Finance Ministry wage department proposes new pay framework

The Wage Department of the Ministry of Finance has sent trade unions a proposal for a new pay framework, KVF reported. The framework is expected to be announced today if everything goes to plan.

The parties previously agreed on a specific formula for calculating the framework, so their negotiations are focused on other issues. The framework for the previous contract period was 3.87 per cent.

Jan Sjóstein, head of the Wage Department, said it had waited for the national accounts to obtain the latest figures for the formula. The calculation is based mainly on average productivity growth over the past five years and average inflation over the past three years.

A total of 17 trade unions are covered by the agreement on a common pay framework, which will provide the basis for upcoming collective bargaining.