Vast Difference in Pay Raise between Officials Skip to content

Vast Difference in Pay Raise between Officials

By Iceland Review

The salaries of the most high-ranking officials in Iceland have increased by about 18 percent in two years while the salaries of common official workers have only gone up by seven to nine percent during the same period.

According to, the salaries of the President of Iceland, Iceland’s Prime Minister, other ministers and MPs rose by 2.5 percent on January 1, 2006, by 3.0 percent on July 1, 2006, and by 3.6 percent on October 1, 2006.

The salaries of that group went up by another 2.9 percent on January 1, 2007, and 2.6 percent last summer. They are set to increase even further as of next January 1 and have thus increased by about 18 percent in two years.

The monthly salary of the President of Iceland has gone up from ISK 1,532,000 (USD 24,141, EUR 16,777) by the end of 2005 to ISK 1,807,000 (USD 28,475, EUR 19,788) at the beginning of 2008, and the salary of Iceland’s Prime Minister from ISK 915,000 (USD 14,419, EUR 10,020) to ISK 1,078,000 (USD 16,987, EUR 11,805) during the same time period. The salaries of MPs have increased from ISK 460,000 (USD 7,249, EUR 5,037) to ISK 542,000 (USD 8,541, EUR 5,935).

As of July 1, 2006, a special wage council (kjararád) was made responsible for determining the salaries of official employees, like the above mentioned professions as well as ambassadors, bishops, priests, district attorneys, sheriffs, rectors and others, who cannot make decisions regarding their own wages due to the nature of their profession.

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