Wages

Central government, and state institutions, including hospitals

In the central collective agreement, there are general provisions regarding rights and obligations, such as working hours, leave entitlement, sick leave, and general wage increases.

However, in the institutional agreements, that are part of the collective agreements, specific adaptations are negotiated to meet the needs of the institutions and employees, considering the nature of their operations, organizational structure, and other factors that give the institutions a unique position. The institutions can then reward their employees based on individual factors, such as education, experience, and performance.

Institutional agreements bring decisions on wage determination for specific positions closer to the workplace, enabling a more rapid response to changes made to positions and organizational structure within institutions. This contributes to linking wages to performance in line with the objectives and policies of the institutions.

The objective is also to improve the quality of the institutions’ services by emphasizing collaboration between employees and management in the workplace. This collaboration is intended to improve the organization's’ operational structures, enhance the utilization of resources, and establish a foundation for a more efficient and equitable wage system, thereby providing employees with opportunities for growth and development, leading to improved working conditions.

City of Reykjavík and other municipalities

The wages of members of BHM affiliated trade unions working for Reykjavik City and other municipalities are based on two main factors. Firstly, a comprehensive central wage agreement with employers on wages and general rights. Secondly, the wages of union members depend on a job evaluation system that classifies employees into wage groups, based on the responsibility and workload associated with their respective positions.

A specific job evaluation system is used to systematically assess the requirements of jobs on employees. The system is based on objective criteria that are used to compare jobs in accordance with the inherent demands of the positions, regardless of the abilities of those performing them.

The objective of job evaluation is to ensure that employees receive fair wages through objective and systematic methods. It also aims to arrange jobs in a way that basic wages are equal for jobs that are assessed as equivalent, regardless of hierarchical position, trade unions, or gender.

Job evaluation only assesses the basic requirements of a position and does not consider individual capabilities of employees.

General labour market

The collective agreement between the Confederation of Icelandic Enterprise (SA) and associations affiliated with BHM does not provide specific details regarding wages, such as daily rates or monthly salaries.

As a result, the salaries of university graduates, employed in the general labour market, are not determined by the collective agreement itself but are instead influenced by prevailing market conditions. The agreement stipulates that the determination of wages and other working conditions, including wage components, additional payments, and related matters, shall be governed by the provisions of the individual employment contract.

Negotiating a fixed monthly salary that outlines the total compensation of an employee is permissible. Likewise, it is acceptable to negotiate a predetermined fee for overtime work or any other contributions made by an employee outside of regular working hours.

BHM

For more detailed information, please refer to our member associations.