Wages (Pay as you earn)
15. Apr 2026
DKK 13.9 billion paid in wages in past 12 months – up 7.5% year-on-year
Wage expenditures rose by DKK 970 million (7.5%) in the period of April 2025-March 2026 compared with the previous 12-month period.
[px-graph-5]
The trend in the graph below reveals steady wage expenditure growth in recent years.
[px-graph-1]
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 60% year-on-year. When ‘Demersal fisheries’ are combined with ‘Demersal fisheries, processed onboard’, wage expenditure is a total of DKK 285 million higher over the last 12 months compared with the previous period. This is about 30% of the total wage growth over the last 12 months.
Other activities with large wage growth in money terms are ‘Human health and social work activities’, ‘Manufacturing’, and ‘Transportation and storage’, with DKK 107 million, DKK 95 million, and DKK 90 million respectively. These correspond to growth between 5-8%.
[px-graph-3]
Men account for larger share of both wages and growth
Of the wage expenditure totaling DKK 13.9 billion over the last 12 months, men accounted for 62%, corresponding to DKK 8.6 billion.
Of the increase of DKK 970 million over the last 12 months, men accounted for the larger share, with 69%, or DKK 670 million.
Broken down by sector, men working for an employer under private control recorded the largest increase. They accounted for more than half of the increase, with DKK 585 million, corresponding to growth of 10% compared with the previous period.
Women working for an employer under public control had the second-largest increase in money terms, with DKK 181 million, or 5.3%. However, women working for an employer under private control had a larger wage increase in relative terms, at 7.3%.
[px-graph-4]
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 17%. Streymoy region, south, had the smallest increase, at 5.7%. Wage earners resident abroad are not included on the map. For them wages were 2.6% higher compared with 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
[px-graph-6]
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"