Save on Employer National Insurance Contributions by Hiring Apprentices

31/10/2024

Morrisons partners up with Supplytrain

Supplytrain can help you beat the Chancellor’s Employer National Insurance increase by finding you awesome apprentices to work in your business.

Whilst Chancellor of the Exchequor, Rachel Reeves MP, may have announced a substantial increase in Employer National Insurance Contributions at the recent Budget, there is an apprenticeship incentive that you probably don’t know about that could save your business £10,000s in staff costs. Employing apprentices not only brings fresh talent into your business but also offers significant financial benefits. One major advantage is the savings on Employer National Insurance (NI) contributions. Here’s how you can make the most of these savings and how Supplytrain can assist you every step of the way….

The Financial Advantage: Employer National Insurance Savings

Employers in the UK are required to pay NI contributions for their employees. However, when you employ an apprentice under the age of 25, you’re exempt from paying Employer NI contributions on their earnings up to the Upper Earnings Limit. This can lead to substantial savings, especially for small and medium-sized businesses.

Let’s break down the benefits of apprenticeships:

1. Cost savings:
The exemption from Employer NI contributions can reduce your payroll costs significantly (see example below). Plus, you are paying people in learning – not the finished article – so you can offer a lower wage than you would hiring someone with previous experience. 

2. Investment in training:
Your employees recieve fully- funded, job-specific, training getting them up to speed quickly and staying motivated at work.

3. Future talent pipeline:
By hiring apprentices, you’re not just saving money; you’re also building a strong, skilled and loyal talent pipeline that understands your business from the bottom up. It really can be a fantastic long-term investment. 

Register for our webinar:

Thursday, 7 November 2024, 1pm-1.30pm 
This will be recorded and sent out to those registered that couldn’t attend. Don’t miss out on this free explanation.

Register for 1-2-1 support:

Want to discuss how we can help you recruit, employ and develop apprentices in your business simply?  
Register for a flexi-apprenticeship call back.

The maths

Not only will Employer NI contributions increase in April 2025, but minimum wages for both apprentices and non-apprentices will rise too. Below, we show you how much you would pay a 40hr/week worker on minimum wage and the associated Employer NI contribution.

Minimum wage (April 2025)

Annual wage

Employer NI

Apprenticeship Minimum Wage
@£7.55/hour
£15,704 £1,606
18-20 year-old Minimum Wage
@£10.00/hour
£20,800 £2,370
National Living Wage (21+)
@£12.21/hour
£25,397 £3,060

When employing apprentices under 25, you are exempt from the Employer NI contribution – saving £3,060 of an annual salary (for someone on National Living Wage).  This means investing in training for young staff with the raw attributes to succeed can save your business significantly. 

How can Supplytrain help?

At Supplytrain we understand the challenges of navigating the apprenticeship process. We provide unique, business-focused support to help businesses identify the right young people and the right training programmes to drive business performance.

We can support you with:

1. Choose a training provider:
We provide FREE, impartial, advice to help you choose an apprenticeship training provider to suit your business needs

2. Apprentice recruitment:
We recruit and sift apprentice applicants for you, connecting you to young people with the desire to work and learn

3. Hassle-Free administration:
We take care of the government paperwork and ensure you comply with regulations, so you can focus on running your busines

4. On-going support:
Our team provides guidance and support throughout an apprenticeship to you and the apprentices, which is why our retention rates are so high compared to national averages!

Register for our webinar:

Thursday, 7 November 2024, 1pm-1.30pm 
This will be recorded and sent out to those registered that couldn’t attend. Don’t miss out on this free explanation.

Register for 1-2-1 support:

Want to discuss how we can help you recruit, employ and develop apprentices in your business simply?  
Register for a flexi-apprenticeship call back.

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