If wage increases in the general labour market are higher in percentage than wage increases in this collective agreement, the wage adjustment guarantee increases those wages to compensate for the difference. One of the most radical changes is indexed credit, a controversial banking policy, where the interest rate on a given loan can vary, among other things, on the basis of real estate values and the exchange rate of the krona. Under the new agreement, indexed pension credits over 25 years will be prohibited from 2020, with a few exceptions, and indexed consumer credits will extend their minimum term from five years to ten years. Vr enters into collective agreements with the Association of Icelandic Enterprises (Samt-k atvinnul-fsins, SA) and the Icelandic Trade Association (FA, formerly f.S.), as well as with several companies outside these organisations. The agreement will enter into force from January 1, 2016 until December 1, 2018. It contains significant additions to the increases that were negotiated last year. The agreement is based on a framework agreement between labour market companies of 27 October 2015 and the Pension Rights Protocol of 5 May 2011 and aims to ensure equal wage developments on the basis of a common wage policy and pension rights compensation. The contract and salary schedules can be found below. A new collective agreement between VR and SA was signed on May 29, 2015. The duration of the agreement is until the end of 2018. The agreement was adopted by 73.9% of the votes cast in the vote of the deputies held from 10 to 22 June 2015. The main points of the agreement can be found below.
The agreement was adopted by 91.59 per cent of the votes cast in the vote that ended on 24 February 2016. The contract and salary schedules can be found below. A collective agreement was signed on 21 January 2016 with the Icelandic Employers` Association (SA). The agreement was adopted by 91.28% of the votes cast in the vote of 24 February 2016. While Efling wanted to increase the minimum wage for its workers from ISK300,000/month to ISK 425,000/month over three years, the signed contract raises wages to ISK 390,000/month over the next three years and eight months. This concession, according to Efling, was made “given the state of the economy after bankruptcies and layoffs in the tourism sector, with the aim of creating favourable conditions for lower interest rates”. In 2020-23, wage increases based on GDP per capita growth can be added to monthly wages. This is what benefits low-paid workers the most, as the increase is in addition to 100% table rates and 75% to other wages.
Wage increases related to economic growth will be activated on 1 May for the 2020s, 2021, 2022 and 2023 and will be based on economic growth figures for the previous year, calculated by Statistics Iceland. The collective agreement applies from April 1, 2019 to November 1, 2022. The collective agreement pays particular attention to improving wage conditions for low-wage workers. The wage increases contained in the agreement are all in the form of monthly wage increases.