New minimum pay rates for Construction and Electrical Contracting Sectors under SEOs

First published: January 21st, 2022
Last updated: May 17th 2023

New minimum pay rates for Construction Sector under SEO

A Labour Court recommendation for new minimum pay and pension contribution rates for workers in the construction sector was formally approved in April 2023.

The new minimum rates of pay and conditions under the Sectoral Employment Order (SEO) for the construction sector will commence on 18 September 2023.

Summary of changes

The latest SEO provides for increased rates of hourly pay for workers in the construction sector, as well as amendments to the minimum pension contributions.

From September 18 2023, the following minimum rates of pay will apply:

• craftspeople will see their hourly rate increase to €21.49
• those workers in category A, including those with an advanced Scaffolding Card and who have four years’ experience – bank operatives, steel fixers, crane drivers and heavy machine operators will receive €20.86 per hour, and
• workers in Category B, skilled general operatives with more than two years’ experience, will receive €19.35 per hour.

Apprentice rates

Apprentices will also receive an increase in their legal minimum pay, including time they spend in education.

Updated Pay Rates in Full

The following basic hourly rates of pay will apply in the Construction Sector from 18 September 2023 to 4 August 2024:

• Craftsperson €21.49 per hour
• Category A Worker €20.86 per hour
• Category B Worker €19.35 per hour

Apprentice – minimum rates of pay

• Year 1 - 33.33% of Craft Rate
• Year 2 - 50% of Craft Rate
• Year 3 - 75% of Craft Rate
• Year 4 - 90% of Craft Rate

A minimum hourly rate of basic pay of €15.64 will apply for two years after entrance to the sector to all new entrant operative workers who are over the age of 18 years and entering the sector for the first time.

The following basic hourly rates of pay will apply in the Construction Sector from 5 August 2024:

• Craftsperson €22.24 per hour
• Category A Worker €21.59 per hour
• Category B Worker €20.03 per hour

Apprentice – minimum rates of pay

• Year 1 - 33.33% of Craft Rate
• Year 2 - 50% of Craft Rate
• Year 3 - 75% of Craft Rate
• Year 4 - 90% of Craft Rate

A minimum hourly rate of basic pay of €16.19 will apply for two years after entrance to the sector to all new entrant operative workers who are over the age of 18 years and entering the sector for the first time.

Updated Minimum Pension Contributions

The following pension contributions must be adhered to by employers in the Construction Sector from 18 September 2023 to 4 August 2024:

• Employer daily rate - €5.96 (weekly - €29.78)
• Employee daily rate - €3.97 (weekly €19.87)
• Total contribution daily into the scheme per worker - €9.93 (weekly €49.65)

The following pension contributions must be adhered to by employers in the Construction Sector from 5 August 2024:

• Employer daily rate - €6.17 (weekly - €30.82)
• Employee daily rate - €4.11 (weekly €20.57)
• Total contribution daily into the scheme per worker - €10.28 (weekly €51.39)

Do you know the correct minimum pay rates in your sector?

Non-payment of wages is the most common claim made by employees in the WRC.

To discuss any queries you have around minimum pay rates in your sector, speak to one of our expert HR consultants today on 1800 719 216