Average Salary in Iceland 2026
Currency: ISK · Updated for 2026
How much money does a person working in Iceland make?
Average Monthly Salary
880,287 ISK
( 10,563,444 ISK yearly )
~ 6,333 USD per month ( 75,996 USD yearly )
LOW
176,113 ISK
1,267 USD
AVERAGE
880,287 ISK
6,333 USD
HIGH
3,521,148 ISK
25,332 USD
A person working in Iceland typically earns around 880,287 ISK per month. Salaries range from 176,113 ISK (lowest average) to 3,521,148 ISK (highest average, actual maximum salary is higher).
This is the average monthly salary including housing, transport, and other benefits. Salaries vary drastically between different careers. If you are interested in the salary of a particular job, see below for salaries for specific job titles.
Distribution of Salaries in Iceland
Median and salary distribution monthly Iceland
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What is the difference between the median and the average salary?
Both are indicators. If your salary is higher than both the average and the median then you are doing very well. If your salary is lower than both, then many people are earning more than you and there is plenty of room for improvement. If your wage is between the average and the median, then things can be a bit complicated.
The median (748,237 ISK) represents the middle salary value — 50% earn more and 50% earn less. The average (880,287 ISK) is the sum of all salaries divided by the number of workers, and can be skewed by extremely high or low salaries.
Salary Comparison by Years of Experience
How does a person's salary progress over time?
- 0–2 Years (Entry Level)5,281,722 ISK
- 2–5 Years (Junior)6,866,183 ISK
- 5–10 Years (Mid-Career)8,978,983 ISK
- 10–15 Years (Experienced)10,563,444 ISK
- 15+ Years (Senior)12,676,105 ISK
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The experience level is the most important factor in determining the salary. Naturally the more years of experience the higher the wage.
Generally speaking, employees having experience from two to five years earn on average +30% more than freshers and juniors across all industries and disciplines.
Professionals with experience of more than five years tend to earn on average +31% more than those with five years or less of work experience.
As you hit the ten years mark, the salary increases by +18% and an additional +20% for those who have crossed the 15 years mark.
“On average, a person's salary doubles their starting salary by the time they cross the 10 years experience mark.”
Salary Comparison By Education
How does the education level affect your salary?
- High School6,338,122 ISK
- Certificate7,394,383 ISK
- Associate8,450,783 ISK
- Bachelor's10,563,444 ISK
- Master's12,676,105 ISK
- PhD14,788,766 ISK
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High School → Certificate
+17%
Certificate → Bachelor's
+43%
Bachelor's → Master's
+20%
Master's → PhD
+17%
It is well known that higher education equals a bigger salary, but how much more money can a degree add to your income? We compared the salaries of professionals at the same level but with different college degrees levels across many jobs, below are our findings.
Workers with a certificate or diploma earn on average +17% more than their peers who only reached the high school level.
Employees who earned a Bachelor's Degree earn +43% more than those who only managed to attain a certificate or diploma.
Professionals who attained a Master's Degree are awarded salaries that are +20% more than those with a Bachelor's Degree.
Finally, PhD holders earn +17% more than Master's Degree holders on average.
Salary Comparison By Gender
Salary comparison by gender monthly Iceland
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Though gender should not have an effect on pay, in reality, it does. So who gets paid more: men or women? Male employees in Iceland earn 8% more than their female counterparts on average across all sectors.
Average Annual Salary Increment Percentage in Iceland
How much are annual salary increments? How often do employees get salary raises?
8%
Average Raise
19 months
Review Frequency
4%
Annualized Increase
Employees in Iceland are likely to observe a salary increase of approximately 8% every 19 months.
The annual salary Increase in a calendar year (12 months) can be easily calculated as follows: Annual Salary Increase = Increase Rate x 12 ÷ Increase Frequency
The average salary increase in one year (12 months) in Iceland is 4%.
Bonus and Incentive Rates in Iceland
How much and how often are bonuses being awarded?
54%
Received Bonus
46%
No Bonus
54% of surveyed staff in Iceland reported receiving at least one form of monetary bonus.
Average Bonus Rate
5%
of annual salary
Types of Bonuses Considered:
• Individual Performance-Based Bonuses
• Company Performance Bonuses
• Goal-Based Bonuses
• Holiday / End of Year Bonuses
Top 5 Highest Paying Industries
Annual average salaries
- Legal14,260,705 ISK
- Aviation13,732,505 ISK
- Information Technology13,732,505 ISK
- Banking13,204,305 ISK
- Pharmaceuticals13,204,305 ISK
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Salaries for Popular Jobs
Sample job titles and their average salaries
| Job Title | Annual Salary | Monthly Salary |
|---|---|---|
| Surgeon | 26,408,610 ISK | 2,200,787 ISK |
| Pilot | 21,126,888 ISK | 1,760,574 ISK |
| Software Developer | 19,014,227 ISK | 1,584,461 ISK |
| Data Scientist | 17,957,827 ISK | 1,496,474 ISK |
| Financial Manager | 16,901,566 ISK | 1,408,487 ISK |
| Database Administrator | 15,845,166 ISK | 1,320,500 ISK |
| Engineer | 14,788,766 ISK | 1,232,374 ISK |
| Marketing Manager | 13,732,505 ISK | 1,144,387 ISK |
| Project Manager | 13,204,305 ISK | 1,100,324 ISK |
| Accountant | 11,619,844 ISK | 968,274 ISK |
| Hotel Manager | 10,563,444 ISK | 880,287 ISK |
| Nurse | 9,507,044 ISK | 792,300 ISK |
| Graphic Designer | 8,978,983 ISK | 748,237 ISK |
| Chef | 7,922,583 ISK | 660,250 ISK |
| Teacher | 7,394,383 ISK | 616,187 ISK |
Salary Comparison By City
Average annual salaries by city
| City | Average Salary |
|---|---|
| Reykjavik | 12,147,905 ISK |
| Kópavogur | 11,091,644 ISK |
Government vs Private Sector Salary Comparison
Where can you get paid more?
836,224 ISK
Private Sector
924,350 ISK
Public Sector
+11%
Public sector employees in Iceland earn 11% more than their private sector counterparts on average across all sectors.
Average Hourly Wage in Iceland
5,143 ISK
per hour
The average hourly wage (pay per hour) in Iceland is 5,143 ISK. This means that the average person in Iceland earns approximately 5,143 ISK for every worked hour. Hourly Wage = Annual Salary ÷ (52 × 5 × 8)
Cost of Living in Iceland
Estimated monthly expenses
Rent
214,755 ISK
/month
Food
68,666 ISK
/month
Transport
25,715 ISK
/month
Utilities
34,333 ISK
/month
Compare Your Salary
See how your salary compares with the average in Iceland and explore top-paying jobs.