Central Apprenticeship Council Recommends 30% Increase in Youth Stipend

In a significant development aimed at enhancing apprenticeship opportunities for India’s youth, the Central Apprenticeship Council (CAC) has proposed a 30% increase in stipends under the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS). Chaired by Shri Jayant Chaudhary, Minister of State for Skill Development and Entrepreneurship, the 38th CAC meeting held in New Delhi recommended raising the stipend range from ₹5,000–₹9,000 to ₹6,800–₹12,300. This initiative seeks to attract more candidates and reduce dropout rates across various sectors.

Stipend Increase and Automatic Adjustments

The proposed stipend increase is a central focus of the CAC’s discussions. The new stipend range aims to make apprenticeships more appealing to young individuals, thereby encouraging greater participation in vocational training. The CAC has suggested that stipends be adjusted automatically every two years based on the Consumer Price Index (CPI), aligning with the salary increment cycle in July. This adjustment will fall under the Ministry of Skill Development and Entrepreneurship’s administrative oversight and will be reported to the Committee as per the Apprenticeship Rules of 1992. The proposal is set to be forwarded to the Cabinet for final approval, marking a crucial step in reforming the apprenticeship landscape in India.

Key Reforms and Inclusivity Initiatives

During the meeting, Shri Jayant Chaudhary emphasized the importance of apprenticeship as a vital link between education, industry, and employment, particularly for rural youth. He outlined several reforms aimed at making the apprenticeship system more inclusive and responsive. These include the introduction of micro-apprenticeships, optional trades, and increased autonomy for higher education institutions under NATS. The Council also discussed the integration of apprenticeship with educational programs, proposing new definitions such as “Degree Apprenticeship” to better align curricula with industry needs. Additionally, the meeting highlighted the need for flexibility in training delivery, allowing employers to provide Basic and Practical Training through online or blended formats.

Expanding the Apprenticeship Ecosystem

The CAC meeting also addressed the necessity of expanding the apprenticeship ecosystem by creating Regional Boards in new locations. This move aims to enhance the administration and outreach of NATS and regulate the Apprenticeship Embedded Degree Programme (AEDP). The Council proposed adding a definition for “Person with Benchmark Disability” to promote equitable access to apprenticeship training, ensuring that trades specify their suitability for individuals with disabilities. Furthermore, the meeting discussed varying stipend amounts based on the location of apprenticeships to reflect local living costs, thereby making these opportunities more attractive.

Future Directions and Data Insights

The CAC’s recommendations come at a time when India’s apprenticeship ecosystem has made notable progress. Since the last meeting in June 2021, over 43.47 lakh apprentices have engaged in training across 36 states and union territories, with a significant increase in female participation. The Minister also presented a report by KPMG analyzing apprenticeship trends under NAPS, providing valuable insights into the effectiveness of current programs. The Council, comprising representatives from various sectors, aims to shape the future of apprenticeship and skilling reforms in India, aligning with the vision of ‘Kushal Bharat, Viksit Bharat.’

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