Icelanders averaged 875,000 kroner in monthly income
Thursday 3rd September 2026 on 13:45 in
Iceland
Icelanders had average total incomes of 10.5 million Icelandic krónur in 2025, equivalent to about 875,000 krónur a month, according to figures from Statistics Iceland reported by mbl.is. Average income rose by 5.7 per cent from the previous year, or 1.6 per cent after adjusting for inflation.
The median total income was approximately 8.8 million krónur annually, meaning half of individuals earned less than 730,000 krónur a month and half earned more. The median increased by 5.6 per cent year on year, or 1.5 per cent in real terms.
Total income includes employment income, capital income and other income. Average employment income was about 7.2 million krónur in 2025, while average capital income was 1.2 million krónur and other income averaged 2.2 million.
Men had considerably higher average total incomes than women, at 960,000 krónur a month compared with 790,000 krónur. Among people aged 25 to 64, women had average monthly total income of 897,000 krónur, while the figure for men was 1.088 million krónur.
Employment income was generally the largest component of total income, although other income accounted for a larger share among older age groups. Across all five-year age groups, men had higher employment income than women. Statistics Iceland attributed the difference partly to variations in working hours, occupations and industries.
Men also had higher average capital income. Among those aged 25 to 64, capital income averaged 98,000 krónur a month for men and 88,000 krónur for women.
Other income was higher among women through most of the working-age groups. For people aged 25 to 64, it averaged 129,000 krónur a month for women and just under 92,000 krónur for men. The pattern reversed among people older than 64, with men recording slightly higher average other income.
Employment income includes wages and work-related income, vehicle allowances, per diem payments and benefits. Capital income includes interest, dividends, capital gains and rental income outside business operations, as well as income from running a business. Other income includes pension payments, payments from the Social Insurance Administration and benefits such as unemployment benefits, interest rebates and child benefits.