The wage index in April 2017 is 598.4 points, 0.2% higher than in the previous month. In the last twelve months the monthly wage index has risen by 4.9%.
|Wage Index 2016-2017|
|December 1988=100||Change from previous month, %||Annual rate based on the change
in the last
|Index||3 months, %||6 months, %||12 months, %|
|Notes: The wage index is calculated and published according to law No 89/1989. The wage index is based on regular hours earnings each month, calculated and published in the following month.|
The difference in the 12 month change in April 2016 compared to that of April 2017 can be explained by the fact that there was no general wage increase due to collective agreements in the period from May 2016 to April 2017 for a large proportion of employees in the private sector. The 12 month change in April 2016 includes two general wage increases due to collective agreements.
Real wages were -0.3% lower than in the previous month
The real wage index in April 2017 is 138.8 points, -0.3% lower than in the previous month. In the last twelve months the real wage index has risen by 2.9%.
About the wage index and the real wage index
The wage index is a price index based on data from the Icelandic survey on wages earnings and labour cost. The purpose of the index is to reflect changes in wages paid for fixed working hours. The index is based on earnings for contractual working hours and includes all wages paid for day time and fixed overtime hours, including additional payments and bonuses. Irregular payments and employers' social contributions and taxes are excluded.
The real wage index shows changes in wages in relation to changes of the consumer price index. In general, real wages increase when wages increase more than price levels, but decrease when inflation is higher than wage rises. Real wages are not the same as disposable income of households.