Direct Benefit Transfer Implemented for Apprentices Under National Apprenticeship Scheme

In a recent move aimed at encouraging individuals to undertake apprenticeship in India, the government decides to directly transfer 25% of the stipend payable up to ₹1,500 ($18) per apprentice per month under the new National Apprenticeship Scheme. Previously it had to route through the company’s payroll. However, the government portion will be paid after the company pays its share of 75%.

The Government of India has been taking many initiatives to make the apprenticeship program a success since the launch of National Apprenticeship Promotion Scheme in 2016, including country-wide District level awareness workshops at 250 locations for promoting apprenticeship training and putting all the expenses on the apprenticeship training for establishments engaging more than 2.5 percent of apprentices of their employee strength under Corporate Social Responsibility funding.  

The government also provides financial incentives to establishments for engaging apprentices by sharing stipend support and the basic training cost.  Under the new initiative, the government will directly transfer 25% of the stipend payable up to ₹1,500 ($18) per apprentice per month instead of previously routing through the company’s payroll, after the company pays its share of 75%. 

In addition, the ministry will undertake capacity building of the apprenticeship ecosystem and provide advocacy assistance to support rapid growth of apprenticeship in India. The government hopes that this will help make apprenticeship aspirational among the youth. As of January 30, 2023, 2.1 million youth had been enrolled as apprentices since the inception of the scheme.