Pay & Employment  •  October 2026

Apprentices are entitled to the National Minimum Wage like any other worker, but the rate that applies depends on their age and how far into the apprenticeship they are. Getting it wrong is one of the most common payroll mistakes we see, usually because an apprentice has had a birthday or reached the end of their first year and nobody updated the rate.

This guide sets out the rates in force since 1 April 2026, explains when an apprentice moves off the apprentice rate, and includes the new rates the government announced on 28 October 2026 for April 2027.

01

Minimum wage rates from 1 April 2026

These are the legal minimum hourly rates for the 2026 to 2027 pay year, compared with the rates that applied from April 2025.

The accommodation offset is the maximum amount an employer can count towards minimum wage pay when it provides accommodation. It rarely affects apprentices, but it matters in sectors such as hospitality and agriculture.

02

Who gets the apprentice rate?

The apprentice rate applies to apprentices who are:

• aged under 19; or
• aged 19 or over and in the first year of their apprenticeship.

Once an apprentice is 19 or over and has completed their first year, they must be paid at least the minimum wage for their age. The table below shows how that works in practice.

The two triggers to watch are a birthday and the first anniversary of the start date. An apprentice who started at 18 and turns 19 during their second year moves to the 18 to 20 rate from that birthday. An apprentice who started at 22 moves to the National Living Wage on the first anniversary of their start.

03

What apprentices must be paid for

Apprentices must be paid for all the time they work, and that includes time spent on off-the-job training, whether it happens at college, with a training provider, online or at the workplace. Training time counts as working time for minimum wage purposes, so an employer cannot treat a college day as unpaid.

Apprentices also have the same core employment rights as other employees, including paid holiday of at least 5.6 weeks a year for a full-time worker (which can include bank holidays), rest breaks, and statutory sick pay where they are eligible.

Take care with deductions. Charges for uniforms, tools or training courses that take an apprentice’s pay below the minimum for the hours worked can put an employer in breach, even where the apprentice agreed to them. HMRC enforces minimum wage law and can require arrears to be paid at current rates, charge penalties of up to 200% of the arrears and publish the names of employers who underpay.

04

What the rates mean in weekly pay

Most apprentices work full time, usually at least 30 hours a week. Here is what the April 2026 minimum rates mean in gross pay before tax and National Insurance.

For the employer, the cost of employing a young apprentice is lower than the wage alone suggests. There are no employer National Insurance contributions on earnings up to £50,270 a year for apprentices under 25, and training for apprentices aged 16 to 24 who started from 1 August 2026 is fully funded for employers that do not pay the levy. Our Apprenticeship Levy guide explains the funding rules in more detail.

05

Rates from April 2027

On 28 October 2026 the government accepted the Low Pay Commission’s recommendations for the next increase. These rates will apply from April 2027.

Minimum wage rates change on 1 April each year. If you are setting apprentice pay now for a start date next spring, budget for the new rates and check GOV.UK nearer the time for the final legislation.

06

Paying above the minimum

The figures above are legal minimums, not recommendations. Many employers pay apprentices more, particularly for advanced and higher apprenticeships or roles where the apprentice is quickly productive. Some pay the full rate for the apprentice’s age from the start, and some follow voluntary benchmarks such as the Real Living Wage set by the Living Wage Foundation.

Paying above the minimum usually brings more and stronger applications, and it helps retention in the second year, which is when apprentices are most likely to be tempted by better-paid jobs elsewhere. If you are an applicant comparing offers, our guidance for applicants explains what else to look for in an apprenticeship.

07

Salaried apprentices and extra hours

Many apprentices are paid an annual salary rather than an hourly rate. That is fine, but the salary still has to work out at or above the minimum rate for every hour worked in each pay reference period, which for most employers is a month. If an apprentice regularly stays late, attends evening classes that form part of the apprenticeship or works extra shifts, those hours count, and a salary that looked comfortable on paper can slip below the minimum.

Time spent at a compulsory induction, travelling between work sites during the working day and taking part in work trials can also count as working time. Ordinary commuting to and from the usual workplace does not. When in doubt, record the hours and check the calculation against the rate for the apprentice’s age and year.

08

A simple payroll checklist

1. Record each apprentice’s date of birth and apprenticeship start date in payroll.
2. Set reminders for their 18th, 19th and 21st birthdays and the first anniversary of their start.
3. Update all rates on 1 April each year.
4. Record off-the-job training hours and make sure they are paid.
5. Check that no deductions take pay below the minimum for the hours worked.
6. Keep minimum wage pay records for at least six years.

If you would rather not manage this yourself, Encompass Select can employ your apprentice and run their payroll for you. Find out how on our page about how to hire an apprentice without the admin headache.

Need help with apprentice pay and payroll?

As an Apprenticeship Training Agency, we take responsibility for PAYE, National Insurance and payroll administration for the apprentices we employ. Get in touch to talk through your plans.

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