Statistics Iceland (SI) published data underlying the general wage index and the real wage index for October this morning. The general wage index rose by 0.5% MoM and is now up 7.7% YoY. The increase between months stems mainly from the private sector, where wage hikes have been spread across all sectors, and from shift differentials applied to public sector workers’ base wages.
The twelve-month wage rise in the general wage index has been broadly stable in recent months and remains brisk in historical terms, although the pace has slowed from its peak early this year. In February and March 2021, for instance, it measured 10.6%, as two contractual pay increases took effect during the twelve-month period captured by the measurements.