1.14 Income Levels

Indicator 1.14 - Income Levels


Indicator 1.14 compares the average salary in East Iceland and wages of employees at Alcoa Fjarðaál and  Landsvirkjun to the average salary in Iceland.


Results


a) Average annual salary in East Iceland compared to national average

Average annual income in thousands ISK, in East Iceland compared to Iceland as a whole

Figure 1 Average annual income in thousands ISK, in East Iceland compared to Iceland as a whole.  Income calculated with Consumer Price Index 2016.


The information is obtained from the tax register. The list calculates the salary of every Icelander aged 16 and older.


Updated: July 17, 2019.
Source
: RSK Directorate of Internal Revenue, Retrieved 7.16.2018 https://www.rsk.is/fagadilar/stadtolur-skatta/alagning-einstaklinga/




b. Average salary for Alcoa and Landsvirkjun employees compared to other sectors in East Iceland and nationally.

Information about the average income in specific trades are not available at the moment and therefore we only show overall comparison. Table 1 shows the trend in average income for the past few years.

Table 1:  Average annual income of employees at Alcoa Fjarðaál and Landsvirkjun compared to national average (millions ISK) (Statistics Iceland).

  Iceland
Alcoa Fjarðaál
Fljótsdalsstöð
 2007  5.1  5.9  7.3
 2008  5.4  6.8  7.7
 2009  5.1  7.2  7.9
 2010  5.3  6.9  8.6
 2011  5.6  7.4  8.9
 2012  6.1  8.0  7.9
 2013  6.7  8.3  8.3
 2014  6.8  8.2  8.9
 2015  7.3  8.6  10.4
 2016  8.0  8.6  10.7
 2017  8.5  8.7  10.0
 2018  8.7  8.8  10.9

Raw data

Updated: July 17, 2019.
Sources
:

  • Alcoa Fjarðaál (2010-2019) Retrieved from web July 15, 2019 at

    http://alcoa.samfelagsskyrsla.is/efnahagur

  • Landsvikjun Fljótsdalsstöð (2010 - 2019)
  • Statistics Iceland. Retrieved from web July 15, 2019 at https://px.hagstofa.is:443/pxis/sq/a84c49f6-ee30-4ab4-9a40-9220392aa001
  • Statistics Iceland. Retrieved from web, older data, July 15, 2019 at https://px.hagstofa.is:443/pxis/sq/38afea59-ab3d-4408-bf06-7f24175a75d8


Metrics, Targets and Monitoring Protocol


Metrics

  1. Average annual salary in East Iceland compared to national average. (Project effect: induced).
  2. Average salary for Alcoa and Landsvirkjun employees compared with other sources of employment in East Iceland and nationally. (Project effect: induced).

Targets

  1. Equal to or greater than the national average.

  2. Equal to or greater than average income in other sources of employment in East Iceland.

Monitoring Protocol

  1. Statistics Iceland publishes information regularly for Iceland as a whole as well as divided by regions.
  1. The human resource division of Landsvirkjun and the financial department of Fjarðaál provide this information.


Possible countermeasures

Not applicable, monitoring only.

Changes of indicator

In  forth phase of the initiative the numbers of the sustainability indicators were changed.  This indicator was originally number 6.1 and is referenced as 6.1 in early documents of the project.

Rationale for Indicator Selection


Average income level is a useful indicator of an area's comparative financial welfare and prosperity. The development of the Kárahnjúkar and Fjarðaál projects is likely to have an impact on per capita income levels for the area.

The development will provide direct income effects to employees and their families as well as supporting indirect income effects through firms supplying goods and services and the additional employees in the region.