{ "module_name": "Cross-Country Labour Cost Comparison", "version": "2026-01", "countries": [ "France", "Germany", "Belgium", "Switzerland", "Netherlands", "United Kingdom", "Ireland", "Spain", "Sweden", "Italy", "United States", "China", "Japan", "Canada", "Poland", "Estonia", "Latvia", "Lithuania", "Philippines", "Chile", "South Korea" ], "methodology": [ "Comparison axis: absolute wage levels converted via purchasing power parity (PPP), not wages re-indexed to each country's own minimum wage.", "PPP is applied individually to all 4 countries (including Switzerland), following the same logic as the OECD 'Taxing Wages' cross-country comparisons.", "For each harmonized wage point (expressed in international dollars), the point is converted into each country's local currency using that country's own PPP factor, then each country's existing per-wage compute function is called directly on that local-currency wage. Values are not obtained by interpolating pre-generated national datasets.", "The PPP indicator used is the household/private final consumption expenditure PPP conversion factor (not the GDP-based PPP), because the comparison is about the purchasing power of a wage for a household, not about aggregate output.", "Switzerland does not have a single national wage-tax schedule: withholding tax is set at cantonal level. Switzerland's reference case is therefore a population-weighted average across all 26 cantons, rather than a single reference canton, in order to represent the country as a whole." ], "harmonized_wage_grid": { "unit": "international dollars per month (private consumption PPP basis)", "min_intl_usd": 2000, "max_intl_usd": 12000, "step_intl_usd": 500, "note": "The lower bound (2,000 intl $) is set below all four countries' own minimum/reference wage floors once converted to international dollars, so that the lowest wage grids (close to and below each country's minimum wage) remain visible. Each row carries a 'below_minimum_wage' flag (and the corresponding 'national_minimum_wage_monthly_local' reference value) indicating whether that country's wage at that harmonized point falls below its own legal minimum/reference wage; such points are hypothetical for that country." }, "national_minimum_wage_floors_intl_usd": { "note": "Each country's own minimum/reference wage, converted to international dollars at the PPP factors above, for reference. Rows in the dataset below these levels are flagged 'below_minimum_wage' for that country.", "FR": { "value_local": 1867.02, "currency": "EUR", "value_intl_usd": 2604.2, "source": "SMIC brut mensuel, config/scenarios.yml" }, "CH": { "value_local": 3000, "currency": "CHF", "value_intl_usd": 2709.5, "source": "gross_monthly_min_chf, docs/data/switzerland/switzerland_parameters_2026.json" }, "BE": { "value_local": 2189.81, "currency": "EUR", "value_intl_usd": 2911.4, "source": "GGMMI / RMMMG, docs/data/belgium/belgium_parameters_2026.json" }, "DE": { "value_local": 2409.33, "currency": "EUR", "value_intl_usd": 3434.3, "source": "Statutory minimum wage x monthly hours convention, analysis/germany parameters" }, "NL": { "value_local": 2338.44, "currency": "EUR", "value_intl_usd": 3151.7, "source": "Wettelijk minimumloon (WML), 14.99 EUR/h x 36h/week (CBS full-time convention), docs/data/netherlands/netherlands_parameters_2026.json" }, "UK": { "value_local": 2065.38, "currency": "GBP", "value_intl_usd": 3025.1, "source": "National Living Wage (21+), 12.71 GBP/h x 37.5h/week (most commonly cited UK full-time benchmark), docs/data/uk/uk_parameters_2026.json" }, "IE": { "value_local": 2391.35, "currency": "EUR", "value_intl_usd": 2711.4, "source": "National Minimum Wage (20+), 14.15 EUR/h x 39h/week (most commonly cited Irish full-time benchmark), docs/data/ireland/ireland_parameters_2026.json" }, "ES": { "value_local": 1424.5, "currency": "EUR", "value_intl_usd": 2421.0, "source": "Salario Minimo Interprofesional (SMI) 2026, 1,221 EUR/month x 14 payments, prorated over 12 months, docs/data/spain/spain_parameters_2026.json" }, "SE": { "value_local": 34470, "currency": "SEK", "value_intl_usd": 4019.8, "source": "Sweden has no statutory minimum wage; this is the Migrationsverket work-permit wage floor (90% of the SCB median salary), used as this module's reference wage by convention, docs/data/sweden/sweden_parameters_2026.json" }, "IT": { "value_local": 2314.56, "currency": "EUR", "value_intl_usd": 3702.4, "source": "Italy has no statutory minimum wage; this is the CCNL Commercio Livello 3 minimo tabellare (1,983.91 EUR x 14 payments / 12), used as this module's reference wage by convention, docs/data/italy/italy_parameters_2026.json" }, "US": { "value_local": 1256.67, "currency": "USD", "value_intl_usd": 1256.67, "source": "Federal Minimum Wage (7.25 USD/hour x 40h/week, unchanged since 24 July 2009), docs/data/usa/usa_parameters_2026.json; many states/cities set substantially higher minimums" }, "CN": { "value_local": 2740, "currency": "RMB", "value_intl_usd": 771.7, "source": "China has no national