Financial disincentive to increase working hours measures the percentage of additional earnings lost through higher taxes and reduced benefits when a family member increases their working hours.
Calculations are based on a household with two children and a partner working full-time at 67% of the average wage. The indicator captures the financial impact when the second earner increases their hours from part-time (50%) to full-time. Results are available for different earnings levels. Social assistance and rent subsidies are included, assuming the eligibility criteria are met.
This indicator is expressed as a percentage of additional earnings.
