The tax burden on labor rose in Portugal for the fifth consecutive year to 42.3% and is now the eighth highest in Portugal. Organization for Economic Co-operation and Development (OECD).
This data appears in the OECD’s Taxing Wages report, analyzed by Diário de Notícias, which every year calculates the tax burden on all labor costs for various income levels and household composition.
For example, in Portugal, a single worker without children who received 23,714 euros in 2023, the average salary, only took home 57.7% of the gross amount.
In the OECD, for these workers, the average tax burden rose 0.13 percentage points to 34.8%, an increase recorded in 23 of the organization’s 38 nations. Only in Chile and Hungary were there no changes recorded, meaning the tax burden remained below 20%.
Average salary increased in 37 countries, but…
In nominal terms, the average salary increased in 37 countries, however, in real terms, it decreased in 18. Portugal is in the second batch where salaries actually grew (1.8%).
Belgium (52.7%), Germany (47.9%), France (46.8%) and Italy (45.1) top the list of countries with the highest tax burden.
At the tail of this grouping appears Combia (0.0%), Chile (7.1%) and Mexico (20.0%).
In addition to single people without children, the general increase in the tax burden also affected, in 21 of the States, couples with two children where one spouse earns 100% of the average salary and the other 67%.
The childless couple with two salaries at 167% of the average income was the type of household, of the eight analyzed by the OECD, which registered the greatest increase in the tax burden. On the other hand, the type of household that saw its tax burden fall last year was the single parent who received 37% of the average salary.
