Central Apprenticeship Council proposes 36% stipend hike for youth: what it means for students

Indian Express

27-05-2025

The Central Apprenticeship Council (CAC), on Monday recommended a 36% increase in apprentice stipends under the National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS).
Announced during the 38th CAC meeting chaired by Jayant Chaudhary, Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship (MSDE), the proposal aims to bridge the gap between education and employment while lowering dropout rates and expanding industry participation.
Once approved, the stipend would increase from the current Rs 5,000 – Rs 9,000 range to Rs 6,800 – Rs 12,300. This hike is aimed not only at reducing dropout rates, but also improving program attractiveness, and address the financial limitations that prevent many from continuing their apprenticeships.
This upward revision would also be automatically adjusted every two years, based on the Consumer Price Index (CPI), aligning with national salary cycles and ensuring that stipends remain relevant in the face of inflation, according to the statement released.
'The Central Apprenticeship Council's stipend increase is a welcome move and a strategic investment in India's human capital, directly addressing key challenges in apprenticeship uptake and retention. This enhanced financial support empowers more youth, particularly those from non-metro cities, to fully commit to rigorous training, reducing financial barriers that often lead to dropouts,' said Abhimanyu Saxena, Co-Founder of Scaler, an online upskilling platform for working tech professionals, focusing on software engineering.
The government's proposal comes amid persistent concerns over dropout rates and poor apprenticeship penetration. With India's apprenticeship engagement at just 0.27% of the workforce, compared to 3-4% in developed nations, financial support is seen as a key lever for improving retention and encouraging participation.
'Despite notable progress, India's apprenticeship engagement remains significantly below global benchmarks. The stipend hike is a vital incentive to attract and retain talent in skilling programs,' noted Dr. Nipun Sharma, CEO of TeamLease Degree Apprenticeship, a public-private partnership program that blends academic study with work experience.
According to the statement, dropout prevention was central to the CAC's agenda. By making apprenticeships financially viable, especially for students from rural and economically weaker backgrounds, the stipend revision is expected to encourage sustained participation across diverse sectors.
Students in both technical and non-technical streams stand to gain. Under schemes like PM-NAPS, over 43.47 lakh apprentices have been engaged across 36 States and UTs, and female participation has touched 20%. The NATS scheme, targeting graduates and diploma holders, enrolled 5.23 lakh apprentices in the year 2024-25 alone.
This stipend hike provides greater financial security to continue apprenticeships without interruption, improved job-readiness through exposure to real-world work environments and an overall increased higher appeal of vocational education, especially with rising cost-of-living in cities.
'Efficiency of production in India holds the key to how quickly we surpass global competitors. The skill level in many trades is still below global standards, and this increase is small but a welcome step,' said Dr VP Singh, Program Director at Great Lakes Institute of Management, Gurgaon.
A major thrust of the CAC's discussion also focused on enhancing Apprenticeship Embedded Degree Programmes (AEDPs). These integrate classroom learning with structured on-the-job training, offering a credible alternative to purely academic degrees.
Reforms also include simultaneous notification of Craftsmen Training Scheme (CTS) and apprenticeship programs, ensuring better curricular alignment and smoother transitions for vocational learners.
'Our vision is to ensure every young person, regardless of background, gets a fair shot at a meaningful career through hands-on learning and industry exposure,' emphasised Minister Jayant Chaudhary, according to the statement.