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What are the potential financial benefits to employing an apprentice?

What are the potential financial benefits to employing an apprentice?
  • Employers are not required to pay National Insurance Contributions for apprentices under the age of 25 on earnings below the higher tax rate of £827 a week (£43,000 a year).
  • Apprentices that are employed under an apprenticeship agreement and are in the first year of their apprenticeship or under 19 years old can be paid national minimum wage at the apprenticeship rate (see current rate https://www.gov.uk/national-minimum-wage-rates).
  • £1,000 payment to both the employer and the training provider when they train a 16 to 18 year old.
  • £1,000 payment to both the employer and the training provider when they train a 19 to 24 year old who has previously been in care or who has a local authority education, health and care plan.
  • Employers with a pay bill of less than £3 million a year will not need to pay the apprenticeship levy but at least 90% of the apprenticeship training and assessment costs will be paid for by the government.
  • Employers with a pay bill of more than £3 million a year will be required to pay the apprenticeship levy regardless of whether they employ apprentices so may as well access the funds that are available/they contribute to in order to cover apprenticeship training and assessment costs.