The CIJC 2026 pay award took effect on Monday 20 July 2026, introducing revised minimum rates of pay for operatives, skilled workers, craft workers and apprentices covered by the CIJC Working Rule Agreement. The settlement also updates a range of contractual payments and benefits, including fare and travel allowances, overnight subsistence and industry sick pay.
For construction employers affected by the agreement, this is more than a routine payroll amendment. Businesses should confirm which workers are covered, review classifications, update payroll systems and assess the potential impact on labour costs, project budgets, tender pricing and existing contractual commitments.
What Is the CIJC?
The Construction Industry Joint Council brings together construction employer organisations and recognised trade unions within the construction sector to agree minimum rates of pay and employment conditions for operatives working in building and civil engineering. These terms are set out in the CIJC Working Rule Agreement
The Working Rule Agreement covers matters including:
- Basic rates of pay
- Operative and craft classifications
- Apprentice pay
- Working hours and overtime
- Daily fare and travel allowances
- Overnight subsistence
- Industry sick pay
- Holiday entitlement
The agreement provides an established framework for employers and operatives operating under CIJC arrangements. However, it does not automatically apply to every construction business or every worker on a construction site.
What Changed on 20 July 2026?
The CIJC 2026 pay award introduced new minimum pay rates for general operatives, skilled operatives and craft workers covered by the CIJC Working Rule Agreement.
The rates below apply from 20 July 2026 and are based on the standard 39-hour working week.
New CIJC Pay Rates
| Classification | Hourly Rate | Weekly Rate |
|---|---|---|
| General Operative | £13.18 | £514.02 |
| Skill Rate 4 | £13.30 | £518.70 |
| Skill Rate 3 | £14.07 | £548.73 |
| Skill Rate 2 | £15.04 | £586.56 |
| Skill Rate 1 | £15.61 | £608.79 |
| Craft Rate | £16.40 | £639.60 |
What Employers Should Do
Employers should ensure that each worker is being paid according to their correct CIJC classification. Before updating payroll, it is important to review job roles, responsibilities, qualifications and contractual terms to confirm that employees have been placed in the appropriate category.
Simply applying a pay increase to existing payroll records may not be enough if an employee has been incorrectly classified.
What Are the New CIJC Apprentice Pay Rates?
The CIJC also introduced revised apprentice pay rates from 20 July 2026.
New Apprentice Rates
| Stage of Training | Hourly Rate | Weekly Rate |
|---|---|---|
| Year 1 | £8.29 | £323.31 |
| Year 2 | £8.80 | £343.20 |
| Year 3 without NVQ Level 2 | £10.27 | £400.53 |
| Year 3 with NVQ Level 2 | £13.13 | £512.07 |
| Year 3 with NVQ Level 3 | £16.40 | £639.60 |
| On Completion with NVQ Level 2 | £16.40 | £639.60 |
Important: Check National Minimum Wage Requirements
Apprentices cannot always be paid the published CIJC apprentice rate. Employers must also ensure they comply with National Minimum Wage (NMW) and National Living Wage (NLW) legislation.
From 1 April 2026, the statutory rates are:
- £12.71 per hour for workers aged 21 and over
- £10.85 per hour for workers aged 18 to 20
- £8.00 per hour for workers under 18
- £8.00 per hour for qualifying apprentices
The apprentice rate generally applies to apprentices who are under 19, or those aged 19 and over who are still in the first year of their apprenticeship.
After the first year, apprentices aged 19 or over will normally be entitled to the minimum wage rate for their age group if this is higher than the CIJC apprentice rate.
Example
A 20-year-old apprentice in their second year of training cannot be paid only the CIJC Year 2 rate of £8.80 per hour. They must receive at least the statutory minimum wage for their age, which is £10.85 per hour.
Similarly, an apprentice aged 21 or over who has completed their first year must receive at least £12.71 per hour, even where the published CIJC apprentice rate is lower.
Key Point
The National Minimum Wage and National Living Wage set the legal minimum that must be paid. Where the relevant CIJC rate is higher and the CIJC agreement applies, the higher contractual rate should be paid.
What Changed for Travel and Fare Allowances?
The settlement also revised daily payments for eligible workers travelling to temporary construction sites.
From 20 July 2026:
- Untaxed fare allowances begin at £6.09 for nine miles.
- Untaxed fare allowances rise to £23.66 for fifty miles.
- Taxable travel allowances begin at £1.44 for nine miles.
- Taxable travel allowances rise to £12.42 for fifty miles.
Employers should use the current CIJC fare and travel allowance table and ensure that the correct HMRC tax treatment is applied to each payment.
The distinction between fare allowances and travel allowances is important. Different payments may attract different tax treatment depending upon the relevant provisions of the Working Rule Agreement and HMRC requirements.
What Is the New Overnight Subsistence Rate?
The CIJC overnight subsistence payment increased to £53.69 per night from 20 July 2026.
Before making the payment, employers should confirm that the operative meets the qualifying conditions under the Working Rule Agreement.
Payroll records should clearly show:
- Dates of the overnight stay
- Site or location involved
- Business reason for the stay
- Number of qualifying nights
- Amount paid
What Is the New CIJC Industry Sick Pay Rate?
Industry sick pay increased to £174.66 per week from 20 July 2026. This payment is made in addition to Statutory Sick Pay where the relevant eligibility requirements are met.
