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Industry payroll — construction
Construction payroll needs more than a standard pay run
Managed payroll for Irish construction employers — covering PAYE, Construction SEO minimum rates, apprentice scales, sector pensions, site expenses and RCT administration where required.
- PAYE & Revenue
- RCT administration
- SEO minimum rates
- Apprentice scales
- Sector pensions
- Site expenses & ERR
Construction payroll pricing
Transparent pricing — employee payroll and RCT quoted separately
Employee payroll pricing follows the same structure as our standard service. RCT administration is priced separately because the workload depends on subcontractor numbers and payment volume, not headcount.
Starter
1–9 employees
€30 per employee / mo
Included
- PAYE, USC, PRSI processing
- Revenue payroll submissions
- Construction SEO rates applied
- Starters, leavers, corrections
- Digital payslips
- ERR support
- My Future Fund administration
- Dedicated payroll contact
Growth
10–20 employees
€25 per employee / mo
- Better rate as headcount grows
- Multiple employee classifications handled
- Apprentice stage tracking
21+ employees
Custom quote
Tailored to your workforce
- All services above
- Complex site and classification structures
- RCT workload scoped separately
Pay frequency pricing
Weekly payroll
From €15 / payslip
Fortnightly payroll
€25 / payslip
Monthly payroll
Per employee rates above
RCT administration is quoted separately. The cost depends on the number of relevant contracts, subcontractors and payments — not on employee headcount. Tell us about your subcontractor workload when you get in touch and we will include it in the quote.
All prices exclude VAT at 23%. Pricing applies to Irish employers. 1-month minimum notice to terminate — no long-term lock-in. Headcount changes require client notification before a billing tier adjusts. See full pricing details →
What we handle
Construction payroll scope
The exact scope is agreed for each client. Here is what construction payroll processing can include.
Employee payroll
Weekly, fortnightly or monthly payroll including PAYE, USC, PRSI, current Revenue Payroll Notifications, starters, leavers, variable pay, allowances and corrections.
Construction SEO pay
Application of the relevant construction minimum rates, apprentice stages and overtime or premium rates where the Construction SEO applies to the employment.
Pension and sick pay deductions
Processing the sector pension, death-in-service and sick pay contributions that apply to employees covered by the Construction SEO.
Revenue reporting
Payroll submissions on the required timetable and support with reportable benefits and expenses under Enhanced Reporting Requirements.
My Future Fund administration
Applying official enrolment information and payroll contribution treatment where an employment is within the auto-enrolment system. NAERSA identifies eligible employees.
RCT administration
Contract and payment notifications, deduction authorisations and RCT records for relevant subcontractor payments, where this service is included in the agreed scope.
⚠️
The employer remains responsible for payroll compliance even where a payroll company is used. Outsourcing gives you a specialist process and operational support, but does not transfer statutory responsibility. Our role is to process the agreed work, apply relevant rules and flag issues that need clarification.
Employment status
Employee or subcontractor — that question comes first
Before deciding whether a person belongs in PAYE payroll or the RCT process, the underlying working relationship has to be classified correctly.
⚖️
Revenue applies the Supreme Court’s five-step employment-status framework. It looks at the substance of the arrangement, including whether there is payment for work, whether personal service is required, the level of control exercised by the business, whether the worker is genuinely providing services on their own account, and whether any legislation changes the result.
Putting someone through RCT does not, by itself, make that person self-employed for tax purposes. Misclassification can leave an employer with payroll tax liabilities that were not dealt with correctly at the time.
Revenue’s five-step test
Is there payment for work?
Does the person receive remuneration for the work performed?
Is personal service required?
Must the individual do the work themselves, or can they substitute someone?
What level of control exists?
How much direction does the business exercise over how work is done?
Is the worker in business on their own account?
Do they bear financial risk and operate independently?
Does legislation change the result?
Certain statutes can override the common-law test in specific circumstances.
