Insee conjoncture

The all employees-revised index of hourly labour cost - (ICHTrev-TS); both a cost index and an index of employer contributionsHourly labour 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 employers since its implementation on 1st January 2013. On 1st January 2017, the CICE rate increased from 6% to 7% wages lower than 2.5 minimum wage in metropolitan France. The rate remains at 9% in overseas departments. Since the ICHTrev-TS is an index smoothed over a four-quarter period, the impact of an increase in the CICE rate on the change in the index is spread over the whole year.

Warnings:

- As of 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 overseas departments.

- Hirings after the 1st July 2017 are no longer entitled to the hiring premium measure in SMEs.

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 employers since its implementation on 1st January 2013. On 1st January 2017, the CICE rate increased from 6% to 7% wages lower than 2.5 minimum wage in metropolitan France. The rate remains at 9% in overseas departments. Since the ICHTrev-TS is an index smoothed over a four-quarter period, the impact 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
Jul. 2017 Aug. 2017 Sep. 2017 Oct. 2017
Mechanical and electrical industries 119.1 119.3 119.5 119.7
Mining and quarrying 116.2 116.2 116.3 na
Manufacturing 117.1 117.3 117.5 na
Electricity, gas, steam and air conditioning supply 113.1 113.3 113.6 na
Water supply; sewerage, waste management and remediation activities 109.9 110.1 110.2 na
Construction 114.7 114.9 115.1 na
Wholesale and retail trade; repair of motor vehicles and motorcycles 112.7 112.8 112.9 na
Transportation and storage 109.4 109.4 109.4 na
Accommodation and food service activities 112.1 112.1 112.2 na
Information and communication 116.6 116.7 116.9 na
Financial and insurance activities 116.4 116.6 116.7 na
Real estate activities 123.8 124.2 124.6 na
Professional, scientific and technical activities 113.9 114.1 114.2 na
Administrative and support service activities 115.1 115.1 115.1 na
  • na: not available
  • Scope: non-agricultural market sector excluding services to households
  • Sources: ACOSS DARES, INSEE

Index of employer contributions

The index of employer contributions has been published since April 2010 (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
Jul. 2017 Aug. 2017 Sep. 2017
Mechanical and electrical industries 97.7 97.7 97.7
Mining and quarrying 97.0 97.0 97.0
Manufacturing 97.3 97.3 97.3
Electricity, gas, steam and air conditioning supply 98.2 98.2 98.2
Water supply; sewerage, waste management and remediation activities 96.8 96.8 96.8
Construction 97.7 97.7 97.7
Wholesale and retail trade; repair of motor vehicles and motorcycles 96.8 96.8 96.8
Transportation and storage 95.8 95.8 95.8
Accommodation and food service activities 95.9 95.9 95.9
Information and communication 98.4 98.4 98.4
Financial and insurance activities 98.6 98.6 98.6
Real estate activities 98.5 98.5 98.5
Professional, scientific and technical activities 98.2 98.2 98.2
Administrative and support service activities 95.2 95.2 95.2
  • Scope: non-agricultural market sector excluding services to households
  • Sources: ACOSS, DARES, INSEE