Hiring an Apprentice in New Zealand

If you're running a trades business in New Zealand, chances are you've thought about taking on an apprentice. Maybe you're flat out and need an extra pair of hands. Maybe you want to train someone up the way you wish you'd been trained. Or maybe you're thinking about the future of your business and who might take over one day.

Whatever your reasons, hiring an apprentice is one of the best investments you can make in your trade and in your business. But it does come with responsibilities. This guide covers everything you need to know about employing an apprentice in New Zealand, from the paperwork to the pay, and how to set both of you up for success.

What is an apprenticeship in New Zealand?

An apprenticeship is a formal arrangement where someone learns a trade while working for you. It's not just about showing them the ropes on the job. Your apprentice will be enrolled in an accredited training programme through an Industry Training Organisation (ITO) and will work towards a nationally recognised qualification, typically a New Zealand Certificate at Level 4.

The whole thing usually takes three to four years to complete, depending on the trade. During that time, your apprentice splits their learning between on-the-job training with you and off-the-job study through block courses, night classes, or online modules.

It's a three-way relationship between you (the employer), the apprentice, and the training organisation. Everyone has responsibilities, and everyone benefits when it works well.

Why take on an apprentice?

There are some solid reasons to consider bringing an apprentice into your business.

You get to train someone your way. Rather than hiring someone with habits you'll need to untrain, you can teach an apprentice exactly how you want things done. Over time, they become a valuable team member who knows your systems, your clients, and your standards.

It helps your business grow. If you've got more work than you can handle on your own, an apprentice can take on the grunt work while you focus on the skilled tasks. As they progress, they can handle more complex jobs, and you can take on bigger projects.

You're investing in the future of your trade. New Zealand needs skilled tradespeople. By training an apprentice, you're helping to keep the knowledge and standards of your industry alive for the next generation.

There's financial support available. The government offers the Apprenticeship Boost payment to help employers take on new apprentices. More on that shortly.

Who can be an apprentice?

Anyone aged 16 or over can become an apprentice in New Zealand. This is different to general employment (you can employ people under 16). There's no upper age limit, so don't assume apprentices have to be school leavers. You might find someone in their twenties, thirties, or older who's looking for a career change and brings life experience and maturity to the role.

Each trade has different entry requirements. For most construction and electrical trades, having NCEA Level 2 in maths and English is useful but not always essential. Some trades, like electrical, often require NCEA Level 2 science as well. If you're unsure about the requirements for your industry, check with your ITO.

What does it cost to employ an apprentice?

Taking on an apprentice does involve some costs, but they're generally manageable, especially for a small business.

Training fees are paid to the ITO and cover the off-the-job training components. These fees vary depending on the trade and the training provider. For many apprenticeships, the cost works out to roughly $40 to $50 per week after government subsidies. Some programmes are eligible for Fees Free funding, which can cover the fees for the first or final years of training.

You'll also need to factor in the time you spend training and supervising your apprentice. In the early days especially, they'll need guidance, which can take you away from billable work. It's worth thinking of this as an investment that pays off as they become more capable.

Block courses may require your apprentice to travel and stay away from home. Some employers help cover these costs, while others leave it to the apprentice. It's worth discussing this upfront.

Apprentice tool allowances and deductions

Every tradesperson needs tools, and helping your apprentice build their kit is something you'll need to think about. There are a few different ways to approach this.

Some employers provide a starter toolkit when the apprentice begins. This ensures they have the basics from day one and that the tools meet your standards. You might treat this as a cost of taking on an apprentice, or you might arrange for the apprentice to pay it back over time through regular payroll deductions.

A tool allowance is another option. This is a regular payment, often weekly or fortnightly, that helps your apprentice save towards buying their own tools. It might be a flat amount like $20 or $30 per pay, or a contribution towards specific purchases. Over the course of an apprenticeship, this adds up and means they finish with a decent kit of their own.

The good news is that tool allowances can be paid tax-free if they're structured correctly. According to IRD, reimbursing allowances for things like tools are not taxable, provided the amount is based on actual expenses or a reasonable estimate of what your employee will genuinely spend. If you're paying a regular allowance rather than reimbursing individual receipts, you'll need to be able to justify the amount as reflecting real tool costs. If the allowance exceeds actual expenses, the excess becomes taxable. The safest approach is to either reimburse against receipts (which is clearly tax-free) or set a regular allowance that you can demonstrate is a reasonable estimate of genuine costs. If you're unsure, it's worth talking to your accountant or checking with IRD directly.

If you buy tools upfront and your apprentice repays you, it's important to set this up properly. You'll need their written agreement to make deductions from their wages, and you should both be clear on the total amount owed and how much will come out each pay. A good payroll system makes this easy by letting you set a total debt amount for the deduction. That way, you can both see how much has been repaid at any time, and the deduction stops automatically once the balance is cleared. No need to remember to turn it off or risk over-deducting.

