An apprenticeship is when a young person works in a tradesman’s shop, learning a new trade for the rest of his or her life. In some countries, these young workers may be entitled to an apprentice minimum wage, though this is not always the case. Apprentice minimum wages are influenced by a variety of factors, including the trade in which the apprenticeship is offered, demand for apprentices, and payment laws. Apprentices usually receive lower pay because they do not have the same level of experience or education as older workers. Other factors may influence the use of apprentices, though these are likely to be company-specific.
Apprenticeships are more common in trades than in traditional job settings, though the latter may offer some unpaid internships. Apprentice minimum wages for specific industries, such as plumbing or ironwork, may be set at a specific level. Apprentice payments and wages for specific positions may be governed by a trade union or other industry-specific body. Companies may be bound by these guidelines and rules if they are members of a union or other restrictive organization that imposes minimum wage restrictions on apprentices. However, these wages may be on a sliding scale, allowing apprentices to earn more as they continue to work in the trade.
As with most supply-and-demand concepts in a free market, the demand for apprentices may have an impact on the apprentice minimum wage. When the demand for apprentices rises in a particular trade or industry, the apprentice minimum wage may rise in response. This is true because, due to a current shortage of experienced workers, businesses require more workers for future positions. Although an apprentice may not be able to work in a full-time capacity early in his or her career, he or she can handle small tasks and free up more experienced workers to work on more technical tasks. Certain industries that employ apprentices may have different demand.
Specific laws may govern the apprentice minimum wage paid to these young workers in some countries. These minimum standards ensure that businesses and industries do not exploit young workers by paying them excessively low wages. Apprentice minimum wage laws set a floor, with employers free to raise wages as they see fit. In other cases, a scaled apprentice wage may exist, requiring more experienced apprentices to earn higher minimum wages. Apprenticeship laws may be specific to certain industries or job types.