Wage expenditures
14. Nov 2022
DKK 900 million in wages in October – up 6% year-on-year
After coming to a halt at the start of the Covid-19 pandemic, wage growth slowly resumed in autumn 2020. This growth now appears to have returned to pre-pandemic levels.
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Wage growth for both sexes
Wage expenditure growth for male employees stagnated at the outbreak of the pandemic in 2020. The growth for female employees also slowed down, but it did not stop. The growth has now picked up for both sexes.
DKK 560 million was paid to male employees in October, making up 61% of all paid wages. This is an increase of DKK 38 million, or 7.4%, compared to October 2021. Female employees were paid DKK 360 million, an increase of DKK 17 million (5%) on October 2021.
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Trend varies across the industrial sectors
Wage expenditures in the ‘governmental and other services’ sector have increased steadily over the past two years.
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Wage growth in ‘private services’ resumed in 2021 and is now approaching pre-pandemic levels.
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Following a decline since 2020, wage expenditures in ‘construction and other manufacturing’ are now starting to grow again.
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In ’fishery and other natural resources’, wage expenditures are now slightly higher than before the pandemic.
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Biggest growth in ’fishery and other natural resources’
The table below lists wage expenditures for the past 12 months and compares the figures with the previous 12-month period.
The ‘fishery and other natural resources’ industrial sector saw the highest wage growth, both in nominal terms and relative terms. Here, wage expenditures increased by DKK 283 million, or 15%, compared to October 2021. The highest growth within this sector was recorded in the ‘fishing’ branch.
The single branch with the highest relative growth was ‘hotels and restaurants’, where wage expenditures increased by DKK 46 million (26.3%).
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About wage expenditures
Wage expenditures are subject to tax at source and are paid by companies based in the Faroe Islands. The statistics only covers wages for work done. Other payments and expenditures such as grants and post-employment benefits are not included.
All wage expenditures meeting the above requirements will be counted in regardless of the employee’s nationality.
About the trend
The trend describes the wage expenditure trend by adjusting for seasonal effects and error components in the figures.
About the main industrial sectors
Grouped under the ‘fishery and other natural resources’ sector are the following branches: agriculture, fishing, aquaculture, extraction of raw materials, fish processing and activities not elsewhere indicated.
The ‘construction and other manufacturing’ sector includes: shipyards/machine shops, other manufacturing, construction and energy.
The ‘private services’ sector includes: trade and repair, hotels and restaurants, sea transport, other transport, communications, finance and insurance, business services. household services and organisations, culture, etc.
‘Governmental and other services’ includes: public administration and services (central administration, municipalities, education, health and social work), government institutions and the Ministries of Education and Health.