Wages (Pay as you earn)
15. Apr 2025
DKK 12.9 billion in wages in the past year — up 5.5% year-on-year
Wage expenditures rose by DKK 680 million (5.5%) in the April 2024-March 2025 period compared with the previous 12-month period.
[px-graph-5]
The trend reveals steady growth in wage expenditures in recent years,
[px-graph-1]
Larger wage growth under public control
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%.
[px-graph-2]
Of the total wage growth of DKK 680 million, women accounted for DKK 368 million (54%). Of this amount, women working for employers under public control accounted for DKK 325 million.
Women’s total wages rose by 8% year-on-year, compared with 4% for men. For women and men working for employers under public control, the growth was 10% and 5%, respectively.
[px-graph-4]
Wage expenditure reduced in fishing
The table below shows the A-taxable (taxed at source) wages at the first level of NACE, which is the classification of economic activities in the European Union, in the past 12 months compared with the previous 12-month period.
‘Agriculture, forestry and fishing’ was the only activity 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 95 million (15%) year-on-year.
Note that from February 2025 the wages in Tórshavn Municipality have been partially divided. Residential elderly care in Tórshavn Municipality has moved economic activity from "O Public administration and defence" to "Q Human health and social work activities" in the sub group "Q87 Residential care activities". Due to this change the numbers in these activities are not comparable across the data break before and after February 2025. While both activities have growth in wages, the data break is visible in the table below, as the activity "O Public administration and defence" has a distinctively much smaller growth compared to previous months and the activity "Q Human health and social work activities" and the relevant sub group "Q87 Residential care activities" sees a very large increase in wages. These numbers have to be analysed with caution.
[px-graph-3]
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 region saw the highest growth at 10.2%, while Suðuroy region had the lowest growth at 3.5%.
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
[px-graph-6]
Women’s average wage a third below men’s
The average wage per person was DKK 35,380 in March, 8% higher than in March 2024. The graph below shows the average wage by sex. In March, women’s average wage was DKK 28.567, 31% lower than the DKK 41.582 average for men. Compared with March 2024, the average wage grew by almost 10% for men and by 6% for women. Note that working hours are not considered when calculating the average monthly wage. The average is calculated by dividing the total wage by the number of persons receiving wages.
[px-graph-6]
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.