Spain is the fourth OECD country where the State's share of salaries has grown the most.

Spain stands out as one of the countries with the highest tax burden on salaries in the OECD, with workers allocating 40.2% of their gross salary to taxes and social contributions in 2023. This represents an increase compared to the average of 34.8% within the organization. The increase is attributed to measures implemented as part of the pension reform, which have led to higher payments by both workers and companies for social contributions. Additionally, the lack of adjustments to personal income tax coupled with rising inflation has contributed to increased tax collection.

Among OECD countries, only Australia, Luxembourg, and New Zealand experienced larger increases in the tax burden in 2023. Spain ranks fourteenth in terms of tax burden, with Belgium occupying the top position. When considering a working couple with two children, Spain ranks tenth with a tax burden of 37.1%.

In terms of the distribution of the tax burden, about half of the increase is borne by companies in Spain, with contributions representing 23.3% of the salary. Social Security contributions paid by employees increased by 0.06% in 2023. The average labor cost in Spain amounted to $63,683, putting the country in 20th place among the OECD countries. The average gross salary in Spain is 13% lower than the OECD average.