Understanding Apprentice Pay

Did you know the rate of pay for Modern Apprentices is increasing? The increase from £6.40 to £7.55 will come into effect on the 1st April 2025.

We all want to make sure our employees are paid correct. However, many employers unintentionally underpay Apprentices due to misunderstandings about eligibility and what counts as working time. To help you stay on the right side of the law, HMRC is offering live webinars to clarify apprentice pay rules and prevent costly errors.

What Employers Need to Know

The apprentice rate is the lowest pay rate an employer can offer for NMW purposes. However, specific criteria must be met in order to apply this rate legally. Many employers assume all apprentices qualify, but that’s not always the case. Common mistakes include:

• Failing to increase pay once an apprentice turns 19 and completes the first year of their apprenticeship.

• Miscalculating working hours, such as not including training time.

Asking Apprentices to pay for certain things can also bring them under NMW. This can include:

• Paying for their own PVG

• Paying for uniforms

Learn from the Experts

To help employers navigate these challenges, HMRC’s National Minimum Wage team is hosting live webinars. These sessions will cover:

✔ Who is eligible for the apprentice rate.

✔ The most common mistakes made by employers.

✔ Best practices to ensure compliance.

✔ A live Q&A with experts.

Take Action Now

Many businesses unknowingly underpay their apprentices simply because they do not fully understand the rules. Don’t let that be your business. Take advantage of this opportunity to ensure you are paying your apprentices correctly.

Register your interest here for the webinar - HMRC Webinar Registration 2025

Further information on the rates of pay can be found on the HMRC website.