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.