MILANO – Italy remains at the top of the OECD ranking on the impact of taxes on wages. This emerges from the update of the Taxing Wages report of the Parisian organisation, which describes a slightly harsher tax rate for “singles” compared to a reduction for families.
Italy recorded – in OECD calculations – an effective tax wedge of 45.1% in 2023, from 45% in 2022, for a ‘single’ worker, well above the area average of 34.8%. , itself up by 0.1 points. As in previous years, Italy is in fifth place in the (unenviable) ranking of payroll taxation, which once again sees first place Belgium with a wedge of 52.7% (-0.2 points), followed by Germania with 47.9% (-0.5), fromAustria with 47.2% (+0.3) and from France with 46.8% (-0.2). Among the other big Westerners, the United Kingdom drops to 31.3% (-0.3) and the Usa al 29.9% (-0.5%). La Swiss stops at 23.5% andWhen drops by 0.7% to 35.1%. Australia stands out for the record increase in the wedge with +2.2% points, but at the still moderate level of 29.2%. The friendliest tax for work remains that of Colombia where it is zero under international regulations, but has a light hand even in Chile (7%), Mexico (20%) e New Zeland (21,1%).
Income, Portofino jumps to the top of the Municipality ranking ahead of Lajatico (Pisa) and Basiglio (Milan). The map
The wedge, or the difference between the cost for the employer and the worker’s net remuneration, increased last year in 23 of the 38 OECD countries, decreased in 13 and remained unchanged in two. Higher income taxes as a percentage of labor costs drove the increase, the report explains. On the other hand, when inflation remained above historical levels, Average wages increased in nominal terms in 37 countries, but decreased in real terms in 18 countries, including Italy. In the case of the peninsula, the overall value of the wedge is obtained by adding 16.8% of income taxes (OECD average 13.3%), 4.3% of contributions paid by the worker (8.1% OECD) and 24 % of contributions paid by the employer (13.4% OECD).
The framework of withdrawals from the paycheck
The increase compared to 2022 derives on the one hand from an increase of 2.36 points in income taxes (against +0.17 OECD) and on the other from the drop of 2.32 points in contributions paid by the worker (-0 .07 OECD). If we consider only the gross salary, the one seen on the pay slip, the total withdrawal in Italy for the worker without family dependents is 27.7% against the OECD average of 24.9% and derives from 22.2% ( 15.4% OECD) of taxes added to 5.6% of the contributions paid by the worker (9.6% OECD). The total annual labor cost in the peninsula at purchasing power parity amounts to 69,388 dollars, compared to an OECD average of 65,214 dollars and is in 19th place among industrialized countries.
The decline in real wages is also common to most advanced countries, with a peak of -10.5% for Colombia and reductions of more than 2% also in Mexico (-5%), Sweden (-4.6% ), the Czech Republic and Iceland (-3%) and an impact of -1.6% in Germany and -0.4% in France.
Returning to the peninsula, the annual net paycheck is indicated at 24,207 euros compared to 23,287 euros in 2022.
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In 2023 things went better in terms of taxation for families. The single-income households of the Peninsula recorded a drop in the wedge to 33.2% from 33.4% and even if the level remains well above the OECD average of 25.7%, which however increased by 0.1 points: the Italian position improves in international comparison.
How much does the tax burden on the second salary
This year, the topic of “second income earners” was under the Parisian lens, i.e. how much the additional tax burden is when there is a second salary in a family.
In the case of a low salary (67% of the average salary), the wedge of the second income earner of a married couple without children is 34% compared to 31% of the single person. In Italy, the comparison is between 40.8% of the ‘second earner’ and 38.4% of the individual worker. If the salary rises to 100%, i.e. it is average, the wedge is 37.9% compared to 34.8% for singles. And in Italy the data are 46.7% and 45.1% respectively.
The disparity reflects the reduction in family allowances or other benefits that occurs when the second spouse also starts working or increases work commitment. The loss of the tax advantage can be one of the factors that discourages entry into the world of workthe report highlights.
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– 2024-04-25 16:11:58
