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    News | Icelandic Teachers Approve Four-Year Wage Agreement
    Economy

    Icelandic Teachers Approve Four-Year Wage Agreement

    Ragnar TómasBy Ragnar TómasMarch 5, 2025No Comments3 Mins Read
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    Icelandic teachers have voted to approve a new four-year wage agreement. Ninety-three per cent of those who voted cast their ballots in favour of the agreement.

    93% voted in favour

    As reported last week, the wage dispute between the Icelandic Teachers’ Union and state and municipal authorities was resolved on February 26. The parties signed a four-year agreement, which included a 24.5% salary increase.

    All strikes were called off as a result.

    Yesterday, teachers formally voted to approve the new agreement, which is set to remain in effect until 2028, RÚV reports.

    “We have received the results of the overall agreement vote, which all member associations of the Icelandic Teachers’ Union (KÍ) voted on collectively,” Magnús Þór Jónsson, Chair of the Icelandic Teachers’ Union, told RÚV yesterday.

    As noted by RÚV, a single, unified vote was held on the agreement, without division by individual teacher associations. Approximately 76% of eligible voters participated, with nearly 93% voting in favour, 6% voting against, and 1% of the votes deemed invalid.

    “We decided, in consultation with the state mediator, to conduct a single vote. This means the results are not broken down by individual associations,” Magnús Þór explained.

    Job valuation process ahead

    “In my mind, it is absolutely clear that all seven member associations of KÍ demonstrated immense strength by standing together,” Magnús Þór continued. “No single association would have achieved this outcome individually,” Magnús Þór stated, adding that the next step is a reassessment of teachers’ job valuation.

    “We are now moving into the job valuation project, which could bring significant benefits to all teachers, including those in upper secondary schools,” Magnús concluded.

    As reported by RÚV in February, the valuation system is a method for determining the value of jobs and, consequently, salaries. It has been used to reduce the gender pay gap. This system assesses four main aspects of teaching: knowledge and skills, workload and experience, responsibility, and working conditions. The goal is to ensure that teachers’ pay reflects the true complexity and demands of their profession instead of relying solely on traditional bargaining.

    Uneasiness about the agreement

    The new four-year agreement between the Icelandic Teachers’ Union and state and municipal authorities has sparked unease among some. While teachers have welcomed the deal, politicians, union leaders, and economists have expressed concern that it may set a costly precedent, potentially disrupting other wage agreements or fueling inflation.

    On February 28, the chief economist of Íslandsbanki claimed that the new agreement posed a risk of prolonged inflation and that municipalities would struggle to meet the increased costs associated with the agreement. The Prime Minister has stated that the state is committed to strengthening the position of the teaching profession and that efforts are underway to explore ways to ease the municipalities’ fiscal challenges.

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    Icelandic Teachers' Union inflation wage agreements
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    Ragnar Tómas

    Ragnar Tómas is a former contributor to Iceland Review.

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