Wages (Pay as you earn)
21. Aug 2026
DKK 14.2 billion paid in wages in past 12 months – up 6.1% year-on-year
Wage expenditures rose by DKK 813 million (6.1%) in the period of August 2025-July 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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Wages and the increase are considerably higher among men
By sex, men accounted for 62% of wages paid over the last 12 months, with DKK 8.7 billion. Of the total wage increase, they accounted for 68%, with DKK 560 million.
Wages paid to men were almost 7% higher over the last 12 months compared with the previous period. For women, the increase was 5%.
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Demersal fisheries in total account for 30% of the wage increase
The table below shows A-taxed wages at the highest level according to the NACE classification of economic activities for the last 12 months compared with the preceding 12 months. The largest increase in DKK was in ‘Agriculture, forestry and fishing’. When this economic activity is broken down further, it can be seen that the increase was particularly large in ‘Demersal fisheries’. When the economic activities ‘Demersal fisheries’ and ‘Demersal fisheries, processed onboard’ are combined, wages paid were altogether DKK 240 million higher over the last 12 months compared with the previous period. This amounts to 30% of the total wage increase over the last 12 months.
The wage increase in ‘Transportation and storage’ was also particularly large, at DKK 119 million, corresponding to an increase of 9.4% compared with the previous 12 months. This is 15% of the total wage increase. Other economic activities with large increases in wages in DKK were ‘Manufacturing’ and ‘Human health and social work activities’, with DKK 86 million and DKK 84 million, respectively.
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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
- Main activity: Main activity is attached to the employer that pays the wage. An employer is grouped in to the main activity in which he has the largest activity. A person may have several employers, and the employer from which the most wage is paid is set to be the person's main activity of work. Main activity is not necessarily the actual economic activity of the work done for the wages paid as an employer may cover several economic activities. Main activity is based on the international statistical classification of economic activities NACE rev. 2. The first and second level are directly comparable. The third level opens up a few subgroups in order to best portray the national economy.