CIJC pay deal brings wage rises and extra holiday for construction workers

Construction employers operating under the CIJC Working Rule Agreement will introduce higher minimum pay rates, updated travel and subsistence allowances and, from next year, an increase in annual holiday entitlement.

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The Construction Industry Joint Council (CIJC) has confirmed new minimum pay rates for construction workers covered by the CIJC Working Rule Agreement, with the changes taking effect from Monday 20 July 2026.

The agreement, reached between employer organisations and trade unions, sets the minimum rates of pay and employment conditions across much of the UK construction industry. It is particularly relevant to scaffolding contractors and other employers operating under the CIJC agreement.

Under the new rates, the Craft Rate will increase to £16.40 an hour, equivalent to £639.60 for a 39-hour week.

Other minimum hourly rates from 20 July are:

  • General Operative: £13.18
  • Skill Rate 4: £13.30
  • Skill Rate 3: £14.07
  • Skill Rate 2: £15.04
  • Skill Rate 1: £15.61

Apprentice pay will also increase, with first-year apprentices receiving £8.29 an hour, rising to £8.80 in year two and £10.27 in year three before achieving NVQ Level 2.

Apprentices who have achieved NVQ Level 2 will receive £13.13 an hour, while those who have completed training with NVQ Level 3, or completed with NVQ Level 2 under the agreement, will receive the full Craft Rate of £16.40 an hour.

Employers are also reminded that statutory minimum wage legislation still applies. Apprentices aged 19 to 20 in their second or final year must receive at least the National Minimum Wage of £10.85 an hour, while those aged 21 and over must receive at least the National Living Wage of £12.71 an hour. Both rates have been in force since 1 April 2026 and are enforceable by HMRC.

The updated agreement also includes revised travel and subsistence payments.

Taxed daily travel allowances now range from £1.44 for journeys of nine miles up to £12.42 for 50 miles. Untaxed fare allowances increase from £6.09 to £23.66, depending on the distance travelled.

The overnight subsistence allowance will rise to £53.69 per night, while industry sick pay, payable in addition to Statutory Sick Pay where applicable, increases to £174.66 per week.

The agreement also includes improvements to annual leave over the next two years.

From 1 January 2027, annual holiday entitlement will increase by four hours, taking the total to 23.5 days. A further four hours will be added from 1 January 2028, increasing entitlement to 24 days, plus the usual eight bank holidays.

Where giving the additional half-day holiday proves difficult to manage, employers will be permitted to make a payment in lieu of the extra four hours during 2027 only, before the full entitlement becomes standard from 2028.

The revised rates and allowances will apply from 20 July 2026 to employers and operatives covered by the CIJC Working Rule Agreement.

SM Newsdesk
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