Get salaries of any job in Iceland

In Iceland, the applicable minimum wage is complex. There is no national minimum wage by law. Instead, the minimum wage is determined by which Trade Union an employee is part of. Trade Unions determine minimum wage based on the age of the employee and job type.

The individual income tax ranges from 31.45% to 46.25%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income	Tax Rate (%)
0 Up to ISK 349,018	31.45%
349,019 Up to ISK 979,847	37.95%
Over ISK 979,847	46.25%

The employer cost is approximately 22.07% of the employee's salary.

• Provident Fund - 11.5%
• Pension Fund - 2.0%
• Insurance Fund - 6.92%
• Employee Sickness Fund - 1.0%
• Employee Training Fund - 0.3%
• Trade Union - Summer house benefits - 0.25%
• Recreational Fund - 0.1%

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is mandatory and cannot be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 162.5 hours of overtime a month. For additional hours, employees are paid:

• 0.875% of the hourly rate, the first 162.5 hours of overtime a month.
• 1.0385% of the hourly rate, the first 162.5 hours of overtime a month if they work from home.

Overtime payment is not mandatory for managerial roles in Iceland.