Insee conjoncture
10 juillet 2019
N° 2019-

The all employees-revised index of hourly labour cost - (ICHTrev-TS); both a cost index and an index of employer contributionsHourly labour cost index - first quarter 2019

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.

Warning

- On 1st January 2019, the tax credit for encouraging competitiveness and jobs (CICE) was transformed into a permanent reduction of employer contributions. In concrete terms , this leads up to removing the tax credit as such and in a 6-percentage-point reduction in the rate of the health insurance employer contribution for wages lower than 2,5 French minimum wage (SMIC) (rate cut and base equal to those applicable to CICE before its abolition). This transformation is almost neutral regarding the level and the evolution of labour costs as measured by the ICHTrev–TS as of the first quarter of 2019. However, this transformation is lower, ceteris paribus, the « without CICE » indices, which remain published until the convergence of the series without and including CICE. For further details, see the complementary methodological note.

- The emergency economic and social measures adopted by Parliament at the end of the previous year includes the opportunity for the firms to give an exceptional bonus for purchasing power on Q1 2019 to workers whose 2018 earnings were lower than thrice the minimal wage. This bonus, up to 1’000€, exempted of income tax and all forms of social security contributions leads to an increase of the labour cost. The ICHTrev-TS being an index smoothed on four quarters and the measure only applying on the first one, the effect of the latter on the level of the index is spread over the whole year.

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 2019 the CICE was transformed into a permanent reduction of employer contributions.

ICHTrev-TS – Cost

base 100 in Dec. 2008
ICHTrev-TS – Cost (base 100 in Dec. 2008)
Jan. 2019 Feb. 2019 Mar. 2019 Apr. 2019
Mechanical and electrical industries 123.7 124.0 124.3 124.6
Mining and quarrying 123.0 123.5 124.0 nd
Manufacturing 121.2 121.5 121.8 nd
Electricity, gas, steam and air conditioning supply 117.4 117.6 117.8 nd
Water supply; sewerage, waste management and remediation activities 114.2 114.8 115.4 nd
Construction 119.3 119.8 120.2 nd
Wholesale and retail trade; repair of motor vehicles and motorcycles 117.0 117.3 117.6 nd
Transportation and storage 112.9 113.2 113.4 nd
Accommodation and food service activities 116.8 117.1 117.4 nd
Information and communication 121.5 121.6 121.8 nd
Financial and insurance activities 121.5 121.9 122.3 nd
Real estate activities 131.5 131.9 132.4 nd
Professional, scientific and technical activities 118.8 118.9 119.1 nd
Administrative and support service activities 119.5 119.8 120.0 nd
  • 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 transformation of the CICE into a permanent reduction of employer contributions is almost neutral on the index of employer contributions.

ICHTrev-TS - Employer contributions

base 100 in Dec. 2008
ICHTrev-TS - Employer contributions (base 100 in Dec. 2008)
Oct. 2018 Nov 2018 Dec. 2018
Mechanical and electrical industries 98.1 98.1 98.1
Mining and quarrying 97.4 97.4 97.4
Manufacturing 97.8 97.8 97.8
Electricity, gas, steam and air conditioning supply 98.5 98.5 98.5
Water supply; sewerage, waste management and remediation activities 97.3 97.3 97.3
Construction 98.3 98.3 98.3
Wholesale and retail trade; repair of motor vehicles and motorcycles 97.8 97.8 97.8
Transportation and storage 96.3 96.3 96.3
Accommodation and food service activities 97.3 97.3 97.3
Information and communication 98.8 98.8 98.8
Financial and insurance activities 98.7 98.7 98.7
Real estate activities 99.1 99.1 99.1
Professional, scientific and technical activities 98.6 98.6 98.6
Administrative and support service activities 96.4 96.4 96.4
  • Scope: non-agricultural market sector excluding services to households
  • Sources : ACOSS, DARES, INSEE


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