“With the bill, it is proposed to enact a permanent standard for updating the wages of this group and that the wages of the group increase by 3.5% on July 1st instead of the 9.7% increase as usual,” says a notice on the Cabinet’s website.
The aim of the bill is to create stability in updating the salaries of elected representatives and senior officials and to create the widest possible agreement on their salary arrangements.
In the announcement, Kristrúna Frostodóttir is quoted as saying that the system of salary increases for elected representatives that has been in force for the last few years has not worked as it should.
“But now we’re changing the law so that the salary development of nationally elected representatives and senior government officials takes better account of the general salary development in the country,” says Kristrún.
“There has long been a consensus in the parliament that the criteria for updating wages should be this way. It is especially important that we both support stability in the labor market and show responsibility in times of inflation and high interest rates,” Daða Má Kristófersson, Minister of Finance and Economy, was quoted as saying.
The salaries of the elected representatives will increase by 3.5 percent on July 1, 2026 and July 1, 2027, but this is in accordance with the collective bargaining increases that have been agreed upon. If these measures had not been taken, the salaries of the elected representatives would have increased by 9.7 percent.
“It is then proposed that the cumulative increase for the year 2028 will be a maximum of 3.5 percent.”
