What Is the Minimum and Average Salary in Iceland? [2025 Update]

Iceland might be cold year-long, but it sure gets warm when you realize that salaries here are among the highest in Europe. I’m going to share the updated numbers with you in today’s article – so let’s get it started.

The short answer

If you don’t want to read all the details, although these are important too, here’s what to expect from the salaries in the country this year:

Iceland’s minimum NET salary in 2025 is around 1,750 Euros per month, while the average NET salary a person brings home monthly is around 3,700 Euros.

As it stands with other Scandinavian countries, there are some important factors that need to be discussed when it comes to salaries in Iceland, and I will go more in depth below.

I recommend reading on to get the big picture. Because, even though the minimum salary might seem high, the general cost of living in Iceland is very high too. So let’s get a bit more in-depth to understand the big picture!

Minimum Salaries

I estimate the minimum salary in Iceland to be around €1,750 per month (around 254,000 ISK) based on my research. There is no government-regulated minimum salary here, but generally this is the minimum take-home pay you should expect throughout the country.

The minimum salaries can vary depending on the negotiation between Iceland’s worker unions, but overall I think it’s safe to consider the above number as a solid starting point.

Compared to last years, we see that the minimum wage in Iceland has grown a lot, beating inflation. We’re talking about a 10% increase compared to last year.

And if you want to compare Iceland’s wages with others in the region, check out the salaries of the other Nordic countries below:

• Sweden’s minimum and average wages
• Denmark’s minimum and average wages
• Norway’s minimum and average wages
• Finland’s salaries

Average wages in Iceland

The net average salary in Iceland is around 537,000 ISK monthly, which is roughly 3,700 Euros per month.

The average wages in the country have also seen a nice increase compared to last year’s 520,000 ISK values, also managing to beat the high inflation in the country.

Iceland remains one of the wealthiest and best-paying countries in Europe, with some of the highest salaries you can get for a full time job.

People earning an average income here would live a more than decent life, well above my estimated cost of living in any of the country’s cities, including the capital, Reykjavik.

And if you’re considering at least checking it out, take a look at my article sharing the best bars in Iceland’s capital, or the Reykjavik Nightlife Guide for Foreigners.

Back to salaries, Iceland’s average wages offer the country amazing competitiveness on the European labor market, where the average salary is well under, at just €2,057 per month. (Source: Nomad Not Mad)

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Conclusion

If you decide to move to Iceland, whether for the work opportunities, life standards, or the beautiful women, you may make one of the best economic and social decisions possible.

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 income.

While the minimum salary earned here might not be enough to allow you to live a decent life (especially if you’re living alone), if you manage to earn like an average Icelander, you will be able to enjoy life for sure.

Do you have additional comments or data regarding the minimum and average wages in Iceland? Share your thoughts in the comments section down below so we can paint a clearer picture of the professional life and living standards here.