10 January 2020
N° 2020-4

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

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.

Informations rapides
No 4
Paru le : Paru le 10/01/2020
Informations rapides  No 4 - January 2020
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 lowers, 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 2018 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.

- Following the merger of the supplementary pension schemes AGIRC and ARRCO, the corresponding social contribution rates were modified on 1st January 2019. The impact of this measure on the evolution 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)
Jul. 2019 Aug. 2019 Sept. 2019 Oct. 2019
Mechanical and electrical industries 125.3 125.4 125.6 125.8
Mining and quarrying 125.3 125.5 125.6 nd
Manufacturing 122.6 122.8 122.9 nd
Electricity, gas, steam and air conditioning supply 118.0 118.1 118.2 nd
Water supply; sewerage, waste management and remediation activities 117.0 117.4 117.8 nd
Construction 121.1 121.4 121.7 nd
Wholesale and retail trade; repair of motor vehicles and motorcycles 118.5 118.7 118.9 nd
Transportation and storage 114.0 114.3 114.6 nd
Accommodation and food service activities 118.2 118.3 118.4 nd
Information and communication 122.5 122.7 122.9 nd
Financial and insurance activities 123.3 123.7 124.0 nd
Real estate activities 133.6 134.0 134.3 nd
Professional, scientific and technical activities 119.6 119.8 119.9 nd
Administrative and support service activities 120.8 121.0 121.2 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)
Jul. 2019 Aug. 2019 Sept. 2019
Mechanical and electrical industries 98,2 98,2 98,2
Mining and quarrying 97.6 97.6 97.6
Manufacturing 97.9 97.9 97.9
Electricity, gas, steam and air conditioning supply 98.5 98.5 98.5
Water supply; sewerage, waste management and remediation activities 97.4 97.4 97.4
Construction 98.3 98.3 98.3
Wholesale and retail trade; repair of motor vehicles and motorcycles 98.0 98.0 98.0
Transportation and storage 96.5 96.5 96.5
Accommodation and food service activities 97.6 97.6 97.6
Information and communication 99.0 99.0 99.0
Financial and insurance activities 99.0 99.0 99.0
Real estate activities 99.3 99.3 99.3
Professional, scientific and technical activities 98.8 98.8 98.8
Administrative and support service activities 96.7 96.7 96.7
  • Scope: non-agricultural market sector excluding services to households
  • Sources: ACOSS, DARES, INSEE

For further information

Next issue: 10 march 2020

Next issue: 10 march 2020


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