The weight of personal income tax and contributions picks up and accounts for 4 out of every 10 euros of the cost of an employment contract

The taxes and Social Security contributions that the worker and the employer pay in Spain rise in 2021 to 39.3% of labor costs, widening the difference with the OECD average to 4.7 points. The tax pressure on salary in Spain is 21%, the third lowest in the EU.

The tax wedge, the weight of income taxes and the sum of Social Security contributions paid by both employers and employees, increased in Spain in 2021 to stand at 39.3% of all labor costs. The increase,