Whatever approach you take, be upfront about it from the start. Include tool arrangements in your discussions before they start, and make sure everything is documented. Surprises about money are a quick way to damage trust with a new employee.

Apprenticeship Boost NZ: Financial support for employers

The government's Apprenticeship Boost scheme provides payments directly to employers to help offset the costs of taking on an apprentice.

As of 2025, you can receive $500 per month (plus GST if you're registered) for each eligible apprentice. Payments are made monthly in advance and can continue for up to 12 months.

To be eligible, your apprentice must be enrolled in a qualifying programme and be less than 12 months into their apprenticeship. You'll need to apply within 20 days of when your apprentice starts training and employment with you, so don't leave it too long.

The scheme is administered by Work and Income, but the Tertiary Education Commission (TEC) verifies the apprentice's training information. Check the Work and Income website for the current list of eligible qualifications and how to apply.

You can choose how you use the money. It might go towards paying wages, covering training costs, or investing in tools and equipment.

Apprentice minimum wage NZ 2025: What you need to pay

Apprentices are employees, which means they're entitled to at least the minimum wage for every hour they work. However, there are different minimum wage rates depending on age and training status.

From 1 April 2025, the minimum wage rates are:

The adult minimum wage is $23.50 per hour. This applies to employees aged 16 and over who aren't starting-out workers or trainees.

The training minimum wage is $18.80 per hour. This is 80% of the adult minimum wage and applies to employees aged 20 or over who are completing at least 60 credits per year in an approved industry training programme. Most adult apprentices fall into this category.

The starting-out minimum wage is also $18.80 per hour. This applies to 16 and 17 year olds in their first six months of employment with you, or 18 and 19 year olds who have been on a benefit for six months or more. It also applies to 16 to 19 year olds completing at least 40 credits of industry training per year.

Once your apprentice finishes their training agreement, you must pay them at least the adult minimum wage, regardless of their age.

These are minimums. Many employers choose to pay more, especially as their apprentice gains skills and takes on more responsibility. Paying above the minimum can help you attract and retain good people.

Remember that the minimum wage is reviewed every year in April, so keep an eye on updates and make sure your payroll reflects any changes.

Apprentice employer obligations: The paperwork you need

Taking on an apprentice involves more paperwork than hiring a regular employee, but it's manageable if you know what's required.

Every employee in New Zealand, including apprentices, must have a written employment agreement. This sets out the basic terms of employment: the job title, hours, pay rate, leave entitlements, and so on. It should also state that the employee is required to undertake industry training as part of their role.

You'll also need a training agreement. This is a separate document that's signed by you, your apprentice, and the training organisation. It covers the details of the training: the qualification they're working towards, the timeframes, how the training will be delivered, and how competency will be assessed. The training agreement forms part of the employment relationship but isn't the same as the employment agreement.

The training plan is developed in consultation with your apprentice and the ITO. It outlines what skills and knowledge your apprentice needs to develop, what tasks they'll be doing, and how you'll support their learning. This plan should be reviewed and updated as your apprentice progresses.

If you're unsure about any of this, your ITO can help. They're set up to guide employers through the process and provide templates and support.

Health and safety obligations when employing an apprentice

Under the Health and Safety at Work Act 2015, you have a duty to ensure the health and safety of everyone who works for you, including apprentices.

Apprentices are often young, inexperienced, and keen to impress. This can make them more vulnerable to workplace injuries. They might not recognise hazards, might be reluctant to speak up if something seems unsafe, or might overestimate their own abilities.

Your responsibilities include providing a safe work environment, proper training on how to do tasks safely, appropriate supervision (especially in the early stages), and the right PPE for the job.

You need to make sure your apprentice knows what to do in an emergency and feels comfortable raising any safety concerns. Encourage them to ask questions rather than just cracking on with something they're unsure about.

WorkSafe has specific guidance on young workers that's worth reading. The key message is that supervision matters, especially in the first few months when everything is new.

Industry Training Organisations for trades

Each trade has a specific training organisation that manages apprenticeships and sets the training standards. Here are some of the main ones for trades businesses:

BCITO (Building and Construction Industry Training Organisation) covers carpentry, brick and block laying, joinery, painting, plastering, flooring, and roofing. They manage apprenticeships for more than 15 construction trades and can help you find suitable candidates through their job board.

Etco (the Electrical Training Company) is the main provider for electrical apprenticeships. They operate a group apprenticeship scheme where they employ the apprentices and place them with host companies, but they also provide training for apprentices employed directly by electrical businesses.

Skills Trades Training covers electrical, plumbing, gasfitting, drainlaying, and roofing. They operate training centres nationwide and offer both apprentice training and professional development for qualified tradespeople.

