Saturday, October 4, 2025
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Apprenticeship Act Overhauled to Boost Youth Skilling

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Ministry of Skill Development and Entrepreneurship (MSDE) has officially notified sweeping amendments to the Apprenticeship Rules, 1992, marking a significant shift in India’s skilling framework.

The revised rules, approved during the 38th meeting of the Central Apprenticeship Council chaired by Minister Jayant Chaudhary, aim to make apprenticeship training more attractive, inclusive, and aligned with industry needs.

One of the most impactful changes is the increase in the minimum monthly stipend for apprentices—from ₹6,800 to ₹12,300.

This move is expected to improve financial support for youth entering the workforce and encourage wider participation in apprenticeship programs.

Revised Stipend Structure and Coverage

The new stipend range of ₹6,800–₹12,300 will apply to apprentices under both the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS).

Previously, stipends ranged between ₹5,000 and ₹9,000.

The government’s contribution under NAPS remains ₹1,500 or 25% of the stipend, while under NATS, it covers 50%.

The revised stipend structure is inflation-protected and aims to offer dignity of labour and financial stability to apprentices across sectors.

The notification also includes a provision for future revisions to be linked to the Consumer Price Index (CPI), ensuring long-term sustainability.

Introduction of Degree Apprenticeship and Virtual Training

A key reform is the formal introduction of degree apprenticeships, which integrate apprenticeship training into academic curricula.

This model allows students to gain hands-on experience while pursuing formal education, bridging the gap between classroom learning and industry requirements.

Additionally, the new rules permit remote and virtual apprenticeship training, expanding access for candidates in rural and remote areas.

This flexibility is expected to improve participation rates and reduce logistical barriers for both employers and apprentices.

Mandated Apprentice Engagement and Inclusion Targets

The notification mandates every establishment to engage apprentices amounting to 2.5% to 15% of its total workforce, including contractual staff.

Importantly, at least 5% of these slots must be reserved for fresher apprentices and skill certificate holders.

If these seats remain vacant, they may be reallocated to other categories with approval from the apprenticeship adviser.

The rules also stipulate a minimum one-year gap between two trainings, provided the earlier training is completed.

No gap is required if the previous apprenticeship was terminated due to failure.

Focus on Inclusion and Sectoral Expansion through Apprenticeship

The reforms emphasize inclusion by expanding opportunities for persons with benchmark disabilities.

The coverage of industries under the Apprenticeship framework has also been broadened using the National Industrial Classification (NIC) 2008, allowing more sectors to participate in apprenticeship training.

Emerging sectors such as information technology, telecommunications, biotechnology, and renewable energy are now part of the revised framework.

The Ministry is also promoting AI skill development through initiatives like PMKVY 4.0 and the Skill India Digital Hub (SIDH), which has already seen over 23,000 enrolments in AI-related modules.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus