You've hired more than a few apprentices in your time. Some stuck around and became star employees, while others left after a few weeks. One thing you've learned? Pay matters. And getting it right from the start can make all the difference.
With legal rates changing yearly and younger workers weighing their options, you want to offer a fair wage that keeps your margins intact and your team motivated.
This guide breaks down the average apprentice wage in the UK, what's required by law, what other trade employers are offering, and how to build a pay structure that supports retention to build a solid crew.
What Are You Legally Required to Pay Apprentices?
The law sets specific minimum wage requirements for apprentices that change based on age and how long they've been in training.
Apprenticeship Minimum Wage
As of April 2025, the apprenticeship minimum wage is £7.55 per hour. This apprentice rate applies if the apprentice is under 19, or 19+ and in their first year of their apprenticeship.
This rate is reviewed annually and enforced by HMRC. The National Minimum Wage and National Living Wage rates are updated each April, so you'll need to adjust apprenticeship wages accordingly.
The apprenticeship minimum wage exists because apprentices spend significant time in training rather than productive work. During normal working hours, while training, they're learning skills that benefit your business long-term.
The national minimum wage rate applies differently to apprentices depending on their age and how long they've been training. For example, a 20-year-old who's completed their first year moves from the apprentice rate to the standard rate for their age group.
After Their First Year
Apprentices aged 19+ who have completed their first year must be paid the national minimum wage for their age group:
- 18–20: £10.18 per hour
- 21+: £12.21 per hour (the National Living Wage)
According to the UK government guidance on apprentice wages, most apprentices work normal working hours and must be paid for all time spent training with their college or training provider.
Once apprentices have completed the first year of their apprenticeship, they're legally entitled to higher wages. Failing to meet these requirements has serious penalties. You might also have to backpay claims to deal with, which can get pricey.
How Much Are Other Trades Paying Their Apprentices Right Now?
Many employers choose to pay more than the minimum, especially in competitive or higher-risk trades where apprentices work alongside experienced workers.
For example, electrical apprentices often see structured pay rises linked to qualifications and competency assessments.
*According to JIB data
Many apprentices in trades start at the minimum hourly rate, but expect regular pay rises as they gain experience. Employers offer higher wages to apprentices who show initiative and complete college modules on time.
Degree apprenticeships in engineering or construction management typically start at a higher rate, often £12,000-£18,000 annually, because these apprentices work on more complex projects.
Want Apprentices to Stick Around? Pay Them Like They Matter
Smart employers structure apprentice pay to encourage retention and reward progress. Here's how to build loyalty through fair compensation.
Use a Tiered Pay Structure
Start at or slightly above the apprenticeship minimum wage, then plan small, documented increases at critical milestones, such as:
- Passing college modules or gaining qualifications
- First successful site test or safety certification
- Completing their first year of apprenticeship training
- Demonstrating independence on real job tasks
Many employers find that apprentices work harder when they can see clear progression. A pay rise every six months keeps them motivated and reduces the chance they'll switch careers or jump ship to a competitor.
Align Pay With Skill Level
As apprentices gain independence and contribute more value, their apprentice pay should reflect that. Use performance reviews to decide when to bump them up from the basic apprentice rate.
Apprentices who can work unsupervised, handle customer interactions, or train newer apprentices deserve wages closer to qualified workers. Rewarding hard work and initiative helps retain top new talent while they complete their training.
In recent years, more young people are getting stuck in low-paid occupations. This is especially true for young men, according to the study from IFS. So, when employers pay apprentices what they're worth, they'll be more appreciative and loyal.
Factor in Local Market Competition
Check what competitors are offering in your area. If you can't match higher wages, you can still be the more appealing option if you offer better working conditions, travel coverage, or other benefits that reduce their costs.
What Support Should You Be Giving Apprentices Legally and Practically
Besides wages, apprentices are entitled to specific support and benefits that you need to factor into your costs.
Paid Holidays and College Time
Full-time apprentices receive at least 28 days’ statutory leave (20 days annual leave plus 8 bank holidays) every year. Time at college or with a training provider counts as normal working hours and must be paid.
