Impact of COVID-19 on labour tax

Resume

OECD data provides a baseline for measuring the impact of COVID-19 on labour taxes. New OECD data provides a baseline for measuring the impact of COVID-19 on labour taxes. Taxing Wages 2020 shows that the “tax wedge” – total taxes on labour costs paid by employees and employers, minus family benefits, as a percentage of the labour cost to the employer – was 36.0% in 2019. The tax wedge measures the difference between the labor costs to the employer and the net take home pay of the employee. It is calculated as follows : Total taxes on labor costs paid by the employer and the employee (including personal income tax and social security contributions) (minus) Cash benefits received, as a percentage of the total labor costs to the employer. Source - http://www.oecd.org/tax/tax-policy/new-oecd-data-provides-a-baseline-for-measuring-the-impact-of-covid-19-on-labour-taxes.htm PS ; The 2020 report will be available in the 2021 edition of the report. (Impact of COVID-19 on labour taxes should also be covered in 2020)