Oct 21ST

National Minimum Wage Rates from October 2016

National minimum wage rates rise every October and this includes the minimum rate for apprentices, which has risen from £3.30 to £3.40 per hour.  This is the minimum rate for apprentices that are either:

  • 16-18 years old
  • aged 19 or over and in the first year of their apprenticeship                                                  

Apprentices are entitled to the minimum wage for their age if they both:

  • are aged 19 or over
  • have completed the first year of their apprenticeship

Current rates

These rates are for the National Living Wage and the National Minimum Wage from 1 October 2016.

Year

25 and over

21 to 24

18 to 20

Under 18

Apprentice

October 2016 (current rate)

£7.20

£6.95

£5.55

£4.00

£3.40

NI Contributions for Apprentices

From 6 April 2016, if you employ an apprentice under 25 years old, you will not need to pay employer Class 1 National Insurance contributions (NICs) on their earnings below £827 a week (£43,000 a year).  This measure will result in a saving of around £1,000 a year when employing an apprentice earning £16,000.

To qualify your apprentice must be following an approved UK government apprenticeship framework or standard and you must be able to provide evidence of this by providing a copy of the written agreement between you, the apprentice and the training provider.  This benefit will continue until your apprentice completes their training or turns 25 and only applies to payments which are liable for Class 1 secondary NICs.

If you would like more information about taking on an apprentice to support your business then please contact apprenticeships@moulton.ac.uk and one of our experienced apprenticeship advisors can arrange to talk you through the options available.