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Unemployment has fallen faster in Portugal than on average across OECD countries. However, at 9.8% in April 2017, it remains above its pre-crisis level in 2007, as well as significantly above the OECD average (5.9%).
The tax burden on labour income is expressed by the tax wedge, which is a measure of the net tax burden on labour income borne by the employee and the employer.
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Portugal had the 13th highest tax wedge among the 35 OECD member countries in 2016. The country had the 12th highest position in 2015. The average single worker in Portugal faced a tax wedge of 41.5% in 2016 compared with the OECD average of 36.0%.
These country specific notes provide figures and commentary from the Taxation and Skills publication that examines how tax policy can encourage skills development in OECD countries.
This report, commissioned by the XIX Government of Portugal, provides an evaluation of the comprehensive labour market reforms undertaken in Portugal over the period 2011-2015. It describes reforms in the areas of employment protection legislation, unemployment benefits, activation, collective bargaining, minimum wages and working time. The report reviews the reforms in detail and assesses the available evidence on the impact they have had on the labour market. The report concludes that the Portuguese labour market reforms were a move in the right direction. However, despite the progress made, many challenges remain and some of the reforms may not have gone far enough. Unemployment remains high and this situation has fuelled an increase in both poverty and long-term unemployment The labour market remains highly segmented and, in the context of very low inflation, the presence of downward nominal wage rigidity is likely to remain a barrier to the competitiveness of the Portuguese economy – unless productivity growth is strengthened.
Portugal has undertaken an ambitious structural reform programme since 2011. Reforms have spanned across a wide range of policy areas, product markets, labour markets, taxes, regulations and the public sector.
This report has been elaborated by the OECD in very close collaboration with the Portuguese government and, in particular, the Ministry of Labour. A final version was submitted to the government in late December 2016 and it is expected to be released in Lisbon on the 19th of January 2017.
As part of the STI Outlook 2016, the OECD has released policy profiles by country. These include cross-country analyses that draw on the first joint EC-OECD survey on STI policies. They focus on major STI policy areas, instruments and trends.
This publication provides detailed country notes on Value Added Tax/Goods and Services Tax (VAT/GST) and excise duty rates in OECD member countries.
This annual publication presents detailed country notes and internationally comparable tax data for all OECD countries from 1965 onwards.