Competenz arranges apprenticeships and traineeships across more than 30 industries, including engineering, manufacturing, and automotive.

Primary ITO covers apprenticeships in the primary industries, including farming, horticulture, and landscaping.

Your ITO will be your main point of contact throughout the apprenticeship. They'll help set up the training agreement, provide the off-the-job training, assign a training adviser to support you and your apprentice, and track progress towards the qualification.

How to find an apprentice in NZ

Finding the right person can take some time, but there are several places to look.

Your ITO's job board is a good starting point. BCITO, Competenz, and others have online platforms where you can post vacancies and connect with people looking for apprenticeships.

General job sites like Trade Me Jobs and Seek are worth advertising on. People looking for apprenticeships will often search these sites alongside trade-specific boards. Be clear in your ad about what you're offering and what you're looking for.

Work and Income can help match you with candidates. They offer free recruitment services and can even arrange work experience placements so you can try someone out before committing.

Schools and pre-trade programmes are another option. Many secondary schools run Gateway programmes where students get work experience in trades. Polytechnics and training providers run pre-trade courses that give people a foundation in the basics before they start an apprenticeship. These candidates have already shown an interest in the trade and have some introductory training.

Word of mouth shouldn't be underestimated. Let people know you're looking. Talk to other tradies, suppliers, and customers. Sometimes the best candidates come through personal connections. This can be a good thing and a bad thing - having a personal connection may impact how your professional working relationship can be managed, so think carefully before you hire your best friend’s niece or nephew!

When you're interviewing, look beyond technical skills. At this stage, attitude matters more than experience. You want someone who's reliable, willing to learn, and a good fit for your team. Technical skills can be taught, but work ethic and attitude are harder to change.

Creating a workplace your apprentice actually wants to show up to

Let's be honest: not everyone has good memories of their apprenticeship years. If you've been in the trades long enough, you've probably seen or heard about apprentices being treated poorly. Maybe you experienced it yourself. The "toughen up" mentality, the hazing, the yelling, being sent to fetch a left-handed screwdriver. Some of it was meant as harmless fun, but some of it crossed the line into genuine bullying.

Times have changed, and that's a good thing. Today's apprentices have different expectations, and workplaces that treat people badly struggle to attract and keep good staff. Taking on an apprentice means you're responsible for shaping someone's experience of working life. For many, you'll be their first real boss. The way you treat them will influence how they see the trade, how they treat others in the future, and whether they stick with it at all.

Set clear expectations from day one. Your apprentice can't meet standards they don't know exist, and you can't hold them accountable for things you never explained. Be upfront about what you expect: start times, how to let you know if they're running late or sick, what to wear, how to behave on client sites. But also cover the bigger picture: how hard you expect them to work, how you want them to ask questions, what initiative looks like, and how they should handle mistakes.

Just as importantly, tell them what they can expect from you. Will you check in with them regularly? How will you give feedback? What support will you provide when they're struggling? Making these things explicit removes guesswork and builds trust. Write it down if it helps. A simple one-pager covering the basics can be a useful reference for both of you.

Give feedback that actually helps. Apprentices need feedback to improve, but there's a big difference between constructive feedback and just having a go at someone. Good feedback is specific, timely, and focused on the work rather than the person. Instead of "that's rubbish," try "the mitres on this frame aren't tight enough, let me show you how to get them cleaner." Instead of waiting until you're frustrated and unloading everything at once, address things as they come up.

Praise matters too. When your apprentice does something well, tell them. It doesn't need to be over the top, just a simple "good job on that, you're getting the hang of it" goes a long way. People work harder for bosses who notice their efforts.

If you need to have a difficult conversation about performance or behaviour, do it privately and calmly. Explain the issue, listen to their side, and be clear about what needs to change. Shouting at someone in front of the team isn't feedback, it's humiliation, and it doesn't make anyone better at their job.

Remember what it was like to be new. It's easy to forget how overwhelming everything felt when you were starting out. What seems obvious to you now wasn't obvious then. Your apprentice is learning a new trade, a new workplace, new people, new tools, and new expectations all at once. Give them some grace.

Encourage questions. An apprentice who asks "why are we doing it this way?" isn't being difficult, they're trying to understand. The more they understand the reasoning behind things, the better decisions they'll make when you're not standing next to them. Curiosity is a valuable trait!

Be patient when they make mistakes. Mistakes are part of learning. What matters is whether they learn from them and don't repeat the same ones. How you respond to mistakes shapes whether your apprentice feels safe to admit when something's gone wrong or whether they'll try to hide it.

Call out bad behaviour. If you've got other staff, make it clear that bullying, harassment, and inappropriate behaviour towards your apprentice won't be tolerated. This includes the "jokes" that aren't really jokes, the tasks designed to embarrass rather than teach, and the comments that make someone feel small. Set the tone from the top. If you treat your apprentice with respect, your team will follow your lead. If you tolerate or participate in poor behaviour, you're telling everyone that's the culture of your workplace.

