OECD tax rates on labour income continued decreasing slowly in 2016

Taxes on labour decrease for the third consecutive year during 2016, dropping to 36% of labour costs.

Taxing Wages 2017 measures the level of personal income tax and social security contributions in each OECD country by calculating the ‘tax wedge’ - the total taxes on labour income paid by employees and employers, minus family benefits received, as a percentage of the labour costs of the employer. The tax wedge is calculated for a range of different family types and at different income levels.

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