In a significant move to support youth skill development, the Central Apprenticeship Council (CAC) has recommended a 36% hike in stipends for apprentices under the National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS).
Announced during the 38th CAC meeting chaired by Jayant Chaudhary, Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship, the proposal aims to boost apprenticeship engagement by addressing financial barriers and dropout rates.
New Stipend Structure
If approved, the monthly stipend will rise from the current ₹5,000–₹9,000 to ₹6,800–₹12,300. This adjustment will be indexed to the Consumer Price Index (CPI) and revised every two years, ensuring it remains aligned with inflation and national salary trends.
Why This Matters
The proposed hike is expected to:
- Reduce dropout rates
- Attract more students to apprenticeship programs
- Provide critical financial relief, particularly for youth from rural and low-income backgrounds
India currently has an apprenticeship penetration rate of just 0.27% of its workforce—far below the 3–4% seen in developed countries. Experts believe improved stipends are essential to bridging this gap.
“This is a strategic investment in India’s human capital. Financial support will help more youth, especially in non-metro areas, commit to apprenticeship programs,” said Abhimanyu Saxena, Co-Founder of Scaler.
Impact on Students
Both technical and non-technical stream students will benefit. Under PM-NAPS, over 43.47 lakh apprentices have been engaged across 36 states and UTs, with female participation reaching 20%. In 2024–25, 5.23 lakh apprentices were trained through NATS.
The stipend increase is expected to:
- Strengthen financial stability for students
- Improve access to vocational training
- Enhance job-readiness and industry exposure
“India still lags in skill standards globally. This revision is modest but essential,” noted Dr. VP Singh of Great Lakes Institute of Management.
Strengthening Industry-Academia Collaboration
The CAC also emphasized expanding Apprenticeship Embedded Degree Programmes (AEDPs), which integrate classroom education with hands-on training. Upcoming reforms include aligning CTS (Craftsmen Training Scheme) and apprenticeship programs for smoother student transitions.
“To boost apprenticeship engagement, we must make programs financially and academically viable,” added Dr. Nipun Sharma, CEO of TeamLease Degree Apprenticeship.
This stipend revision marks a significant step toward empowering India’s youth and building a skilled, job-ready workforce.
