Chapter 3. 2013 tax burdens

The 2013 tax burden estimates are presented in Tables 3.1 to 3.10 and Figures 3.1 to 3.8. There are eight model family types varying by marital status, number of children and level of earnings: single taxpayers without children earning 67%, 100% and 167% of the average wage (AW); a single parent with two children earning 67% of the AW; a one earner couple at the AW level with two children; two-earner couples with two children at 133% and 167% of the AW and a two-earner couple without children at 133% of the AW. The results are also presented for a single worker without children and a married couple with two children for each decile of the income distribution. There is a third set of results for these two family types earning an annual gross wage equivalent to USD 10 000, USD 48 000 and USD 60 000.

The chapter presents different measures for the average tax burdens (tax wedge, net personal tax rate, personal income tax rate and employee social security contribution rate) and marginal rates (tax wedge and net personal tax rate). The results for two measures of tax progressivity are also considered: tax elasticity on gross earnings and labour costs.

  

Average tax burdens, 2013 estimates

This section comments on Tables 3.1.a-Table 3.4.d and Figures 3.1.a-Figure 3.4.d. These summary tables and charts show results for 8 family types, characterised by different family status (single/married, no children or 2 children), household income composition (one earner-two earner) and wage level (33%, 67%, 100% and 167% of annual gross wage earnings for an average worker). They also show results by income deciles of formal workers for the single person without children and the one-earner married couple with 2 children and in USD equivalents for the single worker without children and one-earner married couple with 2 children.

Table 3.1.a and Figure 3.1.a show the average tax wedge (the combined burden of income tax and all compulsory employee and employer social security contributions) taking into account the cash benefits each of 8 specific family-types is entitled to receive. Total levies due minus cash transfers received are expressed as a percentage of total labour costs, defined as gross wage plus employer social security contributions (including payroll taxes). In the case of a single individual without children at the average wage level, the wedges range from 10.0% (Honduras) and 11.0% (Trinidad and Tobago) to 32.2% (Brazil) and 34.6% (Argentina). For the one-earner married couple with 2 children at the average wage level, the results follow a similar pattern. The lowest are still 10.0% (Honduras) and 11.0% (Trinidad and Tobago) and the highest 33.0% (Argentina) and 32.2% (Brazil). As noted in Section 1.3, Family Rates in Chapter 1, the wedge is lower for a married couple with 2 children due to the receipt of cash benefits and/or more advantageous tax treatment in 5 countries in the region. It is also notable that the presence of children reduces the tax wedge of a single individual at 67% of the average wage by an average of 0.7 percentage points. The largest reductions in the tax wedge were 4.5 percentage points in Colombia, 4.4 percentage points in Argentina and 4.3 percentage points in Uruguay.

Table 3.1.a. Income tax plus employee and employer contributions less cash benefits, family profiles, 2013
As % of labour costs, by family-type and wage level

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Married 2 ch 100 - 0 (% AW)

Married 2 ch 100 -33 (% AW)

Married 2 ch 100 - 67 (% AW)

Married no ch 100 - 33 (% AW)

Argentina

34.6

34.6

34.6

30.3

33.0

33.4

33.6

34.6

Bolivia

21.6

21.6

21.6

21.6

21.6

16.7

21.6

16.7

Brazil

32.2

32.2

35.1

32.2

32.2

30.0

32.2

32.0

Chile

22.6

22.6

23.5

21.8

22.6

20.5

22.3

22.6

Colombia

30.0

30.0

30.2

25.5

27.0

19.2

26.4

24.0

Costa Rica

28.0

28.0

28.0

27.3

27.2

21.6

27.4

21.9

Dominican Republic

19.2

19.2

19.2

19.2

19.2

15.2

19.2

15.2

Ecuador

18.5

18.5

18.5

18.5

18.5

14.2

18.5

14.2

El Salvador

20.5

20.5

24.7

20.5

20.5

16.1

20.5

16.1

Guatemala

4.8

13.2

14.0

4.8

13.2

11.2

10.0

11.2

Honduras

0.0

10.0

7.0

0.0

10.0

7.6

6.1

7.6

Jamaica

16.6

16.6

19.5

16.6

16.6

16.6

16.6

16.6

Mexico

22.3

26.9

29.7

22.3

26.9

24.7

25.0

24.7

Nicaragua

19.2

19.2

22.2

19.2

19.2

15.0

19.2

15.0

Panama

22.9

22.9

26.6

22.9

22.9

22.9

22.9

22.9

Paraguay

20.9

20.9

20.9

20.9

20.9

16.4

20.9

16.4

Peru

17.5

17.5

18.7

17.5

17.5

13.4

17.5

13.4

Trinidad and Tobago

11.8

11.0

17.1

11.8

11.0

11.4

11.4

11.4

Uruguay

30.5

30.5

34.1

26.2

29.8

29.7

30.6

30.2

Venezuela

17.4

17.4

17.4

17.4

17.4

17.4

17.4

17.4

Unweighted average

LAC1

20.6

21.7

23.1

19.8

21.4

18.7

21.0

19.2

OECD2

32.2

36.0

40.4

17.9

26.9

28.5

31.3

32.9

Note: ch denotes children and AW denotes the average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.1. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933410156

Figure 3.1.a. Income tax plus employee and employer contributions less cash benefits, 2013
As % of labour costs, by family-type
picture

Note: Both the single worker without children and the one-earner married couple with 2 children are assumed to earn the average wage.

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.1. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933407452

Tables 3.1.b and 3.1.c present the average tax wedge over the whole of the labour income distributions of formal wage earners in each country. These data are derived from the household surveys. Figures 3.1.b and 3.1.c compare for the tax wedges for these two family types in both the fifth and the tenth income deciles.

Table 3.1.b. Income tax plus employee and employer contributions less cash benefits, income deciles 1-5, 2013
As % of labour costs, by family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single no ch Income decile 4

Single no ch Income decile 5

Married 2 ch Income decile 1

Married 2 ch Income decile 2

Married 2 ch Income decile 3

Married 2 ch Income decile 4

Married 2 ch Income decile 5

Argentina

34.6

34.6

34.6

34.6

34.6

1.6

14.8

18.6

20.6

25.6

Bolivia

0.0

21.6

21.6

21.6

21.6

0.0

21.6

21.6

21.6

21.6

Brazil

31.4

31.4

31.4

31.4

31.4

26.1

26.5

27.0

27.6

31.4

Chile

22.6

22.6

22.6

22.6

22.6

11.5

15.1

17.9

18.3

18.8

Colombia

0.0

30.0

30.0

30.0

30.0

-8.2

24.9

25.2

25.5

26.0

Costa Rica

0.0

0.0

0.0

0.0

28.0

-4.1

-2.4

-2.0

-1.8

26.8

Dominican Republic

1.2

1.2

1.2

19.2

19.2

1.2

1.2

1.2

19.2

19.2

Ecuador

0.0

18.1

18.1

18.5

18.5

0.0

18.1

18.1

18.5

18.5

El Salvador

0.9

20.5

20.5

20.5

20.5

0.9

20.5

20.5

20.5

20.5

Guatemala

4.8

4.8

4.8

13.2

13.2

4.8

4.8

4.8

13.2

13.2

Honduras

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Jamaica

16.6

16.6

16.6

16.6

16.6

16.6

16.6

16.6

16.6

16.6

Mexico

16.7

18.8

19.8

20.9

22.4

16.7

18.8

19.8

20.9

22.4

Nicaragua

0.0

0.0

2.0

19.2

19.2

0.0

0.0

2.0

19.2

19.2

Panama

22.9

22.9

22.9

22.9

22.9

22.9

22.9

22.9

22.9

22.9

Paraguay

1.0

1.0

20.9

20.9

20.9

1.0

1.0

20.9

20.9

20.9

Peru

0.0

0.0

0.0

17.5

17.5

0.0

0.0

0.0

17.5

17.5

Trinidad and Tobago

16.1

14.0

13.2

12.8

12.6

16.1

14.0

13.2

12.8

12.6

Uruguay

29.3

30.5

30.5

30.5

30.5

16.7

23.5

25.0

25.9

26.6

Venezuela

17.4

17.4

17.4

17.4

17.4

17.4

17.4

17.4

17.4

17.4

Unweighted average

LAC1

10.8

15.3

16.4

19.5

21.0

7.1

13.0

14.5

17.9

19.9

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410166

Table 3.1.c. Income tax plus employee and employer contributions less cash benefits, income deciles 6-10, 2013
As % of labour costs, by family-type and income decile

Country

Single no ch Income decile 6

Single no ch Income decile 7

Single no ch Income decile 8

Single no ch Income decile 9

Single no ch Income decile 10

Married 2 ch Income decile 6

Married 2 ch Income decile 7

Married 2 ch Income decile 8

Married 2 ch Income decile 9

Married 2 ch Income decile 10

Argentina

34.6

34.6

34.6

34.6

34.6

26.9

30.5

32.6

32.9

33.6

Bolivia

21.6

21.6

21.6

21.6

24.0

21.6

21.6

21.6

21.6

24.0

Brazil

31.4

32.2

32.2

34.5

32.1

31.4

32.2

32.2

33.9

32.1

Chile

22.6

22.6

22.6

22.6

24.6

19.3

21.8

22.0

22.6

24.6

Colombia

30.0

30.2

30.2

30.2

31.1

26.6

27.4

27.9

28.6

31.1

Costa Rica

28.0

28.0

28.0

28.0

32.0

27.0

27.1

27.3

27.5

31.7

Dominican Republic

19.2

19.2

19.2

19.2

25.6

19.2

19.2

19.2

19.2

25.6

Ecuador

18.5

18.5

18.5

18.5

20.7

18.5

18.5

18.5

18.5

20.7

El Salvador

20.5

20.5

23.5

24.5

26.3

20.5

20.5

23.5

24.5

26.3

Guatemala

13.2

13.2

13.2

13.3

14.9

13.2

13.2

13.2

13.3

14.9

Honduras

0.0

10.2

8.4

6.7

9.1

0.0

10.2

8.4

6.7

9.1

Jamaica

16.6

16.6

16.6

21.5

30.9

16.6

16.6

16.6

21.5

30.9

Mexico

23.5

26.8

27.8

29.6

33.1

23.5

26.8

27.8

29.6

33.1

Nicaragua

19.2

19.2

19.2

20.8

25.6

19.2

19.2

19.2

20.8

25.6

Panama

22.9

22.9

22.9

24.8

31.0

22.9

22.9

22.9

24.0

30.7

Paraguay

20.9

20.9

20.9

20.9

20.9

20.9

20.9

20.9

20.9

20.9

Peru

17.5

17.5

17.5

17.5

23.9

17.5

17.5

17.5

17.5

23.9

Trinidad and Tobago

12.4

12.0

11.3

15.9

20.7

12.4

12.0

11.3

15.9

20.7

Uruguay

30.5

30.5

31.3

33.4

37.2

29.5

29.8

30.1

32.5

37.0

Venezuela

17.4

17.4

17.4

17.4

18.7

17.4

17.4

17.4

17.4

17.4

Unweighted average

LAC1

21.0

21.7

21.8

22.8

25.9

20.2

21.3

21.5

22.5

25.7

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410170

Figure 3.1.b. Income tax plus employee and employer contributions less cash benefits, 5th income decile, 2013
As % of labour costs, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407461

Figure 3.1.c. Income tax plus employee and employer contributions less cash benefits, 10th income decile, 2013
As % of labour costs, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407472

Table 3.1.b shows a zero tax wedge for a single person without children in the first decile of labour income for seven countries (Bolivia, Colombia, Costa Rica, Ecuador, Honduras, Nicaragua and Peru). This is due to the existence of lower earnings thresholds that are in place for the contributions to the social security programmes. In the case of the one-earner married couple with 2 children, the family benefits or preferential tax treatments reduce the tax wedge in the first decile of the income distribution for some countries, turning it negative in the cases of Colombia (-8.2%) and Costa Rica (-4.1%). In the cases of Argentina, Chile and Uruguay, the tax wedge is significantly reduced (33.0, 11.1 and 12.6 percentage points respectively). The average reduction is 3.7 percentage points. The sizes of these benefits decrease as labour incomes rise. In the tenth income decile (Figure 3.1.c), the difference between the regional averages for the two family profiles narrows to only 0.2 percentage points in favour of the married couple with two children profile. Finally, Table 3.1.d and Figure 3.1.d compare the tax wedges for employees earning an annual wage of USD 10 000, USD 48 000 and USD 60 000. At these levels of earnings, the average tax wedges for a single earner without children are 22.8%, 29.1% and 30.1% of total labour costs respectively. For the one-earner married couple with 2 children, the corresponding figures are 21.7%, 28.9% and 29.9% of total labour costs.

Table 3.1.d. Income tax plus employee and employer contributions less cash benefits, USD equivalent earnings, 2013
As % of labour costs, by family-type and annual labour income

Country

Single no ch USD 10 000

Single no ch USD 48 000

Single no ch USD 60 000

Married 2 ch USD 10 000

Married 2 ch USD 48 000

Married 2 ch USD 60 000

Argentina

34.6

43.7

46.2

20.9

39.6

42.8

Bolivia

21.6

28.6

31.8

21.6

28.6

31.8

Brazil

32.2

31.0

30.4

32.2

31.0

30.4

Chile

22.6

22.4

20.5

21.9

22.4

20.5

Colombia

30.2

35.7

37.5

27.9

35.7

37.5

Costa Rica

28.0

33.9

34.9

27.1

33.7

34.7

Dominican Republic

19.4

30.5

29.6

19.4

30.5

29.6

Ecuador

18.5

24.6

25.8

18.5

24.6

25.8

El Salvador

25.1

32.8

34.0

25.1

32.8

34.0

Guatemala

14.1

16.2

16.5

14.1

16.2

16.5

Honduras

7.1

15.9

17.3

7.1

15.9

17.3

Jamaica

26.9

33.9

34.2

26.9

33.9

34.2

Mexico

28.1

36.6

35.5

28.1

36.6

35.5

Nicaragua

26.2

27.4

26.9

26.2

27.4

26.9

Panama

22.9

32.9

35.0

22.9

32.7

34.7

Paraguay

20.9

21.2

22.7

20.9

21.2

22.7

Peru

18.2

28.8

30.4

18.2

28.8

30.4

Trinidad and Tobago

11.5

23.0

23.4

11.5

23.0

23.4

Uruguay

30.5

36.7

36.4

27.0

36.8

36.7

Venezuela

17.4

26.5

33.9

17.4

25.5

33.1

Unweighted average

LAC1

22.8

29.1

30.1

21.7

28.9

29.9

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410188

Figure 3.1.d. Income tax plus employee and employer contributions less cash benefits, USD equivalent earnings, 2013
As % of labour costs, by family-type for annual labour income of USD 10 000
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407483

Tables 3.2.a-Table 3.2.d and Figures 3.2.a-Figure 3.2.d present the combined burden of the income tax and employee social security contributions after cash benefits, expressed as a percentage of gross wage earnings (the corresponding separate measures for income tax and social security contributions are shown separately in Tables 3.3.a-Table 3.3.d, and Tables 3.4.a-Table 3.4.d). The average tax and contributions rate for a single person at the average wage level without children across the region is 9.3% of annual gross wage earnings. This worker is liable to a 19.1% tax burden in Chile1 and 18% in Uruguay. The countries with the lowest average rates were Honduras, Guatemala and Trinidad and Tobago (3.6%, 4.0% and 4.5% of annual average gross wage earnings respectively).

