Apprenticeship Solutions

The Apprentices Act, 1961 was enacted and has been amended from time to time with an objective of fostering apprenticeship and address the inadequacies of on-the-job training imparted in institutions and to enhance employability of those entering employment market. .

Highlights of Apprentices Act 1961

  • An apprentice is a person who has entered into a contract of apprenticeship with the employer for apprenticeship training under the Apprentices Act.
  • As per section 18 of Apprenticeship Act, 1961, the apprentice is not a worker. It is mentioned in the Apprenticeship Rules 1992 that apprenticeship is neither a job nor does it guarantee any job.
  • Employers registered under the Apprentices Act, 1961 are exempted towards contribution of EPF and ESI for apprentices engaged by them.
  • All establishments having workforce (regular and contract employees) of 30 or more are mandated under The Apprentices Act, 1961 to implement Apprenticeship Programs by engaging 2.5% -15% of its entire workforce every year.
  • Companies engaging apprentices can also undertake ‘skill training’ from their CSR funds over and above the requirement under the Apprentices Act.

Apprenticeship Schemes in India

In pursuance of the objective of the law the Government of India is implementing two Apprenticeship Schemes i.e

NAPS (National Apprenticeship Promotion Scheme)
NATS (National Apprenticeship Training Scheme)

NAPS is administered by Ministry of Skill Development and Entrepreneurship (MSDE) in respect of designated and optional trades for the categories of Designated Trade Apprentices, Optional Trade Apprentices, Fresher Apprentices, Technician (Vocational) Apprentices.

NATS is administered by Ministry of Education, through Board of Apprenticeship Training (BOAT) to offer apprenticeship to those possessing either Degree or Diploma in engineering. Graduates of general streams such as B.A., B.Sc., B.Com. can also join as Apprentices under the NATS.

Both NATS and NAPS have similar objective that is to develop well educated youth ready for industry.

In case of NATS, the Government reimburses 50% of the minimum amount stipulated under the Apprentices Act, 1961 to the training establishments through the four regional Boards.
In case of NAPS, the government shares 25% of prescribed stipend subject to a maximum of INR 1,500 per month per apprentice.

Said financial incentive by the Government indicates its full commitment to statutory NAPS and NATS.

TPA (Third Party Aggregator)

TPA is a statutory position. TPAs are key partners who are appointed by the Government to facilitate the Apprenticeship ecosystem.
We are a proud TPA with deep insights and substantial experience in similar work.

As a TPA, we will handhold the establishments’ to ensure that their responsibilities pertaining to the implantation of NAPS and NATS are discharged effectively and efficiently. We will work with the employer in

  • Mobilising and counselling aspiring apprentices
  • Management apprenticeship portal
  • Processing legal claims and returns on behalf of establishments
  • Facilitate conducting assessments and issuing certificates
Let us join hands to contribute to make India ‘Skill capital of the world’.