Tax burden in Europe - In which countries do taxes grow faster than wages?
Among the 27 European countries featured in the OECD's Tax Wages 2025 report, seven of them recorded a decline in real after-tax income in 2024 compared to 2023.
This measure reflects the amount of money left to spend or save after taxes are deducted and inflation is taken into account. The countries affected were Italy, Estonia, the Czech Republic, France, Greece, Belgium and Spain.
In Italy, the average wage increased by 3.9% in 2024. With inflation at 1.2%, this translates into a real wage increase of 2.7% before taxes. However, the average personal tax rate, which includes personal income tax and employee social security contributions, rose sharply by 7.5%. This created a significant gap between real wage growth and personal taxation growth, ultimately eroding most of the benefit from higher wages. Although the data highlight a growing gap between wages and taxation, they do not directly reveal how much real incomes changed after taxes.
Average personal tax rates also rose by more than 4.5% in Estonia and the Czech Republic, leading to lower real incomes in 2024, as real wage growth failed to keep pace.
In Estonia, the increase in the tax burden was driven by the removal of some tax breaks. While in the Czech Republic, the increase was mainly due to higher social security contributions from employees or employers.
As for France, real wages increased by 0.7%, but the average personal tax rate increased by 1.7%, resulting in lower real incomes compared to 2023.
During this period, Portugal, the United Kingdom and Turkey recorded the highest increases in real after-tax income. In Portugal, the average personal tax rate fell by 8%, while real wages rose by 4.7%.
In the United Kingdom, the average tax rate fell by 8.7%, although real wage growth was modest at 1.6%.
Meanwhile in Turkey, despite a 3.9% increase in the average personal tax rate, a significant 15.5% increase in real wages led to significantly higher real incomes in 2024. However, some critics have accused the national statistics office of manipulating inflation figures.
Transactions at bank counters, down - BoA: 4.5% fewer transactions were carried out during the first quarter
Albanians have made fewer cash transactions at physical bank branches during the first quarter of the year. The latest data from the Bank of Albania shows......
Microsoft, 400 million USD in Switzerland - Investments will go to expand "AI", cloud infrastructure
Microsoft will invest $400 million in Switzerland, with the money going towards developing its cloud infrastructure and artificial intelligence. The......
Tourist season, 1.3 million euros for the cleaning of Saranda - The project is divided into two periods, the waste goes to the Baikal landfill
Saranda prepares for the tourist season with a new contract for cleaning the city, at a cost of 1.3 million euros for a 12-month period. The municipality......
EU and Western Balkan Customs Directors meet on June 12 in Tirana
On June 12, 2025, the Second High-Level Conference of the Directors General of Customs of the Western Balkans and EU Member States "Customs Partnership for a......
38 MW solar power plant in Kolonjë - New application to the Ministry of Economy, Culture and Sports, does not benefit from support measures
Following the increased interest of the private sector, several new applications for the construction of photovoltaic power plants were registered at the......
"EU ready to open other chapters with Albania" - Commissioner Kos: There will be new member states within my mandate
The Commissioner for Enlargement in the European Union, Marta Kos, during her report to the Committee on Foreign Affairs in the European Parliament, stated......
OSHEE investments, 70-80 million euros per year - Karakaçi: Priority areas, we aim to cover each region with interventions
"Investments in the electricity distribution system amount to 70-80 million euros per year." OSHEE Administrator, Enea Karakaçi, responded to the concerns......
"Customs" program, how does Albania benefit? - Deputy Minister Semani: Strengthening capacities against fraud and smuggling
The customs of the European Union countries and Albania will be considered as one. Albania will continue to be part of the EU program, "Customs", which aims......
