National Hospital Needs Additional ISK 1 Billion for Wage Hikes Skip to content
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National Hospital Needs Additional ISK 1 Billion for Wage Hikes

The National Hospital of Iceland needs ISK 1 billion ($8m/€7.2m) in additional government funding to pay out salaries decided upon in previous wage agreements, RÚV reports. The Parliamentary Budget Committee is discussing how to address the issue. If more funding isn’t provided, say hospital representatives, it will be necessary to cut services or run the hospital with a deficit.

Ebba Margrét Magnúsdóttir, chairperson of the hospital’s doctors’ council, says the government undercalculated the hospital’s funding following the signing of recent wage agreements. According to information from the hospital, an additional ISK 500 million ($4m/€3.6m) in funding is needed per year to pay out wage increases laid out in doctors’ 2017 collective agreement. Double that amount is needed to address agreed-upon wage increases of all medical staff at the hospital.


Minister of Health Svandís Svavarsdóttir stated that although ensuring healthcare funding over the long term is important, “we also need to organise it better,” and suggested the government’s new health care policy would play a part in addressing funding.

The National Hospital of Iceland has already undergone significant restructuring in order to address its operational deficit. Directorial positions at the hospital have been reduced, and nurses’ and midwifes’ shift premiums have been cut. According to Ebba, however, these are measures the hospital shouldn’t have to take. “The people on the floor have pretty much had enough,” she stated.

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