On November 8, 2024, the Minister of State for Business, Employment and Retail, Emer Higgins, officially approved a recommendation from the Labour Court to introduce higher minimum pay rates, improved pension provisions, and enhanced sick pay entitlements for workers in the Construction Industry. This move follows the Labour Court’s review of the sector and amends the previous Sectoral Employment Order (SEO) for the industry, first issued in 2023.
The newly approved order marks the fifth such adjustment to the Construction sector’s SEO since the initial order was introduced in 2017, under a framework designed to regulate pay and conditions in certain industries through collective bargaining and independent assessment.
Key Changes to Construction Pay and Benefits
The new Sectoral Employment Order revises the minimum pay rates for construction workers, increasing them by 3.4% in August 2025, with a further 3.2% increase planned for August 2026. This follows an application by several unions, including BATU, Connect, OPATSI, SIPTU, and UNITE, which requested a review of workers’ terms and conditions. The order also introduces improved pension rates and sick pay entitlements, ensuring that construction workers receive better financial security and benefits during their careers.
Minister Higgins’ Approval
Minister Emer Higgins expressed her satisfaction with the new order, emphasizing its importance for the construction sector and the broader Irish economy. In a statement, she said:
“I am very pleased to sign this new Sectoral Employment Order for the Construction Industry. After carefully reviewing the statutory report and recommendations submitted by the Labour Court, I am confident that these changes will significantly benefit both workers and employers in the sector. This order will support the continued growth of our construction industry and help ensure that it remains a competitive and attractive career choice.”
Higgins also highlighted the importance of the order in fostering strong industrial relations and supporting quality housing development, noting that the new measures will also benefit apprentices, whose minimum pay will increase as they continue their training.
The Sectoral Employment Process
The Sectoral Employment Order (SEO) process is a key mechanism under Irish labour law, specifically outlined in the Industrial Relations (Amendment) Act 2015. The process allows for the independent setting of pay rates and working conditions in specific sectors, following an application by relevant trade unions or employer groups. The Labour Court conducts a thorough review, taking into account the interests of all parties involved, and submits recommendations to the Minister for approval.
The Labour Court’s recommendation to increase pay and benefits for the construction industry follows an application filed by the BATU, Connect, OPATSI, SIPTU, and UNITE unions, which requested a review of workers’ conditions. This review process was conducted in accordance with Section 14 of the Industrial Relations (Amendment) Act 2015, with the final recommendations submitted within statutory deadlines.
Impact on the Construction Sector
This latest SEO update is designed to enhance industrial harmony and promote continued growth in the construction sector, which has been vital to the Irish economy, particularly in the areas of housing development and infrastructure projects. By increasing pay rates, pensions, and sick pay entitlements, the Sectoral Employment Order aims to make the construction industry more attractive to both new entrants and apprentices, who will benefit from the improved minimum wage and conditions as they undergo training.
The order also contributes to the government’s broader objectives of ensuring that the construction sector can continue to meet the demand for affordable housing and infrastructure while maintaining a strong, skilled workforce.
Looking Forward
The latest changes to the Sectoral Employment Order are a significant step toward strengthening the construction industry in Ireland, ensuring fair compensation for workers and encouraging the development of skilled tradespeople. The 3.4% pay increase in 2025, followed by the 3.2% rise in 2026, provides a clear path toward better financial security for those working in the sector.
As the construction industry continues to face challenges, including the need for skilled labor to meet Ireland’s growing housing needs, the updated SEO will help ensure that workers are well-compensated and supported throughout their careers.
For further details, the full Sectoral Employment Order (Construction Sector) 2024 is available under SI No. 620 of 2024.
