Labour cost index in industry, building industry and tertiaryLCI

Paru le : 13/11/2018



The purpose of the labour cost index (LCI) is to reflect the trends in the hourly cost of labour of the salaried work force (cost of labour per hour of work).

The LCI incorporates all costs (salaries and charges) and is broken down by business sector: industry, the building industry and tertiary (non-agricultural market sectors).

This index is harmonised on a European level (regulations n° 450/2003 and n° 1216/2003). The concepts used are based on the regulation for the implementation of the labour cost survey (ECMO).

The European harmonization of LCI facilitates its use and that of his non-revisable derived - the ICHTrevTS- for indexing contracts that are increasingly focus on European markets and even global markets.


Before 1997, a labour cost index (LCIO) was calculated whose scope only covered workmen.

From January 1997, an hourly labour cost index - all employees (ICHT-TS) was introduced for a certain number of sectors (NAF rev. 1): textiles (division 17), clothing-leather (18-19), services to businesses (74), mechanical and electrical industries (28 to 35).

The ICHT-TS measured the cost of labour without taking into account any changes to the classification of jobs or their breakdown by gender (constant structure index).

Whereas the ICHT-TS is more similar to a labour price index, the LCI, introduced in 2005, is a genuine labour cost index: its trends take account of modifications to the employment structure.

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