Tax rate on low wage earners - tax wedge on labour costs by country
Countries reporting
44
Highest
43.3 Rate
Slovenia
Lowest
20.1 Rate
Switzerland
Median
35.7 Rate
Years covered
26
2000–2025
Data points
1,129
What the numbers show
Tax rate on low wage earners - tax wedge on labour costs is currently reported for 44 countries. The highest value is 43.3 Rate in Slovenia; the lowest is 20.1 Rate in Switzerland.
The median across all reporting countries is 35.7 Rate, and the mean is 34.64 Rate.
The gap between the highest and lowest reporting country is a factor of about 2.
Over the past decade 17 countries rose and 27 fell. The largest increase was in Cyprus (up 34.7%), and the largest decrease in Belgium (down 23.3%).
Tax rate on low wage earners - tax wedge on labour costs: full country ranking
| # | Country | Latest | Year | 10-year change | Trend |
|---|---|---|---|---|---|
| 1 | Slovenia | 43.3 Rate | 2025 | up 12.2% | falling |
| 1 | Slovenia | 43.3 Rate | 2025 | up 12.2% | falling |
| 3 | Romania | 42.8 Rate | 2025 | up 11.7% | falling |
| 4 | Slovakia | 42.7 Rate | 2025 | up 9.2% | rising |
| 4 | Slovakia | 42.7 Rate | 2025 | up 9.2% | rising |
| 4 | Germany | 42.7 Rate | 2025 | down 5.7% | falling |
| 7 | Hungary | 41.2 Rate | 2025 | down 15.9% | falling |
| 8 | Sweden | 40.4 Rate | 2025 | down 0.5% | falling |
| 9 | Czechia | 39.6 Rate | 2025 | down 1.0% | falling |
| 10 | Italy | 39.3 Rate | 2025 | down 3.7% | falling |
| 11 | Austria | 38.7 Rate | 2025 | down 14.2% | falling |
| 12 | Croatia | 38.5 Rate | 2025 | up 10.0% | rising |
| 12 | Croatia | 38.5 Rate | 2025 | up 10.0% | rising |
| 14 | Poland | 38.2 Rate | 2025 | up 9.1% | falling |
| 14 | Poland | 38.2 Rate | 2025 | up 9.1% | falling |
| 16 | Belgium | 37.9 Rate | 2025 | down 23.3% | falling |
| 17 | Latvia | 37.8 Rate | 2025 | down 9.4% | falling |
| 17 | Latvia | 37.8 Rate | 2025 | down 9.4% | falling |
| 19 | Estonia | 37.4 Rate | 2025 | down 1.6% | falling |
| 19 | Estonia | 37.4 Rate | 2025 | down 1.6% | falling |
| 21 | Spain | 36.4 Rate | 2025 | up 1.4% | flat |
| 22 | Lithuania | 35.7 Rate | 2025 | down 9.2% | falling |
| 22 | Lithuania | 35.7 Rate | 2025 | down 9.2% | falling |
| 24 | France | 35.4 Rate | 2025 | down 18.8% | falling |
| 25 | Bulgaria | 34.9 Rate | 2025 | up 3.9% | flat |
| 26 | Denmark | 34.1 Rate | 2025 | up 2.1% | falling |
| 27 | Finland | 33.3 Rate | 2025 | down 12.1% | falling |
| 27 | Türkiye | 33.3 Rate | 2023 | down 4.6% | falling |
| 29 | Luxembourg | 32.9 Rate | 2025 | up 1.5% | rising |
| 30 | Norway | 32.4 Rate | 2023 | down 5.0% | falling |
| 31 | Portugal | 31.8 Rate | 2025 | down 9.9% | rising |
| 32 | Japan | 31.5 Rate | 2023 | up 4.0% | rising |
| 33 | Netherlands | 30.7 Rate | 2025 | down 4.1% | falling |
| 33 | Netherlands | 30.7 Rate | 2025 | down 4.1% | falling |
| 35 | Greece | 30.5 Rate | 2025 | down 11.8% | falling |
| 36 | Iceland | 27.7 Rate | 2023 | down 7.0% | rising |
| 37 | United States of America | 27.5 Rate | 2023 | down 6.5% | falling |
| 37 | United States | 27.5 Rate | 2023 | down 6.5% | falling |
| 39 | Malta | 26.6 Rate | 2025 | up 11.8% | rising |
| 40 | United Kingdom of Great Britain and Northern Ireland | 26.1 Rate | 2019 | down 10.6% | falling |
| 40 | United Kingdom | 26.1 Rate | 2019 | down 10.6% | falling |
| 42 | Cyprus | 23.3 Rate | 2025 | up 34.7% | rising |
| 43 | Ireland | 21.4 Rate | 2025 | down 14.1% | rising |
| 44 | Switzerland | 20.1 Rate | 2023 | up 3.1% | flat |
Regions and income groups
Aggregates are excluded from the country ranking above so that a region can never outrank a country.
- Euro area - 19 countries (2015-2022) 39.6 Rate
- European Union - 15 countries (1995-2004) 38 Rate
- European Union - 27 countries (from 2020) 38 Rate
- European Union - 28 countries (2013-2020) 37.9 Rate
- Euro area – 20 countries (2023-2025) 37.7 Rate