Table 3.2.a. Income tax plus employee social security contributions less cash benefits, family profiles, 2013
As % of gross wage earnings, by family-type

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Married 2 ch 100 - 0 (% AW)

Married 2 ch 100 -33 (% AW)

Married 2 ch 100 - 67 (% AW)

Married 2 ch 100 - 33 (% AW)

Argentina

17.0

17.0

17.0

11.5

14.9

15.4

15.8

17.0

Bolivia

10.6

10.6

10.6

10.6

10.6

8.0

10.6

8.0

Brazil

9.0

9.0

12.9

9.0

9.0

6.1

9.0

8.8

Chile

19.1

19.1

19.9

18.2

19.1

16.8

18.7

19.1

Colombia

7.0

7.0

7.0

1.0

3.0

-0.8

2.2

5.3

Costa Rica

9.2

9.2

9.2

8.3

8.2

6.1

8.4

6.6

Dominican Republic

6.0

6.0

6.0

6.0

6.0

4.5

6.0

4.5

Ecuador

9.5

9.5

9.5

9.5

9.5

7.1

9.5

7.1

El Salvador

8.9

8.9

13.9

8.9

8.9

6.7

8.9

6.7

Guatemala

0.8

4.0

4.9

0.8

4.0

3.2

2.8

3.2

Honduras

0.0

3.6

3.0

0.0

3.6

2.7

2.2

2.7

Jamaica

6.7

6.7

9.9

6.7

6.7

6.7

6.7

6.7

Mexico

3.7

11.0

15.6

3.7

11.0

6.4

8.1

6.4

Nicaragua

5.7

5.7

9.2

5.7

5.7

4.3

5.7

4.3

Panama

11.4

11.4

15.7

11.4

11.4

11.4

11.4

11.4

Paraguay

9.0

9.0

9.0

9.0

9.0

6.8

9.0

6.8

Peru

10.9

10.9

12.2

10.9

10.9

8.2

10.9

8.2

Trinidad and Tobago

5.1

4.5

10.3

5.1

4.5

5.0

4.8

5.0

Uruguay

18.0

18.0

22.3

13.0

17.2

17.1

18.1

17.7

Venezuela

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

Unweighted average

LAC1

8.7

9.3

11.2

7.7

8.9

7.4

8.7

8.0

OECD2

21.2

25.4

30.8

3.8

14.2

16.7

19.9

22.1

Note: ch denotes children and AW denotes the average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.3. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933410199

Table 3.2.b. Income tax plus employee social security contributions less cash benefits, income deciles 1-5, 2013
As % of gross wage earnings, by family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single no ch Income decile 4

Single no ch Income decile 5

Married 2 ch Income decile 1

Married 2 ch Income decile 2

Married 2 ch Income decile 3

Married 2 ch Income decile 4

Married 2 ch Income decile 5

Argentina

17.0

17.0

17.0

17.0

17.0

-24.9

-8.1

-3.3

-0.8

5.6

Bolivia

0.0

10.6

10.6

10.6

10.6

0.0

10.6

10.6

10.6

10.6

Brazil

8.0

8.0

8.0

8.0

8.0

0.8

1.3

2.1

2.8

8.0

Chile

19.1

19.1

19.1

19.1

19.1

7.4

11.2

14.2

14.5

15.1

Colombia

0.0

7.0

7.0

7.0

7.0

-8.2

0.2

0.6

1.1

1.8

Costa Rica

0.0

0.0

0.0

0.0

9.2

-4.1

-2.4

-2.0

-1.8

7.6

Dominican Republic

0.0

0.0

0.0

6.0

6.0

0.0

0.0

0.0

6.0

6.0

Ecuador

0.0

9.5

9.5

9.5

9.5

0.0

9.5

9.5

9.5

9.5

El Salvador

0.0

8.9

8.9

8.9

8.9

0.0

8.9

8.9

8.9

8.9

Guatemala

0.8

0.8

0.8

4.0

4.0

0.8

0.8

0.8

4.0

4.0

Honduras

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Jamaica

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

Mexico

-17.0

-4.6

-1.5

1.2

4.0

-17.0

-4.6

-1.5

1.2

4.0

Nicaragua

0.0

0.0

0.0

5.7

5.7

0.0

0.0

0.0

5.7

5.7

Panama

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

Paraguay

0.0

0.0

9.0

9.0

9.0

0.0

0.0

9.0

9.0

9.0

Peru

0.0

0.0

0.0

10.9

10.9

0.0

0.0

0.0

10.9

10.9

Trinidad and Tobago

8.9

6.6

5.9

5.6

5.3

8.9

6.6

5.9

5.6

5.3

Uruguay

16.6

18.0

18.0

18.0

18.0

1.7

9.8

11.5

12.7

13.5

Venezuela

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

Unweighted average

LAC1

3.9

6.2

6.8

8.2

8.8

-0.5

3.4

4.5

6.2

7.5

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410205

Table 3.2.c. Income tax plus employee social security contributions less cash benefits, income deciles 6-10, 2013
As % of gross wage earnings, by family-type and income decile

Country

Single no ch Income decile 6

Single no ch Income decile 7

Single no ch Income decile 8

Single no ch Income decile 9

Single no ch Income decile 10

Married 2 ch Income decile 6

Married 2 ch Income decile 7

Married 2 ch Income decile 8

Married 2 ch Income decile 9

Married 2 ch Income decile 10

Argentina

17.0

17.0

17.0

17.0

17.0

7.2

11.7

14.4

14.9

15.6

Bolivia

10.6

10.6

10.6

10.6

13.4

10.6

10.6

10.6

10.6

13.4

Brazil

8.0

9.0

9.0

12.0

16.7

8.0

9.0

9.0

11.2

16.7

Chile

19.1

19.1

19.1

19.1

21.1

15.6

18.2

18.4

19.1

21.1

Colombia

7.0

7.0

7.0

7.0

8.3

2.5

3.3

4.0

4.9

8.3

Costa Rica

9.2

9.2

9.2

9.2

14.2

7.8

8.1

8.3

8.6

13.9

Dominican Republic

6.0

6.0

6.0

6.0

13.5

6.0

6.0

6.0

6.0

13.5

Ecuador

9.5

9.5

9.5

9.5

11.9

9.5

9.5

9.5

9.5

11.9

El Salvador

8.9

8.9

12.3

13.5

18.0

8.9

8.9

12.3

13.5

18.0

Guatemala

4.0

4.0

4.0

4.1

5.9

4.0

4.0

4.0

4.1

5.9

Honduras

0.0

3.7

3.0

2.4

6.7

0.0

3.7

3.0

2.4

6.7

Jamaica

6.7

6.7

6.7

12.1

22.6

6.7

6.7

6.7

12.1

22.6

Mexico

6.0

10.8

12.6

15.4

20.4

6.0

10.8

12.6

15.4

20.4

Nicaragua

5.7

5.7

5.7

7.6

13.2

5.7

5.7

5.7

7.6

13.2

Panama

11.4

11.4

11.4

13.6

20.8

11.4

11.4

11.4

12.7

20.3

Paraguay

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

Peru

10.9

10.9

10.9

10.9

17.8

10.9

10.9

10.9

10.9

17.8

Trinidad and Tobago

5.2

4.9

4.5

9.5

16.3

5.2

4.9

4.5

9.5

16.3

Uruguay

18.0

18.0

19.0

21.5

26.0

16.9

17.2

17.6

20.4

25.7

Venezuela

5.5

5.5

5.5

5.5

6.9

5.5

5.5

5.5

5.5

5.5

Unweighted average

LAC1

8.9

9.3

9.6

10.8

15.0

7.9

8.7

9.2

10.4

14.8

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410217

Table 3.2.d. Income tax plus employee social security contributions less cash benefits, USD equivalent earnings, 2013
As % of gross wage earnings, by family-type and annual labour income

Country

Single no ch USD 10 000

Single no ch USD 48 000

Single no ch USD 60 000

Married 2 ch USD 10 000

Married 2 ch USD 48 000

Married 2 ch USD 60 000

Argentina

17.0

28.5

31.7

-0.5

23.3

27.4

Bolivia

10.6

18.6

22.2

10.6

18.6

22.2

Brazil

9.0

19.6

21.2

9.0

19.6

21.2

Chile

19.1

19.0

17.2

18.3

19.0

17.2

Colombia

7.0

11.2

13.7

4.0

11.2

13.7

Costa Rica

9.2

16.6

17.8

8.0

16.3

17.7

Dominican Republic

6.2

22.2

22.8

6.2

22.2

22.8

Ecuador

9.5

16.3

17.6

9.5

16.3

17.6

El Salvador

14.9

27.0

28.4

14.9

27.0

28.4

Guatemala

5.0

7.4

7.6

5.0

7.4

7.6

Honduras

3.3

15.1

16.7

3.3

15.1

16.7

Jamaica

18.2

27.1

27.6

18.2

27.1

27.6

Mexico

13.1

25.3

26.3

13.1

25.3

26.3

Nicaragua

13.8

21.6

21.8

13.8

21.6

21.8

Panama

11.4

23.0

25.3

11.4

22.7

25.0

Paraguay

9.0

9.4

11.1

9.0

9.4

11.1

Peru

11.6

23.1

24.9

11.6

23.1

24.9

Trinidad & Tobago

4.9

21.1

21.9

4.9

21.1

21.9

Uruguay

18.0

25.3

25.0

14.0

25.4

25.3

Venezuela

5.5

19.1

28.1

5.5

18.1

27.3

Unweighted average

LAC1

10.8

19.8

21.4

9.5

19.5

21.2

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410226

Figure 3.2.a. Income tax plus employee social security contributions less cash benefits, 2013
As % of gross wage earnings, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.3. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933407499

Figure 3.2.b. Income tax plus employee social security contributions less cash benefits, 5th Income decile, 2013
As % of gross wage earnings, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407505

Figure 3.2.c. Income tax plus employee social security contributions less cash benefits, 10th income decile, 2013
As % of gross wage earnings, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407512

Figure 3.2.d. Income tax plus employee social security contributions less cash benefits, USD equivalent earnings, 2013
As % of gross wage earnings, by family-type for annual labour income of USD 10 000
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407528

The regional average for the one-earner married couple 2 children at the average wage was 8.9% of gross wage earnings, 0.4 percentage points below the corresponding single individual without children. The highest average rates for this family profile were also in Chile (19.1%) and Uruguay (17.2%), while the lowest burdens were the same as for the single without children family profile.

In contrast, there is a much larger gap between the measures for the two family types in OECD countries2 (11.2 percentage points compared with 0.4 in Latin America and the Caribbean). Furthermore, the average tax rate that a single taxpayer without children in Latin American and the Caribbean faces is only slightly less (0.9 percentage points) than a single individual with 2 children when both earn a 67% of the average wage. The corresponding gap in the OECD averages is 17.4 percentage points.

The number of sources of income that comprise the total amount of the wage earnings in the household also affects the size of the tax burden. Consider the case of a single individual without children earning 167% of the average wage compared with the two-earner married couple whose combined income totals 167% of the average wage. In this situation, the tax burden faced by the former is 2.5 percentage points higher in the LAC region and 10.9 percentage points larger in OECD countries.

Tables 3.2.b and 3.2.c show how the net tax rates after cash benefits change across the income distribution. Single individuals without children in the first income decile have a zero tax rate in 10 countries (Bolivia, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Nicaragua, Paraguay and Peru). The tax rate at this income level is negative in Mexico due to the annual employment subsidy, through which a worker receives an additional 17.0% of the average wage. On the other hand, the corresponding workers in Chile, Argentina and Uruguay face the highest tax rates (19.1%, 17.0% and 16.6% of the average wage respectively). One-earner married couples with 2 children in the first income decile face lower tax rates compared with the single worker without children in 5 countries. In Argentina, the tax rate in the first income decile for a single individual without children is reduced from a liability of 17.0% of gross wage earnings to a benefit or credit of 24.9% for the one-earner married couple with two children family profile. One-earner married couples also receive tax benefits in Colombia and Costa Rica, (8.2% and 4.1% of gross earnings respectively), compared with zero liability for the single worker without children. In Uruguay, the tax rate is reduced by 14.9 percentage points to 1.7% of average wage earnings. The tables show that the tax rates for the two family types in these 5 countries tend to converge as incomes rise. In the tenth income decile, the highest tax rates for both family profiles are in Uruguay (26.0% and 25.7% respectively) while the lowest rates are 5.9% for both in Guatemala.

Table 3.3.a shows that workers in the 8 family types receiving the average wage are not liable for personal income tax in any of the countries except in Mexico. For the single individual without children at 167% of the average wage, the picture changes and workers in 7 of the 20 countries pay no income tax, while the other 13 countries have average income tax rates that vary from 0.8% of gross wage earnings (Chile) to 13% (Mexico). The average for the region is 2.2%, substantially less than the OECD average (21.7%). For the married couple family types, there is a zero income tax rate in each country except for Mexico and Costa Rica, where it is negative because of tax credits granted in respect of spouses and children in the household. Tables 3.3.b and 3.3.c show that even in the seventh income decile, it is only in Mexico that workers pay income tax. The pattern starts to alter in the eighth and ninth deciles where single workers pay income tax in 3 countries and 9 countries respectively. But even at the higher levels of wage earnings, the average income tax rates are relatively low, averaging 6.4% of wage earnings for a single individual without children and 6.2% for the one-earner married couple with 2 children in the tenth income decile. Also, in the ninth income decile, the average income tax rates range from zero in 11 countries to 12.8% in Mexico for both family profiles. Table 3.3.d shows an average income tax rate across the region of 2.0% paid on annual wage earnings of USD 10 000. These tables also highlight an important feature of personal income tax systems in Latin American and Caribbean countries; although they are designed to be very progressive, they raise relatively little revenue because of the high levels of exempt income, which erode the redistributive power of the tax.

Table 3.3.a. Income tax, family profiles, 2013
As % of gross wage earnings, by family-type and wage level

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Married 2 ch 100 - 0 (% AW)

Married 2 ch 100 - 33 (% AW)

Married 2 ch 100 - 67 (% AW)

Married no ch 100 - 33 (% AW)

Argentina

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Bolivia

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Brazil

0.0

0.0

1.9

0.0

0.0

0.0

0.0

0.0

Chile

0.0

0.0

0.8

0.0

0.0

0.0

0.0

0.0

Colombia

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Costa Rica

0.0

0.0

0.0

-0.9

-1.0

-0.8

-0.6

-0.3

Dominican Republic

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Ecuador

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

El Salvador

0.0

0.0

5.1

0.0

0.0

0.0

0.0

0.0

Guatemala

0.0

0.0

0.9

0.0

0.0

0.0

0.0

0.0

Honduras

0.0

0.0

0.9

0.0

0.0

0.0

0.0

0.0

Jamaica

0.0

0.0

3.2

0.0

0.0

0.0

0.0

0.0

Mexico

1.4

8.5

13.0

1.4

8.5

4.0

5.6

4.0

Nicaragua

0.0

0.0

3.5

0.0

0.0

0.0

0.0

0.0

Panama

0.0

0.0

4.3

0.0

0.0

0.0

0.0

0.0

Paraguay

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Peru

0.0

0.0

1.3

0.0

0.0

0.0

0.0

0.0

Trinidad and Tobago

0.0

0.0

5.7

0.0

0.0

0.0

0.0

0.0

Uruguay

0.0

0.0

4.3

0.0

0.0

0.0

0.0

0.0

Venezuela

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Unweighted average

LAC1

0.1

0.4

2.2

0.0

0.4

0.2

0.3

0.2

OECD2

11.4

15.6

21.7

6.2

10.3

10.6

12.5

12.4

Note: ch denotes children and AW denotes the average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.4. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933410239

Table 3.3.b. Income tax, income deciles 1-5, 2013
As % of gross wage earnings, by family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single no ch Income decile 4

Single no ch Income decile 5

Married 2 ch Income decile 1

Married 2 ch Income decile 2

Married 2 ch Income decile 3

Married 2 ch Income decile 4

Married 2 ch Income decile 5

Argentina

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Bolivia

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Brazil

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Chile

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Colombia

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Costa Rica

0.0

0.0

0.0

0.0

0.0

-4.1

-2.4

-2.0

-1.8

-1.5

Dominican Republic

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Ecuador

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

El Salvador

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Guatemala

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Honduras

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Jamaica

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Mexico

-19.4

-7.0

-3.9

-1.2

1.6

-19.4

-7.0

-3.9

-1.2

1.6

Nicaragua

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Panama

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Paraguay

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Peru

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Trinidad and Tobago

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Uruguay

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Venezuela

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Unweighted average

LAC1

-1.0

-0.4

-0.2

-0.1

0.1

-1.2

-0.5

-0.3

-0.1

0.0

Note: ch denotes children.

