Wages (Pay as you earn)
17. Jun 2025
DKK 13.1 billion paid in wages in past 12 months – up 5.5% year-on-year
Wage expenditures increased by DKK 690 million (5.5%) in the June 2024-May 2025 period compared to the previous 12-month period.
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The trend shows a steady increase in paid wages in recent years.
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Largest wage growth for publicly employed women
Women have had steadier wage growth than men in recent years. Men's wage growth was hit particularly hard when the Covid-19 pandemic hit. In the past 12 months, women accounted for 39% of total wage expenditures. This is an increase of half a percentage point compared with the previous 12-month period.
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The total year-on-year growth of DKK 690 million was split almost evenly between the two sexes. Women’s wages rose almost 7% year-on-year, while men’s wages rose 4.7%.
Women working for publicly controlled employers had the highest wage rise both in terms of money and percentages, accounting for 40% of the total increase (DKK 276 million, up 8.7% year-on-year). Men working for privately controlled employers accounted for 39% of the total wage increase (DKK 266 million, up 4.6% year-on-year).
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Pelagic fishery wages drop
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.
In money terms, the biggest wage increase was registered in ‘Human health and social work activities’, followed by ‘Public administration and defence; compulsory social security’. ‘Residential care activities’, a subcategory of ‘Human health and social work activities’ saw a particularly high increase of 10%.
All first-level industry branches experienced wage growth. However, within ‘Agriculture, forestry and fishing’, we see a particularly big drop in ‘Pelagic fisheries’, where wages fell by DKK 75 million (12%) year-on-year.
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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 12%. The lowest growth (4.2%) was registered in the Norðoyar 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 27% lower than men’s
The average wage per person was DKK 36,152 in May, up 5% on May 2024. The graph below shows the average wage by sex. In May, women’s average wage was DKK 30,251, 27% lower than the average for men, which stood at DKK 41,640 in May. Compared with May 2024, the average wage has increased by 6.3% for men and 3.3% 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.