Luxembourg
Latest Average Wage
+8.3% · 5 years
$98,530
Country Comparison
Luxembourg vs Iceland
Compare average wages, long-term wage changes and eight consumer price categories using OECD data.
At a Glance
Luxembourg
vs
Iceland
$98,5302025
Latest Average Wage
Iceland +2.1%
(vs Luxembourg)
$100,6052025
+8.3%2025
5-Year Wage Change
Iceland +13.3 pts
(vs Luxembourg)
+21.6%2025
+11.0%2025
10-Year Wage Change
Iceland +23.6 pts
(vs Luxembourg)
+34.6%2025
96.62024
Overall Price Level
Iceland +15.4 index points
(vs Luxembourg)
1122024
Wages are PPP-adjusted average annual wages; price levels use the United States reference of 100. Years shown are each country's latest reported observation.
How Wages Have Changed
Follow PPP-adjusted average annual wages in constant prices across both economies.
USD PPP, constant prices · missing years shown as gaps, never interpolated
Iceland
Latest Average Wage
+21.6% · 5 years
$100,605
Wage Milestones
Luxembourg
10 Years Ago
$88,737 (2015)
Historical Peak
$98,530 (2025)
Latest Wage
$98,530 (2025)
Iceland
10 Years Ago
$74,730 (2015)
Historical Peak
$100,605 (2025)
Latest Wage
$100,605 (2025)
Compare Everyday Price Levels
See how eight consumer price categories compare with the United States reference value of 100.
United States = 100 · Differences shown in index points
Luxembourg (LUX)Iceland (ISL)
Overall
−15.4 index points
100
96.6vs112
Food
−21.0 index points
100
106vs127
Clothing
−29.3 index points
100
99.7vs129
Housing
+8.4 index points
100
99.4vs91
Health
−22.8 index points
100
77.1vs99.9
Transport
−43.0 index points
100
101vs144
Recreation
−30.9 index points
100
97.1vs128
Restaurants & Accommodation
−33.0 index points
100
101vs134
What Stands Out
01
Latest Wage Gap
Iceland's latest average wage is $100,605 for 2025, about 2.1% higher than Luxembourg's $98,530 for 2025 — a relative difference calculated from the two reported values. That is roughly $2,076 a year on the same PPP basis.
02
Stronger Recent Trend
On the latest one-year change, Iceland shows the stronger movement at +1.8%, against +1.1% for Luxembourg. The five-year horizon keeps the same ordering: +21.6% against +8.3%. Both percentages are real, PPP-adjusted changes from the reported wage series.
03
Largest Price Gap
Transport shows the widest price gap of the comparable categories in 2024: 101 for Luxembourg against 144 for Iceland. Measured on the US=100 scale, the two readings for this category are 43.0 index points apart, Iceland above Luxembourg. The gap is stated in index points, which are not interchangeable with percentages.
04
Closest Price Category
The closest category is Housing: Luxembourg reads 99.4 and Iceland 91 for 2024, just 8.4 index points apart on the US=100 scale. The next closest is Overall at 15.4 index points apart. Two readings this close mean the category sits at nearly the same point of the US=100 scale for both.
Understanding the Comparison
Wage Position
Luxembourg and Iceland report nearly the same PPP-adjusted average annual wage: $100,605 for 2025, against $98,530 for 2025. The difference is 2.1% in relative terms — a percentage calculated from the two reported values — or roughly $2,076 a year, which is small next to either figure. Both figures are expressed in USD PPP at constant 2025 prices, so they can be set side by side without any further conversion. Over ten years Luxembourg recorded +11.0% and Iceland +34.6%, so the two series have been moving in the same long-term direction. For most side-by-side readings the two wage levels can be treated as equivalent within this dataset.
Wage Direction
Both wage series rise over the five-year horizon, though not at the same pace. Luxembourg sits at the highest point of its series — $98,530 in 2025 is also the historical peak, with a ten-year change of +11.0%. Iceland sits at the highest point of its series — $100,605 in 2025 is also the historical peak, with a ten-year change of +34.6%. Iceland's five-year change of +21.6% outpaces Luxembourg's +8.3% in magnitude, so the common direction does not mean the two levels are holding a fixed distance. Each percentage is a real, PPP-adjusted change; nominal pay movements are outside what this dataset reports.
Price Profile
Luxembourg's overall consumer price level for 2024 reads 96.6, and Iceland's reads 112, each measured against the United States reference of 100. One side of this pairing dominates the price profile: Iceland sits higher in 7 of the 8 comparable categories. Transport separates the two most: Luxembourg reads 101 and Iceland 144, 43.0 index points apart. The two sit closest in Housing (99.4 versus 91), only 8.4 index points apart. Counted against the US reference of 100, 3 of Luxembourg's 8 reported categories sit above the line, against 6 of Iceland's 8. These are index values for 2024, not currency amounts; categories without a reported value on either side are left out of the comparison.
Wage and price data should not be combined into a verdict on which country is better to live in.
