I like it!

At its current state, I think you should give it a jaw... you know? You can't leave it jawless D:
Also, you should remove some of the pixels(the ones used for the outline) by his chest. It doesn't quite look right. Move his abdominal muscles down... about one away from his belly button. Define his chest too, how can we forget that!

Other than that, I do like it. The color was pretty humanish!

@Kenny thanks for the advice will do :D.

@Cb Thanks ;d

The arms are too Jaggy.

Just a little criticism? First off, I'll start with the good. I like the shading done, it really brings out a little depth in the icon, which is always nice. Just remember that creating an icon is no different than creating a character in ay other art medium, in terms of overall effect you want to accomplish. Always keep in mind what a "realistic" pose is for an idle person. That position your sprite is in doesn't look natural at all. It's nothing extremely bad, nor hard to fix, but it can ruin the overall effect you're portraying with your art if just one thing is left awkward like that. Arms by the sides and legs shoulder-width apart is probably the most "comfortable" idle position for people.

The second thing I want to touch on is the fact that not just the color of the body should be shaded and highlighted, but also the outline. For most sprites, I usually have 4 shades for the fill and 3 for the outline:
Fill

• Base Color
• Hightlight Tone
• Light Shadow
• Dark Shadow

Outline

• Base Color
• Hightlight Tone
• Shadow Tone

This is usually how I set up my pallet. From here, I just shade everything normally, first applying my base color, then the dark shadow onto that, smoothing it up with the lighter shadow. Then once my shading is done, I make MINOR highlights to the directly lit area's. Less is certainly more with highlights. You just need enough to catch the most subtle of accents. Even if you don't think it's noticeable, it really does make a difference. Once I have my fill color shaded and done, I then do my outline shading normally. This produces a nice softening of the overall icon, greatly enhancing the depth and smoothness.

This, of course, is just my method or spriting, and certainly isn't the best, but it's how I do things and, to be honest, the results work out very well.

It's nice and I agree with Yut, using a palette is a good way to keep your colours in check. I think you should relax the shoulders and elbows a bit, also possibly make the joints less obvious, you have his knees and elbows sticking out much more than they need to be.

Also, try to stay away from "Neon Colors" or to be most specific, colors with very high values in one or two areas of an RGB scale, and very low values in the rest. This produces overly vibrant colors that can be harsh on a player's eyes. Colors like Absolute Red (rgb: 255, 0, 0) or a harsh, bright green (rgb: 0, 255, 0). Though in overall strength, red, for me at least, seems to be the most harsh of all of the colors when shown in absolute.

Take the pallet Yut Put posted for example. As you can see, all of the colors are diverse and distinguishable, but none of them are hard to stare at. Everyone seems subtle and pleasant, even if the tone of your game was death and zombies or something.