MINIMUM AND AVERAGE SALARY IN ICELAND

Iceland is a very beautiful island state with a population of only 341.2 thousand people, located in the North Atlantic Ocean near Greenland and the UK halfway between New York and Moscow. This developed European country has a mild climate, stunning nature, stable economy and high standard of living, including decent wages.

Salary in Iceland

Work in Iceland for foreigners is available mainly in the fishing industry, tourism and information technology. Of course, it is quite difficult for foreign job seekers to find a vacancy on the local labor market. It is necessary to have a profession in demand, appropriate qualifications and experience. Let's find out what salary in Iceland in 2020.

Minimum salary in Iceland

Iceland does not have an official minimum wage approved by the government. It is established through negotiations between employer and employee and is fixed in the employment contract. In addition, there are special collective agreements for many sectors of the economy and specific rates automatically apply to all employees.

According to the Icelandic Store and Office Workers' Union (VR), the minimum wage in Iceland from April 1, 2020 is 335 thousand króna per month, which is equivalent to 2,210 euros. The rate applies to employees over 18 years of age who work 171.15 hours per month (39.5 hours per week) and have worked for at least six months in one company (minimum 900 hours).

The latest agreement between Icelandic trade unions, the Central Bank and the government envisages a gradual increase of the minimum wage in Iceland from April 1, 2019 to November 1, 2022, to 390,000 króna per month (EUR 2,575). In general, the minimum wage depends on the region, profession, length of service, age and skill level of the employee.

Average salary in France

According to the official information of the Icelandic Statistics Office, before taxes the average salary in Iceland in 2020 is 689.3 thousand króna per month, which at the current exchange rate is 4,550 euros. At the same time, Icelandic men earn on average 18% more than women, and salaries in the public and private sector are almost the same for local workers.

Important. Income tax in Iceland in 2020 is 35.04% for monthly income from 0 to 336,916 króna, 37.19% for income from 336,917 to 945,873 króna and 46.24% for income over 95,873 króna.

The average salary in Iceland after tax is about 434 thousand króna per month (2,865 euros).

SALARY IN ICELAND BY SECTOR OF ECONOMY

Sector of economy Thousand króna per month Thousand euros per month
Financial and insurance 1,007 6.6
Electricity and gas supply 968 6.4
Public administration and security 817 5.4
Health Care 787 5.2
Information and communication 766 5.1
Transportation and storage 721 4.8
Production 686 4.5
Water supply, sewerage and waste management 683 4.5
Education 608 4
Accommodation and meals 504 3.3

In conclusion, employees in Iceland traditionally receive two guaranteed one-time bonuses – in May and December. In 2020, the May bonus increased from 48,000 to 50,000 króna (330 euros) and the December bonus from 89,000 to 92,000 króna (610 euros).

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