BWF members such as yourselves frequently use our Member and Technical Helplines for assistance on a wide range of Employment, Health and Safety, Contractual and Technical issues. For the next few weeks, we’re putting up a frequently asked question every Tuesday in order to help members and illustrate the type of advice we are able to provide. If you have any questions that you would like to see featured, we would be happy to assist. This question and many others like it can be found in our Question Centre. If you want further advice on any of the issues, don’t hesitate to ring the helpline or browse our extensive publications library, which includes draft training and development policies, plus Statements of Main Terms of Employment This week: How much should I pay my apprentices? Apprentices under 19, and apprentices aged 19 and over, but in the first year of their apprenticeship are currently exempt from the minimum wage, although, employers are required to pay apprentices on Learning and Skills Council Contracts at least £95 per week (from August 2009). However, the government has very recently accepted a recommendation from the Low Pay Commission (LPC) to introduce an apprentice minimum wage of £2.50 per hour to cover the apprentices who are currently exempt. This will apply from October 2010. For apprentices over the age of 18 who have completed their first year, the current minimum wage for their age group applies.
The National Minimum Wage from 1st October 2009 is as follows: – £5.80 an hour for workers aged 22 and over (The adult NMW)
– £4.83 an hour for 18-21 year olds
– £3.57 an hour for 16-17 year olds These rates tend to go up each year and will increase in October 2010 by approximately 2%. Please note that the government has extended the adult minimum wage rate to include 21-year-olds (previously the qualifying age for the NMW was 22) The new rates will be as follows: – £5.93 an hour for workers aged 21 and over (adult rate)
– £4.92 an hour for workers aged 18 to 20
– £3.64 an hour for workers aged 16 to 17
The introduction of the apprentice minimum wage should not have too great an effect on the amount that BWF members pay their apprentices – according to our most recent Pay and Conditions Survey, members are already paying their 1st year apprentices more than the £2.50p/hour rate. The apprentice minimum wage has been introduced primarily to assist apprentices in other trades (for example hairdressing) who are receiving very low wages. A 2007 government report found that the average net weekly earnings of an apprentice in the construction sector was £174 (although this was heavily dependent on the year of their apprenticeship). As mentioned earlier, apprentices on Learning and Skills Council contracts are already required to be paid at least £95 per week. The BWF recommends that, when determining how much they will be paying their apprentices, members should of course pay particular attention to the circumstances affecting their business and their ability to pay, recruit and retain labour. Our yearly Pay & Conditions Survey offers a snapshot of average earnings, covering most of the main categories of employee, including apprentices. All BWF members who respond receive a breakdown of the survey results together with a summary of the key issues.