Relevant Contracts Tax
RCT in construction — rates, process and penalties
Relevant Contracts Tax (RCT) is a withholding tax that applies to certain payments by principal contractors to subcontractors in construction, forestry and meat processing. It operates electronically through ROS and is separate from employee payroll.
Current RCT rates
| RCT rate | Revenue description |
|---|---|
| 0% | Up-to-date tax compliance record |
| 20% | Substantially up-to-date tax compliance record |
| 35% | Poor compliance record or not registered with Revenue |
The rate applied to a payment comes from Revenue’s current deduction authorisation — not from the subcontractor’s history, the previous job, or any assumption about new registrations. See Revenue’s RCT rate guidance.
Penalties for unauthorised payments
| Subcontractor status | Penalty on the payment |
|---|---|
| 0% deduction rate | 3% |
| 20% deduction rate | 10% |
| 35% deduction rate | 20% |
| Unknown to Revenue | 35% |
Important — non-resident subcontractors
RCT can also apply to non-resident subcontractors carrying out relevant work in Ireland. Residence alone does not take an Irish construction payment outside RCT.
RCT and the VAT reverse charge are separate. Both can arise on the same construction relationship, but they do different jobs. Correct RCT processing should not be taken as evidence that the VAT position has also been dealt with.
How the RCT process works
1
Notify the contract
After entering into a relevant contract, the principal contractor submits the contract details through ROS and keeps documentary evidence of the subcontractor’s identity.
2
Notify the payment before it is made
3
Use the deduction authorisation
4
Pay and keep records aligned
Construction SEO rates from 1 August 2026
Minimum pay rates and apprentice scales
Employee classifications
| Classification | Min. hourly rate |
|---|---|
| Craftsperson | €23.74 |
| Category A Worker | €23.03 |
| Category B Worker | €21.37 |
| New Entrant Operative Worker | €17.28 |
Payroll needs the correct employee classification before it can apply the correct rate. A new entrant operative is over 18, entering the sector for the first time, remaining in that class for two years. Category B covers skilled general operatives with more than two years in the sector. Category A covers specified higher-skilled operative roles.
Employee classifications
| Year | % of craft rate | Min. hourly rate |
|---|---|---|
| Year 1 | 33.33% | €7.91 |
| Year 2 | 50% | €11.87 |
| Year 3 | 75% | €17.81 |
| Year 4 | 90% | €21.37 |
The practical payroll risk is timing. When an apprentice moves into the next year of training, the rate needs to change from the correct effective point. Leaving the previous stage in place can create an avoidable underpayment.
Employee classifications
| When worked | SEO premium |
|---|---|
| Mon–Fri, normal finish to midnight | Time + half |
| Mon–Fri, midnight to normal start | Double time |
| Saturday, first 4 hours | Time + half |
| Saturday, subsequent hours to midnight | Double time |
| Sunday, all hours | Double time |
| Public holiday, all hours | Double time + day's leave |
The normal working week under the SEO is 39 hours over five days, Monday to Friday. Timesheets need enough detail to identify not only how many hours were worked, but when those hours fall.
Pension, death-in-service and sick pay
Construction SEO pension and sick pay contributions from 1 August 2026
For employees covered by the Construction SEO, pension and sick pay are not optional. The order requires employers to participate in pension and sick pay arrangements that meet its conditions.
Pension contributions
| Contribution | Weekly | Daily |
|---|---|---|
| Employer pension | €32.89 | €6.58 |
| Employee pension | €21.95 | €4.39 |
| Total pension | €54.84 | €10.97 |
The WRC also lists a death-in-service contribution of €1.14 per week from the employer and €1.14 per week from the employee — a total of €2.28 per week.
Sick pay scheme contributions
| Contribution | Weekly rate |
|---|---|
| Employer | €2.37 |
| Employee | €0.63 |
| Total | €3.00 |
The scheme must provide a standard sick pay benefit. The maximum duration under the scheme should not be lower than 10 weeks in a calendar year. General statutory sick leave rules can also be relevant, so payroll treatment should be based on the applicable scheme and statutory position rather than a blanket assumption.
