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.

Contact Us
By David Casey June 12, 2026
One of the biggest mistakes we see employers make is starting recruitment before defining exactly what they need.  When a vacancy arises, there is often pressure to recruit quickly. However, taking time to plan before advertising a role can significantly improve recruitment outcomes and reduce costly hiring mistakes. Before starting the recruitment process, employers should ask themselves five fundamental questions. 1. Do We Actually Need to Hire This Person? Before recruiting, consider whether a new hire is genuinely required. Is the workload permanent? Could responsibilities be redistributed? Is there another solution available? Recruitment should address a business need, not simply fill a vacant seat. 2. What Exactly Do We Need From This Person? Many employers focus on job titles rather than outcomes. Consider: • What responsibilities will they own? • What skills are essential? • What results should they achieve? A clear understanding of the role makes it easier to identify the right candidate. 3. Will This Candidate Be the Right Cultural Fit? Technical skills are important, but so is cultural fit. A candidate may have the right experience on paper, but will they align with your company values, team dynamics, and ways of working? Long-term success often depends on both capability and compatibility. 4. Are Our Expectations Realistic and Sustainable? Unrealistic expectations can make recruitment unnecessarily difficult. Employers should assess whether the salary, responsibilities, and required experience are aligned with the realities of the market. The ideal candidate rarely ticks every box. 5. Do We Have the Infrastructure to Support and Retain Them? Hiring successfully requires a meaningful investment of time. Before proceeding, evaluate whether you have the necessary time, administrative resources, and budget to effectively interview, onboard, and train a new employee. Recruitment doesn't end when the offer is accepted. Supporting and retaining talent is equally important. Key Takeaway Recruitment done right is rewarding for both employers and employees, laying the foundation for a successful and productive working relationship. However, it requires careful planning, time, and investment to achieve the best outcomes. Taking the time to answer these five questions before recruiting can help streamline your hiring process, protect your budget, and ensure you're attracting the right person for your business. If you're planning a hire and would like support with your recruitment strategy, we're happy to help. info@mssthehrpeople.ie | 01 887 0690
WRC Upholds Constructive Dismissal and Protected Disclosure Complaints
By Amy Vickers June 4, 2026
Health and safety concerns, deteriorating workplace relationships and poor record keeping create significant exposure for employers
WRC Criticises Employer Conduct, Workplace Practices and AI Generated Submission
By Amy Vickers June 4, 2026
WRC decision highlights that seemingly casual comments, compliance failures, and the careless use of AI material can all contribute to legal liability
Is workplace conflict increasing, or are employees less tolerant?
By Amy Vickers June 4, 2026
Are workplaces actually becoming more difficult or are employees simply becoming far less willing to tolerate behaviour that previous generations may have ignored
How Long Is Too Long? The Cost of Delayed Recruitment Decisions
By Amy Vickers June 4, 2026
Many employers would be surprised to learn how often good candidates are lost because a recruitment process takes too long.
By Tara Daly May 19, 2026
Irish employers are increasingly turning to international hiring as a solution to ongoing skills shortages. This trend is particularly evident in sectors where local talent is limited and demand continues to grow. Why employers are looking overseas Common drivers include: • Difficulty filling specialist roles locally • Business expansion and growth • Increased competition for talent International hiring can provide access to a wider talent pool and support long-term workforce planning. The challenge While the opportunity is clear, the employment permit process can be complex. Employers often underestimate: • The level of detail required in applications • The importance of aligning with eligibility criteria • The potential for delays or refusals Where the process is not managed properly, the impact can be significant. Roles remain open for longer, business plans are affected, and onboarding timelines move further out than expected. Getting it right A structured and informed approach is essential. This includes: • Understanding the appropriate permit type • Ensuring the role meets eligibility requirements • Preparing a clear and robust application Where employers take the time to position the role properly and support the application with strong documentation, the process is far more likely to run smoothly. Key takeaway for employers International hiring can be a highly effective solution, but only where the permit process is managed correctly. Approached properly, it enables businesses to secure the talent they need to grow and succeed with greater certainty and less disruption. If you would like advice or support with the employment permit process, our team would be happy to assist. info@mssthehrpeople.ie | 01 887 0690
By Tara Daly May 13, 2026
A common approach we encounter is employers submitting an employment permit application and waiting to see what happens. While understandable, this approach carries significant risk. Why this approach falls short Employment permit applications are not a simple box-ticking exercise. Each application is assessed based on: • Eligibility • Justification • Alignment with current criteria If any of these elements are unclear or insufficient, the application may be delayed or refused. The impact of getting it wrong Where an application is unsuccessful: • Timelines are extended • Recruitment plans are disrupted • Candidates may withdraw In a competitive hiring market, these delays can have a real impact on the business. A role can remain unfilled for longer than expected, existing teams can come under pressure, and a strong candidate may choose another opportunity. A better approach Employers should approach permit applications as a structured process, focusing on: • Clear alignment with eligibility criteria • Strong and accurate role definition • Comprehensive supporting rationale It is far more effective to identify and address risk areas before submission than to deal with the consequences of delay or refusal later. Key takeaway for employers Submitting an application without fully assessing the risks can lead to avoidable delays. A well-prepared application significantly improves the likelihood of a successful outcome and gives the employer greater confidence throughout the process. If you’re planning an overseas hire or facing delays, we’re happy to talk it through. info@mssthehrpeople.ie | 01 887 0690
WRC awards €15,000 after employee kept on “specific purpose” contract for 10 years
By Amy Vickers May 7, 2026
A recent WRC decision is a very important reminder to employers that long running “specific purpose” and fixed term arrangements can create significant risk
Workplace Bullying, Harassment and Sexual Harassment Claims Are Rising
By Amy Vickers May 7, 2026
Increase in complaints relating to bullying, harassment, and sexual harassment and the complexity and escalation of these cases.
Supporting Employees Through Pregnancy Loss
By Amy Vickers May 7, 2026
Pregnancy loss is a deeply personal experience. For employers, these situations can be equally challenging because of the uncertainty around it.