minimum wage; this is Shanghai's own monthly minimum wage, used as this module's reference wage by convention, docs/data/china/china_parameters_2026.json" }, "JP": { "value_local": 212506.67, "currency": "JPY", "value_intl_usd": 2138.22, "source": "Japan has no national minimum wage; this is Tokyo's own monthly minimum wage equivalent (1,226 JPY/hour x 40h/week), used as this module's reference wage by convention, docs/data/japan/japan_parameters_2026.json" }, "CA": { "value_local": 3050.67, "currency": "CAD", "value_intl_usd": 2458.4, "source": "Canada has no national minimum wage; this is Ontario's own minimum wage equivalent (17.60 CAD/hour x 40h/week), used as this module's reference wage by convention, docs/data/canada/canada_parameters_2026.json" }, "PL": { "value_local": 4806.0, "currency": "PLN", "value_intl_usd": 2393.4, "source": "Statutory minimum wage, docs/data/poland/poland_parameters_2026.json" }, "EE": { "value_local": 946.0, "currency": "EUR", "value_intl_usd": 1464.2, "source": "Statutory minimum wage in effect from 1 April 2026 (a EUR 886 rate applied Jan-Mar 2026), docs/data/estonia/estonia_parameters_2026.json" }, "LV": { "value_local": 780.0, "currency": "EUR", "value_intl_usd": 1463.1, "source": "Statutory minimum wage, docs/data/latvia/latvia_parameters_2026.json" }, "LT": { "value_local": 1153.0, "currency": "EUR", "value_intl_usd": 2190.1, "source": "Statutory minimum wage (MMA), docs/data/lithuania/lithuania_parameters_2026.json" }, "PH": { "value_local": 19692.9167, "currency": "PHP", "value_intl_usd": 949.4, "source": "National Capital Region (NCR) minimum wage (Wage Order NCR-27, PHP 755/day) converted to a monthly equivalent via the DOLE factor-rate method (755 x 313 / 12), used by convention as this module's reference wage across all 17 regions, docs/data/philippines/philippines_parameters_2026.json" }, "CL": { "value_local": 553553.0, "currency": "CLP", "value_intl_usd": 1190.8, "source": "Statutory minimum wage (Ingreso Minimo Mensual), rate in effect from 1 May 2026 (CLP 539,000 applied Jan-Apr 2026), docs/data/chile/chile_parameters_2026.json" }, "KR": { "value_local": 2156880.0, "currency": "KRW", "value_intl_usd": 2472.2, "source": "Statutory minimum wage (KRW 10,320/hour x 209 hours/month), effective 1 January 2026, docs/data/south_korea/south_korea_parameters_2026.json" } }, "ppp_conversion_factors": { "basis": "Household (private) final consumption expenditure PPP conversion factor, LCU per international dollar", "source": "World Bank International Comparison Program (ICP)", "indicator_code": "PA.NUS.PRVT.PP", "reference_year": 2024, "retrieved_via": "World Bank API (api.worldbank.org)", "values": { "FR": 0.716934, "DE": 0.701547, "BE": 0.752163, "CH": 1.107209, "NL": 0.74195, "UK": 0.682739, "IE": 0.88195, "ES": 0.588481, "SE": 8.577614, "IT": 0.625157, "US": 1.0, "CN": 3.55078934957358, "JP": 99.384798, "CA": 1.240903, "PL": 2.008043, "EE": 0.646078, "LV": 0.533129, "LT": 0.526455, "PH": 20.743505641423, "CL": 464.876032, "KR": 872.468736 } }, "reference_profiles": { "FR": { "profile_id": "non_cadre__standard__lt50__standard__full_time", "description": "Non-executive employee, outside Alsace-Moselle, firm with fewer than 50 employees, standard AT/MP rate, full-time. Income tax is the actual tax due by a single, childless taxpayer (1 part de quotient familial), computed via the true progressive income-tax bareme (marginal brackets, see notes below), not a withholding-tax proxy.", "compute_source": "scripts/build_dataset_mon_entreprise.py (Mon-entreprise / Publicodes engine + compute_progressive_income_tax), grid: docs/data/france/france_income_tax_2026.json" }, "DE": { "profile_id": "germany__public_health__childless__outside_saxony", "description": "Public health insurance, childless, outside Saxony.", "compute_source": "analysis/germany/build_germany_dataset.py" }, "BE": { "profile_id": "belgium__standard_private_sector", "description": "Standard private-sector employee (only profile currently modeled for Belgium).", "compute_source": "analysis/belgium/build_belgium_dataset.py" }, "CH": { "profile_id": "switzerland__population_weighted_average_26_cantons__single_no_child_standard_lpp", "description": "Population-weighted average across all 26 cantons, tariff A0N (single, no child, no church tax where available), standardized LPP/BVG and accident insurance assumptions.", "compute_source": "analysis/switzerland/swiss_social_contributions_2026.py and analysis/switzerland/swiss_withholding_tax_2026.py, aggregated across cantons" }, "NL": { "profile_id": "netherlands__standard_permanent_contract", "description": "Permanent contract (WW low rate), large employer (Aof high rate), single, childless, below AOW age. No separate employee social-security contribution: AOW/Anw/Wlz national insurance is bundled into the Box 1 wage-tax rate (loonheffing).", "compute_source": "analysis/netherlands/build_netherlands_dataset.py and analysis/netherlands/loonheffing_2026.py" }, "UK": { "profile_id": "uk__population_weighted_average_ruk_scotland", "description": "Population-weighted