Employee compensation as share of government spending in Iceland

Iceland: Employee compensation as share of government spending was 23.8% in 2023. ▼ Falling

Latest (2023)
23.8%
Change on year
down 4.2%
World rank
82nd
of 155 countries
All-time high
35.3%
in 1987
All-time low
15.8%
in 2008
Years of data
47
1972–2023

Employee compensation as share of government spending in Iceland, 1972–2023

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Source: International Monetary Fund (IMF) Government Finance Statistics, via World Bank (2026) – processed by Our World in Data. Measured in % of expense.

Analysis

The most recent figure for employee compensation as share of government spending in Iceland is 23.8%, measured in 2023.

The figure is down 4.2% on the previous year and up 8.7% over ten years.

Over the whole period, employee compensation as share of government spending in Iceland peaked at 35.3% in 1987 and was at its lowest, 15.8%, in 2008.

Iceland ranks 82nd of 155 countries on this measure, in the middle of the range.

The long-run direction has been consistently falling across the 47 years of available data.

Employee compensation as share of government spending in Iceland, year by year

Annual values for Employee compensation as share of government spending in Iceland, 1972 to 2023.
Year % of expense Change
1972 26.7% —
1973 26.8% +0.5%
1974 25.7% -4.3%
1975 24.5% -4.7%
1976 26.7% +9.0%
1977 28.6% +7.3%
1978 29.2% +2.2%
1979 27.8% -4.8%
1980 29.4% +5.8%
1981 28.8% -2.0%
1987 35.3% +22.5%
1988 34.0% -3.7%
1989 27.4% -19.4%
1990 29.6% +8.0%
1991 30.0% +1.1%
1992 29.7% -0.7%
1993 31.0% +4.2%
1994 30.1% -2.9%
1995 31.1% +3.4%
1996 30.5% -1.9%
1997 30.5% -0.1%
1998 30.9% +1.4%
1999 29.6% -4.2%
2000 29.2% -1.3%
2001 29.8% +1.9%
2002 31.3% +5.1%
2003 31.2% -0.4%
2004 31.4% +0.7%
2005 27.4% -12.8%
2006 26.6% -2.7%
2007 25.5% -4.1%
2008 15.8% -38.2%
2009 19.0% +20.6%
2010 20.5% +7.8%
2011 19.5% -4.8%
2012 20.6% +5.5%
2013 21.9% +6.5%
2014 22.2% +0.9%
2015 23.6% +6.5%
2016 21.7% -8.2%
2017 25.8% +19.0%
2018 26.2% +1.7%
2019 26.4% +0.6%
2020 24.2% -8.0%
2021 24.5% +1.0%
2022 24.9% +1.7%
2023 23.8% -4.2%

Iceland compared with similar countries

  • Iceland's 23.8% is above the median for high income countries, which is 18.9%, 1.3× the median. (56 countries reporting)
  • Iceland's 23.8% is above the median for Europe & Central Asia, which is 16.4%, 1.5× the median. (47 countries reporting)

Averages by decade

DecadeAverage LowestHighest Years
1970s 27.0% 24.5% 29.2% 8
1980s 31.0% 27.4% 35.3% 5
1990s 30.3% 29.6% 31.1% 10
2000s 26.7% 15.8% 31.4% 10
2010s 22.8% 19.5% 26.4% 10
2020s 24.4% 23.8% 24.9% 4

Countries ranked near Iceland

  1. 79 Tajikistan 24.8% compare
  2. 80 Barbados 24.7% compare
  3. 81 Kuwait 24.2% compare
  4. 83 San Marino 23.5% compare
  5. 84 Cote d'Ivoire 23.3% compare
  6. 85 Thailand 22.6% compare

See the full ranking of 155 places →

More work & labour data for Iceland

All data for Iceland →

Frequently asked questions

What is employee compensation as share of government spending in Iceland?
Employee compensation as share of government spending in Iceland was 23.8% in 2023, according to International Monetary Fund (IMF) Government Finance Statistics, via World Bank (2026) – processed by Our World in Data.
What is the highest employee compensation as share of government spending recorded in Iceland?
The highest recorded value was 35.3% in 1987.
What is the lowest employee compensation as share of government spending recorded in Iceland?
The lowest recorded value was 15.8% in 2008.
How does Iceland rank for employee compensation as share of government spending?
Iceland ranks 82nd out of 155 countries with data for 2023.
Is employee compensation as share of government spending rising or falling in Iceland?
Over the last ten years it is up 8.7%. The long-run trend across the full record is falling.
Where does this Iceland data come from?
The figures come from International Monetary Fund (IMF) Government Finance Statistics, via World Bank (2026) – processed by Our World in Data, published as part of Employee compensation as share of government spending. Statizoid updates them automatically from the source API.

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Employee compensation as share of government spending in Iceland. Statizoid, drawing on International Monetary Fund (IMF) Government Finance Statistics, via World Bank (2026) – processed by Our World in Data. Retrieved 14 October 2026, from https://labour.statizoid.com/stat/share-of-employee-compensation-in-public-spending/iceland/

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About this data

Indicator
Employee compensation as share of government spending
Unit
% of expense
Source
International Monetary Fund (IMF) Government Finance Statistics, via World Bank (2026) – processed by Our World in Data
Licence
CC BY 4.0 (Our World in Data)
Coverage
155 places, 4,295 data points, 1972–2024
Last refreshed

Employee compensation includes wages, in-kind payments, and government contributions to social insurance schemes such as social security and pensions.