Construction pensions and My Future Fund
My Future Fund has been live since 1 January 2026. An employment can be exempt from auto-enrolment where qualifying pension contributions are recorded through payroll and meet the current contribution standard.
For 2026, the published exemption standard is a minimum total contribution of 3.5% of gross pay, including at least 1.5% from the employer.
Site expenses and ERR
Country money, travel and Enhanced Reporting Requirements
Construction payroll often includes travel, subsistence and site-related payments. The name used on a timesheet does not decide whether a payment is tax-free.
Where qualifying untaxed travel or subsistence payments are made, Revenue’s Enhanced Reporting Requirements (ERR) can require them to be reported on or before the payment date. The underlying Revenue conditions still have to be met before a payment can be treated as non-taxable.
Revenue also makes clear that ordinary travel between an employee’s home and normal place of work is not automatically an allowable tax-free expense. Treatment depends on the actual facts and Revenue conditions.
If you make reportable travel, subsistence or site-based payments, our ERR guide explains what needs to be reported, when it is due and the records you should keep.
ERR reportable categories — construction
- Site-based employees, including country money
- Eating-on-site payments
- Vouched travel and subsistence
- Unvouched travel and subsistence
- Emergency travel payments
- Advance payments of expenses
ERR reporting is due on or before the payment date — not at month end or year end. Our payroll process includes ERR support as part of the standard service.
How we work with you
Construction payroll from onboarding to ongoing
A clear process agreed at the start so payroll, RCT and sector obligations run smoothly from the first pay date.
1
Map the workforce
We confirm employee numbers, pay frequency, employee categories, apprentice stages, pension and sick pay arrangements, and whether there is a separate RCT workload.
2
Receive the pay-run inputs
Hours, overtime, absences, starters, leavers, bonuses, allowances and expenses. For RCT, we need the relevant contract and subcontractor payment information.
3
Prepare the payroll
We process the agreed employee payroll using the latest payroll information and the applicable construction rates, classifications and deductions.
4
Review and report
Payroll is finalised on the agreed timetable. Revenue submissions are made within the required reporting cycle. RCT notifications are handled separately where in scope.
5
Issue payroll outputs
Employees receive digital payslips. You receive the agreed payroll reports, with issues flagged where a rate, status or payment treatment needs clarification.
6
Stay current
Construction obligations change — SEO rate updates, apprentice stage moves, pension rate changes and new employees. Ongoing support is part of the relationship.
Common pitfalls
Construction payroll mistakes that create real exposure
Most construction payroll problems trace back to a handful of recurring issues. Here is what to watch for.
Using RCT as the worker-status test
The real relationship comes first. RCT treatment does not turn an employee into a subcontractor for tax purposes.
Reusing a previous RCT rate
The rate for a payment comes from Revenue’s current deduction authorisation — not from what applied on the last job or when the subcontractor first registered.
Putting every site trade under the general Construction SEO
Employer activity and employee class both matter. Electrical contracting and some other specialist trades have separate sectoral arrangements.
Ignoring pension and sick pay scheme deductions
They are part of the Construction SEO conditions for covered employees — not optional contributions that can be deferred or omitted.
Paying before the RCT deduction authorisation is in place
A payment made without the required authorisation is treated as an unreported payment and attracts a penalty based on the subcontractor’s compliance rate.
Using the National Minimum Wage where a higher sectoral rate applies
Covered construction employees must receive at least the applicable SEO minimum rate. The NMW does not override the SEO where it is lower.
Missing an apprentice stage change
Treating every site payment as tax-free travel or subsistence
Why construction businesses use us
Construction-specific payroll, not a generic service
We build the process around the sector issues that affect the pay run, rather than treating them as exceptions after payroll is calculated.
Construction-specific payroll process
SEO rates, apprentice stages, pension and sick pay deductions, and overtime premiums are built into the process from the start not added as afterthoughts.
