Are you a business owner or manager looking to bolster your workforce while enjoying financial incentives from the government? If so, you’ll want to explore the National Apprenticeship Promotion Scheme (NAPS) introduced by the Ministry of Skill Development and Entrepreneurship (MSDE). This groundbreaking scheme will transform how you think about hiring interns and apprentices.
Unlocking the Financial Benefits
Under the NAPS scheme, employers can reap significant financial rewards. The key benefits include:
Government Reimbursement of Stipends: The government will reimburse 25% of the prescribed stipend paid to apprentices, up to a maximum of Rs. 1,500 per month per apprentice. This support aims to alleviate the financial burden on employers.
Basic Training Cost Reimbursement: Employers are entitled to reimbursement of basic training costs, up to a maximum of Rs. 7,500 per apprentice. Basic training typically constitutes 20-25% of the total duration of the apprenticeship program. The reimbursement is calculated at Rs. 15 per hour for a maximum of 500 hours.
Stipend Requirements
To qualify for these benefits, apprentices must receive a stipend equivalent to 70% of the minimum wage in the semi-skilled category in their respective states. In the first year, the compensation must be 70%; in the second year, 80%; and in the third year, 90% of the state’s minimum wage. Additionally, apprentices must possess an Aadhaar Card.
For example, if the minimum wage in your state is Rs. 17,000, the stipend should be Rs. 11,900 in the first year, Rs. 13,600 in the second year, and Rs. 15,300 in the third year. Employers will then receive government reimbursement of Rs. 1,500 per month, reducing the final cost to Rs. 10,400 (Y1), Rs. 12,100 (Y2), and Rs. 13,800 (Y3).
Streamlined Administration
An online portal, apprenticeshipindia.
Mandatory Participation
The NAPS scheme comes with a mandate that applies to establishments with a workforce of 30 or more, including regular and contract employees. These entities must implement apprenticeship programs, constituting a percentage of their workforce from 2.5% to 15% annually.
Explore the Possibilities
If you’ve never considered hiring interns or apprentices through the NAPS scheme, now is the perfect time to explore this exciting opportunity. You can register your establishment and experience the seamless administration process the government has implemented.
The National Apprenticeship Promotion Scheme (NAPS) is poised to revolutionize workforce development in India. If you would like to learn more about the NAPS scheme, you can visit the official MSDE website.
Incorporate interns into your workforce, receive financial benefits, and contribute to the growth of skilled labour in India – a win-win situation for your company and the nation!
