Tax rates on wages have reached their highest level in almost a decade across rich countries for a typical single worker, as governments turn to labour income as an “easy” way to raise revenues.
Figures published by the OECD on Wednesday showed a single worker with no children earning an average national wage faced a total tax burden equal to 35.1 per cent of employment costs on average across its 38, mostly industrialised, member countries in 2025.
This figure, which includes employee and employer social security contributions as well as income tax and subtracts any cash benefits received by working families, was up from an average of 34.9 per cent in 2024 and the highest level since 2016.
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