Average stipend payout likely to witness 3% growth in 2021: Report

The average stipend payouts for apprentices, which witnessed a positive growth in 2020 despite pandemic-related disruptions, are expected to rise over 3 per cent in 2021, according to a report.

Despite the disruption caused by the pandemic, the average stipend payouts for apprentices had witnessed a growth in 2020 and this positivity is expected to continue even in 2021, according to the report titled 'Stipend Primer' by the National Employability Through Apprenticeship Programme (NETAP), a TeamLease Skills University.

The average stipend payout is expected to witness more than 3 per cent rise this year, it added.

The report is based on the stipend earnings between January 2018 and October 2020 across 1,50,000 NETAP apprentice associates employed in organisations across 12 cities.

As per the report, in the manufacturing sector, apprentices in the electrical & electronics and healthcare & pharmaceuticals industries saw a positive 2020.

Apprentices in the electrical & electronics and healthcare & pharmaceuticals industries saw a 17 per cent and 11 per cent growth, respectively, in the stipends that were rolled out.

Similarly, in the services sector, e-commerce and education segments rewarded their apprentices handsomely, while apprentices in e-commerce saw a 39 per centgrowth, education witnessed a 34 per cent rise.

Education and e-commerce are two of the sectors that have witnessed a big leap in the past three years, jumping from 11th and 14 positions in 2018 to 1st and 2nd ranks, respectively, with regard to stipend payouts.

While e-commerce ranking jumped by 8 points, education leaped by 13 points, making them the sectors that reward their apprentices well, the report noted.

NETAP Vice-President Sumit Kumar said, "The disruption over the past year has reiterated the need for building a robust pool of employable and skilled talent, who are better prepared for the future of work. Companies have realised the need to invest in apprentices to build a steady talent pool."

As a matter of fact, India Inc today is more open to pay apprentices with better stipends, he said.

From 2018 to 2020, there is a steady 11 per cent linear growth in the payouts and this positive sentiment is largely driven by growing acceptance towards apprenticeship models as an ideal solution to build human capital, he stated.

"E-commerce and education have been the most promising sectors for stipend payouts. This was largely fuelled by the exponential growth and 4X digital transformation that the sectors witnessed in 2020," he added.

As per the report, Pune and Delhi are the cities where apprentices are being paid significantly higher stipends; while with an average of Rs 12,350, Bengaluru is the city that pays the highest stipend.

From a qualification viewpoint, stipend growth has been moderate across all education levels. However, postgraduates emerge to be the one who command the highest stipends.

According to the report, job roles with the highest stipends were Software Developer (Rs 16,300), Chemist (Rs 16,250) and Design Engineer (Rs 15,900).