Published in April 2025, OECD Taxing Wages 2025 provides an updated view of taxes and social contributions on employment income. It is a new annual dataset for reward and mobility comparisons. Its observations concern 2024, so the report’s publication year should not become the payroll year in an employer’s analysis.

Read the dated development

For a single worker on average earnings, the average OECD tax wedge was 34.9%, up 0.05 percentage points. The report also describes differences between household types. A tax wedge measures the relationship between employment taxes and labour costs; it is not simply an employee’s income-tax rate.

A cross-country comparison can look precise while comparing different circumstances. Average earnings, family structure and the treatment of social contributions change the interpretation. An employer should explain why a particular household model is relevant to its workforce rather than assume one representative worker describes every employee or international assignee.

Apply it to employer decisions

This editor recommends preserving the reference year, household model and cost definition with every benchmark. Use consistent assumptions when comparing locations, then assess the actual employee separately. A country average can support discussion, but it does not determine an individual’s tax liability or the employer’s assignment budget.

A multinational benefits or mobility programme needs an accountable owner for this review. The local team should explain how the development affects its own arrangements, while the group team checks that its policy summary uses the same assumptions. A dated record makes future corrections easier and helps employees understand which information applies to their situation.

Keep a usable implementation record

Treat this as an explicit update to the previous annual edition. Keep the old and new observations distinguishable, identify any methodological differences and avoid presenting aggregate data as a current payroll calculation. A useful comparison states what changed and which assumptions remained constant.