WAGES AND FUNDING

What does an Apprenticeship cost an employer?
The employer pays the apprentice's wages.

 

How much should an employer pay an Apprentice?

This is entirely up to the employer but the wage can be no less than the training allowance (currently £80 per week). However, the wage paid should be realistic and should reflect the average wage levels in the industry.

If your trade or industry is unionised the appropriate trade association may be able to offer advice on standard wage rates.

For all employed opportunities it is advisable that employers pay young people a wage over the National Insurance threshold, to ensure that the young person is eligible to receive future benefit entitlements.

 

Does the National Minimum Wage apply to Apprentices?

Apprentices aged 16 and 17 do not need to be paid the minimum wage. Those who start an apprenticeship at 16/17 and continue at 18 will not be paid the minimum wage until they reach 19, when they qualify for £4.25 per hour at present.

Apprentices aged 19-25 do not need to be paid the minimum wage for the first 12 months, although the rate of £4.25 applies for 6 months for apprentices of 22+ undergoing accredited training in a new job for a new employer, for at least 26 days.

 

What are the hourly rates for the National Minimum Wage?

16 - 17 years old =	£3.00 per hour, unless on an Apprenticeship (Rising to £3.30 from October 2006)
18 - 21 years old =	£4.25 per hour (Rising to £4.45 from October 2006)
22+ years old =	£5.05 per hour (Rising to £5.35 from October 2006)

 

Where can I find out more about the National Minimum Wage?

• www.dti.gov.uk
• www.tiger.gov.uk
• www.lowpay.gov.uk

"A detailed guide to the National Minimum Wage" is issued by the DTI.

Up to date information: 0845 606 6667

 

Are all the costs of training the Apprentice paid?

As the Derbyshire Learning and Skills fund the training, it is free to the employer for all young people between the ages of 16 - 25. However, the funding for training applies to the framework for the Apprenticeship only, so if the employer chooses any extra courses for the apprentice to follow, then the employer must pay for these.

 

Next Page: Case Studies