Salary gap widens in Iceland Skip to content

Salary gap widens in Iceland

The gap between the net salary of the highest and lowest wage earning members of the Commercial Workers’ Union in Reykjavík (VR) continues to widen, according to a new study on salary undertaken by the union.

In general, wage earners in VR enjoyed a considerable increase in salary, 12 percent, between 2006 and 2007. VR President Gunnar Páll Pálsson told Morgunbladid the increase is slightly higher than what the salary index indicates, so the salary of VR members increased more than of the average worker.

There is a great difference—425 percent—between those who earn the most and those who earn the least within VR. The highest earning group has on average ISK 765,000 (USD 11,400, EUR 8,400) in net salary a month, while the lowest earning group has ISK 180,000 (USD 2,700, EUR 2,000).

The difference has been on the increase for the last few years and the gap continues to widen. In 2005 the difference in salary between the two groups was 398 percent and in 2006, 411 percent.

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