According to preliminary figures, household gross disposable income is estimated to have increased by 10.3% in 2024, compared with the previous year. Disposable income per capita amounted to just over 6.1 million ISK and is estimated to have increased by 8.3%. Due to increased inflation rate, the purchasing power of household disposable income per capita 2024 increased by 2.3% compared with the previous year, but the consumer price index increased by 5.9% during the same period.
Final figures for 2024 will be published in March 2026 when more exhaustive information will be available on business operations.
Household total income increased by 9.5% in 2024 compared with the previous year where wages and salaries increased by 7.4% and property income increased by 18.9%. Social benefits other than social transfers in kind increased by 11.8% in 2024, the bulk of which can be attributed to a 12.4% increase in pension income while social benefits from social security funds increased by 7.4%.
Household expenditure increased by 8.6% in 2024 compared with the previous year where taxes on wages and salaries increased by 6.7% and interest expenses increased by 17%.
According to new preliminary figures for 2025 the purchasing power of household disposable income per capita increased by 1.5% in the first quarter of the year and increased by 1.1% in the second quarter.
Household disposable income increased by 6.5% in the second quarter of 2025 compared with last year‘s corresponding quarter. Disposable income per capita amounted to just over 1.6 million ISK in the quarter and is estimated to have increased by 5.2%. The purchasing power of household disposable income per capita increased by 1.1% due to an increase in the consumer price index by 4.1% in the same period.
Household total income increased by 7.4% in the second quarter of 2025. The largest increase was in wages and salaries which increased by 7.5%.
Social benefits other than social transfers in kind are estimated to have increased by 9.5% and amounted to 15.3% of household disposable income in the quarter.
Household total expenditure increased by 8.4% in the second quarter of 2025 where taxes on wages and salaries increased by 8.7% and interest expenses increased by 3%. The household sector net social contribution increased by 5.9% compared with last year‘s corresponding quarter.