National Minimum Living Wage for Apprentices

Introduction

HMRC have asked all training providers to raise awareness about how the National Minimum Wage applies to apprentice training time or off-job-training (OJT). The Low Pay Commission reports that nearly one in five apprentices is underpaid the National Minimum Wage as apprentices are not always paid correctly for the time they spend in training. Training time is considered working time for the purposes of the National Minimum Wage.

What is HMRC doing about this?

They want all apprentices and employers to know and understand the National Minimum Wage rules including how they apply to time spent in training. They are providing extensive support to employers to help them understand the most common mistakes they see in this area.

Employers

As an employer of an apprentice, or apprentices, you must ensure that you’re paying them at least the National Minimum Wage for all the time they are working. Time spent in training counts as working time. Once training time
is included an apprentice’s hourly rate of pay (from April 2021) should be at least:

• £4.30 if they are aged under 19 or in the first year of their apprenticeship. This will rise to £4.81 from April 2022
• £6.56 if they are aged 19 to 20 and have completed the first year of their apprenticeship. This will rise to £6.83 from April 2022
• £8.36 if they are aged 21 to 24 and have completed the first year of their apprenticeship. This will rise to £9.18 from April 2022
• £8.91 if they are aged 25 or over and have completed the first year of their apprenticeship. This will rise to £9.50 from April 2022

For an employer’s guide to paying the National Minimum Wage correctly, click here.

For free and confidential advice about National Minimum Wage, call the ACAS helpline on 0300 123 1160 (lines are open from Monday to Friday, 8am to 6pm), or contact us at Kingston Maurward College if you have any queries about how it applies to your apprentice(s).

You can contact us at:

• Enquiries@kmc.ac.uk
• 01305 215000
• Facebook
• Or direct to the Head of Apprenticeships, Dee Vickers, at dee.vickers@kmc.ac.uk