average of rUK (England/Wales/Northern Ireland) and Scotland income-tax regimes, standard employee, full-time, standard tax code, auto-enrolled in a workplace pension at the statutory minimum rates (employee 5%, employer 3% of qualifying earnings). National Insurance and the workplace pension are not devolved and are identical in both regions.", "compute_source": "analysis/uk/build_uk_dataset.py and analysis/uk/paye_ni_2026.py, aggregated across rUK and Scotland" }, "IE": { "profile_id": "ireland__standard_employee", "description": "Standard, single, childless employee, full-time, PRSI Class A, January-September 2026 rates.", "compute_source": "analysis/ireland/build_ireland_dataset.py and analysis/ireland/paye_usc_prsi_2026.py" }, "ES": { "profile_id": "spain__population_weighted_average_16_regions", "description": "Population-weighted average across 16 comunidades autonomas (Madrid, Andalucia, Aragon, Asturias, Baleares, Canarias, Cantabria, Castilla-La Mancha, Castilla y Leon, Cataluna, Extremadura, Galicia, Murcia, La Rioja, Comunidad Valenciana, Ceuta/Melilla), standard single childless employee, full-time, Seguridad Social Regimen General. Navarra and Pais Vasco excluded (foral tax systems).", "compute_source": "analysis/spain/build_spain_dataset.py and analysis/spain/irpf_seguridad_social_2026.py, aggregated across 16 regions" }, "SE": { "profile_id": "sweden__standard_employee_stockholm", "description": "Standard, single, childless employee, Stockholm kommun as the reference municipality (kommunalskatt 30.55%). No separate visible employee contribution: the 7% allman pensionsavgift is fully offset by an equal skattereduktion across this module's entire wage range, so 'employee_contributions' is 0 by construction, mirroring how the Netherlands' bundled loonheffing is handled.", "compute_source": "analysis/sweden/build_sweden_dataset.py and analysis/sweden/swedish_tax_2026.py" }, "IT": { "profile_id": "italy__standard_employee_roma_lazio", "description": "Standard, single, childless private-sector employee, open-ended contract, firm with more than 50 employees, Roma/Lazio as the reference region and municipality (national IRPEF plus the Lazio addizionale regionale and Roma addizionale comunale, both tiered-flat surcharges on the whole taxable income). employer_cost includes the TFR (trattamento di fine rapporto) deferred severance accrual (~6.91% of gross annual pay), a personnel cost under standard Italian payroll accounting that is not available to the employee as current net pay.", "compute_source": "analysis/italy/build_italy_dataset.py and analysis/italy/italian_payroll_2026.py" }, "US": { "profile_id": "usa__population_weighted_average_50_states_dc__single_no_child", "description": "Population-weighted average across all 50 states and the District of Columbia (2024 Census Bureau estimates), single, childless employee, federal filing status only. Federal income tax, FICA (Social Security + Medicare + Additional Medicare Tax) and FUTA are identical nationwide; state income tax (9 states have none), State Unemployment Insurance and any state-mandated payroll deduction (SDI/PFML/TDI in California, Colorado, Connecticut, Delaware, DC, Massachusetts, Maine, Minnesota, New Jersey, New York, Oregon, Rhode Island, Washington) vary by state.", "compute_source": "analysis/usa/build_usa_dataset.py and analysis/usa/us_payroll_2026.py, aggregated across 50 states + DC" }, "CN": { "profile_id": "china__population_weighted_average_31_provinces__single_no_child", "description": "Population-weighted average across all 31 mainland provinces, municipalities and autonomous regions (2024 official population estimates), single, childless employee, standard formal employment, work-injury Tier 1. Individual income tax is identical nationwide; social-insurance contribution-base floors/caps, some contribution rates (e.g. Guangdong's unemployment-insurance split), and the housing-fund contribution base vary by province. The housing-fund contribution rate itself is a discretionary employer choice nationally and is modelled with one uniform illustrative rate (7%).", "compute_source": "analysis/china/build_china_dataset.py and analysis/china/china_payroll_2026.py, aggregated across 31 provinces" }, "JP": { "profile_id": "japan__population_weighted_average_47_prefectures__single_no_child", "description": "Population-weighted average across all 47 prefectures (2025 official population estimates), single, childless employee under 40, standard formal employment, workers' accident insurance class 94. National income tax and resident tax are identical nationwide (though the two levies use genuinely different basic-deduction schedules since a 2026 tax reform); only the Kyokai Kenpo health-insurance premium rate (9.21%-10.55%) varies by prefecture.", "compute_source": "analysis/japan/build_japan_dataset.py and analysis/japan/japan_payroll_2026.py, aggregated across 47 