In an OECD comparison

Taxes on labor remain high in Austria

Austria has the third-highest tax and contribution ratio in an OECD comparison (symbolic image).

(Bild: APA/HELMUT FOHRINGER)

Austria has the third-highest tax and contribution ratio in an annual OECD comparison. The so-called "tax wedge" was 47.2 percent in the previous year. This value is the difference between the employer's labor costs and the net earnings of the employee(s).

The average of the 38 OECD countries was 34.8 percent. In general, the tax wedge is lower for individuals or households with children than for individuals without children. Many governments grant households with children a tax advantage or cash benefits. This is why Austria remains in the middle of the field for married couples with two children who earn only one income. However, this figure is higher for couples who both earn.

Here you can see how high the taxes and duties on work are in other countries.

Average income declining
In an OECD comparison, Israel, Switzerland, Korea and the USA had the lowest tax wedges. Overall, the average net income of single people fell. This was due, for example, to higher income tax and historically high inflation. In many countries, the tax system is not automatically adjusted to inflation, which is why employees are taxed more heavily.

NEOS: tax reform necessary
The NEOS called for a "comprehensive tax reform" in light of the data. This is not the first time the party has said that non-wage labor costs need to be reduced and the cold progression completely abolished. In addition, "tax incentives for full-time work" such as a tax exemption for overtime pay were needed, said economic spokesperson Gerald Loacker. "If it pays for people to work more again, they will do so."