Employer Fees & Funding
Understand costs and support, so you can budget with confidence
Funding options

Funding support that helps you grow your team

There are government initiatives designed to support employers who take on apprentices. These can reduce wage pressure, lower training costs, and make it easier to bring new talent into your business.

Apprenticeship Boost

Apprenticeship Boost provides direct financial support to employers who take on apprentices. It is designed to help offset wage costs while apprentices develop skills and progress through the early stages of their training.

Funding is paid directly to employers and may be available during the first and second year of an apprenticeship, subject to eligibility and current scheme settings.

What this can help with:

  • Reducing wage costs for eligible apprentices
  • Supporting employers to take on new apprentices with confidence
  • Easing financial pressure during the early training period
Apprenticeship Boost →

Fees-Free Tertiary Education

If your apprentice is a first-time tertiary learner, they may be eligible for Fees Free support, which can reduce the overall cost of training.

This funding can cover the training component of their final year, lowering what you or your apprentice need to contribute.

Eligibility typically includes:

  • Be a New Zealand citizen or resident
  • Have lived in New Zealand for three or more years
  • Not have previously enrolled in tertiary study at Level 3 or higher
  • Have an NSN (National Student Number)
IRD | Fees Free →
HOW MUCH SHOULD AN APPRENTICE BE PAID?

Wages for apprentices

Employers often ask what wages they should pay apprentices as they develop on the job. Apprentice wages in New Zealand are typically set relative to the adult minimum wage, with incremental increases as skills and productivity grow. Apprentices are paid by employers at rates that reflect their experience and capability, while meeting legal minimum standards. The figures below give an indicative guide to annual earnings based on minimum wage levels. Actual wages may be higher depending on industry standards, collective agreements, and individual performance.

Overview

Apprentices are employees and must be paid at least the applicable minimum wage for their age and employment status.

Most employers structure apprentice pay to increase over time, reflecting growing capability and contribution to the business. This helps with retention, motivation, and workforce planning.

Indicative wages below are based on minimum wage benchmarks and typical apprenticeship progression. We can help you confirm what is appropriate for your trade and apprentice.

Cost to take on an apprentice →

Year 1 Apprentice

First-year apprentices are usually developing core skills and working under close supervision.

Indicative annual earnings:

$40,000 to $45,000 per year (gross)

This typically reflects:

  • Entry-level productivity
  • High levels of supervision and training
  • Minimum wage compliance

Employers may choose to pay above this range to attract strong candidates.

Year 2 Apprentice

Second-year apprentices usually contribute more independently and require less day-to-day supervision.

Indicative annual earnings:

$45,000 to $52,000 per year (gross)

This typically reflects:

  • Increased technical capability
  • Greater on-the-job responsibility
  • Improved productivity for the business

Pay increases at this stage are common and expected.

Year 3 and Beyond

Senior apprentices are often operating close to qualified level, depending on trade and experience.

Indicative annual earnings:

$52,000 to $60,000+ per year (gross)

This typically reflects:

  • High levels of responsibility
  • Consistent productivity
  • Preparation for qualified rates

Wages at this stage should reflect the value the apprentice brings to your business.

Employer Guidance

A hands-on schools pathway into the trades where learners experience real job sites, build workplace readiness, and move confidently toward an apprenticeship or industry placement.

Minimum wage compliance

Apprentices must be paid at least the legal minimum wage for their age and employment category.

Progression matters

Wage increases should align with skill development, training milestones, and on-site competence.

Budget with confidence

Understanding wage progression helps forecast labour costs over the life of an apprenticeship.

EarnLearn can support you to:

  • Confirm minimum wage obligations
  • Benchmark apprentice wages by trade
  • Plan wage progression alongside training milestones
  • Build a compliant, sustainable workforce plan
calculator

Apprentice cost calculator

Estimate the total cost of employing an apprentice across wages, training time, and supervision. Adjust the inputs to match your workplace.

Inputs

Select the apprenticeship year to auto-set a typical pay rate.
Set to 52 for a full-year estimate.
Auto-filled based on year level. You can override if needed.
Total paid hours, including paid training time if applicable.
Used to show the cost of paid time away (subset of wages).
Supervisor coaching, checking, and sign-off time.
Used to estimate supervision cost.
Optional uplift for KiwiSaver, ACC, leave loading, admin, etc.
If you pay weekly training fees. Leave at 0 if not applicable.
Optional: any support that reduces your total cost.
Indicative only. Actual costs depend on your employment agreement, training schedule, and site requirements.

Estimated total cost

Annual total (NZD)
$0
Net of subsidies, including on-costs
Apprentice wages$0
Paid training time away (subset of wages)$0
Supervision cost$0
Training fees$0
Subsidies/support (offset)-$0
Total after on-costs$0
Monthly estimate
$0
Weekly estimate
$0
Rates are indicative. Ensure pay meets any applicable minimum wage rules, awards, or collective agreements.
Frequently Asked Questions

Fees for apprentices FAQs

Understand what your training costs include and how payments work.

Several government funding and support options may be available to help offset the cost of employing an apprentice. These can include wage subsidies, fees support, and training-related funding, depending on the apprentice’s stage, eligibility, and current government settings. Funding programmes do change over time, so availability can vary. We help employers understand what support may apply in their situation and how to access it.

Apprenticeship Boost →
IRD | Fees Free →

In many cases, employers contribute toward training fees, although the structure can vary by trade, programme, and apprentice eligibility. Some apprentices may qualify for Fees Free support, which can reduce or cover parts of the training cost. We clearly outline what fees apply, what is included, and how payments are structured before training begins, so there are no surprises.

GET In touch

Talk to us about employer fees and funding

Taking on an apprentice is a commercial decision as much as a people one. Understanding the full cost, available funding, and how payments work upfront helps you plan with confidence. We’re here to walk you through employer fees, funding options, and what support is available to help you grow your team sustainably.

Understand employer fees and how training costs are structured

Identify any funding or subsidies that may apply to your business

Get clarity on total costs and plan next steps with confidence

Send an enquiry

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