prefectures" }, "PL": { "profile_id": "poland__standard_employee", "description": "Standard, single, childless employee, general tax scale (skala podatkowa), no special reliefs.", "compute_source": "analysis/poland/build_poland_dataset.py (compute_row)" }, "EE": { "profile_id": "estonia__standard_employee", "description": "Standard, single, childless employee, resident taxpayer, default (non-elected) 2% funded-pension contribution rate, flat 22% income tax with the flat EUR 700/month basic exemption introduced by the 2026 reform.", "compute_source": "analysis/estonia/build_estonia_dataset.py (compute_row)" }, "LV": { "profile_id": "latvia__standard_employee", "description": "Standard, single, childless employee, standard VSAOI mandatory state social insurance contributions, flat EUR 550/month non-taxable minimum since the 2025 reform abolished the former sliding-scale mechanism.", "compute_source": "analysis/latvia/build_latvia_dataset.py (compute_row)" }, "LT": { "profile_id": "lithuania__standard_employee", "description": "Standard, single, childless employee, indefinite-term employment contract, standard Sodra rates (employee-side bundled since the 2019 reform folded the former employer share into gross pay), sliding monthly tax-exempt amount (NPD) tied to the minimum wage.", "compute_source": "analysis/lithuania/build_lithuania_dataset.py (compute_row)" }, "PH": { "profile_id": "philippines__population_weighted_average_17_regions__single_no_child", "description": "Population-weighted average across all 17 RTWPB regions (2024 PSA census estimates), single, childless employee, standard formal-sector, full-time monthly-paid employment. Every contribution and tax rule (SSS, PhilHealth, Pag-IBIG, BIR) is set at national level and identical across regions; only each region's own minimum wage differs.", "compute_source": "analysis/philippines/philippines_payroll_2026.py (compute_philippines_payroll_2026), aggregated across 17 regions" }, "CL": { "profile_id": "chile__standard_employee", "description": "Standard, single, childless employee, indefinite-term contract, lowest-commission AFP (AFP Uno), Fonasa at the legal minimum rate, Article 50 monthly-advance legal gratification (25% of base wage, capped at 4.75x one month's minimum wage per year).", "compute_source": "analysis/chile/build_chile_dataset.py (compute_row)" }, "KR": { "profile_id": "south_korea__standard_employee", "description": "Standard, single, childless employee, smallest-employer illustrative rate for size-dependent employer levies, only the universal automatic income-tax reliefs (earned-income deduction, basic personal deduction, mandatory social-insurance-premium deduction, earned-income tax credit).", "compute_source": "analysis/south_korea/build_south_korea_dataset.py (compute_row)" } }, "switzerland_canton_population_weights": { "source": "Swiss Federal Statistical Office (BFS), STAT-TAB px-x-0103010000_101", "url": "https://www.pxweb.bfs.admin.ch/pxweb/fr/px-x-0103010000_101/px-x-0103010000_101/px-x-0103010000_101.px", "reference_year": 2024, "population_type": "Population résidante permanente", "retrieved": "2026-08-04", "total_population": 9051029, "cantons": [ { "code": "ZH", "population": 1620020 }, { "code": "BE", "population": 1071216 }, { "code": "LU", "population": 437944 }, { "code": "UR", "population": 38275 }, { "code": "SZ", "population": 168931 }, { "code": "OW", "population": 39662 }, { "code": "NW", "population": 45345 }, { "code": "GL", "population": 42371 }, { "code": "ZG", "population": 133739 }, { "code": "FR", "population": 346674 }, { "code": "SO", "population": 289792 }, { "code": "BS", "population": 201384 }, { "code": "BL", "population": 301323 }, { "code": "SH", "population": 88667 }, { "code": "AR", "population": 56705 }, { "code": "AI", "population": 16733 }, { "code": "SG", "population": 540036 }, { "code": "GR", "population": 206138 }, { "code": "AG", "population": 735808 }, { "code": "TG", "population": 299509 }, { "code": "TI", "population": 358903 }, { "code": "VD", "population": 855106 }, { "code": "VS", "population": 371288 }, { "code": "NE", "population": 179518 }, { "code": "GE", "population": 531102 }, { "code": "JU", "population": 74840 } ] }, "uk_region_population_weights": { "source": "Office for National Statistics (UK total, mid-2024) and National Records of Scotland (Scotland, mid-2024)", "url": "https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/bulletins/annualmidyearpopulationestimates/mid2024", "reference_year": 2024, "retrieved": "2026-08-06", "total_population": 69281400, "regions": [ { "code": "scotland", "population": 5546900 }, { "code": "ruk", "population": 63734500 } ], "note": "rUK (England, Wales and Northern Ireland combined) population is derived as UK total minus Scotland, since only the rUK/Scotland split matters for income-tax devolution -- England, Wales and Northern Ireland all share the same rUK income-tax bands." }, "es_region_population_weights": { "source": "INE (Instituto Nacional de Estadistica), Cifras oficiales de poblacion, 1 