Apprenticeship rules relaxed for India Inc

This move looks to double the number of apprentices from approximately 0.5 million to 1.0 million by the end of the year

March 4, 2022

The emphasis on apprenticeship has been renewed after the government fell short of training 0.5 million apprentices in five years

Firms will not have to produce stipend payment proof of stipends if the payment is made through a payment gateway

Firms that operate in four or more states will not need to register at multiple locations will be provided with stipend support during the training period

Multiple executive orders have created bottlenecks for processes while hampering the growth of apprenticeship training

The government has streamlined multiple procedures for India Inc to incentivise them to implement large-scale apprenticeship training. This move looks to double the number of apprentices in the country from nearly 0.5 million to 1.0 million by the end of the year. The renewed emphasis on apprenticeship has come after the government fell short of its target of training 0.5 million apprentices under the 2016 National Apprenticeship Promotion Scheme.

As per the government, multiple executive orders issued over the years have created bottlenecks for processes and have become a hindrance in the career progression of apprentices while hampering the growth of apprenticeship training in the country.

A few changes include removing the stipend payment proof from the industry if the payment is made through a payment gateway. In addition, holding back the stipend payment in the last quarter until a candidate appears for assessment has also been discarded. This is expected to ensure a seamless flow of funds and motivate a larger number of candidates to undertake apprenticeship training. In addition, firms that operate in four or more states will not need to register at multiple locations and they will be provided with stipend support during the basic training period.

Under the National Apprenticeship Promotion Scheme, the government reimburses up to INR 7,500 per apprentice and a 25% or a maximum of INR 1,500 as stipend per month currently. The current scheme allows 2.5% to 15% of an organizations’ total workforce to be apprentices and firms with 30 or more employees must hire apprentices.