NAECI engineering construction pay calculator 2026 | Expert Zoom

Frequently Asked Questions

• What is the pay award for the NAECI 2025–2026 National Agreement?

  The NAECI 2025–2026 pay award is 4.5% on all base rates, effective 4 May 2026. This was agreed in April 2026 following a year-long dispute — the first time in the NAECI's 44-year history that the ECIA had imposed a settlement (3.6%, from February 2026). The final negotiated deal also includes a 4.5% increase to radius payments, a 5.07% rise in the accommodation allowance (subject to HMRC approval), and a 7.2% increase in welding proficiency payments. Workers see an average increase of around £2,000 per year.

• What are the NAECI 2026 hourly rates for engineering construction workers?

  Following the 4.5% award effective 4 May 2026, NAECI 2026 hourly rates (National Guaranteed Rates, Category 4) are: Grade 1 (General Operative) £13.07/hr; Grade 2 (Semi-Skilled) £15.00/hr; Grade 3 (Skilled Operative) £17.00/hr; Grade 4 (Craft Worker — pipefitters, welders, scaffolders, electricians) £19.90/hr; Grade 5 (Advanced Craft) £20.91/hr; Grade 6 (Chargehand/Supervisor) £21.85/hr. Workers on Categorised Work sites (nuclear, complex energy — Cat 1–3) earn higher rates under NAECI Appendix A.8.

• How is redundancy pay calculated under the NAECI engineering construction agreement?

  Under NAECI 16.5, workers with under 2 years' service receive a contractual severance payment that accrues per week of employment (up to 103 weeks), at a rate depending on grade and age. Workers with 2 or more years' continuous employment qualify for statutory redundancy pay under ERA 1996 s.162: 0.5 week's pay for each year under age 22; 1 week's pay for each year aged 22–40; and 1.5 weeks' pay for each year aged 41 or older. Maximum 20 qualifying years apply, and weekly pay is capped at £700 from April 2026. The NAECI does not provide enhanced redundancy above the statutory minimum for workers with 2+ years' service.

• How many days annual leave do NAECI engineering construction workers get?

  Under NAECI 10.1, workers are entitled to 5 weeks' annual holiday (25 days based on a 5-day working week) plus 8 public holidays, giving a total of 33 days per year. This exceeds the UK statutory minimum of 28 days under Working Time Regulations 1998 by 5 days. Holiday pay for Euroleave days is calculated based on total remuneration including overtime over the previous 52 weeks, in accordance with WTR 1998 requirements. Part-time workers receive pro-rata entitlement based on contracted weekly hours.

• What is the notice period for NAECI engineering construction workers?

  Under NAECI 16.2 and ERA 1996 s.86, employees must give a minimum of 1 week's notice after 4 or more weeks' continuous employment. For employer dismissals, the notice period follows the statutory ERA 1996 formula: 1 week after 4 weeks but less than 2 years; 2 weeks after 2 years; then 1 additional week per complete year of service, up to a maximum of 12 weeks. Notice normally runs from the final day of the employee's basic working week (for example, Friday to Friday on a Monday–Friday pattern).

• Which pension scheme covers NAECI engineering construction workers?

  NAECI workers are in the private sector and are covered by auto-enrolment under the Pensions Act 2008. Employers must enrol eligible workers in a qualifying pension scheme. The ECI Stakeholder Scheme, administered by Scottish Widows (0345 716 6777), remains available for existing members. Minimum contributions in 2026 are 5% employee and 3% employer of qualifying earnings (band £6,240–£50,270). Unlike NHS, LGPS or TPS, NAECI workers have no defined benefit pension — the ECI Stakeholder Scheme and employer auto-enrolment arrangements are defined contribution (DC) schemes.

• What is the NAECI accommodation allowance for 2026?

  The NAECI accommodation allowance for 2026 is £53.39 per day and £373.70 per week, following the 5.07% increase agreed as part of the April 2026 pay settlement (subject to HMRC approval). This allowance is paid to workers who must stay away from home ('lodging employees'). There is also a retainer rate for public holidays and periodic leave. Workers within the M25 area may receive the London Rate Enhancement of £1.50 per day (2026), up from £1.00 in 2025.

• What trades and occupations are covered by the NAECI 2025–2026 agreement?

  The NAECI covers approximately 30,000 hourly-paid skilled workers on major UK energy, chemical and industrial construction projects. Covered occupations include: mechanical fitting, pipefitting, plating, welding, erecting, scaffolding, thermal insulation (TICA), and electrical/instrumentation work (in Scotland under the SELECT agreement). Workers are employed on projects such as nuclear power stations, offshore wind infrastructure, refineries, LNG terminals, petrochemical plants and grid upgrade projects — critical for the UK's low-carbon energy transition.

• What happened with the NAECI 2025 pay dispute?

  The NAECI 2025–2026 pay negotiations broke down after a year-long dispute. In a first in the agreement's 44-year history, the ECIA imposed a 3.6% pay settlement from 2 February 2026, after a 4.5% offer was rejected by Unite and GMB members. Following further negotiations, an improved offer of 4.5% was narrowly accepted by union members in April 2026, with implementation from 4 May 2026. The deal also includes higher allowances for accommodation (5.07%), radius payments (4.5%) and welding proficiency (7.2%).

• Does the NAECI provide enhanced redundancy above the statutory minimum?

  For workers with less than 2 years' service, the NAECI provides a contractual severance payment (NAECI 16.5(a)) that accrues weekly by grade and age (up to 103 weeks). For workers with 2 or more years' service, only statutory redundancy pay under ERA 1996 applies — NAECI 16.5(d) explicitly states that no other redundancy payments shall be made. This means NAECI does not provide enhanced redundancy above the statutory minimum for workers who qualify for statutory redundancy pay. Redundancy payments on genuine redundancy are tax-exempt by HMRC arrangement.