New Minimum Pay and Pension Rates for the Construction Sector

March 12, 2025

Updated Minimum Pay and Pension Rates for the Irish Construction Sector in 2025


In November 2024, Minister of State for Business, Employment and Retail, Emer Higgins, approved a Labour Court recommendation to adjust minimum pay rates, pension contributions, and sick pay entitlements for workers in the Irish construction industry. This Sectoral Employment Order (SEO) is set to take effect on August 5, 2025, introducing a 3.4% increase in minimum hourly rates across various categories, with an additional 3.2% raise scheduled for August 2026.


There are 2 criteria which decide who is covered:


·        The employer must operate in the construction sector, and

·        It applies to employees who work in the sector and defines their roles into specific classes, as set down below.


The SEO defines what activities place an employer within the construction sector and what experience and qualifications place a worker in a particular employee class.


Revised Minimum Hourly Rates Effective August 5, 2025:





Category Previous Rate (as of August 5, 2024) New Rate (effective August 5th, 2025
Craftsperson €22.24 per hour €22.99 per hour
Category A Worker €21.59 per hour €22.32 per hour
Category B Worker €20.03 per hour €20.71 per hour

Definitions:

  • Craftsperson: Qualified tradespersons, including Bricklayers, Carpenters, Electricians, and Plumbers.
  • Category A Worker: Skilled General Operatives with over four years of experience, such as Steel Fixers and Crane Drivers.
  • Category B Worker: General Operatives with more than two years of experience.


Apprentice Minimum Rates:

From 05 August 2024 to 31 July 2025 From 01 August 2025 to 31 July 2026 From 01 August 2026
Year 1 €7.41 €7.66 €7.91 33.33% of Craft rate
Year 2 €11.12 €11.50 €11.87 50% of Craft rate
Year 3 €16.68 €17.25 €17.80 75% of Craft rate
Year 4 €20.02 €20.70 €21.36 90% of Craft rate

Pension Contribution Rates Effective August 5, 2025:

Contributor Previous Daily Rate (as of August 5, 2024) New Daily Rate (effective August 5, 2025)
Employer €6.17 €6.38
Employee €4.11 €4.25

Pension Contribution Rates Effective 01 August 2026

Contributor Per Week Daily Rate
Employer €32.89 €6.58
Employee €21.95 €4.39
Total Pension contribution per worker €54.84 €10.97

Additional increase will also be applicable for both employer and employee Sick Pay contributions.


These adjustments aim to enhance the attractiveness of the construction sector as a viable career option and ensure fair compensation for workers, thereby supporting the industry's growth and stability.


For further guidance and support, please contact our HR Support team, and we will be happy to assist you.

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