Work incentive indicators, 2022
The tax burden on labour costs at 39.7%
The tax burden on labour costs in 2022 was 0.7 of a percentage point lower than a year before.
Lower tax burden on labour costs
In 2022, 39.7% of labour costs of the person in paid employment who earned 67% of average worker’s gross earnings went to pay taxes and 60.3% for net earnings. The tax burden was 0.7 of a percentage point lower than a year before.
The tax burden at moving from unemployment to employment also lower
The tax burden for a single person without children was 86.3% of additional gross earnings at employment, which means that at moving from unemployment to employment single persons increased their net income by 13.7% of gross earnings. This is called the “unemployment trap”. The “unemployment trap” indicator 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 2021, the tax burden at moving from unemployment to employment for a single person without children decreased by 0.1 of a percentage point.
Lower tax burden at moving to a higher paid job for a single person, the same for a couple with two children
The tax burden for a single person was 49.4% (a year earlier 50.1%) of additional gross earnings at moving to a higher paid job, while for a couple with two children it was 100.0%. This is called the “low wage trap”. The “low wage trap” indicator 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 2021, the tax burden at moving to a higher paid job for a single person decreased 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 2022, 39.7% of labour costs of the person in paid employment who earned 67% of average worker’s gross earnings went to pay taxes and 60.3% for net earnings. The tax burden was 0.7 of a percentage point lower than a year before.
The tax burden at moving from unemployment to employment also lower
The tax burden for a single person without children was 86.3% of additional gross earnings at employment, which means that at moving from unemployment to employment single persons increased their net income by 13.7% of gross earnings. This is called the “unemployment trap”. The “unemployment trap” indicator 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 2021, the tax burden at moving from unemployment to employment for a single person without children decreased by 0.1 of a percentage point.
Lower tax burden at moving to a higher paid job for a single person, the same for a couple with two children
The tax burden for a single person was 49.4% (a year earlier 50.1%) of additional gross earnings at moving to a higher paid job, while for a couple with two children it was 100.0%. This is called the “low wage trap”. The “low wage trap” indicator 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 2021, the tax burden at moving to a higher paid job for a single person decreased 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.
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