The average salary in Portugal rose by 7.4% last year, but taking into account inflation of 5.5%, the increase was only 1.8%. That’s the conclusion of the Organization for Economic Co-operation and Development, which said in a report published this Thursday that real wages fell in about half of OECD countries in 2023.
However, Portugal is among a group of countries where wages have risen, according to the report “Wage Taxation in 2024”, despite the fact that inflation has reduced this growth.
In nominal terms, average wages have increased in 37 member countries compared to 2022, but in real terms they have fallen in 18.
The organization also indicated that the fall in real wages was more than 2% in seven countries: Estonia, Iceland, the Czech Republic, Hungary, Mexico, Sweden and Colombia.
“Effective labor income tax rates rose in all OECD countries in 2023, while inflation remained above historical levels,” the OECD said.
The organization highlighted that “because the tax systems of many OECD countries do not fully adjust to inflation, the average tax burden for the eight types of households examined in this report increased in most countries between 2022 and 2023, driven in most cases by taxes on higher incomes,” the document says.
Thus, “for the second year in a row, after-tax incomes at the level of average wages fell in most OECD countries,” he said.
Author: Raquel Oliveira This Lusa
Source: CM Jornal
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