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410245

Table 3.3.c. Income tax, income deciles 6-10, 2013
As % of gross wage earnings, by family-type and income decile

Country

Single no ch Income decile 6

Single no ch Income decile 7

Single no ch Income decile 8

Single no ch Income decile 9

Single no ch Income decile 10

Married 2 ch Income decile 6

Married 2 ch Income decile 7

Married 2 ch Income decile 8

Married 2 ch Income decile 9

Married 2 ch Income decile 10

Argentina

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Bolivia

0.0

0.0

0.0

0.0

2.8

0.0

0.0

0.0

0.0

2.8

Brazil

0.0

0.0

0.0

1.0

9.4

0.0

0.0

0.0

0.2

9.4

Chile

0.0

0.0

0.0

0.0

2.1

0.0

0.0

0.0

0.0

2.1

Colombia

0.0

0.0

0.0

0.0

0.4

0.0

0.0

0.0

0.0

0.4

Costa Rica

0.0

0.0

0.0

0.0

5.0

-1.3

-1.1

-0.9

-0.6

4.7

Dominican Republic

0.0

0.0

0.0

0.0

7.5

0.0

0.0

0.0

0.0

7.5

Ecuador

0.0

0.0

0.0

0.0

2.5

0.0

0.0

0.0

0.0

2.5

El Salvador

0.0

0.0

3.4

4.6

10.4

0.0

0.0

3.4

4.6

10.4

Guatemala

0.0

0.0

0.0

0.1

1.9

0.0

0.0

0.0

0.1

1.9

Honduras

0.0

0.0

0.0

0.0

5.3

0.0

0.0

0.0

0.0

5.3

Jamaica

0.0

0.0

0.0

5.5

15.9

0.0

0.0

0.0

5.5

15.9

Mexico

3.6

8.3

10.1

12.8

17.7

3.6

8.3

10.1

12.8

17.7

Nicaragua

0.0

0.0

0.0

1.8

7.5

0.0

0.0

0.0

1.8

7.5

Panama

0.0

0.0

0.0

2.2

9.4

0.0

0.0

0.0

1.3

9.0

Paraguay

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Peru

0.0

0.0

0.0

0.0

6.9

0.0

0.0

0.0

0.0

6.9

Trinidad and Tobago

0.0

0.0

0.0

5.2

13.3

0.0

0.0

0.0

5.2

13.3

Uruguay

0.0

0.0

1.0

3.5

9.4

0.0

0.0

0.0

1.0

7.7

Venezuela

0.0

0.0

0.0

0.0

1.4

0.0

0.0

0.0

0.0

0.0

Unweighted average

LAC1

0.2

0.4

0.7

1.8

6.4

0.1

0.4

0.6

1.6

6.2

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410252

Table 3.3.d. Income tax, USD equivalent earnings, 2013
As % of gross wage earnings, by family-type and annual labour income

Country

Single no ch USD 10 000

Single no ch USD 48 000

Single no ch USD 60 000

Married 2 ch USD 10 000

Married 2 ch USD 48 000

Married 2 ch USD 60 000

Argentina

0.0

11.5

16.2

0.0

7.2

12.6

Bolivia

0.0

7.1

7.1

0.0

7.1

7.1

Brazil

0.0

14.3

16.9

0.0

14.3

16.9

Chile

0.0

3.2

4.4

0.0

3.2

4.4

Colombia

0.0

3.3

5.8

0.0

3.3

5.8

Costa Rica

0.0

7.4

8.7

-1.1

7.2

8.5

Dominican Republic

0.2

17.7

19.2

0.2

17.7

19.2

Ecuador

0.0

6.8

8.1

0.0

6.8

8.1

El Salvador

6.4

20.5

22.0

6.4

20.5

22.0

Guatemala

0.9

3.3

3.6

0.9

3.3

3.6

Honduras

1.1

14.7

16.3

1.1

14.7

16.3

Jamaica

11.5

22.1

22.7

11.5

22.1

22.7

Mexico

10.5

22.7

24.1

10.5

22.7

24.1

Nicaragua

8.1

19.2

19.9

8.1

19.2

19.9

Panama

0.0

11.6

13.9

0.0

11.3

13.6

Paraguay

0.0

0.4

2.1

0.0

0.4

2.1

Peru

0.7

12.2

14.0

0.7

12.2

14.0

Trinidad and Tobago

0.5

19.8

20.8

0.5

19.8

20.8

Uruguay

0.0

12.2

13.6

0.0

10.9

12.6

Venezuela

0.0

15.3

24.8

0.0

14.3

24.0

Unweighted average

LAC1

2.0

12.3

14.2

1.9

11.9

13.9

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410261

Figure 3.3. Income tax, 10th income decile, 2013
As % of gross wage earnings, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407530

Table and Figures 3.4.a-Figure 3.4.d present figures for employee social security contribution rates. The payments vary from 2.5% (Mexico) to 19.1% (Chile) of gross wage earnings for a single individual without children on the average wage. The average for the region is 8.9%. In comparison, the average worker across the OECD pays 9.9% of gross wage earnings. The situation is very similar for a one-earner married couple with 2 children at the average wage level where the average rate is also 9.0% with payments ranging from 2.5% (Mexico) to 19.4% (Uruguay).

Table 3.4.a. Employee social security contributions, family profiles, 2013
As % of gross wage earnings, by family-type and wage level

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Married 2 ch 100 - 0 (% AW)

Married 2 ch 100 - 33 (% AW)

Married 2 ch 100 - 67 (% AW)

Married no ch 100 - 33 (% AW)

Argentina

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

Bolivia

10.6

10.6

10.6

10.6

10.6

8.0

10.6

8.0

Brazil

9.0

9.0

11.0

9.0

9.0

8.8

9.0

8.8

Chile

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

Colombia

7.0

7.0

7.0

7.0

7.0

5.3

7.0

5.3

Costa Rica

9.2

9.2

9.2

9.2

9.2

6.9

9.0

6.9

Dominican Republic

6.0

6.0

6.0

6.0

6.0

4.5

6.0

4.5

Ecuador

9.5

9.5

9.5

9.5

9.5

7.1

9.5

7.1

El Salvador

8.9

8.9

8.8

8.9

8.9

6.7

8.9

6.7

Guatemala

0.8

4.0

4.0

0.8

4.0

3.2

2.8

3.2

Honduras

0.0

3.6

2.2

0.0

3.6

2.7

2.2

2.7

Jamaica

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

Mexico

2.4

2.5

2.6

2.4

2.5

2.5

2.4

2.5

Nicaragua

5.7

5.7

5.7

5.7

5.7

4.3

5.7

4.3

Panama

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

Paraguay

9.0

9.0

9.0

9.0

9.0

6.8

9.0

6.8

Peru

10.9

10.9

10.9

10.9

10.9

8.2

10.9

8.2

Trinidad and Tobago

5.1

4.5

4.6

5.1

4.5

5.0

4.8

5.0

Uruguay

18.0

18.0

18.0

19.4

19.4

18.7

19.4

17.7

Venezuela

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

Unweighted average

LAC1

8.6

8.9

8.9

8.7

9.0

7.9

8.8

7.9

OECD2

10.0

9.9

9.3

9.6

9.8

9.6

9.9

9.7

Note: ch denotes children and AW denotes the average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.5. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933410278

Table 3.4.b. Employee social security contributions, income deciles 1-5, 2013
As % of gross wage earnings, by family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single no ch Income decile 4

Single no ch Income decile 5

Married 2 ch Income decile 1

Married 2 ch Income decile 2

Married 2 ch Income decile 3

Married 2 ch Income decile 4

Married 2 ch Income decile 5

Argentina

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

Bolivia

0.0

10.6

10.6

10.6

10.6

0.0

10.6

10.6

10.6

10.6

Brazil

8.0

8.0

8.0

8.0

8.0

8.0

8.0

8.0

8.0

8.0

Chile

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

Colombia

0.0

7.0

7.0

7.0

7.0

0.0

7.0

7.0

7.0

7.0

Costa Rica

0.0

0.0

0.0

0.0

9.2

0.0

0.0

0.0

0.0

9.2

Dominican Republic

0.0

0.0

0.0

6.0

6.0

0.0

0.0

0.0

6.0

6.0

Ecuador

0.0

9.5

9.5

9.5

9.5

0.0

9.5

9.5

9.5

9.5

El Salvador

0.0

8.9

8.9

8.9

8.9

0.0

8.9

8.9

8.9

8.9

Guatemala

0.8

0.8

0.8

4.0

4.0

0.8

0.8

0.8

4.0

4.0

Honduras

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Jamaica

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

Mexico

2.4

2.4

2.4

2.4

2.4

2.4

2.4

2.4

2.4

2.4

Nicaragua

0.0

0.0

0.0

5.7

5.7

0.0

0.0

0.0

5.7

5.7

Panama

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

Paraguay

0.0

0.0

9.0

9.0

9.0

0.0

0.0

9.0

9.0

9.0

Peru

0.0

0.0

0.0

10.9

10.9

0.0

0.0

0.0

10.9

10.9

Trinidad and Tobago

8.9

6.6

5.9

5.6

5.3

8.9

6.6

5.9

5.6

5.3

Uruguay

16.6

18.0

18.0

18.0

18.0

16.6

19.4

19.4

19.4

19.4

Venezuela

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

Unweighted average

LAC1

4.8

6.6

7.0

8.3

8.8

4.8

6.6

7.1

8.3

8.8

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410284

Table 3.4.c. Employee social security contributions, income deciles 6-10, 2013
As % of gross wage earnings, by family-type and income decile

Country

Single no ch Income decile 6

Single no ch Income decile 7

Single no ch Income decile 8

Single no ch Income decile 9

Single no ch Income decile 10

Married 2 ch Income decile 6

Married 2 ch Income decile 7

Married 2 ch Income decile 8

Married 2 ch Income decile 9

Married 2 ch Income decile 10

Argentina

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

Bolivia

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

Brazil

8.0

9.0

9.0

11.0

7.3

8.0

9.0

9.0

11.0

7.3

Chile

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

Colombia

7.0

7.0

7.0

7.0

7.9

7.0

7.0

7.0

7.0

7.9

Costa Rica

9.2

9.2

9.2

9.2

9.2

9.2

9.2

9.2

9.2

9.2

Dominican Republic

6.0

6.0

6.0

6.0

6.0

6.0

6.0

6.0

6.0

6.0

Ecuador

9.5

9.5

9.5

9.5

9.5

9.5

9.5

9.5

9.5

9.5

El Salvador

8.9

8.9

8.9

8.9

7.6

8.9

8.9

8.9

8.9

7.6

Guatemala

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

Honduras

0.0

3.7

3.0

2.4

1.4

0.0

3.7

3.0

2.4

1.4

Jamaica

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

Mexico

2.4

2.5

2.5

2.6

2.7

2.4

2.5

2.5

2.6

2.7

Nicaragua

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

Panama

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

Paraguay

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

Peru

10.9

10.9

10.9

10.9

10.9

10.9

10.9

10.9

10.9

10.9

Trinidad and Tobago

5.2

4.9

4.5

4.3

3.0

5.2

4.9

4.5

4.3

3.0

Uruguay

18.0

18.0

18.0

18.0

16.6

19.4

19.4

19.4

19.4

18.0

Venezuela

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

Unweighted average

LAC1

8.7

8.8

8.9

8.9

8.5

8.8

9.0

8.9

9.0

8.6

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410297

Table 3.4.d. Employee social security contributions, USD equivalent earnings, 2013
As % of gross wage earnings, by family-type and annual labour income

Country

Single no ch USD 10 000

Single no ch USD 48 000

Single no ch USD 60 000

Married 2 ch USD 10 000

Married 2 ch USD 48 000

Married 2 ch USD 60 000

Argentina

17.0

17.0

15.5

17.0

17.0

15.5

Bolivia

10.6

11.5

15.1

10.6

11.5

15.1

Brazil

9.0

5.3

4.2

9.0

5.3

4.2

Chile

19.1

15.9

12.8

19.1

15.9

12.8

Colombia

7.0

7.9

7.9

7.0

7.9

7.9

Costa Rica

9.2

9.2

9.2

9.2

9.2

9.2

Dominican Republic

6.0

4.5

3.7

6.0

4.5

3.7

Ecuador

9.5

9.5

9.5

9.5

9.5

9.5

El Salvador

8.5

6.5

6.4

8.5

6.5

6.4

Guatemala

4.0

4.0

4.0

4.0

4.0

4.0

Honduras

2.1

0.4

0.4

2.1

0.4

0.4

Jamaica

6.7

5.0

4.9

6.7

5.0

4.9

Mexico

2.6

2.6

2.1

2.6

2.6

2.1

Nicaragua

5.7

2.4

1.9

5.7

2.4

1.9

Panama

11.4

11.4

11.4

11.4

11.4

11.4

Paraguay

9.0

9.0

9.0

9.0

9.0

9.0

Peru

10.9

10.9

10.9

10.9

10.9

10.9

Trinidad and Tobago

4.4

1.4

1.1

4.4

1.4

1.1

Uruguay

18.0

13.1

11.4

19.4

14.5

12.7

Venezuela

5.5

3.8

3.3

5.5

3.8

3.3

Unweighted average

LAC1

8.8

7.6

7.2

8.9

7.6

7.3

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410309

Figure 3.4.a. Employee social security contributions, 2013
As % of gross wage earnings, by family-type
picture

Note: Both the single worker without children and the one-earner married couple with 2 children are assumed to earn the average wage.

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.5. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933407548

Figure 3.4.b. Employee social security contributions, 5th income decile, 2013
As % of gross wage earnings, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407557

Figure 3.4.c. Employee social security contributions, 10th income decile, 2013
As % of gross wage earnings, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407560

Figure 3.4.d. Employee social security contributions, USD equivalent earnings, 2013
As % of gross wage earnings, by family-type for annual labour income of USD 10 000
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933407575

Tables 3.4.b and 3.4.c show that the rates of mandatory social security contributions vary at the different deciles of labour income. Some countries do no impose social security payments on their citizens at the lowest income levels because of lower earnings thresholds associated with social security contribution programmes. These thresholds are generally linked to the minimum wage. After the contributions commence, the contribution rates are in most cases stable as income rises. In most countries, this stability is attained by the fifth income decile of income. Honduras is an exception where payments start at the seventh income decile. In some countries the contribution rates start to decline in the higher income deciles as upper earnings ceilings on payments, usually in old-age and health insurance programmes, start to take effect. For the single person without children, employee social security contributions are an average of 8.5% of gross wage earnings across the region at the tenth decile of labour income being highest at 19.1% in Chile and lowest at 1.4% in Honduras. For the one-earner married couple with 2 children at the same income decile, the average rate contribution rate is 8.6% with the same highest and lowest examples. A comparison between the regional averages paid at the fifth income decile and the tenth income decile shows a reduction of 0.2 percentage points for the higher decile group for both family profiles.

Table 3.4.d provides a clearer illustration of the decline of average employee social security contribution rates as income rises from USD 10 000 to USD 60 000; the average contribution rate across the region for the single worker declines by 1.6 percentage points of gross wage earnings between the two earnings levels. The rates are reduced in 12 countries and unchanged in 6 others. Bolivia and Colombia are the exceptions which exhibit an increase in the employee social security contribution rate as income increases. The results for the one-earner married couple with 2 children show a similar pattern.

Marginal tax burdens, 2013 estimates

Table 3.5.a and Figure 3.5.a show the percentage of a one unit increase of labour costs of a worker that is deducted through the personal income tax and both employee and employer contributions after changes in cash benefits. This is known as the marginal tax wedge. The difference between the marginal tax wedge and the increase in wages provides a measure of how much of a marginal increase in labour costs adds to net take-home pay. In most of the countries in the region, the marginal wedge absorbed between 13% and 35% of the rise in one unit of the labour costs for a single individual without children on the average wage. Honduras and Trinidad are exceptions where these workers have a zero marginal tax wedge at the average income level. The average marginal tax wedge for the region is 20.8% compared with the OECD equivalent of 45.0%. The figures for a one-earner married couple with 2 children present a similar picture.

