No statutory minimum wage – but pay and terms may never be lower than in the collective agreements, and you get at least 24 working days of holiday a year. 85.8% of people aged 20–64 have a job (EU: 76.1%) and unemployment is 4.5%. Find out where to look, how to register and get your ID number (kennitala), and how tax works.
Iceland is a small country of 394,324 people with an employment rate far above the EU average: 85.8% of people aged 20–64 have a job (EU: 76.1%).
Unemployment is low, but it went up in 2025 – from 3.6% in 2024 to 4.5% (2022: 3.8%), still below the EU average of 6.0%. Youth unemployment is also low: 9.5% among people aged 15–24, compared with 15.2% in the EU.
Iceland is not in the EU, but it is part of the EEA. So as an EU/EEA citizen you do not need a work permit. Keep two things in mind: most Icelandic employers advertise jobs in Icelandic, and finding a flat is hard – demand for rentals is much higher than supply and rents are high.
Key figures: Eurostat (population on 1 January 2026; unemployment and employment rates 2025; minimum wages July 2026); for the United Kingdom – Office for National Statistics; for Liechtenstein – national statistics. Country information: EURES – Living and working conditions, public employment services and the official government websites listed under each country. Rules, thresholds and amounts can change – check the official sources before you move. Updated: October 2026.
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