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Iceland

Average Salary in Iceland

Julien Sicard
Julien Sicard
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Published
November 3, 2026
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Updated
November 3, 2026
AVERAGE TOTAL MONTHLY EARNINGS, FULL-TIME EMPLOYEES, 2025

Full-time employees in Iceland earned an average of ISK 1,058,000 a month in total earnings in 2025, according to preliminary figures from Statistics Iceland (Hagstofa). The median was ISK 948,000. Regular earnings, without overtime and irregular payments, averaged ISK 913,000 and the median was ISK 826,000.

ISK 1,058,000 / month
Median total monthly pay
ISK 948,000
Regular earnings, average
ISK 913,000
Managers, average
ISK 1,634,000
Information and communication
ISK 1,098,000 / month

Statistics Iceland (Hagstofa) publishes yearly earnings for full-time employees, from its wage survey. Total earnings include overtime, shift pay and other irregular payments; regular earnings leave out overtime. The 2025 figures are preliminary and were published on 13 May 2026. All figures are gross monthly pay, before tax.

Average and median monthly earnings by industry in Iceland, 2025

<table class="ert-table"><thead><tr><th>Economic activity, 2025</th><th>Average monthly pay</th><th>Median monthly pay</th></tr></thead><tbody><tr><td><strong>All covered activities</strong></td><td><strong>ISK 1,058,000</strong></td><td><strong>ISK 948,000</strong></td></tr><tr><td>Electricity, gas, steam and air conditioning supply (D)</td><td>ISK 1,402,000</td><td>ISK 1,353,000</td></tr><tr><td>Financial and insurance activities (K)</td><td>ISK 1,372,000</td><td>ISK 1,176,000</td></tr><tr><td>Construction (F)</td><td>ISK 1,186,000</td><td>ISK 1,150,000</td></tr><tr><td>Public administration and defense, compulsory social security (O)</td><td>ISK 1,162,000</td><td>ISK 1,073,000</td></tr><tr><td>Transportation and storage (H)</td><td>ISK 1,150,000</td><td>ISK 939,000</td></tr><tr><td>Information and communication (J)</td><td>ISK 1,098,000</td><td>ISK 961,000</td></tr><tr><td>Human health and social work activities (Q)</td><td>ISK 1,085,000</td><td>ISK 961,000</td></tr><tr><td>Manufacturing (C)</td><td>ISK 1,063,000</td><td>ISK 966,000</td></tr><tr><td>Water supply, sewerage and waste management (E)</td><td>ISK 1,037,000</td><td>ISK 977,000</td></tr><tr><td>Wholesale and retail trade, repair of motor vehicles (G)</td><td>ISK 935,000</td><td>ISK 836,000</td></tr><tr><td>Education (P)</td><td>ISK 907,000</td><td>ISK 889,000</td></tr><tr><td>Accommodation and food services (I)</td><td>ISK 859,000</td><td>ISK 797,000</td></tr></tbody></table>

Average monthly earnings by occupation and sex in Iceland, 2025

<table class="ert-table"><thead><tr><th>Occupational group, 2025</th><th>All</th><th>Men</th><th>Women</th></tr></thead><tbody><tr><td><strong>All occupations</strong></td><td><strong>ISK 1,058,000</strong></td><td><strong>ISK 1,139,000</strong></td><td><strong>ISK 974,000</strong></td></tr><tr><td>Managers</td><td>ISK 1,634,000</td><td>ISK 1,741,000</td><td>ISK 1,517,000</td></tr><tr><td>Professionals</td><td>ISK 1,131,000</td><td>ISK 1,248,000</td><td>ISK 1,067,000</td></tr><tr><td>Technicians and associate professionals</td><td>ISK 1,154,000</td><td>ISK 1,333,000</td><td>ISK 948,000</td></tr><tr><td>Clerks</td><td>ISK 815,000</td><td>ISK 825,000</td><td>ISK 811,000</td></tr><tr><td>Service and sales workers</td><td>ISK 799,000</td><td>ISK 878,000</td><td>ISK 724,000</td></tr><tr><td>Craft and related trades workers</td><td>ISK 1,088,000</td><td>ISK 1,119,000</td><td>ISK 840,000</td></tr><tr><td>Plant and machine operators and assemblers</td><td>ISK 933,000</td><td>ISK 952,000</td><td>ISK 831,000</td></tr><tr><td>Elementary occupations</td><td>ISK 766,000</td><td>ISK 804,000</td><td>ISK 677,000</td></tr></tbody></table>

How Hagstofa measures pay

The average total pay of full-time employees was ISK 1,058,000 a month in 2025 and the median ISK 948,000. About 64% of full-time employees had regular earnings below the average, because a smaller group earns a lot more: directors and chief executives averaged just over ISK 2.5 million a month. Men in full-time work averaged ISK 1,139,000 and women ISK 974,000, so women's average was 85.5% of men's. Men were also paid for more hours: 176.9 a month against 169.9 for women.

Setting pay for a hire in Iceland

Industry changes pay a lot. Information and communication averaged ISK 1,098,000 a month in 2025 and financial and insurance activities ISK 1,372,000, against ISK 859,000 in accommodation and food services. Iceland has no minimum wage set by law, so check the collective agreement for the occupation: its pay rates are the legal minimum. Plan for the employer cost too: the social security tax and the minimum pension premium add 17.85% on top of pay, as our guide to hiring in Iceland shows. Need help with the search? We find, screen and shortlist remote professionals across Europe, with 3 candidates within 21 days. See how placement works.

This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.

Frequently asked questions

What is the average salary in Iceland?

ISK 1,058,000 a month in total earnings for full-time employees in 2025, according to preliminary Hagstofa figures. That is about ISK 12,696,000 a year.

What is the median salary in Iceland?

ISK 948,000 a month in total earnings for full-time employees in 2025. Median regular earnings, without overtime, were ISK 826,000.

Which industry pays the most in Iceland?

Electricity, gas, steam and air conditioning supply had the highest average in 2025 at ISK 1,402,000 a month, followed by financial and insurance activities at ISK 1,372,000.

How much do people in IT earn in Iceland?

Full-time employees in information and communication earned an average of ISK 1,098,000 a month in total earnings in 2025, and the median was ISK 961,000.

How big is the gender pay gap in Iceland?

In 2025 full-time women averaged ISK 974,000 a month in total earnings and men ISK 1,139,000, so women earned 85.5% of what men earned on average.

Sources

  1. Hagstofa Íslands, Wage distributions in the Icelandic labour market 2025, 13 May 2026. Checked 3 Nov 2026.
  2. Hagstofa Íslands, Table VIN02003, earnings by economic activity, occupational group and sex. Checked 3 Nov 2026.
Julien Sicard
Written by
Julien Sicard
Founder, Euro Remote Talent

Julien founded Euro Remote Talent, which helps people in Europe find remote jobs and places European remote professionals with remote companies.

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