Table 3.5.a. Marginal rate of income tax plus employee and employer contributions less cash benefits, family profiles, 2013
As % of labour costs, by family-type and wage level

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Married 2 ch 100 - 0 (% AW)

Married 2 ch 100 - 33 (% AW)

Married 2 ch 100 - 67 (% AW)

Married no ch 100 - 33 (% AW)

Argentina

34.6

34.6

34.6

34.6

34.6

34.6

34.6

34.6

Bolivia

21.6

21.6

21.6

21.6

21.6

21.6

21.6

21.6

Brazil

32.2

32.2

38.2

32.2

32.2

32.2

32.2

32.2

Chile

22.6

22.6

25.7

22.6

22.6

22.6

22.6

22.6

Colombia

30.0

30.0

30.2

30.0

30.0

30.0

30.0

30.0

Costa Rica

28.0

28.0

35.3

28.0

28.0

28.0

28.0

28.0

Dominican Republic

19.2

19.2

19.2

19.2

19.2

19.2

19.2

19.2

Ecuador

18.5

18.5

18.5

18.5

18.5

18.5

18.5

18.5

El Salvador

20.5

20.5

21.2

20.5

20.5

20.5

20.5

20.5

Guatemala

4.8

13.2

16.8

4.8

13.2

13.2

13.2

13.2

Honduras

0.0

0.0

12.5

0.0

0.0

0.0

0.0

0.0

Jamaica

16.6

16.6

38.4

16.6

16.6

16.6

16.6

16.6

Mexico

25.6

31.0

35.5

25.6

31.0

31.0

31.0

31.0

Nicaragua

19.2

19.2

30.3

19.2

19.2

19.2

19.2

19.2

Panama

22.9

22.9

35.9

22.9

22.9

22.9

22.9

22.9

Paraguay

20.9

20.9

20.9

20.9

20.9

20.9

20.9

20.9

Peru

17.5

17.5

31.4

17.5

17.5

17.5

17.5

17.5

Trinidad and Tobago

0.0

0.0

25.0

0.0

0.0

0.0

0.0

0.0

Uruguay

30.5

30.5

41.7

31.6

31.6

31.6

31.6

30.5

Venezuela

17.4

17.4

17.4

17.4

17.4

17.4

17.4

17.4

Unweighted average

LAC1

20.1

20.8

27.5

20.2

20.9

20.9

20.9

20.8

OECD2

41.6

45.0

47.3

45.0

44.2

45.8

43.4

43.3

Note: ch denotes children and AW denotes the average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.6. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

3. Assumes a one unit currency rise in labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410316

Figure 3.5.a. Marginal rate of income tax plus employee and employer contributions less cash benefits, 2013
As % of labour costs, by family-type
picture

Note: Both the single worker without children and the one-earner married couple with 2 children are assumed to earn the average wage.

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.6. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

3. Assumes a one unit currency rise in labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933407580

Tables 3.5.b and 3.5.c show the marginal tax wedge over the whole of the income distribution. For a single individual without children and wages in the first income decile, the average marginal tax wedge for the region is 10.2% of total labour costs. At this level of income, the highest marginal tax wedge is 34.6% (Argentina), while there is a zero marginal wedge in Bolivia, Colombia, Costa Rica, Ecuador, Honduras, Nicaragua, Peru and Trinidad and Tobago. At the tenth income decile, the average marginal tax wedge for the region rises to 29.3% of total labour costs with a range of 16% to 39%.

Table 3.5.b. Marginal rate of income tax plus employee and employer contributions less cash benefits, income deciles 1-5, 2013
As % of labour costs, by family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single no ch Income decile 4

Single no ch Income decile 5

Married2 2 ch Income decile 1

Married2 2 ch Income decile 2

Married2 2 ch Income decile 3

Married2 2 ch Income decile 4

Married2 2 ch Income decile 5

Argentina

34.6

34.6

34.6

34.6

34.6

34.6

34.6

34.6

34.6

34.6

Bolivia

0.0

21.6

21.6

21.6

21.6

0.0

21.6

21.6

21.6

21.6

Brazil

31.4

31.4

31.4

31.4

31.4

31.4

31.4

31.4

31.4

31.4

Chile

22.6

22.6

22.6

22.6

22.6

22.6

22.6

22.6

22.6

22.6

Colombia

0.0

30.0

30.0

30.0

30.0

0.0

30.0

30.0

30.0

30.0

Costa Rica

0.0

0.0

0.0

0.0

28.0

0.0

0.0

0.0

0.0

28.0

Dominican Republic

1.2

1.2

1.2

19.2

19.2

1.2

1.2

1.2

19.2

19.2

Ecuador

0.0

18.1

18.1

18.5

18.5

0.0

18.1

18.1

18.5

18.5

El Salvador

0.9

20.5

20.5

20.5

20.5

0.9

20.5

20.5

20.5

20.5

Guatemala

4.8

4.8

4.8

13.2

13.2

4.8

4.8

4.8

13.2

13.2

Honduras

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Jamaica

16.6

16.6

16.6

16.6

16.6

16.6

16.6

16.6

16.6

16.6

Mexico

21.5

21.5

21.8

25.6

25.6

21.5

21.5

21.8

25.6

25.6

Nicaragua

0.0

0.0

2.0

19.2

19.2

0.0

0.0

2.0

19.2

19.2

Panama

22.9

22.9

22.9

22.9

22.9

22.9

22.9

22.9

22.9

22.9

Paraguay

1.0

1.0

20.9

20.9

20.9

1.0

1.0

20.9

20.9

20.9

Peru

0.0

0.0

0.0

17.5

17.5

0.0

0.0

0.0

17.5

17.5

Trinidad and Tobago

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Uruguay

29.3

30.5

30.5

30.5

30.5

29.3

31.6

31.6

31.6

31.6

Venezuela

17.4

17.4

17.4

17.4

17.4

17.4

17.4

17.4

17.4

17.4

Unweighted average

LAC1

10.2

14.7

15.8

19.1

20.5

10.2

14.8

15.9

19.2

20.6

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410328

Table 3.5.c. Marginal rate of income tax plus employee and employer contributions less cash benefits, income deciles 6-10, 2013
As % of labour costs, by family-type and income decile

Country

Single no ch Income decile 6

Single no ch Income decile 7

Single no ch Income decile 8

Single no ch Income decile 9

Single no ch Income decile 10

Married2 2 ch Income decile 6

Married2 2 ch Income decile 7

Married2 2 ch Income decile 8

Married2 2 ch Income decile 9

Married2 2 ch Income decile 10

Argentina

34.6

34.6

34.6

34.6

34.6

34.6

34.6

34.6

34.6

34.6

Bolivia

21.6

21.6

21.6

21.6

29.9

21.6

21.6

21.6

21.6

29.9

Brazil

31.4

32.2

32.2

38.2

22.0

31.4

32.2

32.2

38.7

22.0

Chile

22.6

22.6

22.6

22.6

28.8

22.6

22.6

22.6

22.6

28.8

Colombia

30.0

30.2

30.2

30.2

30.8

30.0

30.2

30.2

30.2

30.8

Costa Rica

28.0

28.0

28.0

28.0

38.9

28.0

28.0

28.0

28.0

38.9

Dominican Republic

19.2

19.2

19.2

19.2

35.9

19.2

19.2

19.2

19.2

35.9

Ecuador

18.5

18.5

18.5

18.5

26.5

18.5

18.5

18.5

18.5

26.5

El Salvador

20.5

20.5

28.4

28.4

30.0

20.5

20.5

28.4

28.4

30.0

Guatemala

13.2

13.2

13.2

16.8

16.8

13.2

13.2

13.2

16.8

16.8

Honduras

0.0

0.0

0.0

0.0

16.7

0.0

0.0

0.0

0.0

16.7

Jamaica

16.6

16.6

16.6

38.4

35.4

16.6

16.6

16.6

38.4

35.4

Mexico

26.6

31.0

32.6

35.5

37.4

26.6

31.0

32.6

35.5

37.4

Nicaragua

19.2

19.2

19.2

26.6

30.3

19.2

19.2

19.2

26.6

30.3

Panama

22.9

22.9

22.9

35.9

35.9

22.9

22.9

22.9

35.9

35.9

Paraguay

20.9

20.9

20.9

20.9

20.9

20.9

20.9

20.9

20.9

20.9

Peru

17.5

17.5

17.5

17.5

31.4

17.5

17.5

17.5

17.5

31.4

Trinidad and Tobago

0.0

0.0

0.0

25.0

25.0

0.0

0.0

0.0

25.0

25.0

Uruguay

30.5

30.5

37.4

41.7

35.2

31.6

31.6

31.6

41.9

36.2

Venezuela

17.4

17.4

17.4

17.4

22.7

17.4

17.4

17.4

17.4

17.4

Unweighted average

LAC1

20.6

20.8

21.7

25.8

29.3

20.6

20.9

21.4

25.9

29.0

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410334

Table 3.5.d. Marginal rate of income tax plus employee and employer contributions less cash benefits, USD equivalent earnings, 2013
As % of labour costs, by family-type and annual labour income

Country

Single no ch USD 10 000

Single no ch USD 48 000

Single no ch USD 60 000

Married2 2 ch USD 10 000

Married2 2 ch USD 48 000

Married2 2 ch USD 60 000

Argentina

34.6

57.5

48.8

34.6

52.3

48.8

Bolivia

21.6

30.5

33.1

21.6

30.5

33.1

Brazil

32.2

27.5

27.5

32.2

27.5

27.5

Chile

22.6

11.5

14.3

22.6

11.5

14.3

Colombia

30.2

33.3

33.3

30.2

33.3

33.3

Costa Rica

28.0

38.9

38.9

28.0

38.9

38.9

Dominican Republic

31.7

32.0

25.0

31.7

32.0

25.0

Ecuador

18.5

28.5

31.8

18.5

28.5

31.8

El Salvador

21.2

38.7

38.7

21.2

38.7

38.7

Guatemala

16.8

16.8

18.3

16.8

16.8

18.3

Honduras

12.5

22.9

22.9

12.5

22.9

22.9

Jamaica

38.4

35.4

35.4

38.4

35.4

35.4

Mexico

35.5

31.2

30.0

35.5

31.2

30.0

Nicaragua

34.0

24.5

24.5

34.0

24.5

24.5

Panama

22.9

35.9

44.6

22.9

35.9

44.6

Paraguay

20.9

27.2

28.8

20.9

27.2

28.8

Peru

31.4

36.9

36.9

31.4

36.9

36.9

Trinidad and Tobago

25.0

25.0

25.0

25.0

25.0

25.0

Uruguay

30.5

35.2

35.2

31.6

36.2

36.2

Venezuela

17.4

20.3

24.2

17.4

20.3

24.2

Unweighted average

LAC1

26.3

30.5

30.9

26.4

30.3

30.9

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410347

Figure 3.5.b. Marginal rate of income tax plus employee and employer contributions less cash benefits, 5th income decile, 2013
As % of labour costs, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933407599

Figure 3.5.c. Marginal rate of income tax plus employee and employer contributions less cash benefits, 10th income decile, 2013
As % of labour costs, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933407608

Figure 3.5.d. Marginal rate of income tax plus employee and employer contributions less cash benefits, USD equivalent earnings, 2013
As % of labour costs for USD 10 000 of annual labour income, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933407611

Tables 3.6.a-Table 3.6.d and Figures 3.6.a-Figure 3.6.d show the marginal rates of personal income taxes, employee social security contributions and cash benefits of a unit increase in annual gross earnings. Across the region, a single person without children on average earnings faced an average marginal rate of 9.3% with different countries ranging from zero to 19.1% compared with the OECD average of 36.1%. There is a similar picture for the one-earner married couple with 2 children.

Table 3.6.a. Marginal rate of income tax and employee contributions less cash benefits, family profiles, 2013
As % of gross wage earnings, by family-type

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Married 2 ch 100 - 0 (% AW)

Married3 2 ch 100 -33 (% AW)

Married3 2 ch 100 - 67 (% AW)

Married3 no ch 100 - 33 (% AW)

Argentina

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

Bolivia

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

Brazil

9.0

9.0

17.0

9.0

9.0

9.0

9.0

9.0

Chile

19.1

19.1

22.3

19.1

19.1

19.1

19.1

19.1

Colombia

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

Costa Rica

9.2

9.2

18.3

9.2

9.2

9.2

9.2

9.2

Dominican Republic

6.0

6.0

6.0

6.0

6.0

6.0

6.0

6.0

Ecuador

9.5

9.5

9.5

9.5

9.5

9.4

9.5

9.4

El Salvador

8.9

8.9

15.4

8.9

8.9

8.9

8.9

8.9

Guatemala

0.8

4.0

8.0

0.8

4.0

4.0

4.0

4.0

Honduras

0.0

0.0

12.5

0.0

0.0

0.0

0.0

0.0

Jamaica

6.7

6.7

31.1

6.7

6.7

6.7

6.7

6.7

Mexico

13.2

18.7

24.0

13.2

18.7

18.7

18.7

18.7

Nicaragua

5.7

5.7

18.6

5.7

5.7

5.7

5.7

5.7

Panama

11.4

11.4

26.4

11.4

11.4

11.4

11.4

11.4

Paraguay

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

Peru

10.9

10.9

25.9

10.9

10.9

10.9

10.9

10.9

Trinidad and Tobago

0.0

0.0

25.0

0.0

0.0

0.0

0.0

0.0

Uruguay

18.0

18.0

31.2

19.4

19.4

19.4

19.4

18.0

Venezuela

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

Unweighted average

LAC1

8.9

9.3

17.0

8.9

9.4

9.4

9.4

9.3

OECD2

31.8

36.1

40.4

35.5

34.9

36.8

34.3

34.2

Note: ch denotes children and AW denotes the average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.7. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

3. Assumes a one unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410357

Table 3.6.b. Marginal rate of income tax and employee contributions less cash benefits, income deciles 1-5, 2013
As % of gross wage earnings, by family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single no ch Income decile 4

Single no ch Income decile 5

Married2 2 ch Income decile 1

Married2 2 ch Income decile 2

Married2 2 ch Income decile 3

Married2 2 ch Income decile 4

Married2 2 ch Income decile 5

Argentina

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

Bolivia

0.0

10.6

10.6

10.6

10.6

0.0

10.6

10.6

10.6

10.6

Brazil

8.0

8.0

8.0

8.0

8.0

8.0

8.0

8.0

8.0

8.0

Chile

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

19.1

Colombia

0.0

7.0

7.0

7.0

7.0

0.0

7.0

7.0

7.0

7.0

Costa Rica

0.0

0.0

0.0

0.0

9.2

0.0

0.0

0.0

0.0

9.2

Dominican Republic

0.0

0.0

0.0

6.0

6.0

0.0

0.0

0.0

6.0

6.0

Ecuador

0.0

9.4

9.4

9.4

9.4

0.0

9.4

9.4

9.4

9.4

El Salvador

0.0

8.9

8.9

8.9

8.9

0.0

8.9

8.9

8.9

8.9

Guatemala

0.8

0.8

0.8

4.0

4.0

0.8

0.8

0.8

4.0

4.0

Honduras

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Jamaica

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

6.7

Mexico

8.5

8.5

8.7

13.2

13.2

8.5

8.5

8.7

13.2

13.2

Nicaragua

0.0

0.0

0.0

5.7

5.7

0.0

0.0

0.0

5.7

5.7

Panama

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

11.4

Paraguay

0.0

0.0

9.0

9.0

9.0

0.0

0.0

9.0

9.0

9.0

Peru

0.0

0.0

0.0

10.9

10.9

0.0

0.0

0.0

10.9

10.9

Trinidad and Tobago

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Uruguay

16.6

18.0

18.0

18.0

18.0

16.6

19.4

19.4

19.4

19.4

Venezuela

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5

Unweighted average

LAC1

4.7

6.5

7.0

8.5

9.0

4.7

6.6

7.1

8.6

9.0

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410362

Table 3.6.c. Marginal rate of income tax and employee contributions less cash benefits, income deciles 6-10, 2013
As % of gross wage earnings, by family-type and income decile