Before applying the payment, employers should confirm:
- Whether the employee is covered by CIJC terms
- Whether qualifying conditions have been satisfied
- The period of entitlement
- Whether Statutory Sick Pay is also due
- Whether payroll settings have been updated correctly
Eligibility should be assessed on a case-by-case basis rather than applied automatically across the workforce.
Are There Any Changes to Holiday Entitlement?
The settlement also includes future increases to contractual holiday entitlement.
From 1 January 2027
Annual entitlement will increase to 23.5 days, representing an additional four hours of contractual leave.
The agreement acknowledges that some employers may face genuine operational difficulties in accommodating the additional half day. In those circumstances, payment in lieu of the additional four hours may be made during 2027 only.
From 1 January 2028
A further four hours will be added, increasing entitlement to 24 days plus eight bank holidays.
This limited payment arrangement applies only to the specific additional contractual holiday introduced under the settlement and should not be interpreted as permitting payment in lieu of statutory annual leave.
Are CIJC Pay Rates a Legal Requirement?
CIJC pay rates are industry-agreed minimum rates, not statutory wage rates.
They usually apply where an employer has agreed to follow the CIJC Working Rule Agreement through employment contracts, collective agreements or project requirements.
If CIJC terms apply, employers should pay the updated rates. Regardless of CIJC coverage, all employers must comply with National Minimum Wage and National Living Wage legislation.
Which Employers and Workers Are Affected?
The CIJC 2026 pay award primarily affects employers engaging building and civil engineering operatives under CIJC terms.
Potentially affected workers include:
- General operatives
- Semi-skilled operatives
- Skilled operatives
- Qualified craft workers
- Directly employed apprentices
- Other employees whose contracts incorporate CIJC pay and conditions
Employers should neither assume universal coverage nor dismiss the agreement without reviewing employment contracts, collective agreements and established workplace arrangements.
What Should Payroll and HR Teams Do Now?
Construction employers affected by the CIJC 2026 pay award should undertake a structured review to ensure payroll accuracy and compliance.
Identify Covered Employees
Prepare a list of employees whose contracts, collective agreements or established employment terms incorporate CIJC pay and conditions.
Confirm Classifications
Review each employee’s duties, qualifications, trade and payroll category to ensure they are assigned to the correct CIJC classification.
Apply the Correct Effective Date
The revised rates took effect on 20 July 2026. Employers should identify any payroll periods processed using previous rates and calculate any arrears due.
Review Apprentice Records
Check each apprentice’s date of birth, apprenticeship start date, current stage of training, NVQ level and applicable National Minimum Wage rate. These details should be reviewed whenever an apprentice progresses through their training or reaches a relevant age threshold.
Update Related Payroll Calculations
Higher basic rates may affect a range of payroll calculations, including overtime, holiday pay, pension contributions, employer National Insurance contributions, sick pay and other payments linked to basic earnings.
Update Allowances
Travel, fare, subsistence and industry sick pay payments should be reviewed separately to ensure the correct rates and tax treatment are being applied.
Communicate the Changes
Employees should be informed of any changes to their pay rate, classification and payroll arrangements. Clear communication can help prevent misunderstandings and resolve any concerns before they escalate into formal disputes.
What Does the CIJC Award Mean for Project Costs?
The financial implications extend beyond increases to hourly rates. Employers may experience increases in:
- Employer National Insurance contributions
- Pension costs
- Overtime expenditure
- Holiday pay liabilities
- Sick pay costs
- Labour supply and agency charges
- Overall project labour expenditure
Commercial and finance teams should compare existing labour forecasts against the revised rates, particularly where projects were priced before the settlement was agreed.
Businesses operating under fixed-price contracts should review margin forecasts and consider any contractual provisions relating to labour cost increases.
Are Self-Employed Subcontractors Affected?
Genuinely self-employed subcontractors are not automatically entitled to CIJC employee pay rates. Their remuneration is generally determined through commercial negotiation.
However, payment through the Construction Industry Scheme (CIS) does not, by itself, determine employment status.
A review of employment status may be appropriate where a labour-only subcontractor displays characteristics commonly associated with worker or employee status, including where they:
- Must perform the work personally
- Have limited freedom to refuse work
- Work under significant supervision or control
- Follow employee-style working patterns
- Bear limited commercial risk
- Are integrated into the contractor’s workforce
- Have no genuine right of substitution
Incorrect status determinations can potentially create liabilities relating to PAYE, National Insurance, employment rights and minimum wage compliance.
Nevertheless, a finding that an individual is a worker or employee does not automatically establish entitlement to CIJC rates. Whether the agreement applies will still depend upon the relevant contractual and workplace arrangements.
How The Infinity Group Can Help
The CIJC 2026 pay award creates additional responsibilities for payroll, HR and finance teams. Incorrect pay rates, classifications or allowances can lead to underpayments, compliance issues and increased labour costs.
At The Infinity Group, we help construction businesses stay up to date with industry changes and navigate evolving payroll requirements. We provide specialist CIS payroll services and outsourced payroll management, helping businesses manage payroll accurately, maintain compliance and reduce administrative burden.
Whether you need support with CIJC pay changes, CIS payroll or day-to-day payroll operations, our team is here to help. Contact us today to discuss your requirements.