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 salaries in Iceland range from 275,000 ISK per month (minimum salary) to 951,000 ISK per month (maximum 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.
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.
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
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.
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.
|0 - 2 Years|
|2 - 5 Years||+34%|
|5 - 10 Years||+48%|
|10 - 15 Years||+22%|
|15 - 20 Years||+9%|
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
The main two types of jobs
|Revenue Generators||Supporting 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.
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.
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.
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.
The average salary for Mechanical Engineer is 3% more than that of Engineering. Also, Engineering salaries are 16% less than those of All Jobs.
|Job Title||Average Salary|
|Acoustics Engineer||546,000 ISK||-9%|
|Assembly Engineering Technician||442,000 ISK||-26%|
|Assistant Chief Engineer||641,000 ISK||+7%|
|Associate Engineer||516,000 ISK||-14%|
|Autocad Operator||359,000 ISK||-40%|
|Automation Engineer||607,000 ISK||+2%|
|Avionic System Support Engineer||537,000 ISK||-10%|
|Biochemical Engineer||546,000 ISK||-9%|
|BMS Engineer||515,000 ISK||-14%|
|Bridge and Lock Tender||312,000 ISK||-48%|
|Broadcast Engineer||540,000 ISK||-10%|
|CAD Design Engineer||618,000 ISK||+3%|
|CAD Designer||375,000 ISK||-37%|
|CAE Engineer||585,000 ISK||-2%|
|Ceramics Engineer||524,000 ISK||-12%|
|Civil Engineer||591,000 ISK||-1%|
|Commissioning Engineer||536,000 ISK||-10%|
|Communications Engineer||596,000 ISK||-0%|
|Condition Monitoring Engineer||495,000 ISK||-17%|
|Contract Associate Engineer||556,000 ISK||-7%|
|Control Systems Engineer||570,000 ISK||-5%|
|Controls Engineer||574,000 ISK||-4%|
|Controls Software Engineer||510,000 ISK||-15%|
|Corrosion Engineer||525,000 ISK||-12%|
|Design Engineer||585,000 ISK||-2%|
|Drafting Manager||649,000 ISK||+9%|
|Drilling Engineer||556,000 ISK||-7%|
|Electrical Draughtsman||281,000 ISK||-53%|
|Electrical Engineer||628,000 ISK||+5%|
|Electrical Engineering Manager||820,000 ISK||+37%|
|Electromechanical Engineering Technologist||644,000 ISK||+8%|
|Electromechanical Equipment Assembler||314,000 ISK||-47%|
|Energy Engineer||582,000 ISK||-3%|
|Engine Assembler||265,000 ISK||-56%|
|Engineering Account Manager||689,000 ISK||+15%|
|Engineering Chief Designer||644,000 ISK||+8%|
|Engineering Consultant||798,000 ISK||+33%|
|Engineering Key Account Manager||789,000 ISK||+32%|
|Engineering Lab Technician||572,000 ISK||-4%|
|Engineering Planning Manager||822,000 ISK||+37%|
|Engineering Production Manager||1,050,000 ISK||+76%|
|Engineering Project Analyst||703,000 ISK||+18%|
|Engineering Project Coordinator||695,000 ISK||+16%|
|Engineering Project Director||1,200,000 ISK||+100%|
|Engineering Project Manager||794,000 ISK||+33%|
|Engineering Research and Development Manager||950,000 ISK||+59%|
|Engineering Safety Coordinator||449,000 ISK||-25%|
|Engineering Sales Manager||770,000 ISK||+29%|
|Engineering Technician||440,000 ISK||-26%|
|Engineering Technologist||465,000 ISK||-22%|
|Environmental Engineer||558,000 ISK||-7%|
|Equipment Engineer||519,000 ISK||-13%|
|Equipment Engineering Manager||749,000 ISK||+25%|
|Fabrication Specialist||415,000 ISK||-31%|
|Facade Engineer||588,000 ISK||-2%|
|Fiber Analyst||332,000 ISK||-44%|
|Field Engineer||590,000 ISK||-1%|
|Field Engineering Manager||959,000 ISK||+60%|
|Fire Engineer||571,000 ISK||-5%|
|Fitter and Turner||182,000 ISK||-70%|
|Forestry Strategic Planner||650,000 ISK||+9%|
|Generation Engineer||558,000 ISK||-7%|
|Genetic Engineer||658,000 ISK||+10%|
