High inflation rate resulted in the decline of real wages and the increase in tax wedge in OECD member-countries in 2022, the Organization for Economic Cooperation and Development said in a report on Taxing Wages.
The Paris-based organization said that tax wedget in Greece eased by 0.02 percentage points for single wage workers with no children to 37.1%. This development was attributed mainly to a reduction of both workers’ and employers’ contribution to supplementary insurance which reduced the burden by 0.21 percentage points and more than covered the increase in burden from income tax by 0.18 percentage points.
The average rate for this category of households in the OECD was unchanged at 34.6%.
For couples with two children and tax wedge was up 0.03 percentage points to 33.7% in Greece (25.6% in the OECD). In Greece, the average nominal gross wage in 2022 grew by 1.5% but the real average wage fell 7.4% because of a 9.7% average inflation rate.