Country

Single no ch Income decile 6

Single no ch Income decile 7

Single no ch Income decile 8

Single no ch Income decile 9

Single no ch Income decile 10

Married2 2 ch Income decile 6

Married2 2 ch Income decile 7

Married2 2 ch Income decile 8

Married2 2 ch Income decile 9

Married2 2 ch Income decile 10

Argentina

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

17.0

Bolivia

10.6

10.6

10.6

10.6

20.1

10.6

10.6

10.6

10.6

20.1

Brazil

8.0

9.0

9.0

17.0

22.0

8.0

9.0

9.0

17.7

22.0

Chile

19.1

19.1

19.1

19.1

25.6

19.1

19.1

19.1

19.1

25.6

Colombia

7.0

7.0

7.0

7.0

7.9

7.0

7.0

7.0

7.0

7.9

Costa Rica

9.2

9.2

9.2

9.2

22.9

9.2

9.2

9.2

9.2

22.9

Dominican Republic

6.0

6.0

6.0

6.0

25.4

6.0

6.0

6.0

6.0

25.4

Ecuador

9.4

9.4

9.5

9.4

18.3

9.4

9.4

9.5

9.4

18.3

El Salvador

8.9

8.9

18.0

18.0

24.8

8.9

8.9

18.0

18.0

24.8

Guatemala

4.0

4.0

4.0

8.0

8.0

4.0

4.0

4.0

8.0

8.0

Honduras

0.0

0.0

0.0

0.0

16.7

0.0

0.0

0.0

0.0

16.7

Jamaica

6.7

6.7

6.7

31.1

29.2

6.7

6.7

6.7

31.1

29.2

Mexico

13.6

18.7

20.6

24.0

26.3

13.6

18.7

20.6

24.0

26.3

Nicaragua

5.7

5.7

5.7

14.3

18.6

5.7

5.7

5.7

14.3

18.6

Panama

11.4

11.4

11.4

26.4

26.4

11.4

11.4

11.4

26.4

26.4

Paraguay

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

9.0

Peru

10.9

10.9

10.9

10.9

25.9

10.9

10.9

10.9

10.9

25.9

Trinidad and Tobago

0.0

0.0

0.0

25.0

25.0

0.0

0.0

0.0

25.0

25.0

Uruguay

18.0

18.0

26.2

31.2

23.6

19.4

19.4

19.4

31.5

24.8

Venezuela

5.5

5.5

5.5

5.5

11.5

5.5

5.5

5.5

5.5

5.5

Unweighted average

LAC1

9.0

9.3

10.3

14.9

20.2

9.1

9.4

9.9

15.0

20.0

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410374

Table 3.6.d. Marginal rate of income tax and employee contributions less cash benefits, USD equivalent earnings, 2013
As % of gross wage earnings, by family-type and annual labour income

Country

Single no ch USD 10 000

Single no ch USD 48 000

Single no ch USD 60 000

Married2 2 ch USD 10 000

Married2 2 ch USD 48 000

Married2 2 ch USD 60 000

Argentina

17.0

46.1

35.0

17.0

39.4

35.0

Bolivia

10.6

20.8

23.7

10.6

20.8

23.7

Brazil

9.0

27.5

27.5

9.0

27.5

27.5

Chile

19.1

8.6

13.5

19.1

8.6

13.5

Colombia

7.0

7.9

7.9

7.0

7.9

7.9

Costa Rica

9.2

22.9

22.9

9.2

22.9

22.9

Dominican Republic

20.5

27.2

25.0

20.5

27.2

25.0

Ecuador

9.5

20.6

24.3

9.5

20.6

24.3

El Salvador

15.4

34.2

34.2

15.4

34.2

34.2

Guatemala

8.0

8.0

9.6

8.0

8.0

9.6

Honduras

12.5

22.9

22.9

12.5

22.9

22.9

Jamaica

31.1

29.3

29.2

31.1

29.3

29.2

Mexico

24.0

30.4

30.0

24.0

30.4

30.0

Nicaragua

22.9

22.9

22.9

22.9

22.9

22.9

Panama

11.4

26.4

36.4

11.4

26.4

36.4

Paraguay

9.0

16.3

18.1

9.0

16.3

18.1

Peru

25.9

31.9

31.9

25.9

31.9

31.9

Trinidad and Tobago

25.0

25.0

25.0

25.0

25.0

25.0

Uruguay

18.0

23.6

23.6

19.4

24.8

24.8

Venezuela

5.5

17.4

21.4

5.5

17.4

21.4

Unweighted average

LAC1

15.5

23.5

24.3

15.6

23.2

24.3

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410387

Figure 3.6.a. Marginal rate of income tax and employee contributions less cash benefits, 2013
As % of gross wage earnings, by family-type
picture

Note: Both the single worker without children and the one-earner married couple with 2 children are assumed to earn the average wage.

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.7. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

3. Assumes a one unit currency rise in labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933407621

Figure 3.6.b. Marginal rate of income tax and employee contributions less cash benefits, 5th income decile, 2013
As % of gross wage earnings, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933407631

Figure 3.6.c. Marginal rate of income tax and employee contributions less cash benefits, 10th income decile, 2013
As % of gross wage earnings, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933407646

Figure 3.6.d. Marginal rate of income tax and employee contributions less cash benefits, USD equivalent earnings, 2013
As % of gross wage earnings and for annual labour income of USD 10 000, by family-type
picture

1. Represents the unweighted average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933407658

Tables 3.6.b and 3.6.c show the estimates of the marginal rate of income tax and employee social security contributions minus cash benefits over the whole of the labour income distribution. The figures show that the marginal rate increases as incomes rise. For a single individual without children, the average marginal rate across the region is 4.7% at the first income decile increasing to 20.2% at the tenth decile. At the tenth decile, the marginal rates range from 7.9% in Colombia to 29.2% in Jamaica. For the one-earner married couple with 2 children, the variation in the average rate across the income distribution is slightly smaller, ranging from 4.7% to 20.0%. It is notable that over the whole of the labour income distribution, Trinidad and Tobago has a zero marginal rate until the ninth decile of income and Honduras until the tenth decile of income for both family profiles.

Tables 3.7.a-Table 3.7.d present the percentage increases in net income when gross wage earnings rise by 1 currency unit (the elasticity of after-tax income).3 Under a proportional tax system, net income would increase in the same proportion as the increase in gross wage earnings, in which case the elasticity is equal to 1. The more progressive the system is – at the earnings level considered – the lower the elasticity will be. In contrast, higher elasticities imply that a percentage increase in gross payment leads to an increase in net income in excess of the percentage increase in gross wage earnings and thus a regressive tax system. For a single earner without children on the average wage, the most progressive system, on this measure, is Mexico (0.91). The remainder of the countries exhibit proportional tax systems (elasticity of 1), with the exception of Honduras (1.04) and Trinidad and Tobago (1.05). The average for the region displays a proportional tax system (elasticity of 1) in which net income increases at the same percentage of gross earnings (1.0). In comparison, the corresponding OECD average is 0.85. These results are very similar for the one-earner married couple with 2 children, except for Argentina (0.98), Colombia (0.96), Costa Rica (0.99) and Uruguay (0.97). For the other countries, the elasticity of the after-tax income equals 1. The regional average was 0.99 well above the corresponding OECD average of 0.73.

Table 3.7.a. Increase in net income after an increase of 1 currency unit in gross wage earnings, family profiles, 20131
By family-type and wage level

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Married 2 ch 100 - 0 (% AW)

Married 2 ch 100 -33 (% AW)4

Married 2 ch 100 - 67 (% AW)4

Married no ch 100 - 33 (% AW)4

Argentina

1.00

1.00

1.00

0.94

0.98

0.98

0.99

1.00

Bolivia

1.00

1.00

1.00

1.00

1.00

0.97

1.00

0.97

Brazil

1.00

1.00

0.95

1.00

1.00

0.97

1.00

1.00

Chile

1.00

1.00

0.97

0.99

1.00

0.97

1.00

1.00

Colombia

1.00

1.00

1.00

0.94

0.96

0.92

0.95

0.98

Costa Rica

1.00

1.00

0.90

0.99

0.99

0.97

0.99

0.97

Dominican Republic

1.00

1.00

1.00

1.00

1.00

0.98

1.00

0.98

Ecuador

1.00

1.00

1.00

1.00

1.00

0.97

1.00

0.97

El Salvador

1.00

1.00

0.98

1.00

1.00

0.98

1.00

0.98

Guatemala

1.00

1.00

0.97

1.00

1.00

0.99

0.99

0.99

Honduras

1.00

1.04

0.90

1.00

1.04

1.03

1.02

1.03

Jamaica

1.00

1.00

0.77

1.00

1.00

1.00

1.00

1.00

Mexico

0.90

0.91

0.90

0.90

0.91

0.87

0.88

0.87

Nicaragua

1.00

1.00

0.90

1.00

1.00

0.99

1.00

0.99

Panama

1.00

1.00

0.87

1.00

1.00

1.00

1.00

1.00

Paraguay

1.00

1.00

1.00

1.00

1.00

0.98

1.00

0.98

Peru

1.00

1.00

0.84

1.00

1.00

0.97

1.00

0.97

Trinidad and Tobago

1.05

1.05

0.84

1.05

1.05

1.05

1.05

1.05

Uruguay

1.00

1.00

0.89

0.93

0.97

0.97

0.98

1.00

Venezuela

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Unweighted average

LAC2

1.00

1.00

0.93

0.99

0.99

0.98

0.99

0.99

OECD3

0.87

0.85

0.86

0.69

0.73

0.74

0.79

0.83

Note: ch denotes children and AW denotes average wage.

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee social security contributions less cash benefits reported in Table 3.6.a and AETR is the average rate of income tax plus employee social security contributions less cash benefits reported in Table 3.2.a.

2. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

3. The source for OECD averages is OECD (2014) Taxing Wages, Table I.8. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

4. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410396

Table 3.7.b. Increase in net income after an increase of 1 currency unit in gross wage earnings, income deciles 1-5, 20131
By family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single no ch Income decile 4

Single no ch Income decile 5

Married3 2 ch Income decile 1

Married3 2 ch Income decile 2

Married3 2 ch Income decile 3

Married3 2 ch Income decile 4

Married3 2 ch Income decile 5

Argentina

1.00

1.00

1.00

1.00

0.66

0.77

0.80

0.82

0.88

Bolivia

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Brazil

1.00

1.00

1.00

1.00

1.00

0.93

0.93

0.94

0.95

1.00

Chile

1.00

1.00

1.00

1.00

1.00

0.87

0.91

0.94

0.95

0.95

Colombia

1.00

1.00

1.00

1.00

1.00

0.92

0.93

0.94

0.94

0.95

Costa Rica

1.00

1.00

1.00

1.00

1.00

0.96

0.98

0.98

0.98

0.98

Dominican Republic

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Ecuador

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

El Salvador

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Guatemala

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Honduras

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Jamaica

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Mexico

0.78

0.87

0.90

0.88

0.90

0.78

0.87

0.90

0.88

0.90

Nicaragua

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Panama

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Paraguay

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Peru

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Trinidad and Tobago

1.10

1.07

1.06

1.06

1.06

1.10

1.07

1.06

1.06

1.06

Uruguay

1.00

1.00

1.00

1.00

1.00

0.85

0.89

0.91

0.92

0.93

Venezuela

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Unweighted average

LAC2

0.99

1.00

1.00

1.00

1.00

0.95

0.97

0.97

0.97

0.98

Note: ch denotes children.

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee social security contributions less cash benefits reported in Table 3.6.b and AETR is the average rate of income tax plus employee social security contributions less cash benefits reported in Table 3.2.b.

2. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

3. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410405

Table 3.7.c. Increase in net income after an increase of 1 currency unit in gross wage earnings, income deciles 6-10, 20131
By family-type and income decile

Country

Single no ch decile 6

Single no ch decile 7

Single no ch decile 8

Single no ch decile 9

Single no ch decile 10

Married3 2 ch decile 6

Married3 2 ch decile 7

Married3 2 ch decile 8

Married3 2 ch decile 9

Married3 2 ch decile 10

Argentina

1.00

1.00

1.00

1.00

1.00

0.89

0.94

0.97

0.98

0.98

Bolivia

1.00

1.00

1.00

1.00

0.92

1.00

1.00

1.00

1.00

0.92

Brazil

1.00

1.00

1.00

0.94

0.94

1.00

1.00

1.00

0.93

0.94

Chile

1.00

1.00

1.00

1.00

0.94

0.96

0.99

0.99

1.00

0.94

Colombia

1.00

1.00

1.00

1.00

1.00

0.95

0.96

0.97

0.98

1.00

Costa Rica

1.00

1.00

1.00

1.00

0.90

0.99

0.99

0.99

0.99

0.89

Dominican Republic

1.00

1.00

1.00

1.00

0.86

1.00

1.00

1.00

1.00

0.86

Ecuador

1.00

1.00

1.00

1.00

0.93

1.00

1.00

1.00

1.00

0.93

El Salvador

1.00

1.00

0.94

0.95

0.92

1.00

1.00

0.94

0.95

0.92

Guatemala

1.00

1.00

1.00

0.96

0.98

1.00

1.00

1.00

0.96

0.98

Honduras

1.00

1.04

1.03

1.02

0.89

1.00

1.04

1.03

1.02

0.89

Jamaica

1.00

1.00

1.00

0.78

0.91

1.00

1.00

1.00

0.78

0.91

Mexico

0.92

0.91

0.91

0.90

0.93

0.92

0.91

0.91

0.90

0.93

Nicaragua

1.00

1.00

1.00

0.93

0.94

1.00

1.00

1.00

0.93

0.94

Panama

1.00

1.00

1.00

0.85

0.93

1.00

1.00

1.00

0.84

0.92

Paraguay

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Peru

1.00

1.00

1.00

1.00

0.90

1.00

1.00

1.00

1.00

0.90

Trinidad and Tobago

1.05

1.05

1.05

0.83

0.90

1.05

1.05

1.05

0.83

0.90

Uruguay

1.00

1.00

0.91

0.88

1.03

0.97

0.97

0.98

0.86

1.01

Venezuela

1.00

1.00

1.00

1.00

0.95

1.00

1.00

1.00

1.00

1.00

Unweighted average

LAC2

1.00

1.00

0.99

0.95

0.94

0.99

0.99

0.99

0.95

0.94

Note: ch denotes children.

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee social security contributions less cash benefits reported in Table 3.6.c and AETR is the average rate of income tax plus employee social security contributions less cash benefits reported in Table 3.2.c.

2. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

3. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410419

Table 3.7.d. Increase in net income after an increase of 1 currency unit in gross wage earnings, USD equivalent earnings, 2013
By family-type and annual labour income

Country

Single no ch USD 10 000

Single no ch USD 48 000

Single no ch USD 60 000

Married3 2 ch USD 10 000

Married3 2 ch USD 48 000

Married3 2 ch USD 60 000

Argentina

1.00

0.75

0.95

0.83

0.79

0.90

Bolivia

1.00

0.97

0.98

1.00

0.97

0.98

Brazil

1.00

0.90

0.92

1.00

0.90

0.92

Chile

1.00

1.13

1.04

0.99

1.13

1.04

Colombia

1.00

1.04

1.07

0.97

1.04

1.07

Costa Rica

1.00

0.92

0.94

0.99

0.92

0.94

Dominican Republic

0.85

0.94

0.97

0.85

0.94

0.97

Ecuador

1.00

0.95

0.92

1.00

0.95

0.92

El Salvador

0.99

0.90

0.92

0.99

0.90

0.92

Guatemala

0.97

0.99

0.98

0.97

0.99

0.98

Honduras

0.90

0.91

0.92

0.90

0.91

0.92

Jamaica

0.84

0.97

0.98

0.84

0.97

0.98

Mexico

0.87

0.93

0.95

0.87

0.93

0.95

Nicaragua

0.89

0.98

0.99

0.89

0.98

0.99

Panama

1.00

0.96

0.85

1.00

0.95

0.85

Paraguay

1.00

0.92

0.92

1.00

0.92

0.92

Peru

0.84

0.89

0.91

0.84

0.89

0.91

Trinidad and Tobago

0.79

0.95

0.96

0.79

0.95

0.96

Uruguay

1.00

1.02

1.02

0.94

1.01

1.01

Venezuela

1.00

1.02

1.09

1.00

1.01

1.08

Unweighted average

LAC2

0.95

0.95

0.96

0.93

0.95

0.96

Note: ch denotes children.

