Salaries of Reykjavík City employees will increase on average by 25% reports the Icelandic National Broadcasting Service. The two largest unions that negotiate with Reykjavík City signed a new contract last night.
The new contract will now be introduced to union members.
Reykjavík mayor Steinunn Valdís Óskarsdóttir said that the union contract would be expensive for the city but enables it to offer employees more competitive compensation.
Elections will be held next Spring.