Key Contacts: Patrick Walshe – Partner
A new Sectoral Employment Order (SEO) will take effect in Ireland on 1 August 2025, this SEO will introduce enhanced minimum hourly rates of pay, minimum pension contributions, and sick pay entitlements for workers in the construction sector (including craft persons, construction operatives and apprentices).
SEO’s are legislative instruments that establish legally binding rates of pay and working conditions for workers in a particular sector. Five trade unions submitted an application to the Labour Court seeking a review of pay, pension, and sick pay entitlements for various construction sector employees, which resulted in the new SEO. Following this application, the Labour Court recommended the new SEO to the Minister for Business, Employment and Retail. This was then approved by the Oireachtas on 7 November 2024.
Approximately 46,600 construction workers in Ireland will benefit from the new SEO. Specifically, qualifying workers will receive a 3.4% increase in minimum pay from August 2025, with an additional 3.2% increase from August 2026. The SEO will also introduce enhanced pension and sick pay benefits offering greater support for craft persons, construction operatives and apprentices across the sector. It is hoped that these updates will help to address Ireland’s need for skilled labor in housing and infrastructure projects.
The new SEO’s staged pay and pension increases will directly impact labor costs, requiring updates to budgets and employment contracts. Improved benefits aim to boost workforce stability and attract new entrants.
