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 - second quarter 2018

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 2018, the CICE rate decreased from 7% to 6% for 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 2018, the rate of the tax credit for encouraging competitiveness and jobs (CICE) in metropolitan France has decreased from 7% to 6%. The rate remains at 9% in overseas departments.

- Hirings after 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 2018, the CICE rate decreased from 7% to 6% for 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
Apr. 2018 May. 2018 Jun. 2018 Jul. 2018
Mechanical and electrical industries 121.0 121.4 121.7 122.0
Mining and quarrying 118.7 119.4 120.1 na
Manufacturing 118.9 119.2 119.4 na
Electricity, gas, steam and air conditioning supply 115.6 115.6 115.7 na
Water supply; sewerage, waste management and remediation activities 111.6 111.9 112.2 na
Construction 116.8 117.1 117.4 na
Wholesale and retail trade; repair of motor vehicles and motorcycles 114.4 114.7 115.0 na
Transportation and storage 110.4 110.7 110.9 na
Accommodation and food service activities 113.9 114.3 114.7 na
Information and communication 119.0 119.3 119.6 na
Financial and insurance activities 118.8 119.1 119.4 na
Real estate activities 127.4 127.8 128.2 na
Professional, scientific and technical activities 115.8 116.1 116.5 na
Administrative and support service activities 116.6 116.9 117.2 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
Apr. 2018 May. 2018 Jun. 2018
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 98.1 98.1 98.1
Wholesale and retail trade; repair of motor vehicles and motorcycles 97.2 97.2 97.2
Transportation and storage 96.0 96.0 96.0
Accommodation and food service activities 96.5 96.5 96.5
Information and communication 98.6 98.6 98.6
Financial and insurance activities 98.7 98.7 98.7
Real estate activities 98.8 98.8 98.8
Professional, scientific and technical activities 98.4 98.4 98.4
Administrative and support service activities 95.6 95.6 95.6
  • Scope: non-agricultural market sector excluding services to households
  • Sources: ACOSS, DARES, INSEE