|Geological Engineer||573,000 ISK||-4%|
|Geotechnical Engineer||603,000 ISK||+1%|
|Heavy Equipment Mechanic||316,000 ISK||-47%|
|Highway Engineer||565,000 ISK||-6%|
|HSE Professional||513,000 ISK||-14%|
|HVAC Engineer||602,000 ISK||+1%|
|HVAC Supervisor||551,000 ISK||-8%|
|Industrial Engineer||544,000 ISK||-9%|
|Industrial Engineering Technologist||564,000 ISK||-6%|
|Instrument Engineer||570,000 ISK||-5%|
|Instrumentation and Control Engineer||584,000 ISK||-2%|
|Instrumentation Engineer||572,000 ISK||-4%|
|Instrumentation Manager||583,000 ISK||-3%|
|Irrigation Engineer||549,000 ISK||-8%|
|Licensed Aircraft Engineer||636,000 ISK||+6%|
|Locomotive Engineer||530,000 ISK||-11%|
|Maintenance Engineer||529,000 ISK||-12%|
|Maintenance Fitter||207,000 ISK||-65%|
|Maintenance Manager||583,000 ISK||-3%|
|Manufacturing Engineer||543,000 ISK||-9%|
|Marine Engineer||566,000 ISK||-5%|
|Materials Engineer||551,000 ISK||-8%|
|Materials Researcher||556,000 ISK||-7%|
|Materials Technician||413,000 ISK||-31%|
|Mechanical and Electrical Engineer||593,000 ISK||-1%|
|Mechanical Design Engineer||623,000 ISK||+4%|
|Mechanical Designer||504,000 ISK||-16%|
|Mechanical Engineer||598,000 ISK||+0%|
|Mechanical Engineering Manager||787,000 ISK||+32%|
|Mechanical Inspector||576,000 ISK||-4%|
|Mechatronics Engineer||636,000 ISK||+6%|
|Mining Engineer||589,000 ISK||-2%|
|Oil and Petrochemical Engineer||610,000 ISK||+2%|
|Optical Engineer||550,000 ISK||-8%|
|Optical Instrument Assembler||287,000 ISK||-52%|
|PCB Assembler||219,000 ISK||-63%|
|Photonics Engineer||610,000 ISK||+2%|
|Photonics Technician||497,000 ISK||-17%|
|Pipeline Engineer||541,000 ISK||-10%|
|Piping Designer||321,000 ISK||-46%|
|Piping Engineer||540,000 ISK||-10%|
|Planning Engineer||592,000 ISK||-1%|
|Pressure Vessel Inspector||286,000 ISK||-52%|
|Principal Cost Engineer||575,000 ISK||-4%|
|Principal Engineer||585,000 ISK||-2%|
|Principal Support Engineer||584,000 ISK||-2%|
|Process Engineer||553,000 ISK||-8%|
|Process Operator||334,000 ISK||-44%|
|Product Development Engineer||581,000 ISK||-3%|
|Product Development Technician||412,000 ISK||-31%|
|Product Engineer||580,000 ISK||-3%|
|Product Safety Engineer||567,000 ISK||-5%|
|Production Engineer||582,000 ISK||-3%|
|Project Engineer||589,000 ISK||-2%|
|Proposal Manager||755,000 ISK||+26%|
|Purchasing Engineer||510,000 ISK||-15%|
|Quality Assurance Engineer||551,000 ISK||-8%|
|Rail Engineer||560,000 ISK||-6%|
|Robotics Engineer||648,000 ISK||+8%|
|Robotics Technician||469,000 ISK||-22%|
|Safety Engineer||554,000 ISK||-7%|
|Safety Inspector||429,000 ISK||-28%|
|Safety Manager||716,000 ISK||+20%|
|Safety Officer||302,000 ISK||-49%|
|Sales Engineer||631,000 ISK||+6%|
|Scheduling Engineer||502,000 ISK||-16%|
|Service Engineer||624,000 ISK||+4%|
|Solar Engineer||624,000 ISK||+4%|
|Staff Engineer||562,000 ISK||-6%|
|Static Equipment Engineer||556,000 ISK||-7%|
|Stationary Engineer||504,000 ISK||-16%|
|Stress Engineer||520,000 ISK||-13%|
|Structural Analysis Engineer||548,000 ISK||-8%|
|Structural Designer||530,000 ISK||-11%|
|Structural Engineer||548,000 ISK||-8%|
|Structural Technician||358,000 ISK||-40%|
|Supply Chain Specialist||588,000 ISK||-2%|
|Technical Affairs Officer||295,000 ISK||-51%|
|Technical Assistant||294,000 ISK||-51%|
|Technical Engineer||515,000 ISK||-14%|
|Technical Support Engineer||495,000 ISK||-17%|
|Tender Engineer||507,000 ISK||-15%|
|Test Development Engineer||549,000 ISK||-8%|
|Transportation Engineer||526,000 ISK||-12%|
|Validation Engineer||535,000 ISK||-11%|
|Verification Engineer||564,000 ISK||-6%|
|Wastewater Engineer||580,000 ISK||-3%|
|Wind Energy Engineer||596,000 ISK||-0%|
|Wind Energy Operations Manager||780,000 ISK||+30%|
|Work Planner||393,000 ISK||-34%|
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.