You must set up an apprentice correctly so they receive the right pay. This includes the National Insurance (NI) category and minimum wage. These are both based on the employees' age.

You create an apprentice record in payroll the same way as any other employee.

 NOTE: Payroll performs a national minimum wage check for your regular employees. There are no corresponding checks made on apprentices. The responsibility for paying apprentices the correct rate lies with the employer.

What is the minimum wage for apprentices?

The national minimum wage (NMW) is an entitlement of all apprentices. This varies depending on their age group. 

As of 1 April 2025, the rates are:

What National Insurance category should I use?

• Apprentices under 25 use NI category H
• Apprentices 25 and over use NI category A

Do apprentices have to pay tax?

Apprentices tax is based on their tax code, just like all other employees.

Their wages can often be lower than average meaning they often fall under the threshold above which tax is payable. Because of this, many apprentices may find that they don’t have to pay tax on their earnings at all.

Common mistakes

You could still underpay apprentices who receive the NMW rates.

This can happen because:

• An apprentice may be 19 or over and completed the first year of their apprenticeship. They get the higher age-related minimum wage rate
• You're not paying an apprentice for training time. HMRC class training time as working time. You should pay the apprentice for this.

Checks you can make 

Check which payments count towards the apprentice wage. For example, you may pay an allowance for food or tools.

We recommend you use HMRC's National Minimum Wage and Living Wage calculator for employers.

Once you know this, in Payroll you can set up the relevant payments if needed.

Read our article Create and manage payments.

You can now be sure your apprentices aren't earning less than their legal entitlement.