nd in the first year of their apprenticeship, will be paid a minimum of £4.15 per hour (from 1 April 2020), however many businesses pay more. Individuals not falling into these categories should be paid the minimum wage rate for their age band. Guidance about the appropriate hourly rates is available on GOV.UK.
⚠️ Note: the rules say that any new rate (that is, for those turning 19 and/or for those moving into the second year of their apprenticeship) starts from the beginning of the next pay period. People naturally think that if they are monthly paid and turn 19 (say) on the 15th of the month then they should be paid the higher rate for the rest of the month. But actually, they are only entitled to it from the 1st of the month following their birthday. See the example Rosie and example Seamus below.
The appropriate minimum wage rate should be paid for time working plus the time spent training both on and off the job. This includes time spent at college/or off site with a provider.
If you are not paid on an hourly basis, for example you are paid an annual salary, then GOV.UK contains information about how to work out if minimum wage is being paid.
For detailed information on how the minimum wage should be calculated, including how the accommodation offset works and how things like travelling time, tips and uniform deductions should be dealt with, please see our page What is the national minumum wage?
Sadly some businesses do not fully understand how minimum wage rates work so some apprentices are not always paid what they are legally due. You should speak to your boss or call the ACAS Pay and Work Rights Helpline if you think you are not being paid correctly.
Please note that the government amends the minimum wage rates on 1 April each year.
What about apprentice terms and conditions?
Most apprentices are employed and therefore have the same rights as other employees, including the right to be enrolled into a workplace pension if they meet the conditions (auto-enrolment). To find out more about your rights as an employee go to GOV.UK.
Some things to note though are:
- The minimum hours of employment for an apprentice should be at least 30 hours per week. By exception, where the individual’s circumstances or the particular nature of employment in a given sector makes this impossible, then an absolute minimum of 16 hours must be met. In such cases the duration of the apprenticeship should be extended.
- Apprentices are also entitled to holidays which you can find out more about on GOV.UK.
- Many of the special protections in the Working Time regulations for young workers under 18 will apply to apprentices, for example young workers must not exceed the eight hours a day or 40 hours per week. They are also entitled to rest breaks of at least 30 minutes if their shift lasts more than four and half hours.
You can contact the ACAS Pay and Work Rights Helpline for free and confidential advice on your rights at work.
What are the tax implications?
There is a common misconception that apprentices do not have to pay tax. This is not the case. Apprentices have to pay income tax in the same way as everyone else. Some general tax guidance for first time workers, which apprentices may find useful, can be found in our employment section.
For the 2020/21 tax year, if you earn less than £12,500 you should not ultimately be taxed at all, but you may pay National Insurance contributions (see below). The £12,500 figure is known as your personal allowance. Earnings over the personal allowance will be taxed at the appropriate income tax rate.
You will normally pay tax through the Pay As You Earn (PAYE) system – meaning that it is taken straight from your pay packet. You will therefore not normally need to worry about completing a Self Assessment tax return.
You can find out more about tax rates and allowances, how the PAYE system for employees works, how tax is paid and how to claim back tax if you think you have paid too much, in the tax basics section.
Are there special rules for National Insurance?
For the 2020/21 tax year, if you earn more