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee social security contributions less cash benefits reported in Table 3.6.d and AETR is the average rate of income tax plus employee social security contributions less cash benefits reported in Table 3.2.d.

2. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

3. Assumes a one-unit currency rise in gross wage earnings of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410425

Figure 3.7 shows that the average elasticity coefficients of a single individual without children in the region vary across the labour income distribution from 0.94 to 1.00. At the lower and middle levels of income the tax systems tend to be proportional on average becoming slightly more progressive at the higher levels (income deciles 8 to 10). For the one-earner married couple with two children, the elasticity coefficients range from 0.94 to 0.99. In this case, the average elasticity coefficient is slightly progressive at the lowest income deciles. As income rises, the average coefficient tends to become more proportional until the eigth income decile where it starts to become more progressive.

Figure 3.7. LAC average: Increase in net income after an increase of 1 currency unit in gross wage earnings, 20131
by family-type and income decile
picture

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee social security contributions less cash benefits reported in Tables 3.6.b and 3.6.b and AETR is the average rate of income tax plus employee social security contributions less cash benefits reported in Table 3.2.b and 3.2.c.

 http://dx.doi.org/10.1787/888933407665

Tables 3.8.a-Table 3.8.d provide a related but different form of elasticity measure: the percentage increase in net income when labour costs (i.e. gross wage earnings plus employer social security contributions and payroll taxes) rise by 1 currency unit.4 In this case, taxes and social security payments made by employers are also part of the analysis. For a single individual without children on the average wage, the most common value of the elasticity across the region is 1.0, the exceptions being Mexico (0.94), Honduras (1.11) and Trinidad and Tobago (1.12). The average elasticity for the region as a whole is 1.01, 0.16 percentage points higher than the OECD average of 0.85. At 167% of the average wage, the average elasticity for the region is reduced to 0.94 compared with 0.86 for OECD countries. The most progressive systems are Jamaica (0.77), Peru (0.84) and Panama (0.87), while the only regressive, on this measure, is El Salvador (1.05).

Table 3.8.a. Increase in net income after an increase of 1 currency unit in gross labour costs, family profiles, 20131
By family-type and wage level

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Married 2 ch 100 - 0 (% AW)

Married 2 ch 100 -33 (% AW)4

Married 2 ch 100 - 67 (% AW)4

Married no ch 100 - 33 (% AW)4

Argentina

1.00

1.00

1.00

0.94

0.98

0.98

0.99

1.00

Bolivia

1.00

1.00

1.00

1.00

1.00

0.94

1.00

0.94

Brazil

1.00

1.00

0.95

1.00

1.00

0.97

1.00

1.00

Chile

1.00

1.00

0.97

0.99

1.00

0.97

1.00

1.00

Colombia

1.00

1.00

1.00

0.94

0.96

0.87

0.95

0.92

Costa Rica

1.00

1.00

0.90

0.99

0.99

0.92

0.99

0.92

Dominican Republic

1.00

1.00

1.00

1.00

1.00

0.95

1.00

0.95

Ecuador

1.00

1.00

1.00

1.00

1.00

0.95

1.00

0.95

El Salvador

1.00

1.00

1.05

1.00

1.00

0.95

1.00

0.95

Guatemala

1.00

1.00

0.97

1.00

1.00

0.98

0.96

0.98

Honduras

1.00

1.11

0.94

1.00

1.11

1.08

1.07

1.08

Jamaica

1.00

1.00

0.77

1.00

1.00

1.00

1.00

1.00

Mexico

0.96

0.94

0.92

0.96

0.94

0.92

0.92

0.92

Nicaragua

1.00

1.00

0.90

1.00

1.00

0.95

1.00

0.95

Panama

1.00

1.00

0.87

1.00

1.00

1.00

1.00

1.00

Paraguay

1.00

1.00

1.00

1.00

1.00

0.95

1.00

0.95

Peru

1.00

1.00

0.84

1.00

1.00

0.95

1.00

0.95

Trinidad and Tobago

1.13

1.12

0.90

1.13

1.12

1.13

1.13

1.13

Uruguay

1.00

1.00

0.89

0.93

0.97

0.97

0.98

1.00

Venezuela

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Unweighted averages

LAC2

1.00

1.01

0.94

0.99

1.00

0.97

1.00

0.98

OECD3

0.87

0.85

0.86

0.69

0.73

0.74

0.79

0.83

Note: ch denotes children and AW denotes the average wage.

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee and employer social security contributions less cash benefits reported in Table 3.5.a and AETR is the average rate plus employee and employer social security contributions less cash benefits reported in Table 3.1.a.

2. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

3. The source for OECD averages is OECD (2014) Taxing Wages, Table I.9. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

4. Assumes a one-unit currency rise in gross labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410436

Table 3.8.b. Increase in net income after an increase of 1 currency unit in gross labour costs, income deciles 1-5, 20131
By family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single no ch Income decile 4

Single no ch Income decile 5

Married3 2 ch Income decile 1

Married3 2 ch Income decile 2

Married3 2 ch Income decile 3

Married3 2 ch Income decile 4

Married3 2 ch Income decile 5

Argentina

1.00

1.00

1.00

1.00

1.00

0.66

0.77

0.80

0.82

0.88

Bolivia

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Brazil

1.00

1.00

1.00

1.00

1.00

0.93

0.93

0.94

0.95

1.00

Chile

1.00

1.00

1.00

1.00

1.00

0.87

0.91

0.94

0.95

0.95

Colombia

1.00

1.00

1.00

1.00

1.00

0.92

0.93

0.94

0.94

0.95

Costa Rica

1.00

1.00

1.00

1.00

1.00

0.96

0.98

0.98

0.98

0.98

Dominican Republic

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Ecuador

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

El Salvador

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Guatemala

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Honduras

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Jamaica

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Mexico

0.94

0.97

0.98

0.94

0.96

0.94

0.97

0.98

0.94

0.96

Nicaragua

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Panama

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Paraguay

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Peru

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Trinidad and Tobago

1.19

1.16

1.15

1.15

1.14

1.19

1.16

1.15

1.15

1.14

Uruguay

1.00

1.00

1.00

1.00

1.00

0.85

0.89

0.91

0.92

0.93

Venezuela

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Unweighted average

LAC2

1.01

1.01

1.01

1.00

1.01

0.97

0.98

0.98

0.98

0.99

Note: ch denotes children.

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee and employer social security contributions less cash benefits reported in Tables 3.5.b and AETR is the average rate plus employee and employer social security contributions less cash benefits reported in Table 3.1.b.

2. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

3. Assumes a one-unit currency rise in gross labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410445

Table 3.8.c. Increase in net income after an increase of 1 currency unit in gross labour costs, income deciles 6-10, 20131
By family-type and income decile

Country

Single no ch Income decile 6

Single no ch Income decile 7

Single no ch Income decile 8

Single no ch Income decile 9

Single no ch Income decile 10

Married3 2 ch Income decile 6

Married3 2 ch Income decile 7

Married3 2 ch Income decile 8

Married3 2 ch Income decile 9

Married3 2 ch Income decile 10

Argentina

1.00

1.00

1.00

1.00

1.00

0.86

0.94

0.97

0.98

0.98

Bolivia

1.00

1.00

1.00

1.00

0.92

1.00

1.00

1.00

1.00

0.92

Brazil

1.00

1.00

1.00

0.94

1.15

1.00

1.00

1.00

0.93

1.15

Chile

1.00

1.00

1.00

1.00

0.94

0.96

0.99

0.99

1.00

0.94

Colombia

1.00

1.00

1.00

1.00

1.00

0.95

0.96

0.97

0.98

1.00

Costa Rica

1.00

1.00

1.00

1.00

0.90

0.99

0.99

0.99

0.99

0.89

Dominican Republic

1.00

1.00

1.00

1.00

0.86

1.00

1.00

1.00

1.00

0.86

Ecuador

1.00

1.00

1.00

1.00

0.93

1.00

1.00

1.00

1.00

0.93

El Salvador

1.00

1.00

0.94

0.95

0.95

1.00

1.00

0.94

0.95

0.95

Guatemala

1.00

1.00

1.00

0.96

0.98

1.00

1.00

1.00

0.96

0.98

Honduras

1.00

1.11

1.09

1.07

0.92

1.00

1.11

1.09

1.07

0.92

Jamaica

1.00

1.00

1.00

0.78

0.93

1.00

1.00

1.00

0.78

0.93

Mexico

0.96

0.94

0.93

0.92

0.94

0.96

0.94

0.93

0.92

0.94

Nicaragua

1.00

1.00

1.00

0.93

0.94

1.00

1.00

1.00

0.93

0.94

Panama

1.00

1.00

1.00

0.85

0.93

1.00

1.00

1.00

0.84

0.92

Paraguay

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

Peru

1.00

1.00

1.00

1.00

0.90

1.00

1.00

1.00

1.00

0.90

Trinidad and Tobago

1.14

1.14

1.13

0.89

0.95

1.14

1.14

1.13

0.89

0.95

Uruguay

1.00

1.00

0.91

0.88

1.03

0.97

0.97

0.98

0.86

1.01

Venezuela

1.00

1.00

1.00

1.00

0.95

1.00

1.00

1.00

1.00

1.00

Unweighted average

LAC2

1.01

1.01

1.00

0.96

0.96

0.99

1.00

1.00

0.95

0.96

Note: ch denotes children.

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee and employer social security contributions less cash benefits reported in Tables 3.5.c and AETR is the average rate plus employee and employer social security contributions less cash benefits reported in Table 3.1.c.

2. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

3. Assumes a one-unit currency rise in gross labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410450

Table 3.8.d. Increase in net income after an increase of 1 currency unit in gross labour costs, USD equivalent earnings, 2013
By family-type and annual labour income

Country

Single no ch USD 10 000

Single no ch USD 48 000

Single no ch USD 60 000

Married3 2 ch USD 10 000

Married3 2 ch USD 48 000

Married3 2 ch USD 60 000

Argentina

1.00

0.75

0.95

0.83

0.79

0.90

Bolivia

1.00

0.97

0.98

1.00

0.97

0.98

Brazil

1.00

1.05

1.04

1.00

1.05

1.04

Chile

1.00

1.14

1.08

0.99

1.14

1.08

Colombia

1.00

1.04

1.07

0.97

1.04

1.07

Costa Rica

1.00

0.92

0.94

0.99

0.92

0.94

Dominican Republic

0.85

0.98

1.07

0.85

0.98

1.07

Ecuador

1.00

0.95

0.92

1.00

0.95

0.92

El Salvador

1.05

0.91

0.93

1.05

0.91

0.93

Guatemala

0.97

0.99

0.98

0.97

0.99

0.98

Honduras

0.94

0.92

0.93

0.94

0.92

0.93

Jamaica

0.84

0.98

0.98

0.84

0.98

0.98

Mexico

0.90

1.09

1.09

0.90

1.09

1.09

Nicaragua

0.89

1.04

1.03

0.89

1.04

1.03

Panama

1.00

0.96

0.85

1.00

0.95

0.85

Paraguay

1.00

0.92

0.92

1.00

0.92

0.92

Peru

0.84

0.89

0.91

0.84

0.89

0.91

Trinidad and Tobago

0.85

0.97

0.98

0.85

0.97

0.98

Uruguay

1.00

1.02

1.02

0.94

1.01

1.01

Venezuela

1.00

1.08

1.15

1.00

1.07

1.13

Unweighted average

LAC2

0.96

0.98

0.99

0.94

0.98

0.99

Note: ch denotes children.

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee and employer social security contributions less cash benefits reported in Tables 3.5.c and AETR is the average rate plus employee and employer social security contributions less cash benefits reported in Table 3.1.c.

2. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

3. Assumes a one-unit currency rise in gross labour costs of the principal earner within the household.

 http://dx.doi.org/10.1787/888933410461

For the one-earner married couple with 2 children the regional average is 1.0 compared with 0.73 for the OECD. The lowest elasticities were 0.94 (Mexico), 0.96 (Colombia), 0.97 (Uruguay) and 0.98 (Argentina); whereas the highest elasticities were 1.11 (Honduras) and 1.12 (Trinidad and Tobago).

Figure 3.8 compares the regional averages for the single worker without children and the one-earner married couple with 2 children. For a single individual the elasticity tends to be either 1.0 or slightly higher until the ninth income decile when it reduces to 0.96. In contrast, the one-earner married couple with 2 children shows more progressivity at the lower income deciles, becoming proportional in the middle income deciles and then progressive at the higher levels of income. It should be noted that that the two family profiles shown in Figure 3.8 converge at the higher income deciles.

Figure 3.8. LAC average: Increase in net income after an increase of 1 currency unit in labour costs, 20131
by family-type and income decile
picture

1. The reported elasticities are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee and employer social security contributions less cash benefits reported in Tables 3.5.b and 3.5.c and AETR is the average rate of income tax plus employee and employer social security contributions less cash benefits reported in Tables 3.1.b and 3.1.c.

 http://dx.doi.org/10.1787/888933407677

Tables 3.9.a and 3.9.b show the annual gross wage and net income, in USD equivalents using purchasing power parities (PPP), for the 8 family-types. At the average wage, total earnings before taxes varied from USD 5 932 (Jamaica) to USD 31 808 (Argentina). The average for the region is USD 13 771 which is about one-third of the USD 40 292 equivalent for OECD countries. Once taxes are taken into account, the net income for the average single worker in the region varied from USD 5 535 (Jamaica) to USD 26 400 (Argentina). The average for the region was USD 12 347, about 41% of the OECD average (USD 29 592).

