Collective Agreement 2016

The agreement between the member organisations of ASÍ and sa was signed on 21 January 2016 and put to a vote in February 2016 between the member organisations of the ASI, including the PRC. The agreement was adopted by 91.28% of the vote. A similar agreement between the PRC and the FA was signed on 22 January and was also adopted by an overwhelming majority in a vote among members. The objective of the collective agreement is to increase the pension rights of workers in the private sector from 56% to 76% of the average income during working life and to maintain the same level of pension rights between the private and public sectors. To this end, employers` contribution to pension funds will be gradually increased by 3.5%, from 8% to 11.5% in 2016 to 2018. Pension rights will increase by 36% and disability, child and family pensions will increase by the same proportion. The main elements of the agreement are listed below. Please note that this is only a translation, in case of dispute, please refer to the original in Icelandic. The agreement also aims to adapt the changes in wages and performance for the years 2016-2018 to the framework agreement of the social partners of 27 October 2015.

Wages will evolve in such a way that a general wage increase of 6.2% instead of 1 May 2016 will take place on 1 January 2016 instead of 1 May 2016, instead of 1 May 2016. If, during the period from 2 May 2015 to 31 December 2016, an employer has made a general increase in wages for the vast majority of its employees, it may deduct it from the increase in wages. However, no employees receive during the period. May to January 31 less than 6.2% increase. Instead of a 3.0% general wage increase on May 1, 2017, there will be a general wage increase of 4.5% and instead of a 2.0% general wage increase on May 1, 2018, there will be a general wage increase of 3.0%.