Hundreds of thousands of construction workers are in line for a pay rise and a raft of other benefits over the next two years, it has been announced.

Contractors and unions reached the Construction Industry Joint Council (CIJC) agreement following long-running talks.

More than 400,000 construction professionals will see their pay rise by 2.5% from July 25 this year and by an extra 2.75% in June 2017.

This is significantly higher than inflation rates, which were measured at 0.3% in May.

The two-year pay deal secured increases in industry sick pay and subsistence allowance.

In addition, construction workers will be able to take an extra day’s holiday from 1 January 2017.

Changes are also to be made to the way that travel allowances are calculated.

The system will now look at the number of miles travelled, rather than kilometres.

Unions GMB, Ucatt and Unite welcomed the deal, but added that they would now be working on securing additional benefits for workers.

Areas they are now set to work on include the London Living Wage, rates of pay, and the impact on supply chains.

Gary Lean, employer’s secretary to the CIJC, said the agreement stands to benefit all parties involved.

He said: “We have concluded a most robust series of negotiations which have resulted in another two-year agreement which is not only good for all of those who work in the industry but also for clients and employers.

“All parties now have certainty for the next two years and employers and unions have maintained a harmonious relationship. We regard this as good news for all parties.”

To find out more about the rewards and benefits of working in construction, head to GoConstruct.