This annual publication provides details of taxes paid on wages in OECD countries.
It covers personal income taxes and social security contributions paid by employees,
social security contributions and payroll taxes paid by employers, and cash benefits
received by workers. It illustrates how these taxes and benefits are calculated in
each member country and examines how they impact household incomes. The results also
enable quantitative cross-country comparisons of labour cost levels and the overall
tax and benefit position of single persons and families on different levels of earnings.
The publication shows average and marginal effective tax rates on labour costs for
eight different household types, which vary by income level and household composition
(single persons, single parents, one or two earner couples with or without children).
The average tax rates measure the part of gross wage earnings or labour costs taken
in tax and social security contributions, both before and after cash benefits, and
the marginal tax rates the part of a small increase of gross earnings or labour costs
that is paid in these levies.
Taxing Wages 2021 includes a special feature entitled: “Impact of COVID-19 on the
Tax Wedge in OECD Countries”.
Published on April 29, 2021Also available in: French