Employers, unions and government settle labor dispute Skip to content

Employers, unions and government settle labor dispute

By Iceland Review

Icelandic National Brodacasting Service, RÚV, reports that the Federation of Icelandic Employers and the Federation of Icelandic Labor Unions have agreed to revised terms for their agreements governing wages and other compensation. In connection with the agreement, the government will undertake to make certain changes.

Among other things, the income tax will be lowered by 1 per cent and the individual deductible amount will rise by ISK 3,000.-, taking effect the end of this year. The individual deductible amount will be linked to the consumer purchasing index, and the minimum wage will rise from ISK 108 thousand to ISK 125 thousand.

The agreement will be in effect until end of year 2007.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!