Labour Agreement

Representatives from the Confederation of Icelandic Labour Unions (ASÍ) and the Confederation of Employers (SA) reached an agreement yesterday regarding multiple facets of labour regulations which will go into effect starting in 2007. The changes include a 5.5% cost of living increase and a raise in yearly personal deductions from 29,029 ISK to 32,150 ISK. In addition, the "tax-free" ceiling - the highest a person's monthy wages can be without having to pay tax - was raised from about 79,000 ISK to 90,000 ISK. These measures await only government approval, which is expected to be granted. - pfn