22 Aug 2023
One of the reasons to start an apprenticeship is the chance to earn while you learn, rather than paying for expensive university education and it may be a good idea to outline the reality of how much apprentices can expect to earn.
The apprenticeship minimum wage is in place and this is geared to ensuring that apprentices are paid fairly while they are on their apprenticeship and that they are paid for both the “on the job” and “off the job” positions of their training and learning.
It is important to remember that this is the lower level below which apprenticeship earnings shouldn’t fall, rather than an upper level. Companies can pay apprentices more than this if they want to and this is frequently a feature of apprenticeships in the finance and business sectors in particular. This means that these particular apprenticeships are much sought after and can be very competitive to get into.
How much is the Apprenticeship Minimum Wage?
The UK Government sets the apprenticeship minimum wage and it is tiered across different age groups, meaning that younger people are paid less and it increases as they get a little older. In 2023/24 the Apprenticeship Minimum Wage is as follows:
Apprentices under the age of 19 are entitled to the 2023 apprentice minimum wage rate of £5.28 per hour. This is the same amount as the National Minimum Wage rate for others of their age. The exception to this is that 19 year olds who are in the first year of their apprenticeship are also offered £5.28, even though this is lower than the amount they would be entitled to in a normal job.
When apprentices who aren’t in their first year turn 19, they are entitled to access the 18-20 rate of the national minimum wage and this is currently set at £7.49 per hour. When they turn 21, they are entitled to £10.18 per hour and when they turn 23 they are entitled to £10.42 per hour.
The apprenticeship minimum wage is aimed at ensuring that employers take on younger people as apprentices more often as the lower wage is an incentive to take them rather than someone who is in their early 20s for the same role. This is a sensible move which means that both employers and apprentices get what they need.
The apprentices have the chance to gain valuable skills and experience in a job that will stand them in good stead for the future, while also earning money so they can live a lifestyle suitable to their age group. This can be a real advantage as many apprentices are subsequently taken on to work with the company they apprenticed with.
The company gets the chance to train someone young and malleable into their ideal employee for the longer-term position, while not being as badly out of pocket if it doesn’t happen to work out in the longer term as they would be with more expensive employees.
