A practical guide for UK employers.
One of the most common questions we hear is:
“What should I pay my apprentice?”
It’s a fair question – and one that balances legal requirements, fairness, and business sense.
Luckily we’ve helped businesses hire 1000s of apprentices, so here’s what we’d recommend in 2025.
Let’s Start with the Basics
As of April 2025, the minimum wage for apprentices is:
- £7.55/hour for those under 19, or over 19 and in their first year
- National Minimum Wage for their age after that
But this is just the legal minimum – not necessarily the way to get the most of hiring an apprentice. Many employers choose to pay more, and for good reason.
Why Pay More Than the Minimum?
- Attract better candidates – especially in competitive industries
- Boost retention – a fairly paid apprentice is far more likely to stick around
- Support your culture – it sends a strong message that you value people
- Build loyalty – apprentices who feel invested in are more likely to become long-term employees
Suggested Pay Ranges
| Apprentice Level | Recommended Pay | Why It Works |
|---|---|---|
| Level 2 (School Leaver) | £7.55 – £9.23/hour (£14.75k – £18k/year) | For entry level roles where you are looking for someone eager but fresh out of school. |
| Level 3 (A-Levels Equivalent) | £9.23 – £11.30/hour (£18k – 22k/year) | Reflects more advanced skills and an increased level of responsibility. |
| Level 4/5+ (Higher Apprenticeship) | £11.30 – £13.85+/hour (£22k – £27k+) | For apprentices undertaking specialist higher qualifications or upskilling in their existing role. |
And guess what? There Are Offsets:
Paying more doesn’t mean you’re on your own. The government offers generous support for apprentice employers, including:
✅ £1,000 Employer Grant
You’ll receive £1,000 when you hire an apprentice aged 16–18 (or under 25 with an Education, Health and Care Plan).
✅ No Employer NICs
You don’t pay National Insurance contributions for apprentices under 25 earning less than £50,270 a year.
✅ Fully Funded Training
Apprenticeship training costs are 95–100% funded by the government. Meaning you’re getting a qualified team member, trained at almost no cost. (100% funded if the apprentice is aged 21 or younger, 95% funded if they are 22 or older).
✅ Retention = ROI
92% of apprentices stay on after their programme finishes, meaning the investment you make now can return years of loyal service.
Final Thought
It’s not just about the hourly rate — it’s about the value you’re creating.
When you invest in your apprentice, they’ll invest in you. With funding support, tax savings, and long-term loyalty, paying well isn’t a cost — it’s a strategy.
If you’re unsure how to set it up, or what funding you’re entitled to, we’re here to help.