Sector Guides
Apprentice Pay & Tax Explained
Starting an apprenticeship? Learn about the new April 2026 minimum wage, when you start paying tax, and calculate your monthly take-home pay.
Your Details
The legal minimum is £8.00/hr (from April 2026) if you are under 19, or in the first year of your apprenticeship.
Monthly Take-Home Pay
£1,229.30
The Apprentice Minimum Wage (2026/27)
The government sets a specific minimum wage for apprentices. From April 2026, this rate increased to £8.00 per hour.
You are legally entitled to this rate if you are:
- Aged under 19
- Aged 19 or over and in the first year of your apprenticeship.
What happens in your second year?
If you are 19 or older and have completed your first year, you must be paid the standard National Minimum Wage for your age group.
For example, if you are 20 and in your second year, your pay must increase to the 18-20 rate. You can use our Minimum Wage Checker to ensure you are being paid legally once your first year is over.
Do apprentices pay Tax and National Insurance?
Apprentices are treated exactly like regular employees when it comes to tax. You are given a tax-free Personal Allowance (usually £12,570 a year, indicated by the 1257L tax code).
Income Tax: You only pay 20% tax on the money you earn above £12,570.
National Insurance: You only pay 8% NI on the money you earn above £242 a week (£12,570 a year).
If you are working 37.5 hours a week at £8.00 an hour, your annual salary is £15,600. Because this is above £12,570, you will see small Tax and NI deductions on your payslip.
Student Loans
Unlike university students, apprentices do not take out student loans to pay for their training—the training costs are covered by the government and the employer. Therefore, you will not have any student loan deductions on your payslip.
If you already have a student loan from a previous degree, you only start repaying it if your salary goes above the repayment threshold (e.g., £27,295 for a Plan 2 loan). Very few apprenticeships pay this much during the training period.
What does it mean to be paid for training time?
By law, you must be paid for your normal working hours AND any training that's part of your apprenticeship (usually one day a week at a college or training provider). If your employer refuses to pay you for your college day, they are breaking the law.