How should you set an apprentice wage progression?

What the registered-program rules require of your wage schedule, how step raises key to hours and related instruction, what changes on prevailing-wage jobs, and two sample HVAC and plumbing progressions.

An apprentice wage progression is the stepped pay schedule an apprentice climbs as they log on-the-job hours and complete related instruction โ€” and if you run a registered program, you are required to have one: registered programs must pay a progressively increasing wage schedule tied to skill.

The federal rule sets no percentage steps.

That design work is yours, and this guide walks through it.

What is an apprentice wage progression?

An apprentice wage progression is the ladder of pay steps an apprentice climbs from a starting wage toward journeyworker pay โ€” the wage schedule written into a registered apprenticeship program's standards.

If you run a registered program, having one is not optional: registered programs must pay a progressively increasing wage schedule tied to skill, under the Department of Labor's registration rules (29 CFR part 29).

The same rule also sets the floor: the entry wage may not be below the FLSA minimum wage where it applies.

On the shape of the ladder above that floor, the federal registration rule sets no percentage steps โ€” there is no federal number that says an apprentice starts at a set share of journeyman pay.

The step percentages, the number of steps and the triggers between them are design decisions you record in your program's standards.

For the shop, that design work buys three things.

A raise calendar you can price into bids years out, because every apprentice's next raise is scheduled rather than negotiated.

One ladder for every apprentice, so pay stays explainable when people compare notes.

And raises that arrive for a stated reason โ€” hours logged, instruction completed โ€” which is easier to defend than a raise that arrives because someone asked.

The progression also shows the apprentice a pay path from day one, with journeyworker pay as the destination the steps climb toward.

Where the ladder sits in the wider work of hiring HVAC and plumbing techs โ€” sourcing, screening, paperwork โ€” is its own guide; the rest of this page is the ladder itself.

What must a registered program include?

The full registration walkthrough โ€” which agency registers you, group sponsors, costs, funding โ€” is its own guide: registered apprenticeship program for employers.

This section covers the parts of the program standards your wage schedule touches, because each one constrains how you can build the ladder.

The term type comes first, because it decides what a step can hang on.

Your program can be time-based โ€” an apprenticeable occupation requires at least 2,000 hours of on-the-job learning โ€” competency-based, or a hybrid of both.

A time-based ladder steps on hours, a competency-based one steps on demonstrated skill, and a hybrid lets a single step require both.

Related instruction is the second element.

DOL recommends โ€” but does not require โ€” a minimum of 144 hours of related technical instruction per year of apprenticeship, and some states may mandate classroom hours of their own, so ask your registration agency.

If you want a raise keyed to completing a year of instruction, your standards have to define what counts as completing it.

Probation matters to the first rung.

The probationary period may not exceed 25% of the program length or 1 year, whichever is shorter โ€” and it counts toward completion, so the hours an apprentice logs inside probation are program hours.

If you want them to count toward your first step's trigger as well, your standards are the place to say so.

Your standards must also state a numeric apprentice-to-journeyworker ratio โ€” the federal rule requires the number to exist but does not set it, and state licensing laws often do.

The ratio governs how apprentices deploy on your crews; our guide to apprentice supervision ratios covers how the layers combine โ€” and the next section shows how the same ratio reaches pay on public work.

At the end of the ladder, completion earns the apprentice a certificate issued by the registration agency โ€” DOL's Office of Apprenticeship or a recognized State Apprenticeship Agency โ€” and that certificate is not a trade licence: licensing stays with your state board, or the city or county where licensing is local.

Verify before you file: the items above are federal floors from 29 CFR part 29.

Your registration agency and your state licensing board can each add rules on top โ€” classroom-hour mandates, ratios, wage provisions of their own.

Confirm the current requirements with both before you enroll an apprentice.

How are apprentice rates set on prevailing-wage jobs?

Public work changes the rate sheet, and the apprentice ladder changes with it.

What Davis-Bacon coverage, classifications and fringe benefits mean for a mechanical contractor generally is our guide to prevailing wage; the three rules below are the ones that touch apprentice pay.

First, registration is the ticket to the apprentice rate.

On Davis-Bacon jobs, apprentices may be paid below the journeyworker wage-determination rate only if they are individually registered in a program registered with DOL's Office of Apprenticeship or a recognized State Apprenticeship Agency.

The registration that counts is the individual worker's โ€” your company sponsoring a program does not by itself put an unregistered worker on apprentice rates.

Second, the rate itself is expressed as percentages of the journeyworker hourly rate per the registered program.

The rule carries one locality switch: if the apprentice works outside the program's home locality, the ratio and wage percentages of the project's locality apply.

A ladder that steps differently across locality lines is a real possibility on multi-area work, so track where an apprentice's hours land before you promise a raise date.

Third, the discount has a cliff.

The apprentice-to-journeyworker ratio in each craft on the job may not exceed the ratio in the registered program, and anyone paid at an apprentice rate who is not registered โ€” or who works above the allowed ratio โ€” must be paid the full wage-determination rate for the work performed.

The savings in your schedule therefore depend on the crew mix, not just the rate sheet, so check the mix before you staff a public job around apprentice hours.

Before the first shift: confirm the individual's registration with the program sponsor or the registration agency, and confirm the project's wage determination with the contracting office or the Department of Labor โ€” not from a rate sheet left over from the last public job.

