Our Insights blog goes deeper into hot topics and critical world issues. Looking for more? Learn about how we integrate data and expert visualization services with our intelligent tools, custom situation rooms, and enterprise data portals.
Information on net earnings (net pay taken home, in absolute figures) and related tax-benefit rates (in %) complements gross‑earnings data with respect to disposable earnings. The transition from gross to net earnings requires the deduction of income taxes and employee's social security contributions from the gross amounts and the addition of family allowances, if appropriate. The amount of these components and therefore the ratio of net to gross earnings depend on the individual situation. A number of different family situations are considered, all referring to an average worker. Differences exist with respect to marital status (single vs. married), number of workers (only in the case of couples), number of dependent children, and level of gross earnings, expressed as a percentage of the gross earnings of an average worker (AW). All the data are based on a widely acknowledged model developed by the OECD, which figures are obtained from national sources. The collection contains, for selected situations, data for the following variables and indicators : a) gross and net earnings, including the transition components "income taxes", "employee's social security contributions" and "family allowances", if appropriate; b) tax rate, defined as the income tax on gross wage earnings plus the employee's social security contributions less universal cash benefits, expressed as a percentage of gross wage earnings; c) tax wedge on labour costs, defined as income tax on gross wage earnings plus the employee's and the employer's social security contributions, expressed as a percentage of the total labour costs of the earner. The total labour costs of the earner are defined as his/her gross earnings plus the employer's social security contributions plus payroll taxes (where applicable). The tax wedge on labour costs structural indicator is available only for single persons without children earning 67% of the AW. d) unemployment trap, measuring the percentage of gross earnings which is taxed away through higher tax and social security contributions and the withdrawal of unemployment, and other, benefits when an unemployed person returns to employment. This structural indicator is available only for single persons without children earning 67% of the AW when in work. e) low wage trap, measuring the percentage of gross earnings which is taxed away through the combined effects of income taxes, social security contributions and any withdrawal of benefits when gross earnings increase from 33% to 67% of AW. This structural indicator is available for single persons without children and one-earner couples with two children.
Historical versions of this dataset since 15 May 2014 are available.
The information about original data source is available only to Professional users.
Are you sure you want to send the dataset for verification?
Knoema is the most comprehensive source of global decision-making data in the world. Our tools allow individuals and organizations to discover, visualize, model, and present their data and the world’s data to facilitate better decisions and better outcomes.