The average income increases 8.2% between the years 2004 and 2005
The average income in main economic activity was 2.9 million ISK in 2005 and increases 8.2% between the years 2004 and 2005.
The average income in main economic activity was higher in the Capital area than outside it. In 2005 the average income in the Capital area was 3.1 million ISK and increased 7.4% from 2004. The average income outside the Capital area increased 9.3% to 2.7 million ISK in 2005.
Outside the Capital area, the income was highest in the Eastern parts of Iceland, 2.9 million ISK, but lowest in the North-Western parts of Iceland, 2.5 million ISK. 

The average income highest in financial intermediation
The average income in main economic activity was highest in the economic sector of financial intermediation (J), a total of 5.1 million ISK in 2005, and increased 20.1% from the previous year. The average income was lowest in agriculture, hunting and forestry (A), one million ISK, and decreased 5.6% from the previous year. The average income is highest in financial intermediation (J) in the Capital area, 5.6 million ISK, but lowest in agriculture, hunting and forestry (A) in the North-Western parts of Iceland, 0,5 million ISK.

Women’s average income 63.7% of men’s
Men’s average income in main economic activity was 3.6 million ISK in 2005 and increased 7.8% from the previous year. Women’s average income was 2.3 million ISK and increased by 8.8%. On average, women had 63.7% of men’s average income in 2005 but 56.7% in 1998. The proportion increased 0.9% between the years 2004 and 2005.

The average income highest for men 35 to 39 years and women 45 to 49 years
The average income in main economic activity is highest in middle age. In year 2005, the maximum income was in the age of 35 to 39 years for men, 4.4 million ISK, and in the age of 45 to 49 years for women, 2.8 million ISK. 
In the year 2005, the income outside the Capital area is greater for those younger than 25 years. For all ages older than 24 years the income is higher for those living in the Capital area.

The total income increased by 14.8% between the years 2004 and 2005
In 2005 the total income from employment in the Icelandic labour market was 521.8 billion ISK, compared to 454.2 billion ISK in 2004, an increase by 14.8%. In the Capital area the total income was 344.3 billion ISK, an increase by 15.7% from previous year, while the total income outside the Capital area was 175.5 billion ISK, an increase by 13.7%. The proportion of the total income in the Capital area to the total income was 66.0%, an increase from 65.5% in 2004.

The proportion of the income from employment in specific economic sectors to the total income in 2004 and 2005 has increased for the economic sectors of construction (F) and financial intermediation (J) but decreased in the economic sectors of fishing (B), processing and preserving of fish and fish products (DA1520) and agriculture, hunting and forestry (A).

About the data
Data is based on information from the income register, the PAYE (Pay As You Earn) register, which contains individual data and reflects the sum of income from employment reported to the tax authorities
Average income in main economic activity is obtained by dividing the total annual income for main economic activity by the average number of employed persons. The main economic activity is the activity with the highest income each month. The average number of employed persons is the average of the total number for each month. Employed persons are wage earners and self employed. This translates as annual income in main economic activity for an individual employed for the whole year. The calculation of average income does not take different working hours per month into account and can thus not be interpreted as average income per man-year.
The total income is the sum of the income within economic activity.

Results are preliminary and can change slightly.