Skill ministry proposes 36% hike in stipend for apprentices under NAPS

MSDE suggests CPI-linked revisions and broader industry coverage under apprenticeship schemes to reduce dropouts and align training with emerging sector demands

In a move to curb dropout rates among apprentices, the ministry of skills development and entrepreneurship (MSDE) has proposed a 36 per cent increase in stipend under the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS). Besides, it also recommended linking the stipend to the consumer price index, thus leading to bi-annual revision in stipend rates. 

 

The proposals were recommended at the 38th meeting of the Central Apprenticeship Council (CAC) under the aegis of Jayant Chaudhary, minister of state (independent charge), MSDE on Monday. 

 

The proposals will now be sent to the union cabinet for approval.

 

The proposals, once approved by the cabinet, would increase the stipend in the range of Rs 6800-Rs 12,300 as against the existing Rs 5,000- Rs 9,000. 

 

"The aim is to reduce dropout rates and attract more candidates to undertake apprenticeship training,” MSDE said in a statement issued after the meeting.

 

The 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. 

 

“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,” Jayant Chaudhary said.

 

The council also 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.

 

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)

 

Latest data shows that 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.