Labor taxes in Estonia among the highest in the world

TALLINN - According to a study held by OECD, an employer in Estonia pays 40.1 euros in taxes for every 100 euros earned by a worker earning an average wage, which is more than in the majority of states, LETA/Eesti Paevaleht writes.

There are different ways to calculate workforce tax burden but in the OECD study, the tax burden is measured by the "tax wedge as a percentage of total labor costs" – or the total taxes paid by employees and employers, minus family benefits received, divided by the total labor costs of the employer.

Estonia's tax wedge was last year 40.1 percent which yields the 11th place among the members of the organization. Estonia’s tax wedge is higher than in Denmark (38.4%) or Norway (37.5%), but lower than in Sweden (42.8%) and Finland (42.7%).

The highest indicator was in Belgium (55.5%) and the lowest in Chile (7%).