Minimum wage in Iceland

No statutory minimum: collective agreements set the floor

Iceland has no statutory minimum wage. Collective agreements set minimum pay, and by law the agreed minimum applies to everyone in the occupation, whether or not their employer signed it.

There is no single statutory figure to show for Iceland.

Checked October 2026. Spotted a mistake? Tell us.

Check the date. Minimum wages change, in many countries every year. The figure above is the one in force at the date shown. Confirm the current amount with the official source below before you rely on it. This is general information, not legal or employment advice.

Who sets it

Collective agreements between unions and employers' organisations set minimum pay. The law makes the agreed minimum pay binding for all employers and workers in the occupation.

How it changes

Agreements are renegotiated on a cycle, and the floor moves when they are renewed.

Who is covered, and who is treated differently

Because the minimum terms apply to all, coverage of employees is very high.

What to watch for

There is no single figure to quote. Find the agreement for the occupation.

Understand the legal system first

Iceland belongs to the Civil law family. How pay is regulated depends on how the legal system makes and applies labour law.

Read the Iceland legal-system profile in the Legal Families Atlas →
Compare Iceland with another country →

Official sources

Government of Iceland: labour market

TheLawToKnow Tools’s Minimum Wage by Country guide is an educational overview. It is not legal or employment advice, and it does not replace the official source or a lawyer in the country. Report a mistake.