Taxing Wages in Latin America and the Caribbean 2016
This new high profile report provides details of taxes paid on wages in twenty economies
in Latin America and the Caribbean. It covers: personal income taxes and social security
contributions paid by employees; social security contributions and payroll taxes paid
by employers; cash benefits received by in-work families.
It illustrates how these taxes and benefits are calculated in each member country
and examines how they impact on 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 the amounts of taxes and social security contributions levied
and cash benefits received for eight different family types which vary by a combination
of household composition and household type. It also presents the resulting average
and marginal tax rates (i.e. the tax burden). Average tax rates show that part of
gross wage earnings or total labour costs which is taken in tax and social security
contributions (both before and after cash benefits). Marginal tax rates show the part
of a small increase of gross earnings or total labour costs that is paid in these
The data presented can be used in academic research and to analyse tax, social and
economic policies in Latin America and the Caribbean.