Construction employers and unions have reached agreement on an improved two year pay and conditions deal for workers covered by the Construction Industry Joint Council (CIJC) Working Rule Agreement.
The first 2.5% increase on basic rates of pay will be introduced from Monday 25 July 2016, with a further increase of 2.75% to be introduced from Monday 26 June 2017. The hourly rates cover general operatives, skilled and craft workers, and apprentices. For apprentices in the second or final year of training who are aged between 21 and 24, the National Minimum Wage must apply. This is currently £6.70 per hour for someone aged 21 to 24 and will increase to £6.95 per hour from 1 October 2016.
For apprentices aged 25 and over and in their second or final year of training the National Living Wage must apply. This is currently £7.20 per hour for someone aged 25 and over, and will increase from 1 April 2017.
Taxed daily travel allowance, which will come into effect as of 1 August 2016 and will now be calculated in miles rather than kilometres, will also increase by 2.75%. The non-taxed fare allowance will increase by the Retail Price Index (RPI) for the 12 month period to March 2017, subject to HMRC approval.
The non-taxed subsistence allowance of £36.00 per night will be increased in-line with RPI for the 12 month period to March 2017. New fare and travel allowance scales, as well as a new subsistence allowance, will be
promulgated in May 2017. Industry sick pay will be £118.00 per week and will increase to £122.50 per week from 2017.
Full details of all the new CIJC rates can be viewed on the Build UK website.