In this report, we will provide a detailed explanation of the salaries of working in Iceland, how much is their average value? What is the annual tax rate imposed on it? Is there a difference between the salaries of men and women? What is the salary of some professions in Iceland?
Many people fall in love with Iceland on their visits to the point that they may want to move there. It has been rated as one of the safest countries in the world, making it an attractive place to live.
But moving to a foreign country is not easy. The best way to move to a country is to find a job, and the fact that there are many jobs in Iceland for expats.
There are many reasons why you would like to work during your long stay in Iceland. It is usually to earn a living that can support life in Iceland, which means paying for accommodation, food, and other basic needs.
Another reason to work in Iceland is to better understand the daily life of the local people on the island. Work is an effective way to meet people, learn about culture and acquire new skills. It’s also a great way to explore a new country.
Work Salary in Iceland
The average working salary in Iceland is ISK 573,000, or about 3,500 euros (4,136 USD).
Noting that ((each ISK 1 = 0.0077 USD)) at the moment.
These current values represent a 0.9% increase over previous years.
There is no official minimum wage in this northern country. Minimum wages are usually set by collective agreements. These are negotiated within each economic sector.
The lowest salary in Iceland, which is generally around €2,000, is usually earned by people who are 18 years old and have about 6 months of experience in the same company.
Income tax in Iceland
Although the above salaries are net and taxes have been deducted, we also consider it necessary to know what tax rates apply to these earnings.
The monthly income tax on salaries under ISK 893,713 (€5,489 or $6484 USD), around 36.94%, rises to 46.24%.
If earnings are above this income threshold. Profits can only come from salary or through any other source of income, such as financial assets. The first 55,895 ISKs are exempt from paying taxes.
The gender pay gap
Although Iceland has a population of around 337,000, it has been the global standard for gender equality for nearly a decade.
In recent years Iceland has made it illegal for a woman to earn less than a man if they both work the same job, position, and have the same responsibilities. Wages in Iceland are paid according to competence, performance and skills of the worker, not by gender.
2019 data shows that, on average, men earned ISK 5.8 million, while women earned ISK 4 million.
The unemployment rate in Iceland
The current unemployment rate in Iceland is around 3.55%, this rate is slightly higher for men (3.7) than for women (3.3). The unemployment rate for those over 25 years old is 9.2% for men and 5.9% for women.
Doctor salary in Iceland
The average salary for a doctor in Iceland is about ISK 24,465,217 per year, which is roughly equivalent to ISK 11,762 per hour.
More precisely, the average salary of a doctor in Iceland ranges between ISK 16,569,802 and ISK 31742,151. On average, of course the degree of education affects the salary of a doctor in Iceland, and a doctorate is the highest level of education for a doctor, and therefore receives the highest wages.
lawyer salary in Iceland
The average salary for a government counsel attorney in Iceland is around ISK 1,163,547 per year. While the most common earning is 11825,715 ISK.
Of course, salaries differ between men and women. For example, men earn an average salary of ISK 1,163,2904, while women earn less than that.
Depending on education, the highest salaries are received by people with a master’s degree with a salary of ISK 1,163,2904, so that education clearly affects the salaries of lawyers.
Different experiences affect earnings as well. For example, people with 8 to 12 years of experience get a salary of ISK 1,163,2904. The higher the number of years of experience, the higher the salary.
Engineer salary in Iceland
Taking the example of a food engineer, the average salary for a food engineer in Iceland is ISK 3,941,690 per year. While the most common earning is about 4113,292 ISK. Of course, salaries differ between men and women. For example, women get a salary of 3,946,181 ISK.
Depending on education, people with a master’s degree receive the highest salaries with a salary of ISK 3,946,181 i.e. the degree of education affects the earning as well.
Different experiences affect earnings as well, the more experience the more the salary significantly, for example people with 4-8 years of experience get a salary of ISK 3,946,181.
Teacher salary in Iceland
The average salary for a teacher in Iceland is around ISK per year. While the most common earning is about 137,53821 ISK. Like other professions in Iceland, salaries differ between men and women. For example, men earn an average salary of ISK 1,3689,551.
Depending on education, people with a bachelor’s degree receive the highest salaries with a salary of ISK 1,3689,551. That is, the degree of education clearly affects the earning.
Different experiences affect earnings as well. For example, people with more than 20 years of experience get a salary of ISK 1,3689,551. In short, the more years of experience a teacher has in his profession, the higher his salary in Iceland is clear.
Pharmacist salary in Iceland
The average salary of a pharmacist in Iceland is around ISK 1,3902,425 or the equivalent per hour ISK 6,684. In addition, pharmacists in Iceland typically receive an average remuneration of ISK 344,781.
In detail and based on the experience of a pharmacist in his profession, a junior pharmacist earns an average salary of ISK 9,600,208. On the other hand, a high-ranking pharmacist i.e. with almost more than 8 years of experience in their profession gets an average salary of ISK 1,479 6,546.
Iceland is famous for being more expensive than many northern and European countries. Living here without paid work is not only difficult but seems impossible, especially for foreigners who lack connections and a basic understanding of the local economy.
It is therefore essential to create a budget for yourself if you are going to live in Iceland for any length of time without paid work.