January 2025", "url": "https://ine.es/jaxiT3/Datos.htm?t=67988", "reference_year": 2025, "retrieved": "2026-08-06", "total_population": 46202100, "regions": [ { "code": "madrid", "population": 7113886 }, { "code": "andalucia", "population": 8676713 }, { "code": "aragon", "population": 1364621 }, { "code": "asturias", "population": 1015128 }, { "code": "baleares", "population": 1249844 }, { "code": "canarias", "population": 2258866 }, { "code": "cantabria", "population": 593623 }, { "code": "castilla_la_mancha", "population": 2126378 }, { "code": "castilla_y_leon", "population": 2401221 }, { "code": "cataluna", "population": 8124126 }, { "code": "extremadura", "population": 1053345 }, { "code": "galicia", "population": 2714741 }, { "code": "murcia", "population": 1586989 }, { "code": "la_rioja", "population": 326803 }, { "code": "comunidad_valenciana", "population": 5425182 }, { "code": "ceuta_melilla", "population": 170634 } ], "excluded_regions_population": { "navarra": 683854, "pais_vasco": 2242343 }, "note": "Navarra and Pais Vasco are excluded from the weighting base (separate foral tax systems, out of scope); the 16 modeled regions' populations sum to the total_population figure above. See docs/data/spain/spain_parameters_2026.json for the full per-region source citations." }, "us_state_population_weights": { "source": "US Census Bureau, Annual Estimates of the Resident Population (NST-EST2024-POP)", "url": "https://www2.census.gov/programs-surveys/popest/tables/2020-2024/state/totals/NST-EST2024-POP.xlsx", "reference_year": 2024, "retrieved": "2026-08-28", "note": "Population weights for all 50 states and the District of Columbia are stored in analysis/usa/us_payroll_2026.py (STATE_DATA_2026, 'population' field) rather than duplicated here, to avoid drift between the two files." }, "cn_province_population_weights": { "source": "National Bureau of Statistics of China and provincial statistical bureaus, aggregated", "reference_year": 2024, "retrieved": "2026-08-29", "note": "Population weights for all 31 mainland provinces/municipalities/autonomous regions are stored in analysis/china/china_payroll_2026.py (PROVINCE_DATA_2026, 'population' field) rather than duplicated here, to avoid drift between the two files." }, "jp_prefecture_population_weights": { "source": "Statistics Bureau of Japan (Soumusho Tokei-kyoku), aggregated", "reference_year": 2025, "retrieved": "2026-08-30", "note": "Population weights for all 47 prefectures are stored in analysis/japan/japan_payroll_2026.py (PREFECTURE_DATA_2026, 'population' field) rather than duplicated here, to avoid drift between the two files." }, "notes": [ "Germany, Belgium, Switzerland and the Netherlands' 'net after income tax' figures include a mandatory wage withholding tax computed directly from the wage (Lohnsteuer, précompte professionnel, impot a la source, loonheffing), which does not require household-specific information beyond the modeled reference profile.", "The Netherlands has no separate employee social-security contribution line: AOW/Anw/Wlz national-insurance premiums are bundled into the Box 1 wage-tax rate. Its 'employee_contributions_monthly' figure is therefore 0 by construction, and the full payroll deduction (income tax + national insurance combined, 'loonheffing') appears under the income-tax figure -- this does not mean Dutch employees pay no social insurance.", "France's 'net after income tax' figure is the actual income tax due by a single, childless reference taxpayer (1 part de quotient familial), computed via the true progressive income-tax barème (marginal brackets), applied to the Mon-entreprise engine's 'net imposable' tax base (annualized, less the standard 10% deduction for professional expenses). This is directly analogous to the other three countries' actual mandatory tax liabilities for a single/childless reference profile. Note that most French employees are withheld at a personalized 'prélèvement à la source' rate set by the DGFiP from their full household's tax situation (which can differ from a single/childless taxpayer's liability); the withheld amount is only an advance on the definitively-due tax computed here.", "The non-personalized 'taux neutre' (grille des taux par défaut, article 204 H CGI, BOFiP BOI-BAREME-000037) -- an earlier candidate proxy based on the monthly withholding mechanism rather than actual tax liability -- was evaluated and rejected as a comparison basis because it does not represent any specific taxpayer's real tax burden; it is kept in docs/data/france/france_income_tax_2026.json for reference only.", "See docs/data/france/france_income_tax_2026.json for the full progressive barème, standard-deduction parameters, methodology notes and sources.", "The United Kingdom's 'employee_contributions' and 'employer_contributions' figures include both Class 1 National Insurance and the statutory-minimum automatic-enrolment workplace pension (employee 5%, employer 3% of qualifying earnings), not income tax alone -- income tax (PAYE) is reported