The trade unions ASÍ and SA have expressed concerns that the Icelandic government's proposal to link disability and old-age pensions to wage statistics instead of wage development is misguided. They argue that this move could create inflationary pressure and lead to a significant increase in costs of billions of krónur for the state. The proposal comes amid ongoing debates in the Althingi, Iceland's parliament, where intense discussions were held regarding the implications of the new regulations on social security benefits. In recent discussions, Anna Hrefna Ingimundardóttir, the assistant executive director of SA, and Finnbjörn A. Hermannsson, the chair of ASÍ, highlighted that tying benefits directly to wage levels could lead to faster increases in benefits compared to wages, potentially straining the national budget further. The financial impact could be severe, with estimates suggesting additional costs to the treasury of around three to four billion krónur if the changes take place. The unions claim this decision lacks careful economic consideration and could destabilize the existing social security framework. As the government pushes forward with this proposal, it will need to address the unions' warnings and provide a robust justification for the proposed changes to persuade both legislators and the public. The outcome of these discussions could have significant long-term implications for Iceland's welfare system, influencing how social benefits are structured and how they respond to economic changes.