Labour taxation rebounding as global economy recovers from COVID-19 pandemic

The OECD recently published Taxing Wages 2022, its annual publication detailing taxes on wages across the OECD membership. Effective tax rates on labour rebounded in 2021 following the emergence from the global public health measures taken to curb the spread of COVID-19. This was driven by rising household incomes and the reversal of tax and other public policy measures linked to the pandemic.

Despite these increases, the average tax wedge across the OECD declined slightly as relatively large declines in the tax wedge were observed in a small number of countries where new COVID-19 support measures were introduced in 2021.

For more information, read the full story at www.oecd.org.