OECD Taxing Wages 2026 Lands With Portugal Among the Eleven Economies Where Labour Tax Fell — Average-Wage Wedge Drops to 39.3% After a Second Round of IRS Reform
The OECD's Taxing Wages 2026 report, released 22 April, puts Portugal's single-worker labour tax wedge at 39.3% for 2025 — down a third consecutive year from 41.1% in 2023. Portugal is one of only 11 OECD economies where the wedge fell in 2025, against an OECD mean of 35.1% and an EU mean of 41.7%.
