Informations Rapides · 16 June 2026 · n° 142

In Q1 2026, hourly wages increased by 2.0% over a year, hourly costs by 2.3% Labour cost index (LCI) - Detailed results - first quarter 2026

Hourly wages in the non-agricultural market sector (excluding services to households) decelerated sharply in the first quarter of 2026: +0.3% over the quarter, after +1.3% in Q4 2025 (seasonally and trading day adjusted data). This slowdown was mainly due to the sharp decline in the payments of the Value Sharing Premium (“PPV”) compared to late 2025: €491 millions were paid to the employees in Q1 2026, after €1.4 billion in tQ1 2026 and €469 millions in Q1 2025.

Over a year, wages accelerated slightly in Q1 2026: +2.0%, after +1.9% in the previous quarter. This slight acceleration was driven in particular by the revaluation of the minimum wage in January 2026 (+1.2%), whereas the previous increase in the minimum wage dated back to November 2024. Accounting for moderate inflation in wage negotiations contributed to limiting wage growth: the consumer price index rose by 1.0% over a year in the first quarter of 2026, after +0.9% in the previous quarter.

By sector, in Q1 2026, hourly wages accelerated over a year in services (+1.9% over a year, after +1.6%) while they slowed down in construction (+2.2%, after +2.5%) and continued to rise at the same pace in industry (+2.2%, as in the previous quarter).

In the first quarter of 2026, hourly labour costs (wages, contributions, and taxes, net of subsidies) in the non-agricultural market sector (excluding services to households) slowed down sharply, in line with wages: +0.5% over the quarter, after +1.2% in the previous quarter.

Over a year, hourly labour costs decelerated slightly and its growth rate got closer to that of wages: +2.3% in the first quarter of 2026, after +2.6% in the previous quarter. This slight slowdown, while wages accelerated slightly, can be attributed to a smaller decrease in social security contribution exemptions compared to the previous quarter: these had dropped sharply in Q4 2026, partly due to the 2025 expansion of the tax base to include the payments of the Value Sharing Premium (“PPV”), which are usually higher at the end of the year. They slowed the pace of their decline over a year in early 2026, in particular because of the revaluation of the minimum wage on which the exemption schedules are based.

By sector, over a year, hourly labour costs decelerated significantly in construction (+2.0%, after +3.8%), while it barely slowed down in industry (+2.8%, after +2.9%) and in services (+2.2%, after +2.3%).

Compared to the flash estimate published on 13 May 2026, the year-on-year change in LCI - hourly wages in the non-agricultural market sector (excluding services to households) in Q1 2026 was revised upwards by 0.1 points at +2.0%. This revision is primarily the result of the integration of new information, including the inclusion of late reports from enterprises. On the other hand, the year-on-year change in LCI - hourly costs remained unchanged at +2.3%.

Compared to the previous detailed results published on 17 March 2026, the year-on-year change in LCI - hourly wages in the non-agricultural market sector (excluding services to households) in Q4 2025 was revised upwards by 0.2 points at +1.9%. The one in LCI - hourly costs was revised upwards by 0.1 points at +2.6%. Once again, this revision is primarily the result of incorporating new information, particularly the inclusion of late reports from enterprises. In addition, the figures for previous quarters have been revised more than usual for this time of year. The transition to the new single degressive general reduction (“RGDU”) in Q1 2026 provided an opportunity to review the estimates of the tax exemptions under the schemes it replaced, with revisions to the annual changes in labor costs of no more than 0.2 percentage points in absolute terms since 2019.