separately, as for the other countries. Income tax is a population-weighted average of the rUK (England/Wales/Northern Ireland) and Scotland devolved bands (see 'uk_region_population_weights'), mirroring how Switzerland's cantons are aggregated; National Insurance and the workplace pension are not devolved and are identical in both regions.", "Ireland's 'income_tax_or_withholding_tax' figure bundles PAYE income tax and the Universal Social Charge (USC), since USC is a separate tax on income rather than a social contribution; 'employee_contributions' and 'employer_contributions' are PRSI Class A only, using the January-September 2026 rates (a further rate increase scheduled for 1 October 2026 is not modeled).", "Spain's income tax (IRPF) is a population-weighted average across 16 comunidades autonomas (see 'es_region_population_weights'), mirroring how Switzerland's cantons are aggregated; Navarra and Pais Vasco are excluded (separate foral tax systems). 'employee_contributions' and 'employer_contributions' are Seguridad Social Regimen General only, national and identical across all regions.", "Sweden has no statutory minimum wage and no single universal collective agreement (the Ghent/Nordic model: roughly 700 sector-level agreements negotiated by employers and unions cover about 90% of employees). This module uses the Migrationsverket work-permit wage floor (90% of the SCB median salary, 34,470 SEK/month for decisions from 1 June 2026) as its reference wage by convention -- an official, dated figure, but not a legal minimum or a negotiated collective-bargaining floor. Sweden's 'employee_contributions' is 0 by construction: the 7% allman pensionsavgift is fully offset by an equal skattereduktion (capped at total tax due) across this module's entire wage range, so the entire employee-side deduction is reported under 'income_tax_or_withholding_tax'. Only Stockholm kommun (30.55% combined kommunalskatt) is modeled as the reference municipality; the national range is 28.93%-35.65%.", "Italy has no statutory minimum wage either -- one of five EU countries (with Austria, Denmark, Finland and Sweden) relying exclusively on sector-level collective bargaining (CCNL), which covers over 80% of private-sector employees. This module uses the CCNL Commercio Livello 3 minimo tabellare (EUR 1,983.91/month, paid over 14 installments, prorated to EUR 2,314.56/month over 12 months) as its reference wage by convention -- a methodological choice, not a legal minimum. Italy's 'employer_cost' includes the TFR (trattamento di fine rapporto) deferred severance accrual (~6.91% of gross annual pay), a personnel cost under standard Italian payroll accounting that is not available to the employee as current net pay, unlike every other country in this comparison. Income tax bundles national IRPEF with the Lazio addizionale regionale and Roma addizionale comunale, both tiered-flat surcharges (the whole taxable income is taxed at one rate once a threshold is crossed, not a marginal bracket) rather than progressive brackets.", "The United States is the only genuinely federal system in this comparison: a uniform federal income tax and FICA/FUTA payroll taxes apply everywhere, PLUS each of the 50 states' (and DC's) own income tax (9 states have none), State Unemployment Insurance, and in 13 jurisdictions a state-mandated payroll deduction analogous to social insurance (State Disability Insurance in California and New York, Paid Family and Medical Leave in Colorado/Massachusetts/Maine/Minnesota/Oregon/Washington/DC, Temporary Disability Insurance in Rhode Island/Hawaii, Delaware's new-for-2026 Paid Leave, and New Jersey's combined UI/DI/FLI). This module aggregates all 50 states + DC with a population-weighted average (see 'us_state_population_weights'), mirroring how Switzerland's cantons, the UK's devolved regions and Spain's comunidades autonomas are aggregated. The reference wage is the federal minimum wage (USD 7.25/hour, unchanged since 2009); many states and cities set substantially higher minimum wages of their own. The US dollar's own PPP conversion factor is exactly 1.0 by construction (the international dollar is benchmarked to US prices).", "China's individual income tax is entirely national (a uniform 7-bracket annual schedule and a fixed RMB 60,000/year basic deduction), unlike every other multi-region country in this comparison -- what varies by province is the social-insurance contribution-base floor and cap (typically 60%-300% of the province's own prior-year average wage), a handful of contribution rates that genuinely differ by province (Guangdong's unemployment-insurance split is 0.8% employer / 0.2% employee rather than the more common 0.5%/0.5%), and the Housing Provident Fund (住房公积金) contribution base -- its rate is a discretionary employer choice nationally (5%-12% band) and is modelled with one uniform illustrative rate (7%). This module aggregates all 31 mainland provinces/municipalities/autonomous regions with a population-weighted average (see 