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Mechanical Engineer Average Salary in Iceland 2022

How much money does a Mechanical Engineer make in Iceland?

Average Monthly Salary
598,000 ISK
( 7,180,000 ISK yearly)


A person working as a Mechanical Engineer in Iceland typically earns around 598,000 ISK per month. Salaries range from 275,000 ISK (lowest) to 951,000 ISK (highest).

This is the average monthly salary including housing, transport, and other benefits. Mechanical Engineer salaries vary drastically based on experience, skills, gender, or location. Below you will find a detailed breakdown based on many different criteria.

Mechanical Engineer Salary Distribution in Iceland

Median and salary distribution monthly Iceland Mechanical Engineer
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The median, the maximum, the minimum, and the range

  • Salary Range

    Mechanical Engineer salaries in Iceland range from 275,000 ISK per month (minimum salary) to 951,000 ISK per month (maximum salary).

  • Median Salary

    The median salary is 646,000 ISK per month, which means that half (50%) of people working as Mechanical Engineer(s) are earning less than 646,000 ISK while the other half are earning more than 646,000 ISK. The median represents the middle salary value. Generally speaking, you would want to be on the right side of the graph with the group earning more than the median salary.

  • Percentiles

    Closely related to the median are two values: the 25th and the 75th percentiles. Reading from the salary distribution diagram, 25% of Mechanical Engineer(s) are earning less than 414,000 ISK while 75% of them are earning more than 414,000 ISK. Also from the diagram, 75% of Mechanical Engineer(s) are earning less than 862,000 ISK while 25% are earning more than 862,000 ISK.

What is the difference between the median and the average salary?

Both are indicators. If your salary is higher than both of the average and the median then you are doing very well. If your salary is lower than both, then many people are earning more than you and there is plenty of room for improvement. If your wage is between the average and the median, then things can be a bit complicated. We wrote a guide to explain all about the different scenarios. How to compare your salary

Mechanical Engineer Salary Comparison by Years of Experience

How does experience and age affect your pay?

Salary comparison by years of experience monthly Iceland Mechanical Engineer
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The experience level is the most important factor in determining the salary. Naturally the more years of experience the higher your wage. We broke down Mechanical Engineer salaries by experience level and this is what we found.

A Mechanical Engineer with less than two years of experience makes approximately 312,000 ISK per month.

While someone with an experience level between two and five years is expected to earn 417,000 ISK per month, 34% more than someone with less than two year's experience.

Moving forward, an experience level between five and ten years lands a salary of 616,000 ISK per month, 48% more than someone with two to five years of experience.

On average, a person's salary doubles their starting salary by the time they cross the 10 years* experience mark.
* Based on the average change in salary over time. Salary variations differ from person to person.

Additionally, Mechanical Engineer(s) whose expertise span anywhere between ten and fifteen years get a salary equivalent to 751,000 ISK per month, 22% more than someone with five to ten years of experience.

If the experience level is between fifteen and twenty years, then the expected wage is 819,000 ISK per month, 9% more than someone with ten to fifteen years of experience.

Lastly, employees with more than twenty years of professional experience get a salary of 887,000 ISK per month, 8% more than people with fifteen to twenty years of experience.

Mechanical Engineer average salary change by experience in Iceland

0 - 2 Years
312,000 ISK
2 - 5 Years+34%
417,000 ISK
5 - 10 Years+48%
616,000 ISK
10 - 15 Years+22%
751,000 ISK
15 - 20 Years+9%
819,000 ISK
20+ Years+8%
887,000 ISK
Percentage increase and decrease are relative to the previous value

Typical Salary Progress for Most Careers

Salary Comparison By Experience Level
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Mechanical Engineer Salary Comparison By Education

How do education levels affect salaries?

Displayed below is the average salary difference between different Mechanical Engineer(s) who have the same experience but different education levels.

Salary comparison by education level monthly Iceland Mechanical Engineer
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We all know that higher education equals a bigger salary, but how much more money can a degree add to your income? We broke down Mechanical Engineer salaries by education level in order to make a comparison.

When the education level is Bachelor's Degree, the average salary of a Mechanical Engineer is 363,000 ISK per month.

While someone with a Master's Degree gets a salary of 701,000 ISK per month, 93% more than someone having a Bachelor's Degree degree.

Mechanical Engineer average salary difference by education level in Iceland

Bachelor's Degree
363,000 ISK
Master's Degree+93%
701,000 ISK
Percentage increase and decrease are relative to the previous value

Is a Master's degree or an MBA worth it? Should you pursue higher education?

A Master's degree program or any post-graduate program in Iceland costs anywhere from 3,440,000 Iceland Krona(s) to 10,300,000 Iceland Krona(s) and lasts approximately two years. That is quite an investment.

