Construction Workers' Pension Scheme: Contribution Rates Increase

Construction employers should be aware that the weekly contribution rates for the Construction Workers’ Pension Scheme (CWPS) increased on 3 August 2026.

The revised rates bring contributions into line with the 2024 Sectoral Employment Order. Employers should ensure their payroll and contribution records have been updated to reflect the new rates.

What Are the New Contribution Rates?

From 3 August 2026, the weekly contributions for eligible workers are:

Pension Contributions

• Employer: €32.89
• Employee: €21.95
• Total: €54.84

Death in Service Contributions

• Employer: €1.17
• Employee: €1.17
• Total: €2.34

Sick Pay Contributions

• Employer: €2.37
• Employee: €0.63
• Total: €3.00

This brings the total weekly contribution to €60.18 per employee.

Why Have the Contribution Rates Changed?

The revised contribution rates align with the requirements of the Sectoral Employment Order for the Construction Sector.

The Construction Workers’ Pension Scheme provides workers with pension benefits alongside additional benefits including death in service cover and sick pay. Keeping contributions aligned with the updated rates helps ensure employees continue to receive the benefits to which they are entitled.

What Should Employers Do?

As the revised rates are now in effect, construction employers should check that their payroll and contribution processes have been updated. Employers should:

• Confirm payroll software reflects the new contribution rates.
• Check that employee deductions have been updated from 3 August 2026.
• Ensure the correct employer contributions are being applied.
• Confirm contributions are being submitted accurately to the CWPS.
• Review recent payroll records for any errors or missed adjustments.

If your payroll was processed around the effective date, it is worth checking that the correct rates have been applied.

Why Is This Important?

Pension and related contributions form an important part of the overall employment package for workers in the construction sector. Ensuring the correct amounts are deducted and contributed helps employers meet their obligations while protecting employees’ access to their pension and associated benefits.

Need Help with Payroll?

If you haven’t already updated your payroll to reflect the new CWPS contribution rates, now is a good time to review your records and make sure the correct rates have been applied.

If you’re unsure how these changes affect your business, Amatino can help. Our payroll team can assist with keeping your payroll accurate and up to date with the latest construction sector requirements.