Government Notifies Changes In Apprenticeship Rules

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 percent 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 six to four.

Union Minister for Skill Development and Entrepreneurship Mahendra Nath Pandey said that 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 percent of India's population was now skilled as compared to 4-5 percent earlier, the minister said that 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 percent, 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 Sept. 25, the minimum amount of stipend prescribed ranges from Rs 5,000 per month - for school pass outs between Class 5 and 9 - to Rs 9,000 per month to graduate or degree apprentices in any stream.

Besides, the minister informed that Memorandum of Understanding 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.