Iraq Iceland

Updated 2026-02-25

Iraq

Minimum Wage

ع.د1,823 /hr

$1.40 USD

Avg. Gross Salary

ع.د700,000 /mo

Iceland

No statutory minimum wage

Avg. Gross Salary

kr800,000 /mo

Avg. salary: -92% Iraq vs Iceland

Unlike Iceland, which has no statutory minimum wage, Iraq mandates a wage floor of $1/hr. Average gross salaries diverge further: $536/mo in Iraq versus $6,479/mo in Iceland, a 12.1:1 ratio. GDP per capita (PPP) in Iceland is 5.8x that of Iraq, underscoring the structural economic divide.

Iraq has lower GDP per capita ($14,464 vs $84,257). Iraq's unemployment rate is 15.5% compared to Iceland's 3.6%.

Detailed Comparison

Detailed wage comparison between Iraq and Iceland
Metric	Iraq	Iceland	Diff
Minimum wage /hr	ع.د1,823 $1.40	None	—
Minimum wage /day	ع.د14,583 $11.17	None	—
Minimum wage /mo	ع.د350,000 $268.20	None	—
Minimum wage /yr	ع.د4,200,000 $3,218.39	None	—
Avg. gross salary /mo	ع.د700,000 /mo $536.40	kr800,000 /mo $6,478.78	-91.7%
Avg. net salary /mo	N/A/mo	kr560,000 /mo $4,535.15	—
Median individual income /yr	ع.د3,360,000 /yr $2,574.71	kr7,800,000 /yr $63,168.12	-95.9%

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

Work Week

Iraq: 48 hrs/wk standard

Max 48 hrs/wk

Overtime : 1.5x pay

Labour Law No. 37 of 2015 sets maximum ordinary working hours at 8 per day / 48 per week. Friday is the weekly rest day. Overtime is compensated at 150% of normal hourly rate. Work on official holidays is paid at 200%. Ramadan working hours are reduced. Public sector employees typically work ~40 hours/week in practice.
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: Iraq mandates 48 hours while Iceland mandates 40 hours.

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

Compare Iraq with...

Frequently Asked Questions

Is the minimum wage higher in Iraq or Iceland?

In Iraq, the minimum wage is ع.د1,823/hr ($1.40 USD). In Iceland, it is no statutory minimum wage.

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

The average gross salary in Iraq is ع.د700,000/mo ($536.40 USD), compared to kr800,000/mo ($6,478.78 USD) in Iceland. In USD terms, workers in Iraq earn approximately 1108% less. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Iraq 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 Iraq.

How do work hours compare between Iraq and Iceland?

Iraq has a longer standard work week at 48 hours, compared to 40 hours in Iceland. Workers in Iraq work 48 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 Iraq 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 5.8x that of Iraq at $14,464. From Iraq'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.