The labour tax wedge for the average
single worker with no children in Italy increased by 1.6
percentage points from 45.5% in 2023 to 47.1% in 2024, the OECD
said in its Taxing Wages 2025 report.
That was well above the average tax wedge for the OECD as a
whole of 34.9% in 2024 and Italy's was the fourth highest tax
wedge among the organization's 38 member countries after
Belgium, Germany and France, compared with fifth in 2023.
Italy had the eighth highest tax wedge in the OECD for the
average married worker with two children at 35.4% in 2024,
compared to an OECD average of 25.7%.
Child related benefits and tax provisions reduced the tax wedge
for workers with children compared with the average single
worker in Italy by 11.7 percentage points in 2024, more than the
OECD average of 9.2 points.
The labour tax wedge measures total taxes on labour paid by both
employees and employers, minus cash benefits received by working
families, as a percentage of labour costs.
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