The results of the voting among members of VR on the newly concluded collective agreements with the Confederation of Icelandic Employers (SA) and The Icelandic Federation of Trade (FA) are now available.
VR's collective agreement with SA was approved with 81.91% of votes cast in the ballot which ended at 12:00 noon today, 7.808 VR members voted yes and 1.504 voted no or 15.78% while 220 or 2.31% abstained. There were 39.115 VR members on the electoral register for the agreement between VR and SA and 9.532 voted or 24.37%.
VR's collective agreement with FA was approved with 85.17% of votes, 247 VR members voted yes and 38 voted no while 5 or 1.72% abstained. There were 939 VR members on the electoral register for the agreement between VR and FA and 290 voted or 30.88%.
The voting was electronic on vr.is and took place 14 – 21 December 2022.
115 Security ehf.
Apótek Hafnarfjarðar ehf.
Apótek Vesturlands ehf
Á. Óskarsson og Co ehf.
Ásbjörn Ólafsson ehf.
Baader Ísland ehf.
Bako Ísberg ehf.
Bílabúð Benna ehf.
Celsus hjúkrunar- og heilsuvöru
Core heildsala ehf.
Gallerí fasteignir ehf.
GO Nordic ehf.
Heildverslunin Echo ehf.
Heildverslunin Rún ehf.
H:N markaðssamskipti ehf.
Hotel Vatnsholt ehf.
Hvíta húsið ehf.
Íslenska útflutningsmiðstöð ehf
Járn og gler hf.
John Lindsay hf.
Jóhann Helgi & Co ehf.
J.S. Gunnarsson hf
K. Richter hf.
Mamma veit best ehf.
Nýi tölvu-/viðskiptaskóli. ehf.
Nýja vátryggingaþjónustan ehf
Opin kerfi hf.
Ólafur Gíslason og Co hf.
Ólafur Þorsteinsson ehf
Plast - miðar og tæki ehf.
Rolf Johansen & Co ehf.
Skúlason & Jónsson ehf
Smith & Norland hf.
Sport Company ehf.
Tokyo veitingar ehf.
Vélar og verkfæri ehf.
Z-brautir og gluggatjöld ehf.
All members of VR who work according to these agreements have the right to vote. Members have the option of voting online at VR’s offices during opening hours. It is important to have an electronic ID or an Íslykill with you.
Self-employed persons and / or business owners are not entitled to vote on collective agreements or strikes. See article 3 in the laws of VR.
New Collective Wage Agreements
VR signed a collective wage agreement with the Confederation of Icelandic Employers (SA) on Monday, 12 December 2022. The agreement is valid from 1 November 2022 to 31 January 2024.
The agreement includes a wage increase of 6.75% from November 1, with a maximum of ISK 66,000. The additional economic growth that was supposed to be paid next year is accelerated and is part of this wage increase.
Significant changes will be made to the VR wage table; new wage rates will apply from 1 November. December and holiday supplements will increase.
See PDF of the collective wage agreement here.
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Main points of collective wage agreements
This collective wage agreement is an extension of the parties’ Living Standards Agreement that was valid from 2019–2022. According to the parties to the agreement, the agreement supports the purchasing power of wages as well as providing predictability to households and companies in times of great uncertainty. The agreement can thus build stability and create the conditions for a long-term agreement.
The effective term of the agreement is from 1 November 2022 until 31 January 2024.
The wage increase in the agreement is in the form of a percentage increase and a maximum ISK increase.
On 1 November 2022, monthly wages will receive a general increase of 6.75%, with a maximum of ISK 66,000.
Wage rates increase from ISK 36,015 to ISK 52,139. Previous pay scales will be replaced by new ones which are part of this agreement. Wage rates are valid from 1 November 2022.
See pay scales for VR and SA here.
See pay scales for VR and FA here.
Published subject to errors.
The December bonus for each calendar year, based on full-time employment, is:
In 2023, ISK 103,000.
