Finance minister orders payroll departments merged next year

Two payroll departments will be combined next year under a new unit called Løn landsins, or State Payroll, KVF reports. The decision was made by Finance Minister Aksel V. Johannesen.

The Finance Ministry’s payroll department and the payroll department at Gjaldstovan, a government agency, will form the new unit. Johannesen said closer links between their work would be an advantage and create a stronger basis for developing areas that need prioritising.

Labour-market and salary analysis, training and information will be prioritised in 2027 and 2028, he said.

Salary negotiations will remain a separate function. The head of State Payroll will be responsible for negotiations and report directly to the finance minister. In other matters, the head will be part of Gjaldstovan and report to the relevant director.

The Finance Ministry said the government’s payroll and personnel administration had remained largely unchanged for many years. Agreements cover payroll costs of more than 3.5 billion kroner, 12,600 people and 5,600 full-time equivalent positions. For many public institutions, payroll accounts for the bulk of their available budget.