Collective wage agreements 2026

When the collective agreements were signed in 2024, workers took a significant risk by accepting modest wage increases during a period of inflation. In return, companies were expected to exercise restraint in raising prices, while municipalities were expected to keep increases in fees and charges moderate, in order to help bring down inflation and interest rates. However, prices and municipal fees have continued to rise, while interest rates remain extremely high. The assumptions underlying the collective agreements have therefore failed, and the agreements could be terminated on 8 October.

VR, LÍV and Fagfélögin have sent letters to companies with a significant influence on prices and to the largest municipalities, asking what they intend to contribute to ensure that the collective agreements can remain in force. Maintaining the status quo is not an option.

The letters, along with a list of the companies and municipalities that received them, can be found below.

Letter to companies (In Icelandic)

Letter to municipalities (In Icelandic)