Hourly labour cost in France

In 2012 in metropolitan France, an employee cost his employer an average of 51,839 euros per year in companies with ten or more employees. Proportional to the number of hours actually worked, the cost of labour came in at slightly under 34 euros per hour. It was higher in production-distribution of gas and electricity and in financial activities and insurance, which have a high proportion of managers. The hourly cost was lowest in accommodation and catering, a sector employing a workforce with few qualifications and which therefore benefits more from reductions in contributions for low wages. The average hourly cost in an establishment depends to a large extent on the composition of the workforce by socio-occupational category, quota of work time and age; it also increases with company size. The majority of costs correspond to gross wages and salaries (65%) and employers’ social contributions (31%). Between 2008 and 2012, the hourly labour cost increased on average by 2.3% per year in current euros in manufacturing and market services, to give an overall growth in prices of 1.7% per year.