National Insurance Savings
For apprentices under the age of 25, all employers are exempt from paying employer class 1 National Insurance contributions on earnings below £827 per week, or £43,000 per year. This would cover the vast majority of apprenticeships as it is rare for an apprentice to be paid such a large sum of money.
For example, if you had a 22-year-old apprentice being paid the National Minimum Wage, you would save £1,500 in National Insurance contributions over 12 months. If you were paying that same apprentice the Real Living Wage, that saving would increase to £2,000 over the same period.
If you are in a position to do so, it may be a nice move to top up your apprentice’s wage based on the calculated National Insurance saving you are able to make. This is likely to be appreciated by the apprentice and will make them feel more appreciated and welcome as part of the team.