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Pay increases for construction workers approved

The order amends the previous Sectoral Employment Order (SEO) for the industry made in 2023.
The order amends the previous Sectoral Employment Order (SEO) for the industry made in 2023.

The Government has formally approved a recommendation from the Labour Court for new minimum pay rates, pension rates and sick pay entitlements in the construction industry.

The order amends the previous Sectoral Employment Order (SEO) for the industry made in 2023.

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.

SEOs cover rates of pay, sick pay, and pensions across specific sectors and set legally binding obligations for employers.

Minister of State for Business, Employment and Retail, Emer Higgins said she was pleased to sign the new SEO for the construction sector.

"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," Ms Higgins said.

"I believe that these measures are clearly critically important for our economy and for the ongoing provision of quality housing," she added.

The Labour Court recommendation followed on from an application by the trade unions BATU, Connect, OPATSI, SIPTU and UNITE, who asked the court to review the terms and conditions of workers in the construction sector.