According to the “Taxing Wages” report published on 29 April by the OECD, last year, the weight of the IRS and Social Security contributions on wages was on average 41.3 percent, 0.06 percentage points more than a year earlier.

Portugal thus finds itself in a group of seven countries (Portugal, Sweden, Turkey, Norway, Korea, New Zealand and Australia) where there has been an increase in the taxes on labour, against the trend of the majority of the remaining 29 countries where it has gone down.

In the OECD as a whole, wage taxation averaged was 34.6 percent in 2020, 0.39 percentage points less than in 2019, a drop that, according to the organization, reflects the impact of the measures adopted by countries during the pandemic.