The Irish Government has formally approved new measures affecting minimum pay rates, pensions, and sick pay entitlements for workers in the construction industry, following a recommendation from the Labour Court.
The new regulations amend the previous Sectoral Employment Order (SEO) made in 2023, and are expected to have a significant impact on the sector. The updated order stipulates a 3.4% increase in minimum pay rates, which will take effect in August 2025. Furthermore, workers can expect an additional 3.2% increase in August 2026.
Sectoral Employment Orders (SEOs) are legally binding agreements that set the minimum terms and conditions for employees within specific sectors, including wages, sick pay, and pension contributions. These agreements are crucial in ensuring fair working conditions and are enforceable by law.
Emer Higgins, Minister of State for Business, Employment, and Retail, expressed her satisfaction with the approval of 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,” Higgins said. She emphasized the importance of the changes, particularly for the broader economy and the ongoing provision of quality housing.
The recommendation from the Labour Court came after a request by trade unions including BATU, Connect, OPATSI, SIPTU, and UNITE, who called for a review of the pay and conditions of construction workers. These unions have long advocated for better wages and working conditions within the sector.
The adjustments to the SEO are seen as a positive step toward improving the financial well-being of construction workers, especially in the face of rising living costs and growing demand for housing in Ireland.
With construction continuing to play a key role in addressing Ireland’s housing crisis, the Government’s approval of the new SEO is viewed as an important move in securing fair compensation and benefits for workers in a sector crucial to the nation’s infrastructure and economic development.
