Dáil Éireann Debate, Wednesday - 8 December 2021
112. Deputy Rose Conway-Walsh asked the Minister for Further and Higher Education, Research, Innovation and Science the estimated cost of removing the exemption of apprenticeships to the National Minimum Wage Act 1998; and if he will make a statement on the matter. [60628/21]
Amharc ar fhreagraApprentices are employees and their rates of pay are agreed between themselves and the employer. Certain sectors such as construction and electrical apprentices are paid agreed rates as set out within sectoral wage agreements to under Sectoral Employment Orders.
The State pays training allowances directly to apprentices in the 25 craft apprenticeships while attending off-the-job training in Phases 2, 4 and 6 of their seven phase apprenticeship. These allowances are paid by the ETBs through the Department of Education Shared Business Services and are funded through the NTF.
The National Minimum Wage is currently €10.20 an hour for adult workers aged 20 and over. However workers under the age of 20 are subject to different rates of minimum pay depending on age as follows
- Under 18 €7.14
- Aged 18 €8.16
- Aged 19 €9.18
Apprentices in Phase 6 and 15 of the 25 Phase 4 cohorts receive training allowances in excess of the adult National Minimum Wage. Taking the current craft apprentice cohort in off-the-job training phase 2 or 4, the cost of training allowances is €2.24m per week. The estimated cost to the State of training allowance payments at the minimum wage at €10.20 an hour is estimated at €2.56m per week across phases 2 and 4, a difference of €310k per week, or in the region of €16m per annum.
It should be noted that 53% of currently registered craft apprentices are below the age of 20 and thus subject to lower minimum wage rates. If the minimum wage rates were used to set training allowance rates, eight of the phase 2 apprenticeships would potentially receive a lower weekly rate of pay than currently, depending on age.
