What cost is involved in employing an apprentice? You are responsible for your apprentices’ wages in line with the national minimum wage (NMW) which is currently £6.40ph* for apprentices with no upper limit on the hourly rate offered. For apprentices over the age of 19 the NMW for apprentices is only applicable in the first year of the apprenticeship after which the NMW relevant to their age will apply. Depending on the size of your business the following employer contributions apply towards the cost of training and assessments:
* The NMW rates from 1 April 2024 are:
Rate from April 2024
21-22 Year Old 18-20 Year Old 16-17 Year Old
£11.44
£8.60 £6.40
Apprentice £6.40 Non-levy employers can apply for a levy transfer to pay for any training and assessment cost. What is a levy transfer? Apprenticeships can be funded by a levy paying employer transferring up to 50% of their unused levy pot to other non-levy paying employers. You may still have to pay the 5% contribution if you have over 50 employees and you do not wish to use a levy transfer. Transferred funds are used to pay for 100% of the training and assessment costs of your apprentice. You need an apprenticeship service account to apply for a transfer to fund an apprenticeship for your business. https://accounts.manage-apprenticeships.service.gov.uk/service
LEVY EMPLOYER
Wage bill is over £3m Levy can be used to fund apprenticeships New or existing staff
>50 EMPLOYEES
Non levy 5% employer contribution to training cost
<50 EMPLOYEES
16-21 years olds, training fully funded 22+, 5% employer contribution to training cost
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