NMW for apprentices All apprentices are legally entitled to the NMW for their age group. As of 1 April 2025, the rates are: | Age | Amount per hour (£) | | 16 to 18 years | 7.55 | 19 years or older and in the first year of their apprenticeship
| 7.55 | | 18 to 20 years | 10.00 | | 21 and above | 12.21 | If they're 19 years or over and have completed the first year of their current apprenticeship, then they're entitled to the NMW for their age group.
Do apprentices have to pay tax? Yes, apprentices have to pay tax and national insurance (NI), like other employees. However, apprentice wages can often be lower than average, and often fall under the thresholds for tax and NI. Due to this, many apprentices find that they don’t have any tax liability to pay on their earnings.
Common mistakes Even apprentices who you pay the NMW rates or above, could still be underpaid. Common reasons for this are: - You pay the apprentice rate to 19 year olds who've completed the first year of their apprenticeship
- You're not paying an apprentice for training time
Checks you can make Firstly, we recommend you use HMRC's NMW and Living Wage calculator for employers to check which payments should be included. Once you know this, in Sage 50 Payroll you can: You can now be confident your apprentices aren't earning less than their legal entitlement.
|