Press release
Minister Richmond approves new Sectoral Employment Order for workers in the construction industry
From Department of Enterprise, Trade and Employment
Published on
Last updated on
From Department of Enterprise, Trade and Employment
Published on
Last updated on
Neale Richmond, Minister of State for Employment Affairs and Retail Business has accepted the Labour Court recommendation for new minimum pay and pension contribution rates for workers in the construction sector.
Minister Richmond said:
"I am pleased to approve this Sectoral Employment Order (SEO) for the construction sector which will commence on 18 September 2023.
"This SEO will provide for increased rates of hourly pay for workers in the construction sector, as well as amendments to the minimum pension contributions. Further increases in pay will commence from 5 August 2023.
"From September 18, craftspeople will see their hourly rate increase to €21.49; those workers in category A, including those with an advanced Scaffolding Card and who have four years’ experience – bank operatives, steel fixers, crane drivers and heavy machine operators will receive €20.86 per hour; and workers in Category B, skilled general operatives with more than two years’ experience, will receive €19.35 per hour.
"This SEO will make a real difference to workers in the sector not only by increasing rates of pay but also by providing certainty for workers. The inclusion of a legally binding disputes procedure will also ensure that any disputes that arise in the sector can be addressed effectively and fairly.
"Apprentices will also benefit from this SEO, with an increase in their legal minimum pay, including time they spend in education.
"Ensuring that our construction industry is strong and dynamic is a priority of the government, as this is crucial to meeting our housing needs. By supporting those workers currently in the industry, as well as ensuring it remains an attractive career for young people, we can ensure that the high standard of talent and skills we have in the industry will remain into the future."
In accordance with the requirements of the Industrial Relations (Amendment) Act 2015, Minister Richmond has referred the matter before the Houses of the Oireachtas to seek a resolution approving the making of an Order giving effect to the recommendations.
The Labour Court recommendation to the Minister follows on from an application by the BATU, Connect, OPATSI, SIPTU and UNITE to the Court to review the terms and conditions of workers in the construction sector. The application was made in accordance with Section 14 of the Industrial Relations (Amendment) Act 2015.
Following completion of its review of the application, and in line with Section 15 of the Act, the Labour Court submitted its recommendations under Section 16 of the Act to the Minister within the statutory deadlines.
Recommendation of the Court made under Section 16 of the Industrial Relations (Amendment) Act, 2015 to amend its previous recommendation confirmed by the Minister in SI 598 of 2021.
A minimum hourly rate of basic pay of €15.64 will apply for two years after entrance to the sector to all new entrant operative workers who are over the age of 18 years and entering the sector for the first time.
A minimum hourly rate of basic pay of €16.19 will apply for two years after entrance to the sector to all new entrant operative workers who are over the age of 18 years and entering the sector for the first time.
Pension contribution from 18 September 2023 Employer daily rate - €5.96 (weekly - €29.78)
Employee daily rate - €3.97 (weekly €19.87)
Total contribution daily into the scheme per worker - €9.93 (weekly €49.65)
Pension Contribution from 5 August 2024 Employer daily rate - €6.17 (weekly - €30.82)
Employee daily rate - €4.11 (weekly €20.57)
Total contribution daily into the scheme per worker - €10.28 (weekly €51.39)
For definitions, please go to SI No 234 of 2019 - Sectoral Employment Order (Construction Sector) 2019.