My Department has responsibility for the National Minimum Wage Act 2000. The Act prescribes the minimum hourly rate of pay for the majority of employees in Ireland subject to a small number of exemptions. Apprentices are excluded from the Act and from the right to receive the national minimum wage. Apprentices are excluded from the National Minimum Wage Act in recognition of the unique nature of apprenticeships and the fact that a long-established practice for determining rates, which adequately protects apprentices, exists.
Apprenticeships offer a unique combination of education and work experience. When the national minimum wage was first introduced, it was recognised that providing an exemption for apprentices would promote apprenticeships and encourage employers to focus on training apprentices and offering opportunities to them while at the same time recognising the cost to employers in terms of time invested and productivity forgone.
Apprentices are employees and all of the 78 apprenticeship programmes are undertaken under a contract of employment. For the majority of apprenticeships, the rate of pay is agreed between the apprentice and the employer with the employer paying the apprentice during both on-the-job and off-the-job training elements. For the 25 craft apprenticeship programmes, the minimum rates of pay applying under the employment contract are either agreed within the relevant sector or are set out in legally binding sectoral employment orders recommended by the Labour Court.
I know that considerations regarding apprentice wages may affect learner and employer demand for apprenticeships. Wage levels may present a barrier to entry to apprenticeships for some individuals. Conversely, wage costs and training costs may discourage some employers from hiring apprentices. We must consider this issue very carefully.
While I take the point about apprentices in training, the CSO has reported that over 90% of apprentices who qualified in 2020 were in employment two years later with median weekly earnings of €935 and over €48,600 annually.