Iceland’s national wage contract negotiations are drawing to a close and look set to see the country’s minimum wage go up by 20 percent over the next three years.
The change would see Iceland’s lowest earners getting over ISK 200,000 (EUR 1,203) per month for the first time, RUV reports. It would also see employers’ wage bills increase by around 13 percent throughout the whole economy. It is hoped the new national wage contract will be signed by the end of today, although some issues remain unresolved.
The long negotiation process between trades unions (which every employee is automatically a member of), the government and employers’ associations have been at a deadlock for weeks. At last progress was made yesterday and the meeting at the state mediator’s office lasted until 04.00 this morning and started again at 10.00.
Currently the minimum wage in Iceland is ISK 165,000 per month (EUR 993), but will likely increase to ISK around 200,000 in three stages over three years. Workers will also receive a one-off ISK 50,000 payment at the beginning of the new three-year contract period.