The wage index rose 0.9% MoM in September, according to new figures from Statistics Iceland (SI). The index typically rises during the autumn, mainly because wage differentials and other premiums are generally higher than in the summer, when pay rates tend to reflect summer holidays and work by temporary employees. This also explains the difference between the general wage index and the so-called base wage index, which rose by 0.4% over the same period.
The YoY rise in the general wage index now measures 10.9%, broadly in line with the pattern seen in recent months. This steep increase is due mainly to last winter’s wage agreements, which delivered generous pay rises for large segments of the working population.