The holiday bonus for each holiday reference year (1 May to 30 April), based on full-time employment, is:
During the holiday reference year beginning 1 May 2023, ISK 56,000.
Government support for collective wage agreements
The government has decided to take action in connection with the conclusion of collective wage agreements in the general labour market. The measures are intended to support the goals of the agreements to protect the purchasing power and living standards of workers and create conditions for stability in the economy, reduction of inflation and interest rates.
This is stated in a news item on the Government Offices’ website; for further information, see here. (Icelandic only)
See the government’s declaration in its entirety here. (Icelandic only)
- Increase in the number of new apartments
- In agreements with municipalities based on a framework agreement on the development of apartments, the government will aim to increase the supply of lots for the next 10 years and provide the necessary financial support to ensure the development of apartments.
- Increase in the number of general apartments.
- We will continue to work on a strong development in the general housing system. The government’s initial contributions to increase the supply of affordable apartments in the general housing system will be ISK 4 billion in 2023.
- Housing support will be improved.
- Housing benefits for tenants will increase by 13.8% at the beginning of next year, and the income reduction limit for housing benefits will increase by 7.4%.
- Asset reduction limits in the interest allowance system will increase by 50% at the beginning of next year.
- The general authorisation for the tax-free use of private pension savings for the purchase of residential property for personal use or for paying into the principal will be extended until the end of 2024.
- The arrangements for special housing support and housing benefits for tenants will be reviewed during the agreement period with the aim of ensuring equality and simplifying the system for tenants.
- Improved legal position and housing security of tenants: members of the labour market will be involved in a working group on the revision of the Rental Act to improve the legal position and housing security of tenants.
- The child benefit system will be simplified, support for families with children strengthened and the number of families receiving support increased.
- Reductions in the child benefit system will be reduced, marginal taxes due to child benefits will be reduced and the efficiency and timeliness of the benefits will be increased.
- Simultaneous payments of child benefits will be introduced so that the waiting time for benefits will never be longer than 4 months after the birth of a child.
- The total amount of child benefits will be ISK 5 billion more than in the current system in the next two years.
- ISK 10 million will be awarded in additional support to increase restraint in the consumer market.
- Ways will be examined to make it easier for pension funds to develop housing for rent by expanding their authorisations for investments in rental companies.
- An assessment will be made of payments and maximum amounts in the Maternity/Paternity Leave Fund and the Wage Guarantee Fund, with the aim of revising them in 2024. The government and members of the labour market will jointly evaluate the income generation and disposal of the insurance premium with the aim of ensuring a long-term balance in the financing of the rights covered by it in the Wage Guarantee Fund, Maternity/Paternity Leave Fund, Vocational Rehabilitation Fund and Unemployment Insurance Fund.
- The committee on the overall review of unemployment insurance must complete its work no later than the end of April 2023. Work will be done on the implementation of reforms in the unemployment insurance system during the agreement period in accordance with the committee’s recommendations.
- The matters and financing of the Vocational Training Fund will be reviewed in connection with the preparation of the 2023 Budget to support the goal of increasing the importance of vocational training.
The government recently proposed special measures in several important fields for the processing of the Budget for 2023, which support the objectives of the agreements and strengthen the basis of living standards. Health issues are the most prominent there, with an increase of over ISK 12 billion proposed in that field. It is assumed that the contributions will go to the operation of both hospitals and healthcare centres, or about ISK 4.3 billion. There is also a strong emphasis on the contributions being used in direct patient services, such as by reducing the waiting list for joint replacement operations and with increased contributions for home care and measures to spread the load on healthcare services.
Among other important issues, it should be noted that more than ISK 1 billion is proposed to increase the free income limit for disabled people to ISK 200,000 per month and that ISK 5 billion will be remitted from personal income tax, while municipal local tax revenue will be increased in return to improve their performance in relation to the status of disabled persons’ issues.
A large increase in contributions in the field of public and legal security is also expected, including around ISK 900 million to the police and an increase of ISK half a billion in measures against organised crime.