'cn_province_population_weights'). China has no national minimum wage; the reference wage used is Shanghai's own monthly minimum wage (RMB 2,740), a methodological convention. In most provinces the social-insurance contribution-base floor exceeds this reference wage, so at low harmonized wage points contributions are computed on that higher floor rather than actual gross pay -- a genuine structural feature of China's system.", "Japan's national income tax and resident tax (juminzei) are both uniform nationwide, but genuinely use two different basic-deduction schedules following a 2026 tax reform that substantially raised the income-tax basic deduction (up to JPY 1,040,000) while leaving the resident-tax basic deduction unchanged (a flat JPY 430,000) -- a real, growing divergence between the two levies. Employee pension, employment and workers' accident insurance rates are also uniform nationally; the ONLY prefecture-specific rate is the Kyokai Kenpo health-insurance premium (9.21%-10.55% across the 47 prefectures for 2026). This module aggregates all 47 prefectures with a population-weighted average (see 'jp_prefecture_population_weights'). Japan has no national minimum wage; the reference wage used is Tokyo's own minimum wage (JPY 1,226/hour), a methodological convention, mirroring China's Shanghai and the US's federal-minimum-wage conventions.", "All amounts are also cross-country comparable in international dollars (PPP) in addition to local currency.", "Canada: employee_contributions, employer_contributions and income_tax_or_withholding_tax are a population-weighted average across all 10 provinces and 3 territories (2025 Statistics Canada estimates). Federal income tax, CPP/CPP2 (or QPP/QPP2 in Quebec) and Employment Insurance are set nationally but interact with each jurisdiction's own income-tax bracket schedule and basic personal amount. Quebec is structurally distinct: its own pension plan (QPP, higher rate than CPP), its own parental-insurance regime (QPIP, in addition to a reduced EI rate), a 16.5% federal tax abatement, and the Fonds des services de sante employer levy instead of Ontario's Employer Health Tax. The reference wage is Ontario's own minimum wage (CAD 17.60/hour), used as a methodological convention in the absence of a national minimum wage.", "Poland: a single national tax and social-security system (no regional variation, unlike Switzerland, the US, China, Japan or Canada). Employee_contributions include both ZUS social-insurance contributions and the 9% health-insurance contribution (NFZ), non-deductible from income tax since the 2022 'Polski Lad' reform. The retirement and disability contribution base is capped at 30x the forecast average wage (PLN 282,600/year for 2026), modeled as a flat monthly equivalent. Employer-side Labour Fund and Guaranteed Employee Benefits Fund levies are waived when gross pay is below the minimum wage, a real rule directly relevant at this module's lowest wage points for Poland.", "Estonia: a single national system, no regional variation. Employer_contributions is the 33% social tax (sotsiaalmaks, financing state pension and health insurance) plus the 0.8% employer unemployment-insurance premium; a minimum monthly social-tax base of EUR 886 applies regardless of actual gross pay, binding at this module's lowest wage points. Employee_contributions is the 1.6% employee unemployment-insurance premium plus the default 2% mandatory funded second-pillar pension contribution. Income tax is a flat 22% rate with a flat EUR 700/month basic exemption (not phased out by income), a 2026 reform that replaced the former sliding-scale exemption. The reference wage (EUR 946/month) is the rate in effect from 1 April 2026 onward (a EUR 886 rate applied for the first quarter).", "Latvia: a single national system, no regional variation. Employee_contributions and employer_contributions are the mandatory state social insurance contributions (VSAOI, 10.5% employee / 23.59% employer), capped at an annual contribution base of EUR 105,300/year (modeled as a flat monthly equivalent), plus a small fixed employer 'business risk' duty (EUR 0.36/month). Income tax (IIN) is 25.5% up to EUR 105,300/year taxable income, 33% above (plus a 3% solidarity tax at very high incomes, outside this module's wage range), applied after a flat EUR 550/month non-taxable minimum introduced by the 2025 reform, which replaced the former income-dependent sliding-scale exemption.", "Lithuania: a single national system, no regional variation. Since a 2019 tax reform folded the former employer-side social-insurance share into gross pay, employee_contributions (Sodra, 19.5%: pension, sickness, maternity and health) is far larger than employer_contributions (a residual 1.77%: unemployment, accident, guarantee fund and long-term employment benefit fund). Income tax (GPM) uses a three-band schedule (20% / 25% / 32%, introduced for 2026) applied after a sliding monthly tax-exempt amount (NPD) that is highest at the minimum wage and phases down to