Apprentices and their employers to start receiving financial boost

Apprentices and their employers to start receiving financial boost

Last updated 6 August 2020
Last updated 6 August 2020

Apprentices and their employers will start receiving much needed support as the Government’s Apprenticeship Boost takes effect this month.

The $380.6 million Apprenticeship Boost is part of the Government’s wider Apprenticeship Support Programme — a cross-agency response which aims to help employers retain and bring on people into formal industry training including apprenticeships while dealing with the effects of COVID-19.

Under the Apprenticeship Boost, an employer of an apprentice in their first year will be eligible for $1,000 support per month, and an employer of an apprentice in their second year is eligible for $500 per month for a maximum period of 20 months.

Apprentices need to be enrolled in a New Zealand Apprenticeship or Managed Apprenticeship programme approved by the Tertiary Education Commission (TEC) for their employer to be eligible for this support. Subsidy payments will be made to the employer of eligible apprentices, who must continue to pay at least the relevant minimum or training wage to their apprentice.

Tertiary education organisations are requested to ensure reporting of apprenticeship information to TEC is up-to-date and accurate. This information will be used to verify eligibility of employers and their apprentices to receive this subsidy. Incomplete and inaccurate information could cause payment delays to employers.

Employers can apply for the Apprenticeship Boost subsidy through the Ministry of Social Development (MSD) from 5 August. Information on the application process and criteria are available on the MSD’s Work and Income website.