The revised index of hourly labour cost - all employees (ICHTrev-TS); a cost index and an index of employer contributionsHourly labour cost index - first quarter 2017

The ICHTrev-TS is primarily intended for users who need indicators of labour costs to upgrade their contracts. Therefore, this index cannot be subject to any revision once it has been published. It is a monthly index (base 100 in December 2008) that is published every quarter for all industries.

Warnings:

- Since 1st January 2017, the rate of the tax credit for encouraging competitiveness and jobs (CICE) in metropolitan France has increased from 6% to 7%. The rate remains at 9% in the overseas deparments.

- The hiring premium measure has been extended to hirings until 30th June 2017.

The cost index

The ICHTrev-TS is primarily intended for users who need indicators of labour costs to upgrade their contracts. Therefore, this index cannot be subject to any revision once it has been published. It is a monthly index (base 100 in December 2008) that is published every quarter for all industries.

The tax credit for encouraging competitiveness and jobs (CICE) has been included in the computation of the ICHTrev-TS as a subsidy received by the employer since its settlement on the 1st January 2013. On 1st January 2017, the rate of the CICE increased from 6% to 7% of wages lower than 2.5 minimum wages in metropolitan France. The rate remains at 9% In the overseas departments. Since the ICHTrev-TS is an index smoothed over a four-quarter period, the effect of an increase in the CICE rate on the change in the index is spread over the whole year.

Table1 – ICHTrev-TS - Cost

base 100 in Dec. 2008
ICHTrev-TS - Cost
Jan. 2017 Feb. 2017 March2017 Apr. 2017
Mechanical and electrical industries 118.5 118.5 118.6 118.7
Mining and quarrying 115.0 115.1 115.2 na
Manufacturing 116.4 116.4 116.4 na
Electricity, gas, steam and air conditioning supply 111.5 111.8 112.1 na
Water supply; sewerage, waste management and remediation activities 109.3 109.3 109.2 na
Construction 113.5 113.6 113.7 na
Wholesale and retail trade; repair of motor vehicles and motorcycles 112.3 112.3 112.3 na
Transportation and storage 109.3 109.2 109.2 na
Accommodation and food service activities 112.2 112.1 112.0 na
Information and communication 115.5 115.7 115.9 na
Financial and insurance activities 115.5 115.6 115.7 na
Real estate activities 121.6 122.0 122.4 na
Professional, scientific and technical activities 113.0 113.1 113.3 na
Administrative and support service activities 115.2 115.1 115.0 na
  • Scope: non-agricultural market sector excluding services to households - na: not available
  • Sources: ACOSS DARES, INSEE

The index of employer contributions

An index of employer contributions has also been published from April 2010 on (base 100 in December 2008). It differs from the ICHTrev-TS in two ways: the three monthly indices of a same quarter are identical, and there is no forecast for the mechanical and electrical industries as far as the first month of the next quarter is concerned. This index of employer contributions measures the change in the variable “1 + rate of employer contributions” where the rate of employer contributions is the percentage of employer social contributions and taxes minus subsidies based on wages and employment, relative to gross salary (see methodological note).

The CICE affects the index of employer contributions.

Table2 – ICHTrev-TS - Employer contributions

base 100 in Dec. 2008
ICHTrev-TS - Employer contributions
Jan. 2017 Feb. 2017 March 2017
Mechanical and electrical industries 97.9 97.9 97.9
Mining and quarrying 97.2 97.2 97.2
Manufacturing 97.5 97.5 97.5
Electricity, gas, steam and air conditioning supply 98.3 98.3 98.3
Water supply; sewerage, waste management and remediation activities 97.0 97.0 97.0
Construction 97.9 97.9 97.9
Wholesale and retail trade; repair of motor vehicles and motorcycles 97.2 97.2 97.2
Transportation and storage 96.1 96.1 96.1
Accommodation and food service activities 96.3 96.3 96.3
Information and communication 98.6 98.6 98.6
Financial and insurance activities 98.7 98.7 98.7
Real estate activities 98.5 98.5 98.5
Professional, scientific and technical activities 98.3 98.3 98.3
Administrative and support service activities 95.7 95.7 95.7
  • Scope: non-agricultural market sector excluding services to households
  • Sources: ACOSS, DARES, INSEE