Effective Tax Rates On Taking Up Work When Claiming Minimum Income Benefits

This indicator measures the financial disincentives to participate in the labour market. It shows the proportion of earnings in the new job that are lost to either higher tax liabilities and/or lower benefit entitlements when a jobless person takes up employment and their family claims social assistance and/or Guaranteed Minimum Income (GMI) benefits. Higher values means higher financial disincentives.

Calculations for families with children assume 2 children aged 4 and 6 who do not use formal childcare.