The agreement covers more than 400,000 construction workers and will see pay rates rise 3.2% in year one and 2.9% in year two.

The new Construction Industry Joint Council Working Rule Agreement comes into effect from June 25.

It will see the minimum hourly craft rate rise to £12.67 in 2019 resulting in a £494.13 pay packet for a 39-hour week.

The minimum hourly rate for labourers will hit £9.53 representing £371.67 a week.

Unite national officer for construction Jerry Swain said: “This deal is a strong step in the right direction and will give construction workers a well-deserved pay increase.

“The increases in allowances and other benefits, underline the value of working under an industrial agreement and being part of collective bargaining arrangements.

“Over the next two years we will be working to further strengthen the agreement and ensure that it is brought into line with other agreements in all matters and is seen as relevant on major construction sites.

“Construction workers need to remain vigilant that employers actually pay the agreed pay rates. Too often in construction employers try to boost their profits by failing to pay agreed increases.”

Gerry Lean, Employer’s Secretary said: “These negotiations have been conducted in a spirt of good will and co-operation demonstrating the excellent relationship between employers and unions.

“This deal gives Operatives an above inflation pay rise with the certainty of another increase next year and significant improvements in fringe benefits.

“It will allow employers to plan ahead over the next two years with certainty in their employment costs.”