Apprenticeships and the National Minimum Wage

Since 1 October 2011, all Trainee Apprentices who are under the age of 19 and all Trainee Apprentices aged 19 and over who are in the first year of their apprenticeship, are entitled to the apprentice rate of the National Minimum Wage (NMW) of £2.60 per hour.

Trainee Apprentices will continue to be entitled to the appropriate age rate of the NMW when they are aged 19 or over and have completed the first year of their apprenticeship. From 1 October 2011, this is:

• £6.08 per hour for apprentices aged 21 and over
• £4.98 per hour for apprentices aged 19 to 20

For your information, workers aged 16-17 not undertaking a Trainee Apprenticeship are entitled to a NMW of £3.64, and workers aged 18-20 are entitled to a NMW of £4.98.

Trainee Apprentices for NMW purposes are either those employed on a government funded Apprenticeship or Advanced Apprenticeship.

Contracts for Trainee Apprenticeship

Generally speaking, there will be a written contract specifying:

• the rights and obligations of the employer and the Trainee Apprentice
• what training is to be provided and to what level
• the length of the Trainee Apprenticeship
• the rates of pay

Example

Trainee Apprentice date of birth: 1/1/1992
Starts Apprenticeship: 1/1/2010 aged 18
Apprenticeship duration: 18 months

The Trainee Apprentice will be 19 during the course of the Apprenticeship. From the 1/1/2011 they will be entitled to the NMW of £4.98 per hour as they are aged 19 or over and have completed the first year of their apprenticeship.

The Apprenticeship ends 31/6/2011. The Employer decides to re-employ the Trainee Apprentice on a second contract of Apprenticeship for an Advanced Apprenticeship lasting for 18 months. They are then entitled to pay the Trainee Apprentice the Apprentice NMW of £2.60 for a further year.

If they had initially had a contract covering a three year period of training, they would not have been able to have the second period of the Apprentice NMW, it is only when there is a separate contract.

If you have any queries, please call the Pay and Work Rights Helpline 0800 917 2368

Hourly apprentice rate and existing weekly payments

Trainee Apprentice hours which qualify for payment of the apprentice rate are in line with arrangements for payment of the other NMW rates. This will include hours when the Trainee Apprentice is undertaking training either at or away from the workplace.

Existing Trainee Apprentices, on government funded Apprenticeships and Advanced Apprenticeships in England when the Trainee Apprentice rate was introduced on 1 October 2010, have a continued entitlement to receive a wage of at least £95 a week from their employer for the remainder of their training or until they are entitled to the age related NMW.

They will be entitled to at least this level of wage even where their hours produce a lower wage entitlement under the NMW apprentice rate. If application of the NMW apprentice rate for their apprenticeship hours produces a higher weekly pay than £95, then they must be paid this higher amount.

Hours of participation

The hours of participation must conform with all relevant requirements under any legislation. From April 2011 all employed learners must be issued with a Contract of Employment and an Apprenticeship Agreement.

It is anticipated that all employed Trainee Apprentices will be engaged in working and learning for a minimum of 30 hours per week. Employers must be aware that a part-time Trainee Apprentice must be capable of completing and achieving their Apprenticeship during ‘normal’ working time. There must not be a requirement to undertake learning or assessment activity in their own time, excluding projects or assignments as part of a qualification which would normally be classed as homework.

This document was checked as being correct on 26/01/11 and www.direct.gov.uk will always give the most current and up to date information.