Portuguese take-home pay 72% of gross salary
The Portuguese State takes 28% of employees’s pay on average after taxes and social security contributions.
In other words the average worker takes home 72% of gross salary according to the report ‘Taxing Wages 2022’ which was released by the Organisation for Economic Cooperation and Development (OECD) and published on 24 May.
In 2021 on average the single worker in OECD countries received 75.4% of gross salary after taxes and national insurance which means states as a general rule received 24.6%.
Belgium took the highest proportion of salaries in taxes (39.8%) while Denmark, Germany and Lithuania took 35%. In Colombia workers were not taxed at all, while in Chile taxes on workers were 7%.
In Portugal, between IRS, contributions paid by the worker (11%) and contributions paid by the employee (23.75%), the State gets 41.8% of the amount that each company sets aside per worker. That amount is 0.3% higher than in 2020 and 7.2% higher than all the OECD countries, although this average decreased slightly last year.
In 2021, Portugal was in 10th place out of 38 countries in which the State took the largest wedge of workers’ pay in taxes and national insurance, according to the ‘Taxing Wages’ report.