You can't really expect any salary increases during the study period, assuming you already have a job. In most cases, a salary review is conducted once education is completed and the degree has been attained.

Many people pursue higher education as a tactic to switch into a higher paying job. The numbers seem to support the thoery. The average increase in compensation while changing jobs is approximately 10% more than the customary salary increment.

If you can afford the costs of higher education, the return on investment is definitely worth it. You should be able to recover the costs in roughly a year or so.

Typical Salary Difference by Education for Most Careers

Salary Comparison By Education Level
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Mechanical Engineer Salary Comparison By Gender

Salary comparison by gender monthly Iceland Mechanical Engineer
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Though gender should not have an effect on pay, in reality, it does. So who gets paid more: men or women? Male Mechanical Engineer employees in Iceland earn 5% more than their female counterparts on average.

612,000 ISK
584,000 ISK
Percentage increase and decrease are relative to the previous value

Salary Comparison By Gender in Iceland for all Careers

Salary comparison by gender monthly Iceland
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Mechanical Engineer Average Annual Salary Increment Percentage in Iceland

How much are annual salary increments in Iceland for Mechanical Engineer(s)? How often do employees get salary raises?

Mechanical Engineer

Mechanical Engineer(s) in Iceland are likely to observe a salary increase of approximately 7% every 29 months. The national average annual increment for all professions combined is 4% granted to employees every 29 months.

Annual Salary Increment Rate Iceland Mechanical Engineer
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The figures provided here are averages of numbers. Those figures should be taken as general guidelines. Salary increments will vary from person to person and depend on many factors, but your performance and contribution to the success of the organization remain the most important factors in determining how much and how often you will be granted a raise.

Iceland / All Professions

The term 'Annual Salary Increase' usually refers to the increase in 12 calendar month period, but because it is rarely that people get their salaries reviewed exactly on the one year mark, it is more meaningful to know the frequency and the rate at the time of the increase.

How to calculate the salary increment percentage?

The annual salary Increase in a calendar year (12 months) can be easily calculated as follows: Annual Salary Increase = Increase Rate x 12 ÷ Increase Frequency

The average salary increase in one year (12 months) in Iceland is 2%.

Annual Increment Rate By Industry 2021

Information Technology

Listed above are the average annual increase rates for each industry in Iceland for the year 2021. Companies within thriving industries tend to provide higher and more frequent raises. Exceptions do exist, but generally speaking, the situation of any company is closely related to the economic situation in the country or region. These figures tend to change frequently.

Worldwide Salary Raises: All Countries and All Jobs

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Mechanical Engineer Bonus and Incentive Rates in Iceland

How much and how often are bonuses being awarded?Annual Salary Bonus Rate Iceland Mechanical Engineer
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A Mechanical Engineer is considered to be a moderate bonus-based job due to the generally limited involvement in direct revenue generation, with exceptions of course. The people who get the highest bonuses are usually somehow involved in the revenue generation cycle.

59% of surveyed staff reported that they haven't received any bonuses or incentives in the previous year while 41% said that they received at least one form of monetary bonus.

Those who got bonuses reported rates ranging from 2% to 7% of their annual salary.

Received Bonus
No Bonus

Types of Bonuses Considered

Individual Performance-Based Bonuses

The most standard form of bonus where the employee is awarded based on their exceptional performance.

Company Performance Bonuses

Occasionally, some companies like to celebrate excess earnings and profits with their staff collectively in the form of bonuses that are granted to everyone. The amount of the bonus will probably be different from person to person depending on their role within the organization.

Goal-Based Bonuses

Granted upon achieving an important goal or milestone.

Holiday / End of Year Bonuses

These types of bonuses are given without a reason and usually resemble an appreciation token.

Bonuses Are Not Commissions!

People tend to confuse bonuses with commissions. A commission is a prefixed rate at which someone gets paid for items sold or deals completed while a bonus is in most cases arbitrary and unplanned.

What makes a position worthy of good bonuses and a high salary?

The main two types of jobs

Revenue GeneratorsSupporting Cast

Employees that are directly involved in generating revenue or profit for the organization. Their field of expertise usually matches the type of business.

Employees that support and facilitate the work of revenue generators. Their expertise is usually different from that of the core business operations.

A graphics designer working for a graphics designing company.

A graphic designer in the marketing department of a hospital.

Revenue generators usually get more and higher bonuses, higher salaries, and more frequent salary increments. The reason is quite simple: it is easier to quantify your value to the company in monetary terms when you participate in revenue generation.

Try to work for companies where your skills can generate revenue. We can't all generate revenue and that's perfectly fine.

Bonus Comparison by Seniority Level

Top management personnel and senior employees naturally exhibit higher bonus rates and frequencies than juniors. This is very predictable due to the inherent responsibilities of being higher in the hierarchy. People in top positions can easily get double or triple bonus rates than employees down the pyramid.

