New Wage Contracts for Workers in Iceland Skip to content

New Wage Contracts for Workers in Iceland

The Confederation of Icelandic Employers (SA) and the Federation of General and Special Workers in Iceland (SGS) reached new agreements on wages for workers in Iceland yesterday. The lowest salaries of SGS members will increase by 32 percent.

“We have reached an important stage, like in regards to accidents insurance for laborers, which has been in disorder. Vacation days will increase to 30, which put us on par with official workers,” director of SGS Kristján Gunnarsson told Morgunbladid.

The agreement between SA and SGS is in effect until the end of November 2010. It includes provisions that increase all salaries by ISK 18,000 (USD 268, EUR 184) once the agreement is signed this weekend, by ISK 13,500 (USD 101, EUR 138) in 2009 and by ISK 6,500 (USD 97, EUR 66) in 2010.

The salaries of craftsmen will increase by ISK 21,000 (USD 131, EUR 214) once the agreement is signed, by ISK 17,500 (USD 261, EUR 179) in 2009 and by ISK 10,500 (USD 157, EUR 107) in 2010.

According to Gunnarsson, more than 70 percent of SGS members outside the capital region will benefit from the salary increase.

The agreement also includes a wage development insurance. Every worker who has worked for the same employee since January 2, 2007, and not been given a 5.5 percent increase in salary, will get a raise accordingly. In 2009, the wage development insurance will be 3.5 percent.

Wage contract discussions between the Icelandic Confederation of Labor (ASÍ) and the Icelandic government are ongoing, but according to ASÍ’s president, Grétar Thorsteinsson, they are moving along in the right direction.

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!

Share article