Informations Rapides · 17 December 2025 · n° 315

In Q3 2025, hourly wages increased by 1.9% over a year, hourly costs by 2.4% Labour cost index (LCI) - Detailed results - third quarter 2025

In the third quarter of 2025, hourly wages in the non-agricultural market sector (excluding services to households) bounced back: +0.4% over the quarter, after -0.1% in the second quarter of 2025 (seasonally and trading day adjusted data). Meanwhile, the payments of the Value Sharing Premium (“PPV”) decreased (€447 million were paid to the employees, after €546 million in Q2 2025) but made almost no contribution to the overall change.

Over a year, the wage increased at almost the same rate as in the previous quarter: +1.9% in the second quarter, after +2.0%. This rate of growth, which is significantly lower than that of the previous two years (+3.0% on average in 2024, +4.1% in 2023) reflects the fact that wage negotiations have taken into account inflation that is now moderate: in Q3 2025, the consumer price index thus rose by +1.0% over a year, after +0.8% in the previous quarter (+2.0% on average in 2024, +4.9% in 2023).

By sector, in Q3 2025, hourly wages accelerated sharply over a year in industry (+2.8%, after +2.2%), while they continued to slow down in construction (+1.9%, after +2.4%) and maintained almost the same pace in services (+1.7%, after +1.8%).

Hourly labour costs (wages, contributions, and taxes, net of subsidies) in the non-agricultural market sector (excluding services to households) rebounded more sharply than hourly wages in Q3 2025: +0.5%, after -0.2% in the previous quarter.

Over a year, hourly labour costs was also more dynamic than salaries: +2.4% in the third quarter of 2025, after +2.3% in the previous quarter. This faster pace was mainly due to a sharp decline in employer social security contribution exemptions, as the social security financing act for 2025 restricted the scope of remuneration eligible for reduced employer contribution rates (for health and family contributions).

By sector, hourly labour costs accelerated significantly over a year in industry (+3.3%, after +2.6%), while it slowed down in construction (+2.6%, after +2.9%) and its pace stabilised in services (+2.1%, as in the previous quarter).

Compared to the flash estimate published on 14 November 2025, the year-on-year change in LCI - hourly wages in the non-agricultural market sector (excluding services to households) in Q3 2025 remained unchanged at +1.9%. However, the one in LCI - hourly costs was revised sharply upwards (+0.5 points). This revision resulted at first, for +0.3 points, from taking into account of the restriction of the scope of remuneration eligible for reduced employer contribution rates, which was adopted in Q1 2025 in the social security financing act for 2025, and specified by implementing decrees during the second quarter. This reduction in tax relief applies since the beginning of the year, as it concerns salaries paid during the year. The year-on-year change in LCI - hourly costs was also revised upwards by 0.2 points in each of the first two quarter of 2025.

In addition, in the third quarter, the inclusion of information related to recent trends in exemption amounts and total payroll, which were not available for the flash estimate, also contributed to the overall review.