The government has urged companies to increase the stipend of apprentices by 30% under the two flagship schemes – National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS). The recommendation, which would revise the stipend range from the existing Rs 5,000-Rs 9,000 to Rs 6,800-Rs 12,300, is aimed to reduce the dropout rates and attract more candidates across diverse sectors.
In a meeting of the Central Apprenticeship Council on Monday, the decision was taken to adjust the stipends based on the changes in the consumer price index (CPI), and aligning them with the salary increment cycle in July. The proposal will now be sent to the Cabinet for final approval.
NAPS mandates companies with 30 or more employees, including contract employees, to engage apprentices within a range of 2.5% to 15% of their total workforce. Enforced through the Apprentices Act, 1961, the rule applies to all kinds of establishments.
“Apprenticeship is not just a skilling mechanism, it is a bridge that connects education, industry, and employment, especially for our rural youth. 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,” said Jayant Chaudhary, minister of state (Independent Charge), Ministry of Skill Development and Entrepreneurship (MSDE).
Under NAPS, over 4.3 million apprentices have been engaged across 36 states and union territories, with participation from more than 51,000 establishments. In May, the female participation in the scheme reached 20% with focused efforts being made to boost this further. At the same time, NATS has enrolled over 0.5 million apprentices in FY25 alone.