Wages (Pay as you earn)
18. Mar 2025
DKK 12.8 billion in wages in the past year — up 4.6% year-on-year
Wage expenditures rose by DKK 560 million (4.6%) in the March 2024-February 2025 period compared with the previous 12-month period.
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The trend reveals steady growth in wage expenditures; however, this growth has slowed down in the past year.
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Women lead wage growth
Women have seen steadier wage growth than men in recent years. Men's wage growth was significantly affected by the COVID-19 pandemic. In the past 12 months, women accounted for 39% of total wages, which is a year-on-year increase of 1%.
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Of the total wage growth of DKK 560 million, women accounted for DKK 354 million (60%). Of this amount, women working for employers under public control accounted for DKK 318 million.
Women’s total wages rose by 8% year-on-year, compared with 3% for men. For women and men working for employers under public control, the growth was 10% and 5%, respectively.
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Biggest wage growth in public sector
The table below shows the A-taxable (taxed at source) wages at the first level of the NACE industry classification in the past 12 months compared with the previous 12-month period. The largest growth in money terms was in ‘Public administration and defence; compulsory social security’, followed by ‘Human health and social work activities’. Within ‘Human health and social work activities’, ‘Residential care activities’ saw particularly high wage growth, rising 14% year-on-year.
‘Agriculture, forestry and fishing’ and ‘Manufacturing’ were the only industry branches that saw lower year-on-year wage expenditures. Within ‘Agriculture, forestry and fishing’, the biggest drop was in ‘Pelagic fisheries’, where wages fell by DKK 100 million (16%) year-on-year.
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Biggest wage growth in Sandoy region
The map below shows a percentage breakdown of wages by region in the past 12 months compared with the previous 12-month period. Sandoy saw the highest growth at 8%, while Suðuroy had the lowest growth at 2.4%.
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 more than a third below men’s
The average wage per person was DKK 37,947 in February, 5% percent higher than in February 2024. The graph below shows the average wage by sex. In February, women’s average wage was DKK 28,452, 39% lower than the DKK 46,540 average for men. Compared with February 2024, the average wage grew by more than 5% for men and by 4% for women. Note that working hours are not considered when calculating the average salary. The average salary is calculated by dividing the total wage by the number of persons receiving wages.
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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.