Wages (Pay as you earn)
16. Jun 2026
DKK 14 billion paid in wages in past 12 months – up 6.7% year-on-year
Wage expenditures rose by DKK 880 million (6.7%) in the period of June 2025-May 2026 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 together account for 30% of the wage increase
The table below shows A-taxable (taxed at source) wages at the first level of the NACE industry classification in the past 12 months compared with the preceding 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 nearly 50% year-on-year. When ‘Demersal fisheries’ are combined with ‘Demersal fisheries, processed onboard’, wage expenditure is a total of DKK 280 million higher over the last 12 months compared with the previous period. This is more than 30% of the total wage growth over the last 12 months.
Other activities with large wage growth in money terms are ‘Transportation and storage’, ‘Human health and social work activities’ and ‘Manufacturing’ with DKK 100 million and DKK 77 million respectively. These correspond to growth between 4-8%.
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Men account for larger share of both wages and growth
Of the wage expenditure totaling DKK 14 billion over the last 12 months, men accounted for 62%, corresponding to DKK 8.6 billion. LiKewise, men accounted for the larger share of the wage increase over the last 12 months when compared to the previous period. Of the increase of DKK 880 million men accounted for 70% with DKK 620 million.
Broken down by sector, men working for an employer under private control recorded the largest increase. They accounted for well more than half of the increase, with DKK 540 million, corresponding to growth of 9% compared with the previous period.
Women employed under public control had the second-largest increase in wages in absolute terms, with an increase of DKK 144 million. This corresponds to wage growth of 4.2% compared with the previous period. The total wages paid to women employed under private control were lower, but the rate of wage growth was proportionally higher at 6.8%.
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Highest wage growth in Sandoy region
Below, the percentage change in wage expenditure over the last 12 months compared with the previous period is shown by residential regional area. Sandoy residents saw the highest growth at 13.7%. Streymoy region, north, had the smallest increase, at 4.6%. For wage earners residing abroad, total wages paid were 3.8% than in 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"