Pay Update: Construction Sector SEO Changes

Minimum rates of pay under the Sectoral Employment Order (Construction Sector) 2024 (SEO) are increasing from the 1^st of August. The SEO came into effect on the 1^st of August 2025, setting out rate increases effective from 1^st August 2025 and 1^st August 2026. The SEO sets minimum pay rates, pension contributions, and sick pay entitlements for approximately 50,000 qualifying construction workers.

Who is covered by the SEO?

There are 2 criteria which decide who is covered:

1. The Employer must operate in the construction sector, and
2. It applies to Employees who work in the sector and defines their roles into specific classes; apprentices, new entrant operatives, construction operative or craft person.

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.

Rates of Pay

The rates of pay for construction workers under the SEO are set out below:

Basic hourly rates of pay

The SEO does not prevent Employers from paying a higher rate of pay than those prescribed in the SEO.

Apprentice Pay Rates

As well as the pay increase in August 2026, construction workers will also benefit from improved pension entitlements.

Impact on Organisations

The improved terms are designed to make the construction sector a more attractive career option and to fill skills gaps on major housing and infrastructure projects.

Organisations in the construction sector are encouraged to review their pay practices to ensure they will be in compliance with the new requirements coming into force in August.

The SEO is legally binding for Organisations in the construction sector and enforceable by the WRC.

To learn more about, please contact Neil McCormack at nmccormack@adarehrm.ie today.