HR Policy Global

Government Eases Apprenticeship Procedures for Indian Companies and Needs No Stipend Proof

Published on: April 6, 2022

Authors: Wenchao Dong

Topics: India

As per a report in the Economic Times of 4th Mar 2022, the Indian government has simplified half-a-dozen procedures for India Inc to incentivize companies to take on apprenticeship training in a big way, a move aimed at doubling the number of apprentices in India from half million to 1 million. The changes include doing away with stipend payment proof if the payment is made to the candidate through a payment gateway. The clause for holding back the stipend payment in the last quarter until a candidate appears for assessment has also been removed, enabling seamless flow of funds to the industry to undertake apprenticeship training. Further, establishments in four or more states will no longer have to register at multiple locations and stipend support will be given to the industry during basic training.  

The government reimburses up to Rs 7500 ($100) per apprentice to the industry and a 25% or a maximum of Rs 1500 ($20) as stipend for each candidate per month under the National Apprenticeship Promotion Scheme. This scheme allows 2.5 to 15% of the organization’s total workforce to be apprentices and firms with 30 or more employees need to mandatorily hire apprentices.  

HRPI View: This is a very progressive step and welcome news especially for the manufacturing sector and many other such sectors that employ such apprentices. 

Wenchao Dong

Director, Global Affairs, HR Policy Association

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