Central Apprenticeship Council (CAC), under the Ministry of Skill Development and Entrepreneurship (MSDE), has proposed a 36% increase in apprenticeship stipends.
The recommendation was made during the Council’s 38th meeting held on May 26, 2025.
It forms part of a broader strategy to enhance the appeal, financial feasibility, and industry alignment of vocational training.
The proposed hike will increase monthly stipends across all qualification levels.
Under the new structure, stipends will range from ₹6,800 to ₹12,300, compared to the current ₹5,000–₹9,000.
This revision is expected to benefit lakhs of apprentices across sectors such as manufacturing, IT, biotechnology, telecommunications, and renewable energy.
Inflation-Linked Revisions in Apprenticeship Stipend and Structural Reforms
One of the most notable aspects of the proposal is the plan to link future stipend revisions to the Consumer Price Index (CPI), allowing for automatic biennial adjustments.
This mechanism is designed to ensure that stipend rates remain responsive to inflation and cost-of-living changes, reducing the need for ad-hoc revisions.
The CAC also recommended updating the Apprenticeship Rules, 1992, to incorporate the proposed changes.
This update aims to align industry classifications with the National Industrial Classification (NIC) Code 2008.
This would expand the scope of apprenticeship training to include emerging sectors and modernize the regulatory framework.
Addressing Dropout Rates and Industry Participation
India’s apprenticeship engagement rate currently stands at a modest 0.27%, significantly lower than the 3–4% seen in developed nations like Germany and the UK.
Officials from MSDE emphasized that the proposed stipend increase is critical to reducing apprenticeship dropout rates.
It also aims to improve the viability of such programs in urban areas, where living and commuting expenses are notably higher.
The move is also expected to encourage greater participation from small and medium enterprises (SMEs), which have traditionally struggled with affordability.
To address the affordability challenge, the Council has proposed increasing the government’s reimbursement ceiling under the National Apprenticeship Promotion Scheme (NAPS).
At present, the scheme covers 25% of the stipend, capped at ₹1,500 per month.
Integration with Education and Digital Infrastructure
The CAC’s proposal aligns with the National Education Policy (NEP) 2020, which advocates for integrating vocational education into mainstream learning.
The Council has endorsed expanding Apprenticeship Embedded Degree Programmes (AEDPs).
These programs enable students to earn recognized degrees while gaining practical experience through on-the-job training.
Digital platforms are also playing a key role.
The Skill India Digital Hub (SIDH), a mobile-first public infrastructure, has seen over 23,000 enrollments in its ‘AI for Entrepreneurship’ micro-module since December 2024.
So far, more than 11,000 participants have successfully earned certifications through the program.
These initiatives aim to make apprenticeship training more accessible and future-ready.
Awaiting Final Approval and Implementation of Apprenticeship Hike
The proposal has received strong backing from industry leaders and student communities. However, it is still awaiting final approval from the government.
Once notified, the revised stipend structure will be published in the Official Gazette and implemented across all apprenticeships governed by the Apprentices Act, 1961.
The Ministry has indicated that the reforms could be implemented within the next quarter.
This development marks a pivotal step in India’s efforts to build a skilled and economically empowered workforce.
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