What salaries can expats expect in Iceland?
Salaries in Iceland range from ISK 425,000 to over ISK 1,200,000 per month depending on sector and experience. There is no statutory minimum wage. Instead, pay rates are set through collective agreements between unions and employers.
The average gross monthly salary in Iceland is approximately ISK 750,000 (around EUR 4,800). Tourism and hospitality roles typically start at ISK 425,000–500,000, while IT and technology positions range from ISK 700,000–1,200,000. Healthcare professionals, particularly doctors and specialists, can earn ISK 900,000 or more. Construction and trades workers earn ISK 500,000–800,000 depending on qualifications. Salaries are generally higher than most European countries, but the cost of living in Iceland is also significantly above average. Almost all employees in Iceland are covered by union-negotiated collective agreements, which set minimum pay by sector.
Read our career guides→Do I need a work visa to work in Iceland?
EU/EEA citizens can work freely in Iceland without a permit. Non-EEA nationals need an employer-sponsored work permit issued by the Directorate of Immigration (Útlendingastofnun).
Iceland is part of the European Economic Area (EEA), which means citizens of EU and EEA countries have the right to live and work in Iceland without a work permit. They only need to register with Registers Iceland (Þjóðskrá) within 3 months of arrival. Non-EEA citizens must secure a job offer first, then the employer applies for a work permit on their behalf. Work permits are typically tied to a specific employer and position. Sectors with worker shortages, such as healthcare, IT, construction, and tourism, have higher approval rates for permits. Some employers in these fields actively offer visa sponsorship to attract qualified foreign workers.
Learn about immigration requirements→What are working conditions like in Iceland?
Iceland has strong labor protections: a standard 40-hour work week, mandatory pension contributions, 24 days minimum annual leave, and generous parental leave of 6 months per parent.
Nearly 90% of Icelandic workers are union members, making collective bargaining the primary mechanism for setting wages and working conditions. The standard work week is 36–40 hours depending on the sector. All employees receive mandatory pension contributions of 15.5% of salary (employer pays 11.5%, employee pays 4%). Parental leave is among the most generous globally. Each parent receives 6 months of non-transferable leave, plus 6 weeks of shared leave. Iceland consistently ranks among the world's best countries for work-life balance, gender equality, and worker rights. English is widely spoken in international companies, tourism, and the tech sector, though learning Icelandic opens doors in government, education, and healthcare roles.
