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Icelandic MPs' huge pay rise sparks controversy

Xinhua, November 2, 2016 Adjust font size:

The decision of Iceland's state pay authority to increase the pay of lawmakers by 44 percent has been harshly criticized by a number of people, Icelandic media reported on Tuesday.

The National Remuneration Board said it is appropriate to bring the salary level of MPs in line with that of district judges, which means 1,101,194 Icelandic kronur (9,870 U.S. dollars) per month, a rise of around 44 percent, according to online newspaper Iceland Monitor.

Also in line for big bonuses are government ministers, whose wages are to go up over 35 percent to 1,826,273 kronur. Iceland's prime minister will pocket a total of 2,021,825 kronur.

The president will continue to be the highest paid Icelander whose pay is decided by the pay authority. The president's salary is going up by around 20 percent to 2,985,000 kronur per month.

Thorunn Sveinbjarnardottir, who heads the Association of Academics (BHM), an umbrella organization for its member-unions, said it is necessary to reevaluate laws on how the National Remuneration Board operates and make sure it has guidelines to follow, the Iceland Review magazine reported.

"The decision to increase the salaries of elected officials by hundreds of thousands of kronur serves to create havoc in the labor market," Thorunn said. "Up to a 44 percent increase is being determined in on step, and such a large increase is by no means in line with the salary increases offered by the state to public workers, or negotiated in the general labor market, or what is offered to university-educated people."

The Federation of State and Municipal Employees (BSRB) strongly opposes the decision, saying if it is the will of authorities to veer off the course which had been set to ensure stability in the labor market, then it's clear that workers will demand similar pay increases.

Reykjavik Mayor Dagur B. Eggertsson would like MPs to intervene, saying the board's decision has jeopardized the cooperation of authorities and unions on wage issues and stability in society is at stake.

The mayor has asked that the salary of city officials not be raised in accordance with the pay raise of the MPs and the president.

The National Remuneration Board is made up of five members, three of them elected by parliament, one by the Supreme Court and one by the Minister of Finance and Economic Affairs. Endit