Is hiring an apprentice cheaper?
You pay no employer's National Insurance on pay up to £50,270 for apprentices under 25 and anyone under 21.
Your answer
Enter the yearly pay to see the National Insurance saving.
About this calculator
For employers thinking about taking on an apprentice or a young worker. It shows the National Insurance saving and checks the pay against the minimum wage.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
Employers normally pay 15% National Insurance on pay above £5,000 a year. For employees under 21 and apprentices under 25, the rate is 0% up to £50,270, so the saving is 15% of the pay between those two figures.
Worked example
Employing an apprentice at £18,000 saves you £1,950 a year in employer's National Insurance.
2026/27 tax year · apprentice · 37.5 hours a week
| Employer's National Insurance without the relief | £1,950 |
|---|---|
| With the relief (0% up to £50,270) | − £1,950 |
| Employer's National Insurance you pay | £0 |
| Pay per hour (37.5 hours a week) | £9.23 |
| Minimum wage for this worker | £8.00 |
Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027), on a yearly basis.
Questions people ask
What does the employee notice?
Nothing. They still pay their own National Insurance as normal. The relief only cuts what the employer pays.
What's the apprentice minimum wage?
£8 an hour from April 2026, for apprentices under 19 or in the first year of their apprenticeship. After that, they're due the minimum wage for their age.
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