Mechanical Engineer Salary in Iceland: What You Need to Know
Mechanical Engineers in Iceland earn an estimated $87,611 USD per year, which is approximately kr12,090,318 ISK at current exchange rates. This places Iceland at #2 out of 42 countries in our global salary ranking for this occupation.
Compared to the United States, where Mechanical Engineers earn an estimated $96,000 USD per year, the salary in Iceland is 9% lower. This difference reflects variations in local economies, cost of living, labor market conditions, and industry demand for Mechanical Engineers in Iceland.
Purchasing Power and Cost of Living
While nominal salary figures provide a useful starting point, they don't tell the full story. When adjusted for purchasing power parity (PPP), the salary for a Mechanical Engineer in Iceland is equivalent to $89,860 USD. This means that after accounting for differences in the cost of goods and services, the real buying power of this salary is actually higher than the nominal figure suggests, indicating a relatively lower cost of living in Iceland.
To put this in more tangible terms, using The Economist's Big Mac Index as an informal measure of purchasing power, a Mechanical Engineer's annual salary in Iceland could buy approximately 13,583 Big Macs per year. This everyday comparison helps illustrate the real-world purchasing power of this salary beyond abstract currency conversions.
How Iceland Compares Globally
Among the 42 countries we track, a Mechanical Engineer in Iceland earns more than 98% of Mechanical Engineers worldwide. The highest-paying country for this role is United States at $88,320 USD, while the lowest is India at $9,811 USD.
These estimates are derived from publicly available data from the U.S. Bureau of Labor Statistics (BLS), OECD average wages, World Bank purchasing power parity factors, and The Economist's Big Mac Index. The salary for each country is calculated by adjusting the U.S. baseline salary using country-specific wage ratios and sector multipliers. While these figures provide a useful benchmark, actual salaries can vary significantly based on experience level, company size, specific city or region, education, and industry sector.