Employees and subcontractors kept separate
PAYE payroll and RCT are different compliance processes. We organise them accordingly so the two are never conflated in practice or on paper.
Clear inputs and one payroll contact
You know what information is required for each run and who to contact when a site changes, a worker is added or a subcontractor payment is coming.
Transparent, published pricing
Standard employee payroll rates are published on the website. RCT administration is quoted separately to reflect the actual subcontractor workload no guessing.
Switching provider
What a construction payroll takeover requires
A construction payroll takeover needs more than a list of employee names. The opening position has to preserve year-to-date figures and the sector-specific deductions already in motion.
Current employee data
Employee details, pay frequencies, year-to-date figures, Revenue payroll identifiers and current pay arrangements.
Construction classifications
SEO category, apprentice year and any applicable premium or allowance arrangements for each employee.
Pension and sick pay position
Current scheme membership, contributions and opening balances where relevant to the takeover point.
RCT records
Where RCT administration is part of the service — relevant contracts, subcontractor details and the current payment-notification position.
A clear takeover date
We agree the point at which the next payroll and reporting cycle moves across so there is no ambiguity over who is processing which period.
Most switches complete within two pay cycles
We manage the transition process to ensure Revenue continuity and no gap in payroll reporting.
Frequently asked questions
Construction payroll questions
How much does construction payroll cost?
Monthly payroll is €30 per employee for 1–9 employees and €25 per employee for 10–20 employees. Businesses with 21 or more employees receive a custom quote. Weekly payroll is priced from €15 per payslip. RCT administration is quoted separately. See full payroll pricing.
What are the Construction SEO rates from 1 August 2026?
The current minimum basic hourly rates are €23.74 for a craftsperson, €23.03 for Category A, €21.37 for Category B and €17.28 for a New Entrant Operative Worker. Employers can pay more, but not less where the SEO applies. Check the WRC Construction Sector page.
What are the 2026 construction apprentice rates?
From 1 August 2026: Year 1 is €7.91 per hour, Year 2 €11.87, Year 3 €17.81 and Year 4 €21.37. These represent 33.33%, 50%, 75% and 90% of the craft rate respectively.
What are the current RCT rates?
Revenue currently applies 0%, 20% or 35% depending on the subcontractor’s compliance status. The principal contractor should use the rate shown on Revenue’s deduction authorisation for the payment. See Revenue’s RCT rate guidance.
Does RCT apply to non-resident subcontractors?
It can. Revenue states that RCT applies to non-resident subcontractors where the relevant work is carried out in Ireland. Residence alone does not remove the RCT requirement. See Revenue’s non-resident RCT guidance.
Do construction employers have to provide a pension and sick pay scheme?
Employers with workers covered by the Construction SEO must have pension and sick pay arrangements that meet the order. From 1 August 2026: weekly pension contributions are €32.89 employer and €21.95 employee, plus separate death-in-service contributions of €1.14 each. The sick pay contribution is €2.37 employer and €0.63 employee per week.
How does MyFutureFund affect construction workers?
It depends on the individual employment and the pension contribution recorded through payroll. An employment can be exempt where the qualifying pension standard is met. NAERSA identifies enrolment status — employers should not make a blanket assumption simply because an employee works in construction.
Is RCT being replaced by eWHT?
Not at present. Revenue published a report on 22 July 2026 summarising eWHT consultation feedback, but the report does not make policy recommendations. RCT remains the current system unless and until a future change is enacted and commenced. Read the Revenue consultation update.
Can you take over construction payroll from another provider?
Yes. We review the employee and payroll opening position, construction classifications, relevant pension and sick pay data, and RCT records where RCT administration forms part of the agreed service.
Do new RCT registrations automatically get the 20% rate?
Do not assume that as a blanket rule. Revenue’s guidance describes the rate by the subcontractor’s compliance status. The rate to use for a payment is the rate Revenue returns on the deduction authorisation — not an assumption based on registration date.
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