Wages (Pay as you earn)
13. Dec 2024
DKK 12.7 billion paid in wages – up 6% year-on-year
Wage expenditures increased by DKK 731 million (6.1%) from December 2023 to November 2024, compared with the previous 12-month period.
The trend shows a steady growth in wage expenditures.
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Lower wages in fishery
The table below shows wages taxed at source at the first level of the new industry classification in the past 12 months compared with the previous 12-month period. The highest wage growth in money terms was registered in ‘O Public administration and defence; compulsory social security’, followed by ‘Q Human health and social work activities’. The highest percentage growth was in ‘R Arts, entertainment and recreation’. ‘A Agriculture, forestry and fishing’ was the only industry branch in which wage expenditures decreased, dropping DKK 50 million (3%) year-on-year.
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The largest share of wages paid in "A Agriculture, forestry and fishing" comes from the subgroup "Fishing and aquaculture". Within ‘A Agriculture, forestry and fishing’, the biggest wage decline in money terms was in ‘Pelagic fisheries’, where wages fell by DKK 46 million (8%) year-on-year.
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Women’s wages up by 10%
Women’s wage growth has been relatively steady in recent years, while men's wage growth was more affected when the Covid-19 pandemic hit. In recent years, men have accounted for about 60% and women 40% of wages.
However, women had higher growth in wage payments than men over the past twelve months. Of the total year-on-year growth of DKK 731 million, women accounted for more than 60% with DKK 450 million. Women's wages were 10% higher than in the previous period, while men's wages increased by almost 4%.
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Highest growth in Sandoy region
Below is a percentage breakdown of wages by region over the past 12 months compared with the previous 12 months. The Sandoy region saw the highest growth at almost 9%. The lowest growth (just under 2%) was registered in the Suðuroy region.
More detailed wage statistics are available on the following regional pages: Norðoya region, Eysturoyar region, Norðstreymoyar region, Suðurstreymoyar region, Vága region, Sandoyar region, Suðuroyar region
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Women’s average wage one-third lower than men’s
The average wage per person was DKK 35,864 in November, up 4.5% on November 2023. The graph below shows the average wage by sex. In November, women’s average wage was DKK 28,700, 32% lower than the average for men, which stood at DKK 42,400 in November. Compared with November 2023, the average wage has increased by almost 4% for men and almost 6% for women.
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About the wage statistics
Wages as a statistical concept are part of the broader definition of compensation for employees. Compensation is divided into a) wages and b) employers' contributions to social schemes, including pensions. The terms are based on the description in the national accounting manuals 'System of national accounts' published by the UN and 'European system of accounts' published by Eurostat.
According to this definition, wages include wage components such as basic wages, allowances, overtime pay, holiday pay and employee benefits. Not included are employer social benefits such as pensions, unemployment insurance and maternity benefits.
The wage statistics only include cash wages paid by employers to employees through the PAYE system. The wage statistics thus cover A-taxable wages from employers who are economically active in the Faroe Islands. All wage payments that meet the above requirements are included, regardless of whether the employee resides in the Faroes or abroad.
Revised statistics
Wage statistics were updated and revised in the first half of 2024. These changes have led to a slight increase in total wages, particularly in recent years. The main reason for this increase is the inclusion of employers registered in the Faroese International Shipping Register (FAS), who are now considered part of the Faroese economy. Due to these changes, the latest figures cannot be compared to previous data. Older tables are still accessible in the statbank but will not be updated. These tables are labelled 'Discontinued' in the statbank.