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Low wage trap

Time series : Labour_2.3.4_EN.xls

LOW WAGE TRAP
(Per cent)
  2015 2016 2017 2018 2019
Single person with no children, with gross earnings increase from 33% to 67% of the AW 21.6 21.6 22.0 22.4 22.4
One-earner married couple with two children, with gross earnings increase from 33% to 67% of the AW 21.6 21.6 22.0 22.4 22.4

Explanatory notes:
Low wage trap % = 100 * ( 1 - (NI67%-NI33%)/(GE67%-GE33%))
(NI67%-NI33%) - change of net income when gross earnings change from 33% to 67% of AW.
(GE67%-GE33%) - change of gross earnings from 33% to 67% of AW.
Gross earnings (GE) - gross annual earnings for the corresponding family case.
Net income (NI) - net annual income for the corresponding family case, calculated by deducting form the gross earnings of the employee's social security contributions and income taxes, and adding family allowances (if applicable) plus housing benefits (if applicable), plus social assistance, plus in-work benefits (if applicable).
AW - average worker, working at full-time and receiving the average gross earnings in industries and services - sections B to N of NACE Rev. 2.
31.03.2021