According to figures published yesterday by SA Business Iceland, average disposable income in Iceland is the second highest in the Nordics. Only Norwegians enjoy a higher income than Icelanders. According to the calculations of SA, average incomes in Iceland are the tenth highest among the OECD countries.
Read more: Iceland needs at least 5,000 immigrants in the next four years to ensure adequate labour supply
SA – Business Iceland SA is a service organization for Icelandic businesses handling among other things collective bargaining for its member organizations. In recent months business in Iceland has repeatedly ground to a halt as unions have gone on strike over demands for wage increases businesses and government claim they can scarcely afford.
Read more: Impact of strikes will be felt throughout Icelandic society
Based on OECD data and recent economic developments
The calculations released by SA show that when most recent OECD data on average annual incomes is adjusted for purchasing parity, taking into consideration recent wage increases and the strengthening of the Icelandic currency, the króna (ISK), over the past few months, Icelanders have some of the very highest disposable incomes in the world. Disposable income is the money households have available after taxes and transfers have been taken into account.
Adjusting incomes for purchasing parity involves taking into account that price levels are different between countries: Wages are low in countries where price levels are generally low, meaning the purchasing power of money is greater.
Average disposable income is 39,000 USD, 10th highest in the world
According to SA average disposable individual income in Iceland, purchasing parity adjusted, is 36,000 USD (32,000 EUR). Disposable individual incomes are highest in Switzerland, where they are 55,000 USD, followed by Norway with 42,000 USD. Average disposable individual income in the US is 38,000 USD, and 39,000 in the UK.
Read more: Icelandic Economy boomed in first six months of 2015: GDP grew by 5.2%
SA Business Iceland argues that these figures show Iceland is a high wage country, with some of the highest standards of living around the world.
According to figures published yesterday by SA Business Iceland, average disposable income in Iceland is the second highest in the Nordics. Only Norwegians enjoy a higher income than Icelanders. According to the calculations of SA, average incomes in Iceland are the tenth highest among the OECD countries.
Read more: Iceland needs at least 5,000 immigrants in the next four years to ensure adequate labour supply
SA – Business Iceland SA is a service organization for Icelandic businesses handling among other things collective bargaining for its member organizations. In recent months business in Iceland has repeatedly ground to a halt as unions have gone on strike over demands for wage increases businesses and government claim they can scarcely afford.
Read more: Impact of strikes will be felt throughout Icelandic society
Based on OECD data and recent economic developments
The calculations released by SA show that when most recent OECD data on average annual incomes is adjusted for purchasing parity, taking into consideration recent wage increases and the strengthening of the Icelandic currency, the króna (ISK), over the past few months, Icelanders have some of the very highest disposable incomes in the world. Disposable income is the money households have available after taxes and transfers have been taken into account.
Adjusting incomes for purchasing parity involves taking into account that price levels are different between countries: Wages are low in countries where price levels are generally low, meaning the purchasing power of money is greater.
Average disposable income is 39,000 USD, 10th highest in the world
According to SA average disposable individual income in Iceland, purchasing parity adjusted, is 36,000 USD (32,000 EUR). Disposable individual incomes are highest in Switzerland, where they are 55,000 USD, followed by Norway with 42,000 USD. Average disposable individual income in the US is 38,000 USD, and 39,000 in the UK.
Read more: Icelandic Economy boomed in first six months of 2015: GDP grew by 5.2%
SA Business Iceland argues that these figures show Iceland is a high wage country, with some of the highest standards of living around the world.
