Overview

• Italy’s tax wedge for single workers rose to 47.1% in 2024, the fourth highest in the OECD and well above the average of 34.9%.
• Net wages in Italy averaged $41,438 in 2024, ranking 23rd among 38 OECD countries and trailing the OECD average of $45,123.
• Italy’s gross-to-net conversion rate of 0.68 is the lowest in the OECD, meaning workers see the smallest net income gain from increased labor costs.
• The 2024 tax wedge increase of 1.61 percentage points was the largest among OECD nations, driven by the loss of benefits for workers earning above €35,000.
• Countries with similar or higher tax wedges, such as France, Germany, and Belgium, achieve significantly higher net wages, with Switzerland leading at $84,728.