Taxes and contributions on wages (tax wedge)

OECDPeriod 2016~2025Retrieved 2026-11-09

Share of employer labor costs that goes to income tax and social contributions (employee + employer) — the tax wedge, from OECD model calculations by household type.

2016: 21.8% → 2025: 24.85% (up 3.05 pp). Highest: 2025 (24.85%).

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Taxes and contributions on wages (tax wedge) · 2016~2025 (unit: %)
YearSingle, average wageSingle, 67% of average wageOne-earner couple, 2 children, average wage
201621.801718.573816.8277
201722.012318.873417.1788
201822.444419.194617.8592
201922.94919.737618.0504
202023.372320.183816.2146
202123.937420.839317.8847
202224.485421.518514.8936
202324.494521.434315.1972
202424.717921.726213.5577
202524.849621.917514.0315

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Reference (APA 7th)

OECD. (2026). Taxing wages - comparative indicators: Korea [Data set]. OECD Data Explorer. Retrieved November 9, 2026, from https://data-explorer.oecd.org/vis?df[ds]=dsDisseminateFinalDMZ&df[id]=DSD_TAX_WAGES_COMP%40DF_TW_COMP&df[ag]=OECD.CTP.TPS

Source https://data-explorer.oecd.org/vis?df[ds]=dsDisseminateFinalDMZ&df[id]=DSD_TAX_WAGES_COMP%40DF_TW_COMP&df[ag]=OECD.CTP.TPS

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