The main items of the new collective agreement

Payments on 1 May, 2019

The new collective agreement is in force as of 1 April 2019. The monthly salary of all workers rises by 17,000kr. for full daytime labour and the minimum pay for a full job is now 317,000kr./month. You can see new Wage table here. The hourly daytime wage rises by 98.08kr., which equals 17,000/173.33. For those working under the hotel and restaurant contract with SA, the hourly daytime wage rises by 98.84kr., which equals 17,000/172.Orlof for 2019 (50,000) and a one-time payment at the beginning of the new agreement (26,000) should be paid no later than 2 May.


The trade unions affiliated to the Federation of General and Special Workers in Iceland (SGS) have signed a new collective agreement with SA, the employers’ association, which will take effect if accepted by union members in a vote. The agreement applies from 1 April 2019 until 1 November 2022, i.e. for 3 years and 8 months.Increases in monthly pay for those working according to the pay table rates – For full-time work

  • April 1st of 2019: 17.000 kr.
  • April 1st of 2020: 24.000 kr.
  • January 1st of 2021: 24.000 kr.
  • January 1st of 2022: 25.000 kr.

Increases in monthly pay for those paid more than the pay table rates – For full-time work

  • April 1st of 2019: 17.000 kr.
  • April 1st of 2020: 18.000 kr.
  • January 1st of 2021: 15.750 kr.
  • January 1st of 2022: 17.250 kr.

There will be a 2.5% increase on other wage items in the collective agreement on these same dates, e.g. on bonuses, unless otherwise negotiated.Minimum wage insuranceThe minimum wage guarantee will remain in the agreement. It guarantees a minimum monthly wage for full-time work, including premia, bonuses and additional payments. That minimum wage for full-time work will be:

  • April 1st of 2019: 317.000 kr.
  • April 1st of 2020: 335.000 kr.
  • January 1st of 2021: 351.000 kr.
  • January 1st of 2022: 368.000 kr.

GDP growth-related wage increasesDuring the years 2020-2023, wage increases based on GDP growth per capita may be added to the monthly wage. This benefits lower paid workers most as the increase is added 100% to pay table rates and 75% to other wages. Economic growth-related wage increases are activated on 1 May for the years 2020, 2021, 2022 and 2023 and are based on economic growth figures for the preceding year calculated by Statistics Iceland.

Year-on-year per capita GDP growth Wage increase on pay table rates Wage increase on pay higher than pay table rates
1.00-1.50% 3.000 kr. 2.250 kr.
1.51-2.00% 5.500 kr. 4.125 kr.
2.01-2.50% 8.000 kr. 6.000 kr.
2.51-3.00% 10.500 kr. 7.875 kr.
Over 3.00% 13.000 kr. 9.750 kr.

December bonus for full-time work (was ISK 89.000 in 2018)2019 92.000 kr.2020 94.000 kr.2021 96.000 kr.2022 98.000 kr.Holiday pay for full-time work (was ISK 48,000 in 2018)

  • May 1st of 2019 50.000 kr.
  • May 1st of 2020 51.000 kr.
  • May 1st of 2021 52.000 kr.
  • May 1st of 2022 53.000 kr.

One-time paymentA lump sum of ISK 26,000 is added to the holiday pay bonus in 2019, and shall be paid no later than 2 May 2019.Wage adjustment guaranteeIf the wage increases in the general labour market are higher in percentages than the wage increases in this collective agreement, the wage adjustment guarantee raises these wages to compensate for the difference.Preconditions of the collective agreementsThe agreement is based on purchasing power of wages increasing during its term; that interest rates decrease significantly and remain low; and that the government honours the promises it has made. These preconditions will be assessed in September 2020 and September 2021. The assessment committee will comprise 3 representatives from theunions and 3 representatives from employers. The agreement may be rescinded if the preconditions fail.łElectronic votingVoting on the collective agreement takes place online. It starts on Friday 12 April at 13:00 hours and ends on Tuesday 23 April at 16:00. Detailed information can be found on the SGS web page and also on the web pages of individual trade unions. For those who are not able to cast their votes electronically there will be an absentee ballot at each union office. Use your vote!STANDARD OF LIVING AGREEMENT 2019-2022Changes to the Collective Bargaining Agreement and the Service and Catering Agreement between Efling Trade Union and SA-Confederation of Icelandic EmployersASÍ HomepageSGS Homepage