Summer 2025 brings about increases to minimum rates of pay in both the construction and security sectors. Employers should be prepared for the changes this will make to payroll, staff contracts, and other HR documentation.
A Sectoral Employment Order for the construction industry is expected to come into effect on 1 August 2025, and a new Employment Regulation Order has already increased minimum pay rates in the security sector.
So, is your business affected? And do you know how to prepare for these changes?
The Sectoral Employment Order (Construction Sector) 2024
From 1 August 2025, construction workers will benefit from an increased minimum hourly pay rate, as well as enhanced minimum pension contributions and sick pay entitlements.
The new Sectoral Employment Order (Construction Sector) 2024 sets out hourly rate increases for both August 2025 and August 2026 and aims to make the construction sector more attractive to new workers. In turn, it is hoped that this initiative will have a positive impact on housing and infrastructure development in Ireland.
It is estimated that approximately 46,600 construction workers will be impacted, including craftspeople, construction operatives, and apprentices. Qualifying workers will receive a 3.4% increase in minimum pay per hour from August 2025, and an additional 3.2% increase from August 2026.
There are different categories set out in the Order, such as category A (scaffolders with 4 years’ experience, and more), or craftspeople (bricklayers, carpenters, painters, and more). Employees will be subject to different minimum rates of pay depending on the category they’re in.
What is a Sectoral Employment Order?
A Sectoral Employment Order (SEO) is a legally binding order that requires employers in certain sectors to provide their employees with specified minimum rates of pay, sick pay entitlements and pension contributions.
First, a trade union or other employer organisation will usually make a request, and the Labour Court will then investigate the terms and conditions of employment in that sector. The Court will look at remuneration, sick pay and pension provision, before making a recommendation as to whether to establish an SEO for that industry.
The new Employment Regulation Order for workers in the security industry
The Minister of State for Employment, Small Business and Retail recently announced a new Employment Regulation Order (ERO) for the security industry. This ERO came into effect as of the 22 July 2025.
This Order applies to those working as security workers with a security firm. This is important to note, as someone working in security who is not employed by a security firm may not be eligible for the increased minimum pay rates.
As of 22 July, the minimum rate of pay in the security industry is now €15.41 per hour, an increase from €14.50.