Construction unions and contractors have agreed a pay increase from next month of at least 6% for around 500,000 site workers operating under the Construction Industry Joint Council agreement.

In a two-stage CIJC deal, workers will receive a further 1.5% rise from 1 January 2024, delivering a compound increase of around 7.6%.

Additionally, the lowest pay rate for labourers will increase by 8%, with the entire increase being introduced in July.

The improvement in the labourer’s rate follows a rise from £10.26 to £10.46 in April, introduced to avoid breaking national minimum wage rules.

In addition, the taxed travel allowance will risesd by 6% from next month and then a further 1.5% from 1 January 2024.

The untaxed fare allowance will increase by 10.1%. The subsistence allowance will increase to £49.08 a night.

Industry sick pay (which is paid on top of statutory sick pay) will increase to £154.02 a week from next week and then to £156.33 from January.

Unite national officer Jerry Swain said: “Following lengthy negotiations, Unite was able to secure a significant increase in construction pay rates.

“The union will now be building on these negotiations to ensure that the CIJC agreement is fit or purpose and meets the needs and aspirations of construction workers.”

Click here for full agreement details.