Iceland might be cold year-long, but it sure gets warm when you realize that salaries here are among the best in Europe. And if you’re wondering what it the minimum salary in Iceland this year, as well as what is the average wage in the country in 2021, you’re at the right place!
This is exactly what we are going to discuss within this article. Because I know that the answers to these two questions are essential keys with one of the most powerful impacts upon your decision to move to Iceland.
After all, the minimum and average wage you may earn will offer you a clue upon the living standards and purchase power, so it’s something you are right to worry about.
Besides the minimum salary you can get in Iceland, which will offer you the security of getting a livable monthly income, there are other factors that you should consider, as well such as cost of living, health system, life expectancy and more. These will also strongly influence your final decision regarding whether to move to Iceland or not.
We will go through all these aspects as well later on – so I recommend you keep reading until the end of the article. For now, anyway, let’s focus on the income.
Here’s the minimum and average salary in Iceland in 2021, and all you’ve got to know about the gross and net incomes in this country!
What is the minimum salary in Iceland in 2021?
In Iceland, laws haven’t regulated a country-wide minimum salary that a full-time employee will get guaranteed for their work – but you should expect to get at least 180,000 ISK per month (around 1,230 Euros).
However, one of the largest workers’ unions in Iceland, for example, has established a minimum salary of 351,000 ISK per month with full-time program – this means somewhere around €2,390.
While this is definitely not applied to the entire country, but it certainly is a representative and realistic figure regarding the minimum wage a worker will generally get in Iceland in 2021.
Even though there isn’t any government regulated minimum wage, minimum salaries are generally determined by agreements, through collective bargaining with workers’ unions. These minimum rates are established considering other numbers practiced in the same domain, as well as the level of studies, experience and competences of the potential employee.
Just to be clear, we are discussing gross income here, for workers who have been working for at least six months within the same institution, with a full-time schedule and with an age over 18.
So, if all these conditions apply to you, you can expect your minimum wages to vary between 180,000 ISK and 350,000 ISK per month (€1,230 – €2,390).
What is the average salary in Iceland in 2021?
The net average salary in Iceland is around 410,000 ISK monthly, which is roughly 2,800 Euros per month or $3,310.
It is worth mentioning here that Iceland remains one of the wealthiest and best-paying countries in Europe, with some of the highest salaries you can get, despite the health crisis that has obviously severely impacted the average monthly salaries for full-time workers since its inception in 2020. Here’s how:
The last records in Eurostat and TradingEconomics show an average monthly salary of 674,000 ISK, somewhere around €4,710 – €4,850 in the 2018-2019 interval.
Comparing these figures to the actual ones in 2021, they clearly reflect a significant impact of the current health crisis upon the monthly and annual wage growth.
In fact, statistics show a severe decrease of the wage growth percent during the last three years, but improvements can already be remarked from the beginning of 2021, with the average salary increasing by 6% in March 2021 over March 2020.
So, even though the average salary in Iceland is slightly lower in 2021 compared to 2018, we are still talking about one of the highest rates in Europe.
After all, a net income of 410,000 ISK, or €2,800 per month, has great purchase power in Iceland and also an amazing competitiveness on the European labor market, where the overall average wage (for the European Union) is somewhere around 1,695 Euros per month, which places Iceland amongst the wealthiest and best paying countries in Europe. (Source: Nomad Not Mad)
If you decide to move to Iceland, whether it’s for the work opportunities, life standards or the beautiful women, you may be taking one of the best decisions, economically and socially speaking.
Iceland’s attractivity is easily remarkable from multiple perspectives, starting with the development of the society, civic spirit, environmental conditions and life satisfaction to the economic sectors and incomes.
So let’s take a quick review of all these aspects!
With a minimum monthly income that, even without being legally regulated, can go up to 350,000 ISK per month, and with an average salary of around 410,000 ISK per month, the country is one of the wealthiest Europe, and ranks above average in most dimensions, compared to other countries form Europe, from safety, health, environment, to community, jobs, life expectancy & satisfaction.
According to OECD, for example, the employment percent for people aged between 15 and 64 reaches a value of 86%, way higher than the average of 68% – in fact, according to these statistics, Iceland has the highest employment rate in Europe.
It also ranks the highest from all European countries in the same statistics for the public sphere, with the highest levels of sense of community, and for environment.
Consequently, one of the less populated countries in Europe, and one of the wealthiest, Iceland presents great attractivity for foreigners who aim for new work opportunities, rewarding jobs and a well-paid professional activity, especially due to its high employment rate and high minimum and average salaries.
So, if you’ve got any more up-to-date info regarding the minimum and average salary in Iceland in 2021, feel free to let us all know in the comments section below so we can all get a better picture of how professional life and living standards look like in Iceland.