The National Apprenticeship Promotion Scheme (NAPS) is not mandatory for all companies in India.
However, the Indian government has introduced various regulations to encourage companies to engage apprentices, particularly through the Apprentices Act, 1961 and its amendments.
The mandatory engagement of apprentices depends on the size of the organization and its headcount.
NAPS and Mandatory Apprenticeship Engagement:
National Apprenticeship Promotion Scheme (NAPS):
Voluntary Nature: NAPS, launched in 2016, is a voluntary scheme designed to promote apprenticeship training by offering financial incentives to employers. It is aimed at increasing apprenticeship opportunities and skills development but does not make participation mandatory for all organizations.
Financial Support: Under NAPS, the government shares 25% of the stipend (up to ₹1,500 per apprentice per month) paid to apprentices by the employer. The scheme also provides support for basic training costs.
Mandatory Engagement of Apprentices Under the Apprentices Act, 1961:
The Apprentices Act, 1961, which governs apprenticeship in India, does include provisions for mandatory apprenticeship engagement for certain categories of employers based on the number of employees.
Applicability Based on Headcount:
The engagement of apprentices becomes mandatory for establishments with 30 or more employees under the Apprentices Act. This requirement applies to both private and public sector organizations.
Specifically:
Employers with 30 or more employees: Establishments with a workforce of 30 or more (including regular, contractual, or outsourced workers) are mandatorily required to engage apprentices.
Minimum Apprenticeship Obligation: Such employers must hire apprentices at a minimum of 2.5% to 15% of the total workforce (including direct and contractual employees). This means, for example, a company with 100 employees must engage between 3 to 15 apprentices.
Exemptions and Flexibility:
Establishments in certain industries or sectors may be exempted based on the nature of their work, but in general, once the headcount exceeds 30, apprenticeship engagement becomes mandatory.
Small businesses or startups with fewer than 30 employees are exempt from the mandatory apprenticeship engagement but can still voluntarily participate in apprenticeship programs under NAPS.
Eligibility and Obligations for Companies:
Eligible Companies: All establishments, including manufacturing and service sectors, with 30 or more employees are eligible and, in many cases, required to participate in apprenticeship training.
Notification and Compliance: Employers are required to notify and report their apprenticeship engagement through the online apprenticeship portal provided by the government.
Types of Apprenticeships:
Companies can engage apprentices across different categories, including:
Designated Trades: These are traditional apprenticeship trades defined by the Directorate General of Training (DGT), under the Ministry of Skill Development and Entrepreneurship.
Optional Trades: These are newer categories of apprenticeships introduced for emerging sectors under NAPS.
In brief:
NAPS is voluntary for companies in India and provides financial incentives for companies to engage apprentices.
Mandatory engagement of apprentices under the Apprentices Act, 1961 applies to companies with a headcount of 30 or more employees.
Companies are required to engage apprentices at 2.5% to 15% of their workforce if they have more than 30 employees.
Smaller companies with fewer than 30 employees are exempt from the mandatory engagement, but they can voluntarily participate in NAPS.
NAPS (National Apprenticeship Program) is a government initiative designed to boost skills and employability through structured apprenticeship training. For inquiries on eligibility, registration, or program details, please visit the official NAPS portal or contact the designated helpline.
