Effective Tax Rates On Taking Up Work When Claiming Minimum Income And Using Childcare Services

This indicator measures the financial disincentives to participate in the labour market. It calculates the proportion of earnings in the new job that would be lost to either higher taxes, lower benefits and net childcare costs when a parent with young children takes up full-time employment and uses full-time centre-based childcare. This indicators is calculated assuming that the family claims social assitance and/or Guaranteed Minimum Income (GMI) benefits but not unemployment benefits.

The calculations assume 2 children aged 2 and 3, both attending a childcare centre full-time.