Construction Rate Increase
Rate Increase in 2019
The construction rate increase has been on Sherlock’s radar since April of this year; then it seems we barely blinked and it’s happening. The minimum rates of pay for workers in the construction sector are set to rise by 5.4% while rates in the electrical sector will increase by 2.7%.
Workers in the construction sector will be the first to receive the 5.4% increase effect in two stages – the first 2.7% increase will apply from October 1 until September 30, 2020, while the second will run from October 1, 2020.
- ‘Craft people’, which includes: bricklayers, joiners, painters and plasterers amongst others will see their basic hourly rate rise to €19.44 (Oct 2019) and on up to €19.96 (Oct 2020).
- For ‘Category A’ workers – including the likes of scaffolders, steel fixers and crane drivers, the minimum will rise to €18.86 (Oct 2019) and on up to €19.37 (Oct 2020).
- ‘Category B’ workers minimum rate will rise to €17.50 (Oct 2019) and then up to €17.97(Oct 2020). They are skilled general operatives who have worked in the sector for more than two years.
- ‘New entrants’ into the sector will see their minimum rate rise to €14.14 (Oct 2019) and then up to €14.52 (Oct 2020).
- Apprentices will see their rate rise in line with the craft rate – they get 33% of the craft rate in year one up to 90% in year 4.
In the electrical sector:
- Category 1 workers’ minimum rates will rise to €23.49
- Category 2 will rise to €23.96
- Category 3 will rise to €24.34.
With the minimum apprentice rates in the sector ranging from €7.05 to €18.80
Sectoral Employment Orders (SEOs) are legally binding on the sectors to which they apply, and their provisions are enforceable by the Workplace Relations Commission.
The Small Firms Association said that due to the current high demand for people on-site that this new rate increase will negatively affect smaller tradesmen, “Due to the high demand for tradesmen on building sites across the country, service providers in the construction and electrical sector are finding it difficult to compete against these labour rates, and to retain and attract tradesmen,” said SFA Director, Sven Spollen-Behrens.
At Sherlock, we have always paid the legal rate to our staff working on-site, and we will be increasing their current rate in accordance with the national increase.
If you are worried about what impact this will have, we are here to cater for any questions as each agreement is bespoke to each client, we recommend getting in touch with your Account Manager directly:
Construction: Danny Gambarana – email@example.com
Mechanical: Elaine Marron – Engineering@sherlockrecruitment.com
Electrical: Dave McCoy- David@sherlockrecruitment.com