Labour Costs in Poland in Relation to Other EU Countries

Relation between tax burden, employer contributions and other labor costs is defined as 'tax wage'. Investigations have proved that the 'tax wage' is one of the most important causes of unemployment. The OECD annual compendium of tax data shows that Poland belongs to the group of the countries with the high tax burden on wages. It means that Polish tax system is very strict. The value of 'tax wage' has grown up in Poland since 2001. The high level employers' contributions to the labour costs will be a barrier of economic development in next years.