This means apprentices might spend 1-2 days per week in college during their first year, but you still pay them for this study time. Factor this into your labour costs when budgeting for apprentices.
Experience Smarter Field Service Management
Ready to see how Intrflex can transform your workflow? Book a free demo and discover how easy it is to manage jobs, teams, and tasks from a single powerful platform.
Book a demoFinancial Support for Gear
PPE should be provided free of charge to all apprentices. Many apprentices start with basic hand tools but need specialized equipment as they progress. A small weekly tool allowance (£10-20) helps them build their collection while keeping costs manageable for your business.
Other Benefits
Consider subsidising travel costs if apprentices need to commute to college or different job sites. Many apprentices don't have cars initially, so transport support reduces barriers to attendance.
Offering small perks like free lunch, early finishes on Fridays, or performance bonuses builds loyalty and reduces dropout risk. These gestures cost little but show you value their contribution.
Most apprentices appreciate employers who provide confidential advice about career progression and qualifications. Regular check-ins about their goals help retain good apprentices through completion.
Average Salaries Depend on the Person
Those eligible for apprenticeships include school leavers, career changers, and existing employees looking to gain new qualifications. Understanding different salary expectations helps you attract and retain the right candidates. A young kid has different financial needs than a family man changing careers with decades of work experience.
How to Make Apprentice Pay and Paperwork Way Easier
Hiring an apprentice is an investment. Managing their pay, time, and progress shouldn't eat into your day. You can make your life a whole lot easier using the software.
You can use a tool like an employee management app to:
- Log hours and track attendance across job sites and college days
- Assign job roles and skill levels as they progress through training
- Keep pay rates up to date automatically as they hit milestones
- Store contracts, right-to-work documentation, and training records
When apprentices work on multiple sites or split time between college and work, tracking becomes complex. Digital tools help you stay compliant while managing payroll efficiently. The right system handles these details automatically.
Loyalty Starts With That First Payslip
Apprentices can bring real value to your team, but only if they stay long enough to grow into the role. Fair, structured pay helps them stick around, learn the ropes, and contribute without the churn that hurts your bottom line.
Tools like Intrflex's employee management app can make the admin side easier. Log hours, adjust pay rates as they progress, and keep everything recorded in one place, so you stay compliant without losing time.
Paying correctly from the start builds a stronger, more reliable crew. Give Intrflex a spin and book a demo today.
Frequently Asked Questions
Do apprentices pay tax and National Insurance?
Yes, apprentices pay tax and National Insurance if they earn above the standard thresholds, just like other workers. The current rate for tax is on earnings over £12,570 annually, and National Insurance starts at £12,570 for employees.
Can I pay different apprentices different wages?
Yes, as long as you meet minimum wage requirements. You can pay based on age, experience, qualifications, or performance, but all apprentices, depending on their circumstances, must receive at least the legal minimum for their situation.
What happens if I don't pay apprentices correctly?
HMRC can investigate and order backpay for any underpayment, plus penalties up to 200% of the underpayment. You may also face naming and shaming by the government, which damages your reputation with future apprentices and customers.
Should I offer apprentices other benefits beyond wages?
Many apprentices really value non-wage benefits, like:
- Travel allowances
- Tool allowances
- Flexible hours around college
- Clear progression paths
For younger workers, this can matter a whole lot more than small wage increases.
What's the difference between the apprentice rate and the national living wage?
The apprentice rate (£7.55/hour) applies to apprentices under 19 or those in their first year. The national living wage (£12.21/hour) applies to workers 21+ who aren't in apprenticeship training. Once apprentices earn the right to standard wages, they move to age-appropriate rates.
Do apprenticeship wages increase automatically each year?
Apprenticeship wages follow government minimum rates, which change annually. But many employers increase apprenticeship training wages based on performance, qualifications gained, or progression milestones rather than waiting for government changes.
How much do apprentices earn in degree apprenticeships?
Degree apprenticeships typically offer higher starting salaries, often £15,000-£20,000 annually, because apprentices work on complex projects while studying. These programmes combine university-level apprenticeships with practical work experience.
