Peru Iceland

Updated 2026-05-27

Peru

Minimum Wage

S/5.89 /hr

$1.60 USD

Avg. Gross Salary

S/2,200 /mo

Iceland

No statutory minimum wage

Avg. Gross Salary

kr800,000 /mo

Avg. salary: -91% Peru vs Iceland

Unlike Iceland, which has no statutory minimum wage, Peru mandates a wage floor of $2/hr. Average gross salaries diverge further: $598/mo in Peru versus $6,479/mo in Iceland, a 10.8:1 ratio. GDP per capita (PPP) in Iceland is 4.7x that of Peru, underscoring the structural economic divide.

Peru has lower GDP per capita ($17,802 vs $84,257). Peru's unemployment rate is 5.1% compared to Iceland's 3.6%.

Detailed Comparison

Detailed wage comparison between Peru and Iceland
Metric	Peru	Iceland	Diff
Minimum wage /hr	S/5.89 $1.60	None	—
Minimum wage /mo	S/1,130 $307.07	None	—
Minimum wage /yr	S/15,820 $4,298.91	None	—
Avg. gross salary /mo	S/2,200 /mo $597.83	kr800,000 /mo $6,478.78	-90.8%
Avg. net salary /mo	S/1,870 /mo $508.15	kr560,000 /mo $4,535.15	-88.8%
Median individual income /yr	S/15,600 /yr $4,239.13	kr7,800,000 /yr $63,168.12	-93.3%

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

Work Week

Peru: 48 hrs/wk standard

Max 48 hrs/wk

Overtime : 1.25x pay

Constitution sets maximum at 48 hours/week, 8 hours/day (or 6 days at 8 hrs). Office workers commonly work 40-45 hrs. Overtime: first 2 hours at 125%, subsequent hours at 135%. Night shift (10pm-6am) receives a 35% surcharge.
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: Peru mandates 48 hours while Iceland mandates 40 hours.

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

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Frequently Asked Questions

Is the minimum wage higher in Peru or Iceland?

In Peru, the minimum wage is S/5.89/hr ($1.60 USD). In Iceland, it is no statutory minimum wage.

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

The average gross salary in Peru is S/2,200/mo ($597.83 USD), compared to kr800,000/mo ($6,478.78 USD) in Iceland. In USD terms, workers in Peru earn approximately 984% less. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Peru 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 Peru.

How do work hours compare between Peru and Iceland?

Peru has a longer standard work week at 48 hours, compared to 40 hours in Iceland. Workers in Peru 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 Peru 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 4.7x that of Peru at $17,802. From Peru'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.