Wages (Pay as you earn)
15. May 2025
DKK 13 billion paid in wages in past 12 months – up 5.7% year-on-year
Wage expenditures rose by just over DKK 700 million (5.7%) in the May 2024-April 2025 period compared with the previous 12-month period.
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The trend in the graph below reveals steady wage expenditure growth in recent years.
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Larger wage growth under public control
Women have had 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 just over DKK 700 million, women accounted for DKK 372 million (53%). Of this amount, women working for employers under public control accounted for DKK 331 million.
Women’s total wages rose by almost 8% year-on-year, compared to 4.5% for men.
Women working for employers under public control had the biggest wage growth, up 10.7% compared to the previous 12-month period.
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Pelagic fishery wages drop
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.
All activities experienced wage growth on the highest level. Within ‘Agriculture, forestry and fishing’, we see a big drop in ‘Pelagic fisheries’, where wages fell by DKK 82 million (13%) year-on-year.
More detailed salary data for Torshavn Municipality has been available since February 2025. Elderly care in Torshavn Municipality has now been transferred from the activity "O Public administration and defence; compulsory social security" to "Q Human health and social work activities" where it is placed in the sub-category "Q87 Residential care activities". These changes have led to a break in the data series, rendering the relevant activities incomparable before and after February 2025.
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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 11.7%, while Suðuroy had the lowest growth at 3.8%.
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 a quarter below men’s
The average wage per person was DKK 37,529 in April, up almost 9% year-on-year. The graph below shows the average wage by sex. In April, women’s average wage was DKK 31,640, 26% lower than the DKK 42,957 average for men. Compared with April 2024, the average wage increased by 9.3% for men and by 8% 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.