From Department of Enterprise, Trade and Employment
Published on
Last updated on
The Minister of State for Business, Employment and Retail, Emer Higgins, 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, and is the fifth of this kind to be made since the first SEO for the Construction sector was issued in 2017.
The Sectoral Employment process is a statutory wage setting mechanism based on the principles of collective bargaining. It provides an independent assessment of pay rates that considers the views of all interested parties with a view of ensuring industrial harmony and competitiveness.
The Minister’s role is to ensure that the Labour Court’s recommendation has complied with the statutory provisions of Chapter 3 of Part 2 of the Industrial Relations Act 2015.
Announcing the new Sectoral Employment Order, the Minister 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."
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, recommending minimum rates of pay. The Order is available here: SI No 620 of 2024 Sectoral Employment Order (Construction Sector) 2024. The minimum rates of pay will increase by 3.4% from the current SEO rates in August 2025, with provision for a further raise of 3.2% in August 2026.