The Apprentices Act, of 1961 was enacted with the objective of regulating the program of training of apprentices in the industry by utilizing the facilities available therein for imparting on-the-job training. Ministry of Skill Development and Entrepreneurship is the administrative ministry responsible for the implementation of this Act.
Apprenticeship Training consists of Basic Training and On-the-Job Training/Practical Training at the workplace in the industry.
Basic training is an essential component of apprenticeship training for those fresher candidates who have not undergone any institutional training/skill training before taking up on the-job-training/practical training.
Basic Training is imparted to the fresher apprentices for acquiring a reasonable ability to handle instruments /Machineries/ Equipment independently prior to being moved to Shop Floor/Work Area for practical training / On-Job Training. It usually accounts for 20-25% of the duration of the overall apprenticeship training but can vary depending on the specific requirement of the curriculum. Apart from basic training, there is a component of on-the-job training which is performed in the establishments and undertaken by the establishment itself.
The Apprentices Act, 1961 makes it obligatory for employers who have a workforce of 30 employees or above (sum of total regular and contract employees), to engage apprentices in designated trades and/or “optional trades” across the manufacturing, services, trading sectors etc. For establishments having workforce of 4-29 employees, engagement of apprentices is optional. However, establishments with 3 employees or less, are not permitted to engage apprentices. Within a financial year, each establishment shall engage apprentices in a band of 2.5 percent. to 15 percent. of the total strength of the establishment including contractual staff, subject to a minimum of 5 percent. of the total to be reserved for fresher apprentices and skill certificate holder apprentices.

Components of the National Apprenticeship Promotion Scheme

1. Sharing of 25% of the prescribed stipend subject to a maximum of INR 1500/- per month per apprentice with the employers. The stipend support would not be given during the basic training period for fresher apprentices
2. Sharing of basic training cost in respect of apprentices who come directly to apprenticeship training without any formal trade training. Basic training cost will be limited to INR.7500/- for a maximum of 500 hours calculated @ 5 INR 15 per hour. There is a provision to fund basic training for 10 lakh apprentices till March 2020.


CEOs of the Sector Skill Councils are the implementing agencies in their sectors in respect of “Optional Trades” for the establishments under the Central Government jurisdiction. The State Governments will also be encouraged to appoint SSCs as Apprenticeship Advisers for the implementation of optional trade within their States for both public and private sector entities

Benefits of enrolling for NAPS as an employer:

  • Employers are exempted from EPF and ESI contributions
  • Sharing of 25% of prescribed stipend subject to a maximum of Rs. 1500/- per month per apprentice with the employers. The stipend support would not be given during the basic training period for fresher apprentices.
  • Sharing of basic training costs in respect of apprentices who come directly to apprenticeship training without any formal trade training. The basic training cost is limited to Rs. 7500/- for a maximum of 500 hours/3 months per apprentice.
  • Reduces expenditure on the recruitment process
  • Employers can evaluate the performance of the trainees and retain them if they wish to.
  • Employers can hire apprentices from 2.5% up to 15% of the total workforce.
  • Industry-related training creates a proactive workforce. This benefits the employers in the long run since trained employees add value to the organization.
  • Addresses the hiring gap of skilled candidates through industry-specific training.
  • Reduces attrition as a loyalty factor in apprentices is relatively higher.
  • Makes the brand image of the organization stronger and earns goodwill since it is recognized as a nation-building exercise.

Eligibility of Employer to Run Apprenticeship Programmes

The employers interested to avail the benefits of the scheme must fulfill the following:

  1. A person who employs four or more persons to do any work in an establishment for remuneration
  2. Employer shall engage apprentices in a band of 2.5% to 15% of the total strength of the establishment
  3. Employers must have EPFO/ESIC/Factory/Cooperative /MSME registration number.
  4. Employers must have TIN/TAN /GST/SGST number.
  5. Employers must register on the apprenticeship portal.
  6. Employers must have bank account linked with Aadhaar/Pan No.

Eligibility of Apprentice

  1. Apprentices can be engaged from the following categories:
    1. Trainees passed out from ITI courses
    2. Trainees under dual-learning mode from ITIs
    3. Trainees who have completed any NSQF aligned Short Term Course including PMKVY/DDUGKY/MES
    4. Graduates /candidates, pursuing graduation courses/Diplomas courses in any stream or 10+2 vocational certificate holders 9
    5. Candidates who possess minimum educational qualification required for a trade and have not undergone any formal trade training (Fresher apprentices).
  2. Apprentice must possess minimum of 14 years age, educational and physical qualification prescribed for the trade and other requirements of the Apprentices Act, 1961.
  3. Other requirements
    1. Every apprentice has to register on the portal.
    2. Every apprentice must have an Aadhaar Number/any other prescribed document.