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What do I need to know about apprentice pay?
Are apprentices entitled to the minimum wage?Many apprentices in England are currently (September 2010) exempt from the national minimum wage. Apprentices who are under 19 or who are in the first twelve months of their apprenticeship are not entitled to the minimum wage. Instead these exempt apprentices are currently entitled to a minimum pay arrangement of £95 per week. In 2010 the Low Pay Commission recommended that all apprentices should be brought into the national minimum wage framework on an apprentice rate of £2.50 per hour. Who does the new apprentice minimum wage rate apply to?All those apprentices who were previously exempt (those under 19 or in the first twelve months of their apprenticeship) will be entitled to the new rate. Apprentices over the age of 19 or who have already completed the first year of their apprenticeship will still be entitled to the full minimum wage rate for their age band. The National Minimum Wage rates
When will the new apprentice minimum wage rate be introduced?The new rate of £2.50 per hour will be introduced on 1st October 2010. What if the new hourly minimum wage rate works out to be less for an apprentice than their previous weekly minimum entitlement of £95?There are transitional arrangements in place to ensure that no apprentice loses out as a result of the new apprentice minimum wage rate being introduced. An apprentice would have to work a 38 hour week at £2.50 an hour in order to earn £95 per week. Therefore, if an apprentice works less than 38 hours per week, they will still be entitled to £95 per week. These transitional arrangements only apply to apprentices in England. Does the new rate just apply to apprentices in England?No. The new minimum wage rate applies to apprentices in Scotland, Wales and Northern Ireland as well. What safeguards are in place to ensure that employers comply with the new minimum wage regulations for apprentices?The new minimum wage arrangements for apprentices will be enforceable in the same way as the full minimum wage. HMRC has responsibility for enforcing the minimum wage. An apprentice who is not receiving the minimum wage rate that they are entitled to would also be able to recover the unpaid wages through an employment tribunal. Apprentices who are not getting paid the minimum wage rate that they're entitled to should contact their union. They can also seek advice and assistance with enforcement from the HMRC Pay and Work Rights Helpline.
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