Principal Software Engineer salary in Iceland

Average Yearly Salary of Principal Software Engineer in Iceland is approximately 27,599,421 ISK (192,335 USD). Data is for 2025 and indicates a pre-tax value. The salary itself depends on multiple factors such as seniority, job performance, certifications, experience or any other bonuses. The value indicated is an average amount based on records we have in database. Real values may vary. The data is for orientational purposes.

What does Principal Software Engineer do?

The occupation of a Principal Software Engineer involves leading and managing the development of software systems. They are responsible for designing, implementing, and maintaining complex software solutions. This role requires strong technical expertise and leadership skills to guide a team of software engineers. Principal Software Engineers also collaborate with other stakeholders such as product managers and designers to understand requirements and ensure that the software meets the desired specifications. They are responsible for making critical decisions related to architecture, scalability, and performance optimization. Additionally, they stay updated with the latest technologies and industry trends to continuously improve the software development process. Overall, a Principal Software Engineer plays a crucial role in driving innovation, ensuring code quality, and delivering high-quality software products to meet business objectives.

Skills: Principal Software Engineer, Software Development, Technical Leadership, Software Architecture, Team Management, Software Solutions
Job industry: Technology

How much does Principal Software Engineer make?

Difference in salary year over year or average salary increase is approximately 4 %


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Salary comparison to National average

Is Principal Software Engineer a well paid job?

Yes, our data show that Principal Software Engineer is a very well paid job. With years and experience the salary might increase even further, resulting in higher satisfaction.

What is considered a high salary for Principal Software Engineer?

High salary for Principal Software Engineer would be somewhere between 30,359,363 ISK and 40,019,160 ISK. However this is an estimation based on Gaussian Distribution.

How much can you save working as Principal Software Engineer in Iceland?

Living in Iceland the approximate monthly expenses are: 2,729 USD. This amount covers basic needs such as food, housing, clothing, healthcare and education costs for a single person. No luxury expenses such as traveling, leisure, hobbies are included in the estimation.

Estimated Yearly Salary: 27,599,421 ISK
Estimated Monthly Salary: 2,299,952 ISK
Estimated Weekly Salary: 530,758 ISK per week
Estimated Hourly Salary: 13,269 ISK per hour
By working as Principal Software Engineer a person can save up to 13,299 USD per month or 159,589 USD yearly. Values are pre-tax.

NOTE: These values are estimates and are averaged for the whole country. Furthermore the value is likely exaggerated as no other expenses are taken into account in the projection. Unessential expenses are very subjective and are difficult to assess. Most likely the previously estimated number is significantly lower for majority of people. Expenses in different cities across the country may vary. Above values accuracy is low and is based on limited set of data obtained.

For more information regarding expenses in Iceland, see costs of living in Iceland.

Salary comparison to region and neighbouring coutries

Country's neighbours are: Norway, Faroe Islands, United Kingdom.
To make it easier for comparison a conversion from local currency to USD has been made (conversion rates may vary).

Estimated Yearly Salary for Principal Software Engineer

Last revision of data: 2025-01-04

Salary increase per years of experience

Based on data available the salary increase per years of experience is as following

0 years (beginner) equals base salary

1 to 5 years of experience yields +12% salary increase

6 to 10 years of experience yields +25% salary increase

11 to 15 years of experience yields +16% salary increase

16 to 25 years of experience yields +9% salary increase

more than 25 years of experience yields +10% salary increase

NOTE: Details based on limited set of data. Percentages may vary. The salary increase over years of experience can vary widely based on factors such as job industry, job role, location, company size, and individual performance. To gain even larger increase in salary one is advised to switch jobs and / or employer.

Top 10 highest salaries in Iceland

Data as of 2025

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