Updated pay, pensions, and sick leave in the construction sector has been approved

The Labour Court’s recommendation for updated pay, pensions, and sick leave in the construction sector has been approved. The revised Sectoral Employment Order (SEO) specifies pay rates based on employee categories, including apprentices and operatives, effective August 2024, with scheduled increases through 2026. Employers must evaluate the impact on labor costs and contracts. These changes aim to attract talent and address skill shortages. Minimum rates of pay will increase by 3.4% from the current SEO rates in August 2025, with provision for a further rise of 3.2% in August 2026.

Announcing the new Sectoral Employment Order, The Minister of State for Business, Employment and Retail, Emer Higgins stated:

“I am very pleased to sign a new Sectoral Employment Order for the Construction Industry. I have carefully considered the statutory report that was submitted to me alongside the recommendation from the Labour Court, and, on this basis, I have formally accepted the Labour Court’s recommendation and made an Order giving it statutory effect.

“I believe that these measures are clearly critically important for our economy and for the ongoing provision of quality housing. Ensuring our construction industry is strong and dynamic is an absolute priority for this government.

“This Order will also underpin continued good relations between workers and employers in the sector. It will also help maintain the attractiveness of this sector as a viable career option as apprentices will also benefit from the SEO, seeing their legal minimum pay increase as they remain in training.”

Coverage Under the SEO

The Sectoral Employment Order (SEO) applies to:

1. Employers operating in the construction sector.
2. Employees working in this sector, classified as apprentices, new entrant operatives, construction operatives, or craftspersons.

The SEO specifies the activities that define construction employers and outlines the qualifications and experience required for each employee class.

Impact on Organizations

The updated terms aim to make careers in the construction sector more appealing and address skill shortages for housing and infrastructure projects. Although the next increase in minimum rates begins in August 2025, construction businesses must evaluate the financial implications of the SEO on labor costs and review relevant employment contracts to ensure compliance.

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