In the first quarter of 2024, hourly wages rose 2.8% year-on-year, and hourly costs rose 3.0% – Quick Information – 116

In the first quarter of 2024, the wage bill paid by employers in the non-agricultural market sector (excluding household services) increased much more than the number of hours paid by employers, resulting in an increase in hourly wages. However, wage growth declined compared to the previous quarter, in line with the decline in inflation. Another feature of the wage growth curve is the Shared Value Premium (PPV), the payments of which fell sharply at the beginning of 2024 (in particular, since the payment of this premium has been taxed since January 1, 2024): 490 million euros were paid to employees in the first quarter of 2024, which is much lower than in the previous quarter (2.3 billion euros) and in the first quarter of 2023 (1.2 billion euros).

In addition, aid for hiring young workers on sandwich course contracts, introduced at the end of July 2020, helps to mitigate changes in labour costs until the first quarter of 2024. From January 2023, employers are eligible for aid of up to €6,000 under certain conditions.

Hourly wages in the non-agricultural market sectors (excluding household services) slowed down again compared to the same period last year: in the first quarter of 2024 they grew by 2.8%, compared to 3.1% in the previous quarter. This is much lower than the previous peak (+5.3%) reached at the end of 2022. This slowdown is partly due to a year of low PPV payments, against the backdrop of low inflation. In the first quarter, hourly wages in industry (+3.1%) were slightly higher than those in services (+2.7%) and construction (+2.1%).

Compared to the same period last year, hourly labor costs (wages and salaries, contributions, taxes net of subsidies) in the non-agricultural market sector (excluding household services) increased by 3.0% in the first quarter of 2024, compared to an increase of 3.4% in the previous quarter. The difference in the dynamism of hourly wages in the first quarter of 2024 is largely due to the nature of PPV payments, which are not affected by social security contributions: the year-on-year decline in bonus payments had a greater impact on the year-on-year growth in wages than on the growth of labor costs.