Wages (Pay as you earn)
17. Nov 2025
DKK 13.5 billion paid in wages in past 12 months – up 6.7% year-on-year
Wage expenditures rose by DKK 850 million (6.7%) in the period of November 2024-October 2025 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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Demersal fisheries account for a fifth of the wage increase
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 increase in money terms was seen in ‘Agriculture, forestry and fishing’, especially within the sub-category ‘Demersal fisheries’, where wages increased by DKK 177 million (55%) year-on-year.
Wage expenditures also increased significantly in ‘Human health and social work activities’ and ‘Public administration and defence; compulsory social security’ with respectively DKK 120 and 100 million, around 6% increase each.
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Men account for larger share of wages and wage growth
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.
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Of the total 12-month wage expenditure increase of DKK 850 million, men accounted for the largest part with 67%.
Divided by sector, men working for employers under public control had the biggest wage increase. They accounted for over half of the total increase with DKK 480 million, up 8,3% year-on-year. Women working for employers under public control had the second largest increase with DKK 209 million or 6.3%.
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Women’s average wage third below men’s
The average wage per person was DKK 37,735 in October, up 5% year-on-year. In October, women’s average wage was DKK 30,424, 31% below the DKK 44,350 average for men. Compared with October 2024, the average wage increased by 5.2% for men and by 4.6% 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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Highest 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 residents saw the highest growth at 15.4%, while Streymoy, south, residents had the lowest growth at 5.6%. Employees abroad, not included on the map, had a 1 per cent wage increase compared to the previous period.
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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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.
Definitions
- "Under public control" includes "General government" + "Public corporations"
- "Under private control" includes "National Private corporations" + "Foreign controlled corporations"