Iran Iceland

Updated 2026-05-04

Iran

Minimum Wage

﷼692,731 /hr

$1.02 USD

Avg. Gross Salary

﷼400,000,000 /mo

Iceland

No statutory minimum wage

Avg. Gross Salary

kr800,000 /mo

Avg. salary: -91% Iran vs Iceland

Unlike Iceland, which has no statutory minimum wage, Iran mandates a wage floor of $1/hr. Average gross salaries diverge further: $588/mo in Iran versus $6,479/mo in Iceland, a 11.0:1 ratio. GDP per capita (PPP) in Iceland is 4.2x that of Iran, underscoring the structural economic divide.

Iran has lower GDP per capita ($19,874 vs $84,257). Iran's unemployment rate is 8.3% compared to Iceland's 3.6%.

Detailed Comparison

Detailed wage comparison between Iran and Iceland
Metric	Iran	Iceland	Diff
Minimum wage /hr	﷼692,731 $1.02	None	—
Minimum wage /day	﷼5,541,850 $8.15	None	—
Minimum wage /mo	﷼166,255,500 $244.49	None	—
Minimum wage /yr	﷼1,995,066,000 $2,933.92	None	—
Avg. gross salary /mo	﷼400,000,000 /mo $588.24	kr800,000 /mo $6,478.78	-90.9%
Avg. net salary /mo	N/A/mo	kr560,000 /mo $4,535.15	—
Median individual income /yr	﷼1,440,000,000 /yr $2,117.65	kr7,800,000 /yr $63,168.12	-96.6%

Percentage differences are based on USD equivalent values. Positive means Iran is higher.

Work Week

Iran: 44 hrs/wk standard

Max 48 hrs/wk

Overtime : 1.4x pay

Article 51 of the Labour Law sets ordinary working hours at 44 hours per week (8 hours/day, 6 days, with 4 hours on the sixth day — or equivalent arrangements). Maximum including overtime is 48 hours/week. Overtime is compensated at 140% of the ordinary hourly rate. Friday is the official weekly rest day. Workers in hazardous conditions have reduced hours.
Iceland: 40 hrs/wk standard

Max 48 hrs/wk

Overtime : 1.8x pay

Standard working week is 40 hours (set by collective agreements). The Act on Working Environment and Health sets maximum average of 48 hours/week per EU Working Time Directive. Overtime premiums are set by collective agreements, typically 80% premium (1.8x) for daytime overtime, higher for evenings/weekends. A landmark 2021 agreement reduced standard hours from 40 to 36 for many public sector workers, with the private sector gradually following.

What This Means for Workers

Standard work weeks differ: Iran mandates 44 hours while Iceland mandates 40 hours.

See this comparison from Iceland's perspective: Iceland vs Iran

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Frequently Asked Questions

Is the minimum wage higher in Iran or Iceland?

In Iran, the minimum wage is ﷼692,731/hr ($1.02 USD). In Iceland, it is no statutory minimum wage.

How much less does the average worker earn in Iran compared to Iceland?

The average gross salary in Iran is ﷼400,000,000/mo ($588.24 USD), compared to kr800,000/mo ($6,478.78 USD) in Iceland. In USD terms, workers in Iran earn approximately 1001% less. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Iran and Iceland is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Iceland earn more in nominal terms, though how far that income stretches depends on local prices in Iran.

How do work hours compare between Iran and Iceland?

Iran has a longer standard work week at 44 hours, compared to 40 hours in Iceland. Workers in Iran work 44 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Iceland working fewer hours may have comparable or better effective hourly earnings depending on the wage levels of each country. Total annual compensation depends on both the wage rate and the number of hours required.

What is the cost of living difference between Iran and Iceland?

While direct cost of living data varies by source, GDP per capita (PPP) gives a useful proxy for overall economic level. Iceland has the higher GDP per capita at $84,257, which is 4.2x that of Iran at $19,874. From Iran's perspective, this means goods and services are priced at a lower economic level. A higher GDP per capita generally correlates with higher wages, higher consumer prices, and greater availability of goods and services. Workers moving between these two countries should expect significant differences in rent, food, and transportation costs.