Apprenticeship Rules changed, stipend hiked up to Rs 9,000 per month
The government has notified changes in Apprenticeship Rules (1992) that envisages to increase skilled manpower in the country, and raise monetary compensation of apprentices.
The Apprenticeship (Amendment) Rules, 2019 seeks to raise hiring limit of apprentices to 15 per cent of total strength of an establishment, and their stipend to up to Rs 9,000 per month.
It has also lowered size-limit of an establishment with a mandatory obligation to engage apprentices on an optional basis from 40 to 30, and reduced the size-limit of an establishment wanting to engage apprentices from 6 to 4.
Union Minister for Skill Development and Entrepreneurship Mahendra Nath Pandey said significant changes have been made in the Apprenticeship Act, whereby minimum stipends have been doubled to between Rs 5,000 and Rs 9,000 per month.
He said the number of apprenticeships are expected to rise to 2.6 lakh as compared to 60,000 this year till now.
Asked about his assertion that 8-10 per cent of India’s population was now skilled as compared to 4-5 per cent earlier, the minister said these figures were based on data gathered by various sources and reflected the formal sector.
If the informal sector is added the total percentage of skilled persons could touch 50 per cent, he added.
"We will also focus on reforming industrial training institutes," Pandey told reporters on the sidelines of an event here.
As per the new rules, notified with effect from September 25, the minimum amount of stipend prescribed ranges from Rs 5,000 per month - for school pass outs between Class 5th and 9th - to Rs 9,000 per month to graduate or degree apprentices in any stream.
Besides, the minister informed that MoUs have been signed with 21 third party aggregators and 19 states to boost apprenticeship in the country.
He said the government was moving in the direction of a commitment towards skilling.
