MSDE propose 30% increase in apprenticeship stipend; linking it to inflation
Centre has proposed a 30% increase in stipend under the National
Apprenticeship Promotion Scheme
(NAPS) and the National
Apprenticeship Training Scheme
(NATS) and recommended linking it to the consumer price index. The proposals, once approved by the Cabinet, would increase the stipend to Rs 6800-Rs 12,300 as against the existing Rs 5,000 to Rs 9,000 and lead to bi-annual revision in stipend rates.
The decision was taken at the 38th meeting of the Central Apprenticeship Council (CAC) under Jayant Chaudhary, minister of states (independent charge), ministry of skills development and entrepreneurship and will now be sent to the Cabinet for approval.
The aim is to reduce dropout rates and attract more candidates to undertake apprenticeship training,' ministry of skills development and entrepreneurship said in a statement issued after the meeting.
As per the statement, stipend is proposed to be automatically adjusted biennially based on changes in the consumer price index (CPI), aligning with the salary increment cycle in July.
The 38th CAC meeting also proposed replacing the existing list of industries (1987 code) with one aligned to national industrial classification (NIC) Code 2008 thereby expanding the scope of apprenticeship training to include emerging sectors like IT, software services, telecommunications, biotechnology, and renewable energy.
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'Apprenticeship is not just a skilling mechanism, it is a bridge that connects education, industry, and employment, especially for our rural youth,' minister Chaudhary said.
'With NAPS and NATS as pillars supported by a strong legal framework, we are actively reforming the system to make it more inclusive, responsive, and aspirational,' he added.
Apprenticeship training in India is imparted under the National Apprenticeship Training Scheme (NATS), which is administered by the ministry of education and the Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS), run by
MSDE
.
Under the PM-National Apprenticeship Promotion Scheme (PM-NAPS) the government's contribution is Rs 1,500 or 25% of the stipend amount whereas it is 50% of the stipend amount under National Apprenticeship Training Scheme (NATS)
Since 2020-21, 3.55 million apprentices have been engaged under NAPS while 1.29 million have been engaged under NATS, taking the total number of apprentices engaged in the country to 4.84 million in five years till 2024-25.
While the government has incurred an expenditure of Rs 1,554.55 crore under NAPS between 2022-23 and 2024-25, Rs 1,890 crore has been spent under NATS between 2020-21 and 2024-25.
The council deliberated on promotion of apprenticeship embedded education programmes, including the introduction of new definitions such as 'degree apprenticeship,' 'institution,' 'UGC,' and 'contractual staff,' to align educational curricula with on-the-job training requirements.
Besides, it also proposed enabling employers to deliver basic and practical training through online, virtual, or blended modes, ensuring flexibility in learning without compromising the quality or compliance with centrally approved curriculum.
Further, discussions were held on the creation of regional boards at new locations to improve the administration and outreach of the National Apprenticeship Training Scheme (NATS) and regulate the Apprenticeship Embedded Degree Programme (AEDP), necessitating the insertion of a new clause in the Apprenticeship Rules.
The Council also emphasized inclusivity by proposing the insertion of a definition for 'Person with Benchmark Disability' in line with the Rights of Persons with Disabilities (RPwD) Act.
'It recommended that trades or subject fields specify their suitability for persons with benchmark disabilities and reserve training places accordingly, promoting equitable access and participation in apprenticeship training,' it said.
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