regular bonuses, while the Basic Wage Index is only based on basic earnings for contractual working hours.
From January 2015 to October 2022 the Basic Wage Index increased by 70.4% and the Wage Index by 75.8%. Comparing monthly changes between May and October 2022, the Wage Index decreased in July while the Basic Wage Index increased. This is caused by lower additional wage payments in July. The Wage Index fluctuates more because it includes wage items that are not consistent. Comparing indices shows for example, that about half of the Wage Index increase in September 2022 can be traced to additional payments such as bonuses and shift payments.
Substantial and more timely wage statistics
The Wage Index and the Basic Wage Index are price indices, where working hours and the composition of the underlying group are kept fixed between measurements. In order to be able to analyse the effect of other factors on wages, the Total Wage Index is published quarterly. The Total Wage Index reflects total wage development including changes in the composition of the labour force and working hours. The calculation of the Total Wage Index is based on the sum of total wages and salaries, for paid hours.
The three wage indices, the Basic Wage Index, the Wage Index and the Total Wage Index show changes in hourly wages, but on the Statistics Iceland website it is also possible to find data on the sum of wages and the number of people receiving wages, see timely indication on monthly taxable payments. The information also shows timely trends in individual income, including income from work.
These various measurements on wages can give a broader perspective on the subject. It is necessary to keep in mind how they differ in regard to measurements when interpreting the information.
It should be noted, that a timely index of quarterly Labour Cost for the Icelandic labour market is also available, which makes international comparison possible. The index is published on Eurostat's website, and shows changes in total labour costs and total earnings per hour worked.
Changes in the organisation of statistical tables
The wage index organisation of the statistical tables has been updated and now comprises five categories. The first category is on monthly figures which comprise all wage indices, except the Total Wage Index that is published quarterly. The second category, quarterly figures, is on the average of monthly indices and the third category is annual figures which includes annual averages. In addition, there are categories on other wage indices as well as a category with earlier tables, which are no longer updated. See further in overview of statistical tables in wage index.
The main changes in the arrangement of the statistical tables (PX) for wage indices are the following:
- The time variables were combined into a single time variable (e.g. September 2022 becomes 2022M09 and 3rd quarter 2022 becomes 2022Q3). The time variable appears on the vertical axis with the most recent value at the top.
- Names of tables and values were reviewed and harmonised.
- Quarterly and annual averages now appear in separate tables.
- Table variables have been coded for improved API performance.
- URLs to statistics in tables have changed.
Other changes worth mentioning include:
- The Wage Index that is calculated and published according to law No 89/1989, will be published in a separate table with the base year 1988, in both monthly and annual figures.
- Further breakdown of the Wage Index is not a legal obligation, but Statistics Iceland has published a breakdown for various groups to meet the needs of users. Due to the similarity of the Wage Index and the Basic Wage Index, those indices are compiled in tables entitled Wage indices with the base of December 2018 and are dated back to 2015.
- The Total Wage Index is the only index that is not released monthly but quarterly. The statistics date back to 2008 where the base year is the average of 2016. Other quarterly and annual figures are based on averages of monthly figures.
- The Total Wage Index is published monthly about 20-24 days after the end of the reference month. About 80-85 days after the reference month several sub-indices are made accessible. When the Wage Index is calculated (total), the last two measurements are revised and these, together with the measurements of the reference month, form the value that is published. The group breakdown, however, is based on a revised data set.
- The statistical table called Real Wages, index from 1989, which is based on the development of the Wage Index in relation to fixed prices, has been moved under categories of other wage related indices. The same statistical tables are now called: Wage Index based on constant prices from 1989.
Older connections to statistical tables available until March 31, 2023
The changes reported here means that users who are already using Statistics Iceland's API service to apply for statistics on the wage index need to update their connections. Connections in the previous configuration will continue to be accessible with updated statistics through March 31, 2023.