Mechanical Engineer Average Hourly Wage in Iceland

3,450 ISK per hour

The average hourly wage (pay per hour) in Iceland is 3,450 ISK. This means that the average Mechanical Engineer in Iceland earns approximately 3,450 ISK for every worked hour.

Hourly Wage = Annual Salary ÷ ( 52 x 5 x 8 )

The hourly wage is the salary paid in one worked hour. Usually jobs are classified into two categories: salaried jobs and hourly jobs. Salaried jobs pay a fix amount regardless of the hours worked. Hourly jobs pay per worked hour. To convert salary into hourly wage the above formula is used (assuming 5 working days in a week and 8 working hours per day which is the standard for most jobs). The hourly wage calculation may differ slightly depending on the worked hours per week and the annual vacation allowance. The figures mentioned above are good approximations and are considered to be the standard. One major difference between salaried employees and hourly paid employees is overtime eligibility. Salaried employees are usually exempt from overtime as opposed to hourly paid staff.

Mechanical Engineer VS Other Jobs

Salary Comparison Between Mechanical Engineer and Engineering monthly Iceland
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The average salary for Mechanical Engineer is 3% more than that of Engineering. Also, Engineering salaries are 16% less than those of All Jobs.

Salary comparison with similar jobs

Job TitleAverage Salary
Acoustics Engineer546,000 ISK-9%
Assembly Engineering Technician442,000 ISK-26%
Assistant Chief Engineer641,000 ISK+7%
Associate Engineer516,000 ISK-14%
Autocad Operator359,000 ISK-40%
Automation Engineer607,000 ISK+2%
Avionic System Support Engineer537,000 ISK-10%
Biochemical Engineer546,000 ISK-9%
BMS Engineer515,000 ISK-14%
Bridge and Lock Tender312,000 ISK-48%
Broadcast Engineer540,000 ISK-10%
CAD Design Engineer618,000 ISK+3%
CAD Designer375,000 ISK-37%
CAE Engineer585,000 ISK-2%
Ceramics Engineer524,000 ISK-12%
Civil Engineer591,000 ISK-1%
Commissioning Engineer536,000 ISK-10%
Communications Engineer596,000 ISK-0%
Condition Monitoring Engineer495,000 ISK-17%
Contract Associate Engineer556,000 ISK-7%
Control Systems Engineer570,000 ISK-5%
Controls Engineer574,000 ISK-4%
Controls Software Engineer510,000 ISK-15%
Corrosion Engineer525,000 ISK-12%
Design Engineer585,000 ISK-2%
Drafter353,000 ISK-41%
Drafting Manager649,000 ISK+9%
Drilling Engineer556,000 ISK-7%
Electrical Draughtsman281,000 ISK-53%
Electrical Engineer628,000 ISK+5%
Electrical Engineering Manager820,000 ISK+37%
Electromechanical Engineering Technologist644,000 ISK+8%
Electromechanical Equipment Assembler314,000 ISK-47%
Energy Engineer582,000 ISK-3%
Engine Assembler265,000 ISK-56%
Engineer602,000 ISK+1%
Engineering Account Manager689,000 ISK+15%
Engineering Chief Designer644,000 ISK+8%
Engineering Consultant798,000 ISK+33%
Engineering Key Account Manager789,000 ISK+32%
Engineering Lab Technician572,000 ISK-4%
Engineering Planning Manager822,000 ISK+37%
Engineering Production Manager1,050,000 ISK+76%
Engineering Project Analyst703,000 ISK+18%
Engineering Project Coordinator 695,000 ISK+16%
Engineering Project Director1,200,000 ISK+100%
Engineering Project Manager794,000 ISK+33%
Engineering Research and Development Manager950,000 ISK+59%
Engineering Safety Coordinator449,000 ISK-25%
Engineering Sales Manager770,000 ISK+29%
Engineering Technician440,000 ISK-26%
Engineering Technologist465,000 ISK-22%
Environmental Engineer558,000 ISK-7%
Equipment Engineer519,000 ISK-13%
Equipment Engineering Manager749,000 ISK+25%
Estimator502,000 ISK-16%
Fabrication Specialist415,000 ISK-31%
Fabricator266,000 ISK-56%
Facade Engineer588,000 ISK-2%
Fiber Analyst332,000 ISK-44%
Field Engineer590,000 ISK-1%
Field Engineering Manager959,000 ISK+60%
Fire Engineer571,000 ISK-5%
Fitter and Turner182,000 ISK-70%