Table 3.9.a. Annual gross wage and net income, single person, 2013
In US dollars using PPP, by family-type and wage level

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Argentina

21 331

17 688

31 808

26 400

53 119

44 089

21 311

18 869

Bolivia

8 382

7 492

12 510

11 182

20 892

18 673

8 382

7 492

Brazil

9 482

8 629

14 152

12 879

23 634

20 577

9 482

8 629

Chile

12 815

10 370

19 127

15 478

31 943

25579

12 815

10 486

Colombia

7 958

7 400

11 878

11 045

19 836

18 444

7 958

7 878

Costa Rica

10 338

9 390

15 430

14 015

25 768

23 397

10 338

9 478

Dominican Republic

7 512

7 064

11 212

10 543

18 724

17 608

7 512

7 064

Ecuador

9 755

8 833

14 559

13 183

24 313

22 016

9 755

8 833

El Salvador

7 213

6 574

10 766

9 811

17 980

15 480

7 213

6 574

Guatemala

8 337

8 267

12 443

11 941

20 780

19 757

8 337

8 267

Honduras

7 692

7 692

11 480

11 062

19 171

18 588

7 692

7 692

Jamaica

3 974

3 708

5 932

5 535

9 906

8 924

3 974

3 708

Mexico

8 512

8 193

12 705

11 312

21 218

17 913

8 512

8 193

Nicaragua

5 520

5 203

8239

7 766

13 759

12 493

5 520

5 203

Panama

10 855

9 619

16 202

14 356

27 057

22 821

10 855

9 619

Paraguay

10 454

9 513

15602

14 198

26 056

23 711

10 454

9 513

Peru

7 494

6 680

11 185

9 970

18 678

16 398

7 494

6 680

Trinidad and Tobago

7 977

7 570

11 906

11367

19884

17 840

7 977

7 570

Uruguay

9 766

8 007

14 576

11 950

24 342

18 908

9 766

8 498

Venezuela

9 180

8674

13 701

12 947

22 881

21 621

9 180

8 674

Unweighted averages

LAC1

9 226

8 328

13 771

12 347

22 997

20 242

9 226

8 446

OECD2

26 862

20 890

40 292

29 592

67 154

45 428

26 924

25 816

Note: ch denotes children and AW denotes average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.10a. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933410477

Table 3.9.b. Annual gross wage and net income, married couple, 2013
In USD using PPP, by family-type and wage level

Country

Married 2 ch Income decile 100 - 0 (% AW)

Married 2 ch Income decile 100 - 33 (% AW)

Married 2 ch Income decile 100 - 67 (% AW)

Married no ch Income decile 100 - 33 (% AW)

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Argentina

31 808

27 056

42 304

35 768

53 119

44 745

42 304

35 112

Bolivia

12 510

11 182

16 639

15 310

20 892

18 673

16 639

15 310

Brazil

14 152

12 879

18 822

17 672

23 634

21 507

18 822

17 175

Chile

19 127

15 478

25 439

21 155

31 943

25 964

25 439

20 586

Colombia

11 878

11 522

15 797

15 920

19 836

19 400

15 797

14 964

Costa Rica

15 430

14 169

20 521

19 261

25 768

23 606

20 521

19 173

Dominican Republic

11 212

10 543

14 912

14 243

18 724

17 608

14 912

14 243

Ecuador

14 559

13 183

19 363

17 988

24 313

22 016

19 363

17 988

El Salvador

10 766

9 811

14 319

13 364

17 980

16 385

14 319

13 364

Guatemala

12 443

11 941

16 550

16 013

20 780

20 208

16 550

16 013

Honduras

11 480

11 062

15 268

14 851

19 171

18 754

15 268

14 851

Jamaica

5 932

5 535

7 889

7 361

9 906

9 243

7 889

7 361

Mexico

12 705

11 312

16 898

15 810

21 218

19 506

16 898

15 810

Nicaragua

8 239

7 766

10 957

10 485

13 759

12 969

10 957

10 485

Panama

16 202

14 356

21 548

19 094

27 057

23 975

21 548

19 094

Paraguay

15 602

14 198

20 751

19 347

26 056

23 711

20 751

19 347

Peru

11 185

9 970

14 875

13 661

18 678

16 649

14 875

13 661

Trinidad and Tobago

11 906

11 367

15 836

15 051

19 884

18 937

15 836

15 051

Uruguay

14 576

12 062

19 386

16 072

24 342

19 934

19 386

15 960

Venezuela

13 701

12 947

18 223

17 219

22 881

21 621

18 223

17 219

Unweighted average

LAC1

13 771

12 417

18 315

16 782

22 997

20 771

18 315

16 638

OECD2

40 480

34 366

53 973

44 504

67 467

53 422

53 848

41 462

Note: ch denotes children and AW denotes average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.10a. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933410482

Tables 3.9.c-Table 3.9.f show the corresponding figures for two family profiles over the whole of the labour income distribution. Gross labour income in the region varied from an average of USD 4 542 in the first income decile to USD 38 947 in the tenth decile. In the first decile, it varied from USD 973 (Jamaica) to USD 7 365 (Venezuela). In the tenth decile, the range was USD 24 795 (Jamaica) to USD 55 960 (Chile). Once taxes are accounted for, the net income of a single individual without children in the first income decile ranged from USD 908 (Jamaica) to USD 6 959 (Venezuela). The corresponding range for the tenth decile was USD 19 188 (Jamaica) to USD 46 231 (Colombia). The situation is very similar for the married one-earner married couple with 2 children.

Table 3.9.c. Annual gross wage and net income, single person without children, income deciles 1-5, 2013
In USD using PPP, by family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single no ch Income decile 4

Single no ch Income decile 5

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Argentina

6 256

5 193

10 440

8 665

12 909

10 714

14 749

12 242

16 391

13 604

Bolivia

4 267

4 267

6 056

5 413

7 350

6 570

8 446

7 549

9 713

8 682

Brazil

4 841

4 453

5 233

4 815

5 898

5 426

6 726

6 188

7 710

7 093

Chile

4 882

3 950

7 252

5 869

7 422

6 006

7 954

6 436

9 134

7 391

Colombia

5 847

5 847

7 047

6 553

7 470

6 946

8 114

7 545

9 150

8 509

Costa Rica

3 750

3 750

6 499

6 499

7 799

7 799

8 818

8 818

9 991

9 075

Dominican Republic

2 941

2 941

4 146

4 146

5 088

5 088

6 148

5 782

7 289

6 854

Ecuador

6 110

6 110

7 341

6 647

7 714

6 985

8 651

7 833

10 034

9 086

El Salvador

4 321

4 321

5 124

4 669

5 683

5 179

6 164

5 617

7 080

6 452

Guatemala

5 510

5 464

7 626

7 563

8 464

8 394

9 184

8 813

9 944

9 542

Honduras

4 674

4 674

6 810

6 810

7 651

7 651

8 320

8 320

8 760

8 760

Jamaica

973

908

1 016

948

1279

193

3 198

2 984

3 409

3 181

Mexico

2 595

3 037

5 034

5 268

6 229

6 323

7 469

7 380

8 722

8 375

Nicaragua

3 253

3 253

4 193

4 193

4 875

4 875

5 395

5 085

6 091

5 741

Panama

6 262

5 549

8 420

7 461

9 274

8 217

10 393

9 209

11 335

10 044

Paraguay

6 341

6 341

8 312

8 312

8 927

8 124

10 076

9 169

11 145

10 142

Peru

4 187

4 187

5 591

5 591

6 376

6 376

7 160

6 382

8 210

7 318

Trinidad and Tobago

2 266

2 065

4 442

4 148

5 930

5 579

7 332

6 924

8 809

8 338

Uruguay

4 203

3 504

6 537

5 359

7 956

6 523

9 303

7 627

10 614

8 702

Venezuela

7 365

6 959

8 819

8 334

9 630

9 100

10 534

9 954

11 401

10 773

Unweighted average

LAC1

4 542

4 339

6 297

5 863

7 196

6 653

8 207

7 493

9 247

8 383

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410496

Table 3.9.d. Annual gross wage and net income, single person without children, income deciles 6-10, 2013
In USD using PPP, by family-type and income decile

Country

Single no ch Income decile 6

Single no ch Income decile 7

Single no ch Income decile 8

Single no ch Income decile 9

Single no ch Income decile 10

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Argentina

19 039

15 803

22 341

18 543

25 722

21 349

30 924

25 667

48 254

40 051

Bolivia

11 141

9 958

12 821

11 459

15 233

13 615

19 226

17 184

34 727

30 064

Brazil

9 188

8 453

10 855

9 878

13 846

12 600

19 403

17 065

47 118

39 246

Chile

10 529

8 520

12 886

10 428

16 645

13 469

23 271

18 831

55 960

44 126

Colombia

10 530

9 791

12 766

11 871

15 989

14 868

22 339

20 773

50 404

46 231

Costa Rica

11 586

10 523

13 916

12 640

17 812

16 179

25 296

22 977

47 277

40 559

Dominican Republic

8 554

8 044

9 992

9 396

12 936

12 165

18 669

17 556

37 444

32 403

Ecuador

11 612

10 515

13 711

12 415

17 080

15 466

21 823

19 761

41 857

36 872

El Salvador

8 605

7 842

10 743

9 790

12 671

11 111

15 978

13 824

31 759

26 057

Guatemala

11 012

10 568

12 035

11 550

13 738

13 184

16 583

15 896

30 749

28 926

Honduras

9 485

9 485

11 244

10 826

13 783

13 366

17 640

17 223

30 048

28 039

Jamaica

4 399

4 105

6 374

5 947

6 767

6 314

11 074

9 729

24 795

19 188

Mexico

10 285

9 664

12 422

11 082

15 515

13 559

20 753

17 560

43 095

34 286

Nicaragua

6 856

6 462

7 627

7 190

8 865

8 356

11 530

10 657

23 930

20 769

Panama

12 574

11 142

14 623

12 958

17 607

15 602

22 747

19 649

51 547

40 848

Paraguay

13 050

11 875

15 192

13 825

17 938

16 324

23 139

21 056

42 426

38 607

Peru

9 339

8 325

10 655

9 498

12 873

11 475

16 576

14 776

31 668

26 028

Trinidad and Tobago

10 465

9 925

12 451

11 843

15 082

14 401

19 288

17 456

32 999

27 610

Uruguay

12 337

10 114

14 345

11 762

17 461

14 147

22 280

17 489

39 902

29 531

Venezuela

12 236

11 562

13 512

12 768

15 051

14 222

18 430

17 415

32 982

30 706

Unweighted average

LAC1

10 641

9 634

12 526

11 283

15 131

13 589

19 849

17 627

38 947

33 007

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410506

Table 3.9.e. Annual gross wage and net income, one-earner married couple with two children, income deciles 1-5, 2013
In USD using PPP, by family-type and income decile

Country

Married 2 ch Income decile 1

Married 2 ch Income decile 2

Married 2 ch Income decile 3

Married 2 ch Income decile 4

Married 2 ch Income decile 5

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Argentina

6 256

7 817

10 440

11 290

12 909

13 339

14 749

14 866

16 391

15 474

Bolivia

4 267

4 267

6 056

5 413

7 350

6 570

8 446

7 549

9 713

8 682

Brazil

4 841

4 803

5 233

5 164

5 898

5 776

6 726

6 538

7 710

7 093

Chile

4 882

4 519

7 252

6 438

7 422

6 372

7 954

6 802

9 134

7 757

Colombia

5 847

6 324

7 047

7 030

7 470

7 424

8 114

8 023

9 150

8 986

Costa Rica

3 750

3 905

6 499

6 653

7 799

7 953

8 818

8 972

9 991

9 230

Dominican Republic

2 941

2 941

4 146

4 146

5 088

5 088

6 148

5 782

7 289

6 854

Ecuador

6 110

6 110

7 341

6 647

7 714

6 985

8 651

7 833

10 034

9 086

El Salvador

4 321

4 321

5 124

4 669

5 683

5 179

6 164

5 617

7 080

6 452

Guatemala

5 510

5 464

7 626

7 563

8 464

8 394

9 184

8 813

9 944

9 542

Honduras

4 674

4 674

6 810

6 810

7 651

7 651

8 320

8 320

8 760

8 760

Jamaica

973

908

1 016

948

1 279

1 193

3 198

2 984

3 409

3 181

Mexico

2 595

3 037

5 034

5 268

6 229

6 323

7 469

7 380

8 722

8 375

Nicaragua

3 253

3 253

4 193

4 193

4 875

4 875

5 395

5 085

6 091

5 741

Panama

6 262

5 549

8 420

7 461

9 274

8 217

10 393

9 209

11 335

10 044

Paraguay

6 341

6 341

8 312

8 312

8 927

8 124

10 076

9 169

11 145

10 142

Peru

4 187

4 187

5 591

5 591

6 376

6 376

7 160

6 382

8 210

7 318

Trinidad and Tobago

2 266

2 065

4 442

4 148

5 930

5 579

7 332

6 924

8 809

8 338

Uruguay

4 203

4 130

6 537

5 895

7 956

7 039

9 303

8 125

10 614

9 182

Venezuela

7 365

6 959

8 819

8 334

9 630

9 100

10 534

9 954

11 401

10 773

Unweighted average

LAC1

4 542

4 579

6 297

6 099

7 196

6 878

8 207

7 716

9 247

8 551

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410518

Table 3.9.f. Annual gross wage and net income, one-earner married couple with two children, income deciles 6-10, 2013
In USD using PPP, by family-type and income decile

Country

Married 2 ch Income decile 6

Married 2 ch Income decile 7

Married 2 ch Income decile 8

Married 2 ch Income decile 9

Married 2 ch Income decile 10

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Total gross earnings before taxes

Net income after taxes

Argentina

19 039

17 672

22 341

19 724

25 722

22 005

30 924

26 323

48 254

40 707

Bolivia

11 141

9 958

12 821

11 459

15 233

13 615

19 226

17 184

34 727

30 064

Brazil

9 188

8 453

10 855

9 878

13 846

12 600

19 403

17 224

47 118

39 246

Chile

10 529

8 885

12 886

10 543

16 645

13 585

23 271

18 831

55 960

44 126

Colombia

10 530

10 269

12 766

12 348

15 989

15 346

22 339

21 250

50 404

46 231

Costa Rica

11 586

10 678

13 916

12 795

17 812

16 333

25 296

23 131

47 277

40 714

Dominican Republic

8 554

8 044

9 992

9 396

12 936

12 165

18 669

17 556

37 444

32 403

Ecuador

11 612

10 515

13 711

12 415

17 080

15 466

21 823

19 761

41 857

36 872

El Salvador

8 605

7 842

10 743

9 790

12 671

11 111

15 978

13 824

31 759

26 057

Guatemala

11 012

10 568

12 035

11 550

13 738

13 184

16 583

15 896

30 749

28 926

Honduras

9 485

9 485

11 244

10 826

13 783

13 366

17 640

17 223

30 048

28 039

Jamaica

4 399

4 105

6 374

5 947

6 767

6 314

11 074

9 729

24 795

19 188

Mexico

10 285

9 664

12 422

11 082

15 515

13 559

20 753

17 560

43 095

34 286

Nicaragua

6 856

6 462

7 627

7 190

8 865

8 356

11 530

10 657

23 930

20 769

Panama

12 574

11 142

14 623

12 958

17 607

15 602

22 747

19 860

51 547

41 059

Paraguay

13 050

11 875

15 192

13 825

17 938

16 324

23 139

21 056

42 426

38 607

Peru

9 339

8 325

10 655

9 498

12 873

11 475

16 576

14 776

31 668

26 028

Trinidad and Tobago

10 465

9 925

12 451

11 843

15 082

14 401

19 288

17 456

32 999

27 610

Uruguay

12 337

10 257

14 345

11 876

17 461

14 388

22 280

17 745

39 902

29 650

Venezuela

12 236

11 562

13 512

12 768

15 051

14 222

18 430

17 415

32 982

31 166

Unweighted average

LAC1

10 641

9 784

12 526

11 386

15 131

13 671

19 849

17 723

38 947

33 087

Note: ch denotes children.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410520

Finally, Tables 3.10.a-Table 3.10.f present a similar analysis comparing total labour costs with net incomes. At the average wage, the average labour cost for the region was USD 16 125 ranging from USD 6 639 (Jamaica) to USD 40 380 (Argentina). The corresponding net income figures are the same as in Tables 3.9.a-Table 3.9.f.

