The Chartered Institute of Payroll Professionals
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Reminder: apprentice rates Published: 6 July 2023 Emailed: 12 July 2023
In light of the recent release of the employers list, named by the government for failing to pay their lowest paid staff the minimum wage, the CIPP’s policy team give a quick reminder on the apprentice rates.
The employers named previously on the list, underpaid workers in the following ways:
• 39% of employers deducted pay from workers’ wages • 39% of employers failed to pay workers correctly for their working time • 21% of employers paid the incorrect apprenticeship rate. Apprenticeships combine practical training in a job with study.
An apprentice, will get:
• paid and be entitled to the National Minimum Wage (NMW) • time for training or study as part of your apprenticeship • holiday pay and other employee rights.
Apprentice pay and the NMW
There are different rates of pay for apprentices depending on age and what year of the apprenticeship they are in. The employment contract should confirm the rate of pay.
Aged 16 to 18:
- the current NMW rate for an apprentice is £5.28 per hour. Aged 19 or over and in the first year
- the current NMW rate for an apprentice is £5.28 per hour. Aged 19 or over and has completed the first year:
- the NMW or National Living Wage (NLW) rate for the age should be applied. For example:
An apprentice aged 21 in the first year of their apprenticeship is entitled to a minimum hourly rate of £5.28. Whereas an apprentice aged 21 who has completed the first year of their apprenticeship is entitled to a minimum hourly rate of £10.18.
Workers can check if they are being paid the minimum wage with the NMW/NLW calculator.
Time apprentices are paid for
Apprentices must be paid for:
the normal working hours
•
• training that’s part of the apprenticeship (at least 20% of their normal working hours) • study towards English and maths qualifications if it is a part of the apprenticeship. The employer should allow time for study during normal working hours if this applies. The normal working hours should be stated in the employment contract (or apprenticeship agreement).
There are also rules about how many hours someone can work in a week and being paid overtime.
Training
For apprentices, at least 20% of their normal working hours must be spent on training.
The training might take place:
at the place of work
•
• somewhere else like at a college or training provider • online. Holidays
Apprentices get at least 20 days paid holiday per year, plus bank holidays.
cipp.org.uk
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