Your apprentice should feel safe to raise concerns with you. If they come to you with a problem, take it seriously. Dismissing it with "that's just how it is in the trades" sends a message that you don't have their back.

Look after their wellbeing. Young workers, and anyone new to an industry, can be reluctant to speak up when they're struggling. Keep an eye out for signs that something's not right, whether that's a drop in performance, changes in mood, or withdrawal from the team.

Check in regularly. A quick "how's everything going?" creates an opening for them to raise things they might not bring up otherwise. You don't need to be their counsellor, but showing that you care about them as a person, not just as a worker, makes a real difference.

Be mindful of workload and hours. It's one thing to have busy periods where everyone puts in extra effort, but consistently expecting long hours or physically demanding work without adequate rest isn't sustainable and can lead to burnout or injury.

The payoff of getting this right is real. Apprentices who feel valued and supported work harder, learn faster, and stick around longer. They become advocates for your business and help you attract other good people. The trades have a reputation problem when it comes to workplace culture, and every employer who does things differently helps change that. You have the chance to give your apprentice a better experience than you might have had, and to send a skilled, confident tradesperson out into the world who treats others the same way. That's a legacy worth building, and it is good for business.

Be open to learning from your apprentice

The learning doesn't only go one way. Your apprentice is getting up-to-date training through their block courses and study, which means they may come back with new techniques, updated code requirements, or different ways of doing things.

If they suggest a different approach, hear them out. They might be onto something. Even if you stick with your way, explaining why helps them understand the reasoning behind what you do. And sometimes the fresh perspective of someone who hasn't done it the same way for years is exactly what you need.

Phone use on site

Phones can be a source of friction if you don't address it early. On a worksite, someone looking at their screen isn't watching for hazards, and they're not learning by observing what's happening around them.

Set clear expectations from day one. Whether that's phones staying in the vehicle, kept on silent and only checked at breaks, or something else entirely is up to you. Just be specific, explain that it's about safety and focus, and apply the rule consistently to everyone. If it becomes an issue, address it early rather than letting frustration build.

Tips for making it work

Taking on an apprentice is a commitment, and it works best when you go in with realistic expectations.

Be prepared to invest time, especially early on. Your apprentice won't be productive from day one. They'll need guidance, supervision, and patience. Budget for this time and don't expect them to be a fully contributing team member straight away.

Give them variety. The more exposure your apprentice gets to different types of work, the more well-rounded they'll become. The training plan will specify the range of experience they need, so make sure you're providing it.

Celebrate milestones. Completing units, passing exams, and finishing the apprenticeship are all worth acknowledging. Recognition keeps motivation high.

Stay connected with your ITO. If there are any issues with your apprentice's progress or your working relationship, your training adviser can help. They've seen it all before and can offer practical advice.

What happens if things don't work out?

Sometimes an apprenticeship doesn't go to plan. Your apprentice might decide the trade isn't for them, or the working relationship might break down.

If you need to end the employment, the same rules apply as for any employee. You need to follow a fair process, give appropriate notice, and pay out any leave entitlements.

If your apprentice leaves but wants to continue their apprenticeship elsewhere, the ITO can help them find a new employer. The training they've completed is recorded on the New Zealand Qualifications Framework, so they won't have to start from scratch.

Apprentice payroll: Getting set up correctly

When you hire an apprentice, you'll need to make sure your payroll is set up correctly. This means registering as an employer with Inland Revenue if you haven't already, setting up PAYE deductions, enrolling your apprentice in KiwiSaver (if they're eligible), and keeping accurate records of hours worked and wages paid.

Payroll can be one of the trickier parts of running a small business, especially when you're out on the tools all day. Getting it wrong can mean penalties from IRD or unhappy employees.

Good payroll software can make things much easier. It calculates PAYE, tracks leave balances, handles KiwiSaver contributions, and files everything with IRD automatically. It also gives your apprentice visibility of their payslips and leave, which builds trust and saves you time answering questions. You want your apprentice to be able to record their time and apply for leave easily!

Taking the next step

Hiring an apprentice is one of the most rewarding things you can do as a trades business owner. Yes, it takes time and effort, but the payoff is a skilled worker who knows your business inside out and can help you grow.

If you're thinking about taking on an apprentice, start by getting in touch with the relevant ITO for your trade. They can talk you through the process, help you understand your obligations, and connect you with potential candidates.

And when you're ready to get your payroll sorted, we're here to help. PaySauce makes it easy to pay your team correctly and on time, whether that's one apprentice or a whole crew. Our mobile-first payroll software is built for busy Kiwi businesses who'd rather spend their time on the tools than stuck in paperwork.

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