zero as gross pay rises -- a real, single kink in this module's low-wage marginal-rate figures for Lithuania, not a modeling artifact.", "Philippines: employee_contributions, employer_contributions and income_tax_or_withholding_tax are a population-weighted average across all 17 Regional Tripartite Wages and Productivity Board (RTWPB) regions (2024 PSA census estimates), mirroring how Switzerland's cantons are aggregated -- but unlike Switzerland, Canada, Japan, the US, China, Spain or the UK, EVERY contribution and tax rule modelled (SSS, PhilHealth, Pag-IBIG, BIR income tax) is set at NATIONAL level and identical across all 17 regions, so this weighted average is mathematically identical to any single region's own result; only each region's own minimum wage varies. SSS contributions are computed on a banded 'Monthly Salary Credit' (PHP 500 increments, floor 5,000, ceiling 35,000), not directly on gross pay -- structurally analogous to Japan's banded Kyokai Kenpo health-insurance table already in this comparison, and requiring the same widened-window treatment on this module's marginal-rate figures. employer_cost includes the mandatory 13th-month-pay accrual (PD 851, 1/12 of gross), a real annual employer cost paid out once a year rather than spread into monthly net pay, modelled the same way as Italy's TFR. The reference wage is the National Capital Region's own minimum wage (PHP 755/day, Wage Order NCR-27) converted to a monthly equivalent via the DOLE factor-rate method (755 x 313 / 12).", "Chile: a single national system, no regional variation. gross_monthly_local includes the Article 50 legal gratification (25% of base wage, capped at 4.75x one month's minimum wage per year), which -- unlike Italy's TFR or the Philippines' 13th-month pay -- is paid, taxed and contributed on monthly under this module's convention (very widespread actual Chilean payroll practice, even though the benefit is legally settled annually), so it appears in the employee's regular net pay, not only in employer_cost. This produces a real, single kink in the gross/net/employer-cost curves at 1.5833x the reference wage. employer_contributions includes, for the first time in Chile's history, a new employer-side pension contribution introduced by the 2025 pension reform (Ley 21.735): 3.5% of taxable pay (0.1% individual account, 2.5% Social Security Insurance/SIS, 0.9% Cotizacion de Reparto Protegido), in force since August 2026 -- the earlier transitional rate (1.0%, August 2025-July 2026) is not used, a deliberate choice documented in the Chile module's own Methodology tab. Income tax (IUSC) uses a genuinely MONTHLY progressive schedule (not an annualized-then-divided one like Poland's or Lithuania's), denominated in UTM, a unit revalued monthly; contribution-base ceilings (in UF, a unit revalued daily) never bind within this module's wage range. Both the UF and UTM values are fixed at a single documented reference date/month rather than left to drift.", "South Korea: a single national system, no regional variation. income_tax_or_withholding_tax combines the national wage income tax and a legally separate local income tax (a flat 10%-of-national-tax surtax collected by local government). employer_contributions includes the higher National Pension rate introduced by the 2026 pension reform (4.75% each side, up from 4.5%), the first step of a multi-year path to 6.5%/6.5% by around 2033. The National Pension contribution-base ceiling changes every 1 July (KRW 6,370,000 through June 2026, KRW 6,590,000 from July) -- an exact 6-vs-6-month tie for calendar 2026, broken the same way as Chile's employer-pension-rate choice (the year-end, more-current figure is used). Long-term care insurance is a genuinely separate calculation (13.14% of the health-insurance premium itself, not of wage directly). The earned-income tax credit's steep taper produces two narrow, real dips in this module's marginal-return figures (around 2.7x and 4.65x the reference wage), documented in the South Korea module's own Methodology tab rather than smoothed away." ], "ca_province_population_weights": { "source": "Statistics Canada, aggregated", "reference_year": 2025, "retrieved": "2026-08-30", "note": "Population weights for all 10 provinces and 3 territories are stored in analysis/canada/canada_payroll_2026.py (PROVINCE_DATA_2026, 'population' field) rather than duplicated here, to avoid drift between the two files." }, "ph_region_population_weights": { "source": "Philippine Statistics Authority (PSA), 2024 census-based estimates, aggregated", "reference_year": 2024, "retrieved": "2026-09-10", "note": "Population weights for all 17 RTWPB regions are stored in analysis/philippines/philippines_payroll_2026.py (REGION_DATA_2026, 'population' field) rather than duplicated here, to avoid drift between the two files. Since every contribution/tax rule is national, this weighting only affects which region's own minimum wage context is reported, not the computed contribution/tax/net figures themselves." } }