Labour Cost Index Climbs 6.7% in One Year Despite Sectoral Plunges

Wage index data reveals a 1% dip in the accommodation and catering sector, alongside a 0.8% fall in construction pay, according to the latest figures from Statistics Mauritius.The decline in these key sectors contrasts sharply with an overall national increase in the Labour Cost Index (LCI), which rose by 0.3% between the first and second quarters of 2025, reaching a reading of 132.0. Year-on-year, the LCI—which tracks changes in the cost of labour—showed a substantial rise of 6.7% compared to the second quarter of 2024.

Sectoral Disparity in Pay

The quarter-on-quarter changes in salaries were highly variable across the economy. The decrease in hospitality and construction was attributed primarily to “changes in workforce composition and a reduction in regular allowances.”

The sectors facing the most significant quarter-on-quarter pay cuts were:

• Accommodation and Catering: Down 1%
• Information and Communication: Down 0.9%
• Construction: Down 0.8%
• Financial and Insurance Activities: Down 0.7%

Biggest Winners in Wage Growth

Other parts of the economy saw robust wage growth, led by:

• Administrative and Support Services: Up 3% (the largest increase)
• Transport and Storage: Up 1.3%
• Manufacturing: Up 0.8%
• Public Administration, Defence and Compulsory Social Security: Up 0.3%

Public and Private Sector Parity

Both the public and private sectors registered the same quarterly wage progression, with an identical rise of 0.4% from Q1 to Q2 2025.

The private sector, which accounts for 54% of the total economic weight measured by the index, saw its LCI climb from 138.8 to 139.3. This represents a substantial annual increase of 7.9%.

The public sector, including general administration and public enterprises, recorded a rise in its LCI from 122.1 to 122.6, translating to a lower but still significant annual gain of 4.7%.

Source: l’Express