Apprentice Training Subsidy

Training subsidy available for apprentices in the wine industry from 1 August 2020

The Government is supporting New Zealanders to gain skills and qualifications while working by subsidising apprentices’ wages. The Apprentice Boost scheme is available from 1 August.

Employers can apply for funding of up to $12,000 per apprentice in the first year, and up to $6000 in their second year.

Our industry qualifies for the subsidy through the Horticultural apprenticeship scheme through Primary ITO, and those enrolled in Level 4 courses. You can find out more about the Horticulture Apprenticeship scheme here and read the Q and A’s below.

Further details, including where to apply, will be added when they are available.

How much do employers receive for having an apprentice?

The initiative runs for 20 months, with an employer getting $1000 per month for a first year apprentice and $500 per month for a second year apprentice.

This means an employer could get a maximum of $16,000 for an apprentice who is starting their training (12 months at the first year rate, and 8 months at the second year rate). Employers will receive $12,000 per full year of training for each first year apprentice, and $6,000 per full year of training for each second year apprentices. They may receive less than the full year amount depending on where in their training each apprentice is. For example, if a first year apprentice is already 9 months into their training, they will receive 3 month’s support at the $12,000 per year rate (i.e. $3,000) before shifting to the second year rate of $6,000 per full year of study.

How is an employer eligible?

An employer will be able to receive this support if they employ an eligible apprentice (i.e. one that is enrolled in a Level 4 New Zealand or Managed Apprenticeship programme, and is in the first or second year of this apprenticeship).

Will there be priority industries that are eligible?

No. There are no priority industries for this support.

How will the funding be used?

This support is a wage subsidy paid to the employer per eligible apprentice. The employer is required (by law) to continue to pay the apprentice at least the minimum wage or training wage. The employer will therefore top up this subsidy amount and continue to pay the apprentice the wage they are legally entitled to.

Is it for new apprentices only?

No. The Apprentice Boost is available for all new and existing apprentices, if they are eligible.

What do you mean by an apprentice?

Someone who is enrolled in a TEC-approved NZ or Managed Apprenticeship and are in the first or second year of this apprenticeship.

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