Real wages fell in around half of OECD countries in 2023, with Portugal being in the group of nations in which they rose, with seven countries recording a fall of more than 2%.
According to the ‘Taxing Wages 2024’ report from the Organization for Economic Cooperation and Development (OECD), in nominal terms, the average salary increased in 37 countries that make up the organization, compared to 2022, but in real terms it fell in 18.
In Portugal, according to OECD data, the average salary increased by 7.4%, but the real salary grew by 1.8%, taking into account inflation of 5.5%.
The organization also indicated that the drop in real wages was more than 2% in seven countries: Estonia, Iceland, Czechia, Hungary, Mexico, Sweden and Colombia.
“Effective tax rates on labor income rose across the OECD in 2023, while inflation remained above historic levels,” indicated the OECD.
The organization highlighted that, “with the tax systems of many OECD countries not fully adjusting to inflation, the average tax burden for the eight types of households covered in this report increased in most countries between 2022 and 2023, driven, in most cases, through higher income taxes”, the document reads.
Thus, “for the second year in a row, after-tax income at the average salary level decreased in most OECD countries”, he indicated.