Table 3.10.a. Annual labour costs and net income, single person, 2013
In USD using PPP, by family-type and wage level

Country

Single no ch 67 (% AW)

Single no ch 100 (% AW)

Single no ch 167 (% AW)

Single 2 ch 67 (% AW)

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Argentina

27 055

17 688

40 380

26 400

67 435

44 089

27 055

18 869

Bolivia

9 552

7 492

14 257

11 182

23 809

18 673

9 552

7 492

Brazil

12 725

8 629

18 992

12 879

31 717

20 577

12 725

8 629

Chile

13 406

10 370

20 009

15 478

33 415

25 579

13 406

10 486

Colombia

10 568

7 400

15 774

11 045

26 411

18 444

10 568

7 878

Costa Rica

13 043

9 390

19 468

14 015

32 511

23 397

13 043

9 478

Dominican Republic

8 743

7 064

13 049

10 543

21 792

17 608

8 743

7 064

Ecuador

10 833

8 833

16 169

13 183

27 002

22 016

10 833

8 833

El Salvador

8 268

6 574

12 341

9 811

20 567

15 480

8 268

6 574

Guatemala

8 685

8 267

13 761

11 941

22 980

19 757

8 685

8 267

Honduras

7 692

7 692

12 290

11 062

19 982

18 588

7 692

7 692

Jamaica

4 448

3 708

6 639

5 535

11 087

8 924

4 448

3 708

Mexico

10 547

8 193

15 477

11 312

25 499

17 913

10 547

8 193

Nicaragua

6 441

5 203

9 613

7 766

16 054

12 493

6 441

5 203

Panama

12 472

9 619

18 615

14 356

31 087

22 821

12 472

9 619

Paraguay

12 022

9 513

17 943

14 198

29 964

23 711

12 022

9 513

Peru

8 097

6 680

12 085

9 970

20 181

16 398

8 097

6 680

Trinidad and Tobago

8 585

7 570

12 778

11 367

21 510

17 840

8 585

7 570

Uruguay

11 516

8 007

17 188

11 950

28 704

18 908

11 516

8 498

Venezuela

10 507

8 674

15 682

12 947

26 189

21 621

10 507

8 674

Unweighted averages

LAC1

10 760

8 328

16 125

12 347

26 895

20 242

10 760

8 446

OECD2

31 317

20 890

47 082

29 592

78 162

45 428

31 397

25 816

Note: ch denotes children and AW denotes average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.11.a. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933410536

Table 3.10.b. Annual labour costs and net income, married couple, 2013
In USD using PPP, by family-type and wage level

Country

Married 2 ch 100 - 0 (% AW)

Married 2 ch 100 - 33 (% AW)

Married 2 ch 100 - 67 (% AW)

Married no ch 100 - 33 (% AW)

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Argentina

40 380

27 056

53 706

35 768

67 435

44 745

53 706

35 112

Bolivia

14 257

11 182

18 385

15 310

23 809

18 673

18 385

15 310

Brazil

18 992

12 879

25 260

17 672

31 717

21 507

25 260

17 175

Chile

20 009

15 478

26 612

21 155

33 415

25 964

26 612

20 586

Colombia

15 774

11 522

19 693

15 920

26 342

19 400

19 693

14 964

Costa Rica

19 468

14 169

24 559

19 261

32 511

23 606

24 559

19 173

Dominican Republic

13 049

10 543

16 794

14 243

21 792

17 608

16 794

14 243

Ecuador

16 169

13 183

20 974

17 988

27 002

22 016

20 974

17 988

El Salvador

12 341

9 811

15 927

13 364

20 609

16 385

15 927

13 364

Guatemala

13 761

11 941

18 039

16 013

22 446

20 208

18 039

16 013

Honduras

12 290

11 062

16 078

14 851

19 982

18 754

16 078

14 851

Jamaica

6 639

5 535

8 830

7 361

11 087

9 243

8 830

7 361

Mexico

15 477

11 312

20 986

15 810

26 024

19 506

20 986

15 810

Nicaragua

9 613

7 766

12 332

10 485

16 054

12 969

12 332

10 485

Panama

18 615

14 356

24 758

19 094

31 087

23 975

24 758

19 094

Paraguay

17 943

14 198

23 143

19 347

29 964

23 711

23 143

19 347

Peru

12 085

9 970

15 776

13 661

20 181

16 649

15 776

13 661

Trinidad and Tobago

12 778

11 367

16 991

15 051

21 363

18 937

16 991

15 051

Uruguay

17 188

12 062

22 860

16 072

28 704

19 934

22 860

15 960

Venezuela

15 682

12 947

20 857

17 219

26 189

21 621

20 857

17 219

Unweighted averages

LAC1

16 125

12 417

21 128

16 782

26 886

20 771

21 128

16 638

OECD2

47 322

34 366

62 853

44 504

78 798

53 422

62 694

41 462

Note: ch denotes children and AW denotes average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

2. The source for OECD averages is OECD (2014) Taxing Wages, Table I.11.b. It should be noted that the OECD figures are not directly comparable with the other figures in the table as they do not include social security contributions paid to privately managed funds which are not classified as taxes in the OECD methodology.

 http://dx.doi.org/10.1787/888933410545

Table 3.10.c. Annual labour costs and net income, single person without children, income deciles 1-5, 2013
In USD using PPP, by family-type and income decile

Country

Single no ch Income decile 1

Single no ch Income decile 2

Single no ch Income decile 3

Single 2 ch Income decile 4

Single 2 ch Income decile 5

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Argentina

7 943

5 193

13 254

8 665

16 388

10 714

18 725

12 242

20 808

13 604

Bolivia

4 267

4 267

6 902

5 413

8 377

6 570

9 625

7 549

11 069

8 682

Brazil

6 496

4 453

7 023

4 815

7 915

5 426

9 027

6 188

10 347

7 093

Chile

5 107

3 950

7 587

5 869

7 765

6 006

8 320

6 436

9 555

7 391

Colombia

5 847

5 847

9 358

6 553

9 920

6 946

10 775

7 545

12 152

8 509

Costa Rica

3 750

3 750

6 499

6 499

7 799

7 799

8 818

8 818

12 606

9 075

Dominican Republic

2 977

2 941

4 195

4 146

5 149

5 088

7 156

5 782

8 483

6 854

Ecuador

6 110

6 110

8 119

6 647

8 531

6 985

9 607

7 833

11 144

9 086

El Salvador

4 363

4 321

5 873

4 669

6 514

5 179

7 065

5 617

8 116

6 452

Guatemala

5 740

5 464

7 945

7 563

8 818

8 394

10 156

8 813

10 996

9 542

Honduras

4 674

4 674

6 810

6 810

7 651

7 651

8 320

8 320

8 760

8 760

Jamaica

1 089

908

1 137

948

1 431

1 193

3 580

2 984

3 816

3 181

Mexico

3 646

3 037

6 490

5 268

7 884

6 323

9 331

7 380

10 791

8 375

Nicaragua

3 253

3 253

4 193

4 193

4 973

4 875

6 295

5 085

7 107

5 741

Panama

7 195

5 549

9 674

7 461

10 655

8 217

11 941

9 209

13 023

10 044

Paraguay

6 404

6 341

8 395

8 312

10 267

8 124

11 587

9 169

12 817

10 142

Peru

4 187

4 187

5 591

5 591

6 376

6 376

7 736

6 382

8 870

7 318

Trinidad and Tobago

2 462

2 065

4 824

4 148

6 425

5 579

7 939

6 924

9 543

8 338

Uruguay

4 956

3 504

7 708

5 359

9 381

6 523

10 970

7 627

12 516

8 702

Venezuela

8 429

6 959

10 095

8 334

11 023

9 100

12 057

9 954

13 049

10 773

Unweighted average

LAC1

4 945

4 339

7 084

5 863

8 162

6 653

9 451

7 493

10 778

8 383

Note: ch denotes children and AW denotes average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410551

Table 3.10.d. Annual labour costs and net income, single person without children, income deciles 6-10, 2013
In USD using PPP, by family-type and income decile

Country

Single no ch Income decile 6

Single no ch Income decile 7

Single no ch Income decile 8

Single 2 ch Income decile 9

Single 2 ch Income decile 10

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Argentina

24 171

15 803

28 363

18 543

32 654

21 349

39 259

25 667

61 260

40 051

Bolivia

12 696

9 958

14 611

11 459

17 360

13 615

21 910

17 184

39 576

30 064

Brazil

12 330

8 453

14 568

9 878

18 582

12 600

26 039

17 065

57 766

39 246

Chile

11 014

8 520

13 480

10 428

17 413

13 469

24 343

18 831

58 540

44 126

Colombia

13 983

9 791

16 998

11 871

21 289

14 868

29 745

20 773

67 113

46 231

Costa Rica

14 618

10 523

17 558

12 640

22 473

16 179

31 916

22 977

59 650

40 559

Dominican Republic

9 956

8 044

11 629

9 396

15 056

12 165

21 729

17 556

43 581

32 403

Ecuador

12 897

10 515

15 227

12 415

18 969

15 466

24 237

19 761

46 486

36 872

El Salvador

9 864

7 842

12 314

9 790

14 524

11 111

18 315

13 824

35 371

26 057

Guatemala

12 178

10 568

13 310

11 550

15 193

13 184

18 339

15 896

34 004

28 926

Honduras

9 485

9 485

12 054

10 826

14 594

13 366

18 451

17 223

30 858

28 039

Jamaica

4 924

4 105

7 134

5 947

7 574

6 314

12 394

9 729

27 752

19 188

Mexico

12 628

9 664

15 144

11 082

18 785

13 559

24 952

17 560

51 255

34 286

Nicaragua

7 999

6 462

8 900

7 190

10 344

8 356

13 454

10 657

27 923

20 769

Panama

14 447

11 142

16 802

12 958

20 230

15 602

26 135

19 649

59 225

40 848

Paraguay

15 007

11 875

17 471

13 825

20 629

16 324

26 610

21 056

48 789

38 607

Peru

10 091

8 325

11 513

9 498

13 909

11 475

17 910

14 776

34 216

26 028

Trinidad and Tobago

11 336

9 925

13 460

11 843

16 238

14 401

20 747

17 456

34 801

27 610

Uruguay

14 547

10 114

16 916

11 762

20 590

14 147

26 272

17 489

47 053

29 531

Venezuela

14 005

11 562

15 466

12 768

17 227

14 222

21 094

17 415

37 751

30 706

Unweighted average

LAC1

12 409

9 634

14 646

11 283

17 682

13 589

23 193

17 627

45 149

33 007

Note: ch denotes children and AW denotes average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410567

Table 3.10.e. Annual labour costs and net income, one-earner married couple with two children, income deciles 1-5, 2013
In USD using PPP, by family-type and income decile

Country

Married 2 ch Income decile 1

Married 2 ch Income decile 2

Married 2 ch Income decile 3

Married 2 ch Income decile 4

Married 2 ch Income decile 5

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Argentina

7 943

7 817

13 254

11 290

16 388

13 339

18 725

14 866

20 808

15 474

Bolivia

4 267

4 267

6 902

5 413

8 377

6 570

9 625

7 549

11 069

8 682

Brazil

6 496

4 803

7 023

5 164

7 915

5 776

9 027

6 538

10 347

7 093

Chile

5 107

4 519

7 587

6 438

7 765

6 372

8 320

6 802

9 555

7 757

Colombia

5 847

6 324

9 358

7 030

9 920

7 424

10 775

8 023

12 152

8 986

Costa Rica

3 750

3 905

6 499

6 653

7 799

7 953

8 818

8 972

12 606

9 230

Dominican Republic

2 977

2 941

4 195

4 146

5 149

5 088

7 156

5 782

8 483

6 854

Ecuador

6 110

6 110

8 119

6 647

8 531

6 985

9 607

7 833

11 144

9 086

El Salvador

4 363

4 321

5 873

4 669

6 514

5 179

7 065

5 617

8 116

6 452

Guatemala

5 740

5 464

7 945

7 563

8 818

8 394

10 156

8 813

10 996

9 542

Honduras

4 674

4 674

6 810

6 810

7 651

7 651

8 320

8 320

8 760

8 760

Jamaica

1 089

908

1 137

948

1 431

1 193

3 580

2 984

3 816

3 181

Mexico

3 646

3 037

6 490

5 268

7 884

6 323

9 331

7 380

10 791

8 375

Nicaragua

3 253

3 253

4 193

4 193

4 973

4 875

6 295

5 085

7 107

5 741

Panama

7 195

5 549

9 674

7 461

10 655

8 217

11 941

9 209

13 023

10 044

Paraguay

6 404

6 341

8 395

8 312

10 267

8 124

11 587

9 169

12 817

10 142

Peru

4 187

4 187

5 591

5 591

6 376

6 376

7 736

6 382

8 870

7 318

Trinidad and Tobago

2 462

2 065

4 824

4 148

6 425

5 579

7 939

6 924

9 543

8 338

Uruguay

4 956

4 130

7 708

5 895

9 381

7 039

10 970

8 125

12 516

9 182

Venezuela

8 429

6 959

10 095

8 334

11 023

9 100

12 057

9 954

13 049

10 773

Unweighted average

LAC1

4 945

4 579

7 084

6 099

8 162

6 878

9 451

7 716

10 778

8 551

Note: ch denotes children and AW denotes average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410574

Table 3.10.f. Annual labour costs and net income, one-earner married couple with two children, income deciles 6-10, 2013
In USD using PPP, by family-type and income decile

Country

Married 2 ch Income decile 6

Married 2 ch Income decile 7

Married 2 ch Income decile 8

Married 2 ch Income decile 9

Married 2 ch Income decile 10

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Total gross labour costs before taxes

Net income after taxes

Argentina

24 171

17 672

28 363

19 724

32 654

22 005

39 259

26 323

61 260

40 707

Bolivia

12 696

9 958

14 611

11 459

17 360

13 615

21 910

17 184

39 576

30 064

Brazil

12 330

8 453

14 568

9 878

18 582

12 600

26 039

17 224

57 766

39 246

Chile

11 014

8 885

13 480

10 543

17 413

13 585

24 343

18 831

58 540

44 126

Colombia

13 983

10 269

16 998

12 348

21 289

15 346

29 745

21 250

67 113

46 231

Costa Rica

14 618

10 678

17 558

12 795

22 473

16 333

31 916

23 131

59 650

40 714

Dominican Republic

9 956

8 044

11 629

9 396

15 056

12 165

21 729

17 556

43 581

32 403

Ecuador

12 897

10 515

15 227

12 415

18 969

15 466

24 237

19 761

46 486

36 872

El Salvador

9 864

7 842

12 314

9 790

14 524

11 111

18 315

13 824

35 371

26 057

Guatemala

12 178

10 568

13 310

11 550

15 193

13 184

18 339

15 896

34 004

28 926

Honduras

9 485

9 485

12 054

10 826

14 594

13 366

18 451

17 223

30 858

28 039

Jamaica

4 924

4 105

7 134

5 947

7 574

6 314

12 394

9 729

27 752

19 188

Mexico

12 628

9 664

15 144

11 082

18 785

13 559

24 952

17 560

51 255

34 286

Nicaragua

7 999

6 462

8 900

7 190

10 344

8 356

13 454

10 657

27 923

20 769

Panama

14 447

11 142

16 802

12 958

20 230

15 602

26 135

19 860

59 225

41 059

Paraguay

15 007

11 875

17 471

13 825

20 629

16 324

26 610

21 056

48 789

38 607

Peru

10 091

8 325

11 513

9 498

13 909

11 475

17 910

14 776

34 216

26 028

Trinidad and Tobago

11 336

9 925

13 460

11 843

16 238

14 401

20 747

17 456

34 801

27 610

Uruguay

14 547

10 257

16 916

11 876

20 590

14 388

26 272

17 745

47 053

29 650

Venezuela

14 005

11 562

15 466

12 768

17 227

14 222

21 094

17 415

37 751

31 166

Unweighted average

LAC1

12 409

9 784

14 646

11 386

17 682

13 671

23 193

17 723

45 149

33 087

Note: ch denotes children and AW denotes average wage.

1. Represents the average for the group of 20 Latin American and Caribbean countries. Chile and Mexico are also part of the OECD group.

 http://dx.doi.org/10.1787/888933410588

References

OECD (2014), TaxingWages 2014, OECD Publishing. http://dx.doi.org/10.1787/tax_wages-2014-en

Notes

← 1. This figure is in contrast to corresponding result of 7% shown in the Taxing Wages model (OECD, 2014) which does not take account of social security payments paid to privately managed funds.

← 2. The figures are not directly comparable (see endnote 1 above) but they demonstrate the relatively generous more treatment of family with children in the income tax/benefit systems of OECD countries compared with Latin America and the Caribbean.

← 3. The reported elasticities in Tables 3.7 are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee social security contributions less cash benefits reported in Tables 3.6 and AETR is the average rate plus employee social security contributions less cash benefits reported in Tables 3.2.

← 4. The reported elasticities in Tables 3.8 are calculated as (100 – METR)/(100 – AETR), where METR is the marginal rate of income tax plus employee and employer social security contributions less cash benefits reported in Tables 3.5 and AETR is the average rate plus employee and employer social security contributions less cash benefits reported in Table 3.1.