Next Wage Increase?

Wage increases in the general labour market

Member unions of BHM (Association of Academics in Iceland) collectively negotiate Collective Agreement with SA (Confederation of Icelandic Enterprises), i.e. on the general labour market. There is no negotiation regarding wages or pay-scales, however the agreement consists of rights and obligations and salaries changes go according to general changes on the market. Each and every one needs to negotiate hers/his remunerations in employment contract and how wage rises are arranged.

See below table how wage increases go according to general agreements SA has negotiated:

 Agreement  2018 2017  2016
 SA May 1. - 3 % increase   May 1. - 4,5% increase 
January 1. - 6,2% increase to the minimum of 15.000 ISK.



Wage increases on public labour market (governments and municipals)

 Agreement     2018  2017 2016 
 Government January 1. - 2% increase

June 1.  - 2% increase     
September 1. New pay-scale June 1. - 5,5% increase in new pay-scale.
 Municipals

June 1. New pay-scale and Job Evaluation Project takes effect.

 June 1. New pay-scale

April 1. Preliminary arrangement due to Job Evaluation Project which increase salaries. 

June 1. - 6% increase

 City of Reykjavík June 1. - 3% increase June 1. - 3% increase  June 1. - 6% increase

Institutional agreement for employees of the government


 2016
 Government The government is obligated to give 1,65% increase in Institutional Agreements due to embodiment of education provisions in Arbitration ruling, as necessary.

Lump sum

 Agreement
 2019
 Government February 1. - 70.000 ISK***
 Municipals April/May - 58.000 ISK**
 City of Reykavik February 1. - 58.000 ISK*


*Special lump sum is paid every employee who is employed in December 2018 and is still employed 1. of February 2019 based on full employment. The amount is paid proportionally based on employment period and percentage of employment in December 2018.

**Special lump sum is paid every employee who is employed in January, February and March 2019. The amount is paid proportionally based on employment period and percentage of employment in these three months.

***Special lump sum is paid every employee who was employed in December 2018 and is still employed 1. of January 2019. The amount is paid proportionally based on employment period and percentage of employment in December 2018.