This law changes how the salaries of Iceland's president, members of parliament, and senior officials are updated. Instead of the previous system, salaries will now be adjusted twice a year, on April 1 and October 1, based on changes in average wages of all full-time state employees as calculated by Statistics Iceland. The law also provides for fixed 3.5% raises in 2026 and again in 2027, but in 2028 the increases will be capped at a maximum of 3.5% total for each update. The law applies to the president, presidential secretary, parliamentarians, prime minister, ministers, state conciliator, state prosecutor, parliamentary ombudsman, and Supreme Court justices.