One in ten Icelanders earn more than $ 8,100 per month

According to a new report released by Statistics Iceland, the average salaried Icelandic earner made about $ 6,440 per month or 794,000 kr last year, which works out to about $ 77,250 for the entire year.

Half of Icelanders had a monthly income of between $ 4,620 and $ 7,360, using today’s exchange rate, or $ 55,440 to $ 88,320 on an annual basis. According to Mbl.is, the report notes that in 2020 the wages of the bottom decile grew faster than the wages of the top decile. The lowest 10% of incomes saw their wages increase by 9.5% while the incomes of the top 10% increased by 5.1% on average.

The Sars-CoV-2 pandemic has had the effect of increasing the average wage nationwide, as the contraction of the tourism industry has disproportionately affected those at the lower rungs of the labor market, leaving them unemployed and thus leading to an increase in the average wage.

The figures also show that one in ten employees earn at least one million crowns per month, the equivalent of $ 8,107 per month or $ 97,280 per year. In contrast, one in ten people earn less than kr 400,000 per month, which equates to $ 3,250 per month or $ 39,000 per year.

Bankers listen twice as much as hotel workers

When looking at individual segments of the economy, employees in the insurance and financial sectors enjoyed the highest average salary: around 1.1 million crowns or $ 8,920 per month, or $ 107,040 per month. year. Salaries were about half that of the hospitality industry, which was also the lowest-paid sector last year, with an average monthly salary of 597,000 kr or $ 4,840, which equates to $ 58,080 per year.

Although Icelandic wages may seem generous compared to other countries, readers should be aware that Icelandic wages are heavily taxed, as are consumer goods, leaving people with less purchasing power. The marginal rate of personal income tax is 46.26% excluding union dues and a mandatory pension payment of 4%, and sales tax can reach 25%. [email protected]

Comments are closed.