Ljubljana, 21 May (STA) - The tax burden on labour in Slovenia, also called the tax wedge, increased by 1.8 percentage points to 41.5% in 2024, while the unemployment trap decreased by 3.4 points to 80%, show the latest figures the Statistics Office (SURS) released on Wednesday.
This means that 41.5% of labour costs of a person in paid employment making 67% of average gross earnings went to pay taxes and the remaining 58.5% for net earnings.
SURS also provided data for tax burden when moving from unemployment to employment, an indicator called the unemployment trap.
For a single person the unemployment trap fell by 3.4 points - from 83.4% of additional gross earnings at employment to 80.0%.
"This means that at moving from unemployment to employment single persons increased their net income by 20% of gross earnings," the statisticians wrote.
The unemployment trap shows the difference in net earnings at getting a job after unemployment due to higher taxes and social contributions and lower social transfers in employment compared to earnings and higher social transfers during unemployment.
Meanwhile, the tax burden increased for both single persons and for couples with two children when moving to a better paid job, an indicator termed the low wage trap.
For a single person, the tax burden was 49.3% of additional gross earnings at moving to a better paid job, while for a couple with two children it was flat at 100%.
This indicator shows the difference in net earnings of employed persons at moving to a better paid job due to higher taxes and social contributions and lower social transfers than at the previous lower paid job with lower taxes and social contributions and higher social transfers.
