Wage Council Refuses to Lower Ministers’ Salaries Skip to content

Wage Council Refuses to Lower Ministers’ Salaries

By Iceland Review

The wage council, which determines the salaries of officials, announced in a letter sent to Prime Minister Geir H. Haarde on Monday that it doesn’t have the authority to comply with his request to lower the salaries of Iceland’s highest ranking officials by five to 15 percent.

The council cited its charter and concluded that it cannot make a decision on lowering the salaries of officials in such a way, mbl.is reports.

Although it is clear that the collapse of the Icelandic banking system and the international economic crisis has serious consequences for the public and the state treasury—and that the impact on the development of wages will be significant—the council’s purpose is not to form policies on wage development.

Gylfi Arnbjörnsson, President of the Confederation of Labor (ASÍ), told ruv.is that the wage council’s decision is a disappointment since the ministers made the respectful decision of wanting to share the wages of the general public.

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