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29 Jan 2022

Boost to minimum pay for construction workers agreed

Boost to minimum pay for construction workers agreed

New increased minimum pay rates for workers in the construction sector are set to come into effect next year, following a recommendation by the Labour Court. 

The following basic hourly rates of pay will apply in the sector from 1 February, 2022 to 31 January, 2023.

A craftsperson will be paid a minimum of €20.52 per hour. A category A worker will be paid€19.91 per hour and a Category B worker will be paid a minimum of €18.47 per hour. 

An apprentice will receive 33.33% of Craft Rate in their first year, 50% in year 2, 75% in year 3 and 90% in year 4. 

There will be another increase in 2023 when the minimum pay for a craftsperson will be €21.09 per hour. A Category A worker will be paid a minimum of €20.47 per hour while a Category B worker will be paid €18.99 per hour. 

Apprentices will be paid the same percentage of the new rates. 

The Minister of State for Business, Employment and Retail Damien English TD, signed a Statutory Instrument giving legal effect to a recommendation from the Labour Court for new minimum pay rates to workers in the construction sector. 

This recommendation was approved by both Houses of the Oireachtas on 16 November, 2021.

Minister English said: "I have signed this Sectoral Employment Order into law following its approval by both Houses of the Oireachtas.  This Order sets new minimum rates of pay, pension and sick pay entitlements for workers in the Construction Sector following a review by the Labour Court. 

"It is an important step in ensuring the sector remains competitive, productive, and sustainable and will help support the delivery of the government’s multi-billion capital investment in the National Development Plan, of high quality and affordable homes under the Housing for All strategy, and the investment in renewable energy, electric vehicles, and delivering a retrofitting programme under the Climate Action Plan," Minister English said. 

The recommendation is the third such recommendation from the Labour Court in the construction sector.

The Labour Court recommendation follows on from an application by the BATU, Connect, OPATSI, SIPTU and UNITE to the Court to review the terms and conditions of workers in the Construction Sector.

There will also be increases in pension contribution rates and the need for all employers to have in place a sick pay scheme for each employee covered.

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