Work incentive indicators, 2024
The tax burden on labour costs at 41.5%
In 2024, the tax burden on labour costs was higher than a year before.
Higher tax burden on labour costs
In 2024, 41.5% of labour costs of a person in paid employment earning 67% of average worker’s gross earnings went to pay taxes and the remaining 58.5% for net earnings. The tax burden on labour costs was 1.8 percentage points higher than a year before.
Lower tax burden at moving from unemployment to employment
For a single person without children, the tax burden was 80.0% (a year earlier 83.4%) of additional gross earnings at employment. This means that at moving from unemployment to employment single persons increased their net income by 20.0% of gross earnings. This indicator called the “unemployment trap” shows the difference in a person’s net earnings at moving from unemployment (the unemployment benefit in the amount of 80% of employee’s gross earnings who receives 67% of average worker’s gross earnings) to employment (67% of average worker’s gross earnings) due to higher taxes and social contributions and lower social transfers in employment compared to earnings and higher social transfers during unemployment. Compared to 2023, the tax burden at moving from unemployment to employment for a single person without children decreased by 3.4 percentage points.
Higher tax burden at moving to a higher paid job for a single person, the same for a couple with two children
For a single person, the tax burden was 49.3% (a year earlier 48.6%) of additional gross earnings at moving to a higher paid job, while for a couple with two children it was 100.0% (the same as a year earlier). This indicator called the “low wage trap” shows the difference in net earnings of employed persons at moving to a higher paid job (from 33% to 67% of average worker’s gross earnings) due to higher taxes and social contributions and lower social transfers than at the previous lower paid job with lower taxes and social contributions and higher social transfers. Compared to 2023, the tax burden at moving to a higher paid job for a single person increased by 0.7 of a percentage point and for a couple with two children remained the same.
Tables with the latest data are available in the SiStat Database.
In 2024, 41.5% of labour costs of a person in paid employment earning 67% of average worker’s gross earnings went to pay taxes and the remaining 58.5% for net earnings. The tax burden on labour costs was 1.8 percentage points higher than a year before.
Lower tax burden at moving from unemployment to employment
For a single person without children, the tax burden was 80.0% (a year earlier 83.4%) of additional gross earnings at employment. This means that at moving from unemployment to employment single persons increased their net income by 20.0% of gross earnings. This indicator called the “unemployment trap” shows the difference in a person’s net earnings at moving from unemployment (the unemployment benefit in the amount of 80% of employee’s gross earnings who receives 67% of average worker’s gross earnings) to employment (67% of average worker’s gross earnings) due to higher taxes and social contributions and lower social transfers in employment compared to earnings and higher social transfers during unemployment. Compared to 2023, the tax burden at moving from unemployment to employment for a single person without children decreased by 3.4 percentage points.
Higher tax burden at moving to a higher paid job for a single person, the same for a couple with two children
For a single person, the tax burden was 49.3% (a year earlier 48.6%) of additional gross earnings at moving to a higher paid job, while for a couple with two children it was 100.0% (the same as a year earlier). This indicator called the “low wage trap” shows the difference in net earnings of employed persons at moving to a higher paid job (from 33% to 67% of average worker’s gross earnings) due to higher taxes and social contributions and lower social transfers than at the previous lower paid job with lower taxes and social contributions and higher social transfers. Compared to 2023, the tax burden at moving to a higher paid job for a single person increased by 0.7 of a percentage point and for a couple with two children remained the same.
Tables with the latest data are available in the SiStat Database.
Work incentive indicators, Slovenia
Work incentive indicators, Slovenia
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METHODOLOGICAL NOTE
An average worker is defined as an employee receiving average earnings for working in industry and services (sections of activities B to N of NACE Rev. 2).
Additional explanations are available in the methodological explanations.
Additional explanations are available in the methodological explanations.
When making use of the data and information of the Statistical Office of the Republic of Slovenia, always add: "Source: SURS". More: Copyright.