Sample progression schedules for HVAC and plumbing

Two skeletons the rules let you build.

The federal registration rule requires a starting wage at or above the FLSA minimum and steps that increase with skill, and it sets no percentage steps โ€” so the step counts, the triggers and the top of the ladder are design decisions your standards record.

Both samples top out at the journeyworker rate, the rate apprentice percentages are measured against on public work.

Start with the term, because it sets the ladder's length.

A 2019 copy of DOL's federal occupation list โ€” a dated document, so treat these figures as orientation and confirm the current term with your registration agency โ€” shows 8,000 hours of on-the-job learning for plumbers and 6,000 for heating and air-conditioning installers and servicers.

Around them: BLS describes most plumbers, pipefitters and steamfitters as learning the trade through a 4- or 5-year apprenticeship with typically 2,000 hours of paid on-the-job training plus technical instruction each year, and the UA says its registered apprenticeships, which cover plumbing, pipefitting, HVACR, welding and fire protection, typically last five years.

Schedule A โ€” steps on hours.

Pick the number of steps and divide the term.

On the 6,000-hour HVAC term above, four equal bands put a step every 1,500 hours of on-the-job learning; on the 8,000-hour plumber term, the same four bands run 2,000 hours each.

At each step the wage moves to a higher percentage of your journeyworker rate โ€” percentages you choose, since the federal rule sets none.

The registration rule requires that the schedule increase with skill and that the entry wage not fall below the FLSA minimum where it applies; your registration agency and your state can add more, so confirm before you file.

What the top step is worth is the journeyworker benchmark: our HVAC technician salary and plumber salary pages collect the federal wage data.

Schedule B โ€” steps on hours plus instruction.

Key each step to a pair of markers: an on-the-job hours band and a completed year of related instruction.

DOL's recommended 144 hours a year is one way to define an instruction year, and a PHCC Academy course โ€” one course equals one year of related instruction at 156 hours, per PHCC โ€” is a concrete unit a step can hang on if your instruction runs through the Academy.

A competency-based variant drops the calendar entirely and raises on sign-off of defined skills, which the federal term types allow.

Both schedules land the same way: the last step is the move to the journeyworker rate at completion, with the certificate issued by the registration agency.

What they are not is a template to file as-is โ€” the percentages, the step count and the triggers are your design, and the standards that record them are the document you file with the registration agency.

Confirm the schedule with your agency before you hand an apprentice a copy.

This page is employer career and business information, not legal advice. Apprentice wage rules come from the Department of Labor's registration regulations, the wage determination on each covered job, and your state's laws โ€” confirm current requirements with DOL's Office of Apprenticeship or your State Apprenticeship Agency, and take contested pay questions to an employment attorney.

Decisions that go into your apprentice wage schedule

  • The term type โ€” time-based (at least 2,000 on-the-job hours), competency-based, or hybrid โ€” since it decides what a step can hang on.
  • The number of steps and the hour bands between them, set against your occupation's term.
  • What counts as a completed year of related instruction, if a step keys to classroom progress โ€” DOL recommends 144 hours a year but does not require it.
  • The step percentages of your journeyworker rate โ€” the federal rule sets none, and requires the schedule to increase with skill and the entry wage to stay at or above the FLSA minimum where it applies; state law or your registration agency may require more.
  • The probation terms โ€” capped at 25% of the program length or 1 year, whichever is shorter โ€” and whether your first step can land inside them.
  • The numeric apprentice-to-journeyworker ratio your standards must state, checked against your state licensing law.
  • Where public work changes the math: individual registration, percentages of the journeyworker rate per the registered program, and the project locality's ratio and percentages outside the program's home locality.

Questions employers ask

Do I have to give an apprentice a raise every year?

The rule requires a progressively increasing wage schedule tied to skill, and it sets no percentage steps โ€” the steps and triggers you file are your design, though state law or your registration agency may add requirements.

If your steps key to on-the-job hours or completed instruction, raises arrive when the apprentice crosses those marks, which on a multi-year term will be regular but not necessarily annual.

Does the starting apprentice wage have to be minimum wage?

The federal registration rule requires the entry wage to be at least the FLSA minimum wage where that applies, and it sets no starting percentage above that floor.

Where the starting rate lands above it is a number you choose and record in your program's standards โ€” state law or your registration agency may require more.

What if an unregistered worker is paid at the apprentice rate on a Davis-Bacon job?

They must be paid the full wage-determination rate for the work performed.

The apprentice rate on a covered job requires individual registration in a program registered with DOL's Office of Apprenticeship or a recognized State Apprenticeship Agency โ€” and the same full-rate consequence applies to a registered apprentice working above the program's allowed ratio.

Does the apprentice rate change if the job is outside the program's home locality?

It can.

On Davis-Bacon work outside the program's home locality, the ratio and wage percentages of the project's locality apply rather than the ones your program filed for its home area.

Before you commit to a raise date for an apprentice working across locality lines, check which percentages apply to the hours they are actually working.

More hiring resources

Building the ladder while the bays still need covering?

A wage progression grows techs over years; the openings you have today need covering now.

Post your HVAC and plumbing jobs where techs and apprentices already look.