As an employer, you may work in an industry where hiring an apprentice is commonplace. The trades and hospitality are common examples, so it's important you pay all apprentices correctly.
Certain industries have specific amounts that apprentices should receive whilst completing their training. Failure to do so is against employment law and could lead to claims being raised against you.
In this guide, we'll discuss the different types of apprentices available, the pay scales for different industries, and how the amount can increase.
What is an apprentice?
An apprentice is someone who is training in order to gain practical experience in their preferred field. There are many benefits that come with hiring apprentices, they're eager to learn and a cheaper outlay for employers.
An apprenticeship programme provides both on-the-job and off-the-job training. An apprenticeship can last for two, three or four years. These programmes are paid so the apprentice can afford their financial outgoings.
Types of apprenticeships
There are different types of apprenticeships available to across Ireland. So as an employer, it's important you become familiar with the details of each so you can offer the best one for your company.
Let's discuss them in more detail:
Craft apprenticeships
A craft apprenticeship programme lasts for four years, which includes three separate periods of off-the-job training. The first period of off-the-job-training takes place in an Education and Training Board, with the others in a Technological University or Institute of technology.
The skills developed during their apprenticeship are assessed and tested through on-the-job testing as well as off-the-job exams. This type of apprenticeship is best known as the traditional apprenticeship route into trades like carpentry, motor mechanics, plumbing and electrical work.
New apprenticeships
New apprenticeship programmes outside the more traditional trades have been growing since 2016. These new apprenticeship programmes tend to last between two and four years. There are different varieties of on-the-job and off-the-job training as well as different ways to deliver the apprentice programmes.
This type of apprenticeship includes IT, finance, hospitality, software development, accounting and commis chef.
What are the apprentice pay rates in Ireland?
Apprentice rates vary depending on the job and type of apprenticeship being completed. For example:
- Apprenticeships developed before 2016: The apprentice receives a recommended wage whilst they are in on-the-job phases.
- Apprenticeships developed in 2016 and after: The apprentice receives a wage during the whole duration of the apprenticeship. The rate of pay is agreed between the apprentice and the employer.
But how much apprentices actually receive depends on the type of industry they're training in. The rate of apprentice pay varies throughout different industries, it's important you understand what rate of pay for the industry your company is in.
So, let's discuss some of the pay scales in each sector:
Building and construction industry
There is a Sectoral Employment Order (SEO) governing minimum rates of pay in the construction industry. Employers must pay apprentices the minimum pay rates set out it in the SEO. For example:
- Apprentice Year 1: 33.3% of craft rate (which is €19.96 per hour).
- Apprentice Year 2: 50% of craft rate.
- Apprentice Year 3: 75% of craft rate.
- Apprentice Year 4: 90% of craft rate.
Hair and beauty industry
There are no government recommendations regarding apprentice pay in the hair and beauty industry. How much apprentices are paid within this industry is agreed upon between apprentice and employer.
Apprentices in hair and beauty become qualified in three years, and a salary can be earned during their training period. People undertaking apprenticeships in this industry can be paid in line with the National Minimum Wage.
Restaurant and hospitality industry
Like in the hair and beauty industry, there aren't any government recommendations for apprentices working in restaurants or hospitality. Working as an apprentice chef, the rate of pay is agreed between the apprentice and employer.
Apprentices in the hospitality industry tend to complete their qualifications and skills training within two years and become a commis chef. A salary can be earned during this training period.
Electrical industry
Minimum rates of pay for apprentice electricians are governed by a Sectoral Employment Order. The rates of pay for apprentices under the SEO are calculated as a percentage of the Electrician rate.
Currently the percentages are as follows:
- 1st year apprentice 30%
- 2nd year apprentice 45%
- 3rd year apprentice 65%
- 4th year apprentice 80%
The High Court has set aside certain parts of the SEO for the electrical contracting sector and employers in this sector should seek expert advice before confirming pay and conditions for apprentices.
Do apprentices get paid for off-the-job training?
Yes, apprentices receive an apprentice allowance during off-the-job training which is paid by the local ETB (Education and Training Boards).
This payment is received every two weeks, with the following deductions being made:
- Income tax.
- PRSI (social insurance).
- Universal Social Change (USC).
Do apprentices get paid more than the National Minimum Wage?
No, not all apprentices receive the National Minimum Wage (which is €11.30 per hour applicable from 2023). This is because under a statutory apprenticeship, there's no legal obligation to pay someone the minimum wage.
It's important you're aware of what the Minimum Wage is for all your employees, no matter what the stage of their career they're in.
What factors can affect apprenticeship wages?
There are many factors that can affect how much an apprentice is paid. So as an employer, it's important you understand them so you can ensure your apprentice rate is correct for your company and industry.
Let's discuss them in more detail:
Experience
How much experience the apprentice has in the specific industry and sector before the duration of training affects the pay rate.
If someone has prior experience and skill in your industry, you may decide to pay them more.
Employee's Age
There is no legal obligation to pay an apprentice the minimum wage. Employers can choose to pay an older apprentice more money to reflect their experience, but it is entirely at the employer's discretion.
Agreed training contract
For new apprenticeships, a training contract is agreed between both parties. Included in this contract will be their hourly rate and annual sum. As well as detailed information on future increases when certain qualifications are reached.
Education
The prior education of an apprentice can also impact how much money they earn during their apprenticeship. Young people who have completed their Leaving Certificate, may be able to earn a higher amount.
How can an apprentice increase their pay rate?
Apprentices can increase their rate of pay by ensuring they get all their qualifications at the first attempt and hitting any targets their employer sets for them.
It's important you become familiar with them to ensure you're paying all apprentices correctly.
Improving their skillset
The main aim of an apprenticeship is to improve someone's skills and knowledge by the time they qualify. This is so you can then employ them in your business as a full-time employee.
If their learning objectives are met sooner than anticipated, you may choose to increase their salary sooner. But typically, the rate of pay an apprentice earns increases every 12 months.
Moving through their apprenticeship
As someone moves through their apprenticeship, it's up to you the employer if you want to decide to increase their earnings. However, an apprentice can only move to the next stage of their course if they met the previous year's qualifications.
Get expert advice on apprentice rates from Peninsula
You may work in an industry where hiring an apprentice is commonplace, such as the trades and hospitality. If this is the case, t's important you pay any apprentices you hire correctly.
Certain industries have specific amounts that apprentices should receive whilst completing their training. Failure to do so is against employment law and could lead to claims being raised against you.
Peninsula offers 24/7 HR advice and apprentice rate support which is available 365 days a year. Want to find out more? Contact us on 0818 923923 and book a free consultation with one of our HR consultants.
