Total wages rose 6.2% year on year

Total wages in Iceland rose 6.2% in the second quarter compared with the same period last year, mbl.is reported. The quarterly total wage index measures all wages subject to withholding tax, including basic pay, overtime, benefits, child payments and bonuses.

Over the same period, the labour cost index increased by 5.9%. This index includes total wages and other labour costs, such as employer pension contributions and social security tax, divided by the number of hours worked. It therefore measures changes in labour costs based on working hours.