
The tax burden on labour plays a decisive role in how much workers actually take home — but it does not fall on employees alone. Employers also shoulder high costs through payroll taxes and social contributions.
This is where the tax wedge comes in.

The tax burden on labour plays a decisive role in how much workers actually take home — but it does not fall on employees alone. Employers also shoulder high costs through payroll taxes and social contributions.
This is where the tax wedge comes in.