Indicators calculated before 2018 are based on the policy rules and parameters that were in place on the 1st of July of the selected year. Indicators calculated from 2018 onwards are based on the policy rules and parameters that were in place on the 1st of January of the selected year (7th of April for the United Kingdom and 1st of April for New Zeland)

The 1st annual release of the OECD tax-benefit indicators is in February. It includes new indicators for year T-1 for the majority of OECD and EU countries, plus updates for previous years. The 2nd release is in May and includes updates for all available years plus new indicators for year T-1 for the countries that could not be included in the first release.The 3rd and final annual release is in November. It includes updates for all previous years and new indicators for year T-1 for the countries that could not be included in the second release.

1. The numerator of the indicator is the change in tax liabilities, childcare costs and benefit entitlements incurred when a parent moves into work while claiming unemployment benefits. The denominator is the gross earnings of the parent who is moving into work.
2 Calculations are for families with two children aged 2 and 3. Parents are aged 40.
3. Family benefits, childcare benefits as well as childcare costs are included in the calculations. Differently from family benefits, childcare benefits are benefits that are explicitely designed to reduce the financial costs of centre-based childcare. They can be received in the form of allowances, tax concessions related to childcare expenditures, childcare fee rebates as well as increases in other types of benefit entitlements, e.g. social assistance or family benefits. The childcare cost is a measure of the gross childcare fee paid by parents for full-time centre-based childcare. The NET childcare cost is the difference between the gross childcare fee and childcare benefits (any types).
4. Unemployment benefits are included in the calculations. Users can select several unemployment durations for the person who moves into work: 2nd, 4th, 6th, 12th, 18th and 24th months of unemployment. Where benefit receipt is subject to activity tests, such as active job-search or being available for work, these requirements are assumed to be met by all household members.
5. If relevant for the calculation of benefit entitlements, earnings in the previous job are assumed to be the same as those in the new job.
6. Calculations assume entry into full-time work and use of full-time centre-based childcare. Family and in-work benefits are always included where relevant and applicable.
7. If housing benefits are included in the calculations, these are calculated assuming a household renting in the private market paying rent equal to 20% of the average wage. Rent levels are the same for all family types.
8. Where benefit rules and childcare fees are not determined on a national level but vary by region or municipality, results refer to a “typical” case (e.g. Michigan in the United States, the capital in some other countries). A full description of the policies included in the calculations for each country is available here.
9. For a detailed description of the assumptions underlying the OECD Tax-Benefit model and the related policy indicators, please see the methodology document.
10. For more information, visit the project webpage or contact the OECD tax-benefit team.