Forestry Strategic Planner650,000 ISK+9%
Generation Engineer558,000 ISK-7%
Genetic Engineer658,000 ISK+10%
Geological Engineer573,000 ISK-4%
Geotechnical Engineer603,000 ISK+1%
Heavy Equipment Mechanic316,000 ISK-47%
Highway Engineer565,000 ISK-6%
HSE Professional513,000 ISK-14%
HVAC Engineer602,000 ISK+1%
HVAC Supervisor551,000 ISK-8%
Industrial Engineer544,000 ISK-9%
Industrial Engineering Technologist564,000 ISK-6%
Instrument Engineer570,000 ISK-5%
Instrumentation and Control Engineer584,000 ISK-2%
Instrumentation Engineer572,000 ISK-4%
Instrumentation Manager583,000 ISK-3%
Irrigation Engineer549,000 ISK-8%
Licensed Aircraft Engineer636,000 ISK+6%
Locomotive Engineer530,000 ISK-11%
Maintenance Engineer529,000 ISK-12%
Maintenance Fitter207,000 ISK-65%
Maintenance Manager583,000 ISK-3%
Manufacturing Engineer543,000 ISK-9%
Marine Engineer566,000 ISK-5%
Materials Engineer551,000 ISK-8%
Materials Researcher556,000 ISK-7%
Materials Technician413,000 ISK-31%
Mechanical and Electrical Engineer593,000 ISK-1%
Mechanical Design Engineer623,000 ISK+4%
Mechanical Designer504,000 ISK-16%
Mechanical Engineer598,000 ISK+0%
Mechanical Engineering Manager787,000 ISK+32%
Mechanical Inspector576,000 ISK-4%
Mechatronics Engineer636,000 ISK+6%
Mining Engineer589,000 ISK-2%
Oil and Petrochemical Engineer610,000 ISK+2%
Optical Engineer550,000 ISK-8%
Optical Instrument Assembler287,000 ISK-52%
PCB Assembler219,000 ISK-63%
Photonics Engineer610,000 ISK+2%
Photonics Technician497,000 ISK-17%
Pipeline Engineer541,000 ISK-10%
Piping Designer321,000 ISK-46%
Piping Engineer540,000 ISK-10%
Planning Engineer592,000 ISK-1%
Pressure Vessel Inspector286,000 ISK-52%
Principal Cost Engineer575,000 ISK-4%
Principal Engineer585,000 ISK-2%
Principal Support Engineer584,000 ISK-2%
Process Engineer553,000 ISK-8%
Process Operator334,000 ISK-44%
Product Development Engineer581,000 ISK-3%
Product Development Technician412,000 ISK-31%
Product Engineer580,000 ISK-3%
Product Safety Engineer567,000 ISK-5%
Production Engineer582,000 ISK-3%
Project Engineer589,000 ISK-2%
Proposal Manager755,000 ISK+26%
Purchasing Engineer510,000 ISK-15%
Quality Assurance Engineer551,000 ISK-8%
Rail Engineer560,000 ISK-6%
Robotics Engineer648,000 ISK+8%
Robotics Technician469,000 ISK-22%
Safety Engineer554,000 ISK-7%
Safety Inspector429,000 ISK-28%
Safety Manager716,000 ISK+20%
Safety Officer302,000 ISK-49%
Sales Engineer631,000 ISK+6%
Scheduling Engineer502,000 ISK-16%
Service Engineer624,000 ISK+4%
Solar Engineer624,000 ISK+4%
Staff Engineer562,000 ISK-6%
Static Equipment Engineer556,000 ISK-7%
Stationary Engineer504,000 ISK-16%
Stress Engineer520,000 ISK-13%
Structural Analysis Engineer548,000 ISK-8%
Structural Designer530,000 ISK-11%
Structural Engineer548,000 ISK-8%
Structural Technician358,000 ISK-40%
Supply Chain Specialist588,000 ISK-2%
Surveyor448,000 ISK-25%
Technical Affairs Officer295,000 ISK-51%
Technical Assistant294,000 ISK-51%
Technical Engineer515,000 ISK-14%
Technical Support Engineer495,000 ISK-17%
Tender Engineer507,000 ISK-15%
Test Development Engineer549,000 ISK-8%
Transportation Engineer526,000 ISK-12%
Validation Engineer535,000 ISK-11%
Verification Engineer564,000 ISK-6%
Wastewater Engineer580,000 ISK-3%
Wind Energy Engineer596,000 ISK-0%
Wind Energy Operations Manager780,000 ISK+30%
Work Planner393,000 ISK-34%

Salary Comparison By City

CityAverage Salary
Reykjavik662,000 ISK

Government vs Private Sector Salary Comparison

Where can you get paid more, working for a private company or for the government? Public sector employees in Iceland earn 25% more than their private sector counterparts on average across all sectors.

Private Sector
611,000 ISK
Public Sector+25%
763,000 ISK
Percentage increase and decrease are relative to the previous value

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