Of the 491 recently shamed employers for breaching National Minimum Wage (NMW) by the HM Revenue and Customs (HMRC) audit teams, the largest failures related to apprentices.
Of those caught, 190 were for breaches of NMW related to apprentices.
There are some important considerations for those who claim to or do employ apprentices:
- That there really is an apprenticeship
- That age and length of apprenticeship is correctly monitored
- That work time outside of the date range of the actual, real, apprenticeship are appropriately paid
- That apprentices are not suffering deductions from their earnings which are actually forbidden
Apprenticeships contribute £25billion to the UK economy.
In May 2024, PAYadvice published the Low Pay Commission four facts on Apprentice Pay
So what is it about NMW and apprentices?
To qualify for the apprentice rate, a worker must be employed under a statutory apprenticeship agreement or a contract of apprenticeship.
A worker will also qualify for the apprentice rate if they are treated as employed under a contract of apprenticeship.
The minimum wage apprentice rate only applies if:
- an apprentice is under the age of 19; or
- an apprentice is aged 19 or over and is in the first year of their apprenticeship.
If an apprentice is aged under 19 an employer can pay them the apprentice rate for the duration of their apprenticeship.
Once they complete their apprenticeship, they must be paid the minimum wage rate for their age from the start of the pay reference period that begins on or after the date they complete their apprenticeship.
The employer can only pay the apprentice rate to an apprentice aged 19 and over for the first year of their apprenticeship. They must pay them the relevant minimum wage rate for their age from the start of the pay reference period that begins on or after the date they complete the first year.
If an apprentice turns 19 during the second or subsequent years of their apprenticeship, they must be paid the 18-20 year old minimum wage rate from the start of the pay reference period that begins on or after their 19th birthday.
Employers cannot deduct from pay costs for the apprenticeship training (that would be unlawful). And deductions for tools for the job would reduce NMW pay.
Further information on apprentices
For more information on when someone is employed as an apprentice and should be paid the apprentice minimum wage:
England: Apprenticeship funding rules
Scotland: Modern Apprenticeship Funding
Wales: Apprenticeships in Wales
Northern Ireland: Apprenticeships
For Government guidance on apprenticeships and the minimum wage:
What to do if you have been underpaid the minimum wage
Complaints can be made anonymously and HMRC won’t reveal a worker’s identity to the employer. HMRC consider every worker complaint they receive. This usually involves contacting the complaint worker to get further details. HMRC won’t share your details with your employer if you don’t want them to.
If anyone thinks they have been underpaid, they should complain to HMRC using the online form or call the Acas helpline.
Throughout the year, workers can access the Check Your Pay website for clear advice about what their pay should be and how to report breaches. Workers can call the Acas helpline (0300 123 1100) for free, impartial and confidential advice about their rights and entitlements. Acas also offers a translation service. Acas officers will pass on cases to HMRC for further consideration where appropriate.
PAYadvice.UK 19/10/2025