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How can employers build an apprenticeship programme that develops skills while meeting India’s compliance requirements?
Apprenticeships can help employers build job-ready skills while giving learners structured workplace experience. But an apprenticeship programme is not simply a hiring channel with a stipend attached. It must follow the applicable legal framework, provide genuine training, and maintain the required contracts, supervision and records.
India’s apprenticeship framework is primarily governed by the Apprentices Act, 1961 and the Apprenticeship Rules, 1992, as amended. The 2025 amendment changed prescribed stipend rates and several programme rules, making older employer guides potentially outdated.
At scale, the programme is already significant. Government reporting states that 11.84 lakh apprentices were engaged under NAPS and 5.23 lakh under NATS during calendar year 2025. These are separate scheme engagement figures, not necessarily unique individuals or apprenticeship completions.
For employers, the key is to treat apprenticeship as a managed training programme with defined eligibility, contracts, stipend administration, supervision and completion processes.
An apprenticeship is structured training provided under the Apprentices Act and the applicable Rules. It combines practical workplace training with the prescribed instructional component and is intended to develop skills in a trade or occupational area.
The framework includes designated trades, which are notified under the Act, and optional trades, which employers can adopt in accordance with the applicable requirements. Employers should identify the relevant trade and curriculum before recruiting apprentices or preparing contracts.
Apprentices undergoing training under the Act are treated as trainees rather than ordinary workers for the purposes stated in the Act. That status does not mean employers can disregard apprenticeship-specific obligations or workplace safety requirements.
The principal legal framework consists of:
The 2025 amendment was notified through G.S.R. 610(E) and came into force on 11 September 2025, the date of publication in the Official Gazette.
The amendment revised minimum stipend rates and introduced or updated provisions relating to apprenticeship categories, contracts, records and engagement conditions. Employers should use the current Rules and applicable scheme instructions rather than relying on older stipend tables or outdated portal guidance.
Under the amended Rule 7B, establishments with 4 or more workers are eligible to engage apprentices. Engagement is obligatory for establishments with 30 or more workers, subject to the prescribed calculation and applicable conditions.
The Rules also prescribe an annual apprentice engagement band of 2.5%–15% of establishment strength, including contractual staff, and require at least 5% of total training places to be reserved for fresher and skill-certificate-holder apprentices.
A separate monthly band applies: the apprentice count should generally remain between 2% and 18% of total strength, subject to fulfilment of the annual minimum engagement obligation.
These figures should not be treated as a simple quota calculator. Employers must verify the prescribed workforce calculation, relevant apprentice categories, trade-specific requirements and current scheme instructions before setting intake targets.
Before deciding how many apprentices to engage, establish the workforce figure using the applicable definition, identify the relevant trades and training capacity, calculate the annual band, check the monthly limits and document the category mix.
The 2025 amendment revised minimum monthly stipend rates according to the qualification prescribed in the curriculum. These are apprenticeship stipend rates, not minimum wages, and the correct category must be determined for each apprentice.
| Apprentice qualification category | Minimum monthly stipend |
| School pass-outs, Class 5–9 | ₹6,800 |
| Class 10 pass-outs | ₹8,200 |
| Class 12 pass-outs | ₹9,600 |
| National or State Certificate holders | ₹9,600 |
| Technician (vocational), vocational certificate holders and specified sandwich-course students from diploma institutions | ₹9,600 |
| Technician apprentices, diploma holders in any stream and specified sandwich-course students from degree institutions | ₹10,900 |
| Graduate apprentices, degree apprentices and degree holders in any stream | ₹12,300 |
The Apprenticeship (Amendment) Rules also provide for prescribed increases: a 10% increase in the second year and a further 15% increase in the third year, where applicable. Employers should verify the apprentice’s category, curriculum, training duration, and relevant rule before calculating the stipend.
NAPS-2 and NATS support apprenticeship engagement, but they are administered through different ministries and serve different programme categories. Employers should select the scheme based on apprentice eligibility and the relevant training pathway.
| Feature | NAPS-2 | NATS |
| Administering ministry | Ministry of Skill Development and Entrepreneurship | Ministry of Education |
| Broad focus | Apprenticeships across designated and optional trades | Practical training for eligible graduates, diploma holders and related categories |
| Government stipend support | 25% of prescribed minimum stipend, capped at ₹1,500 per month per apprentice, subject to scheme conditions | 50% of prescribed minimum stipend for eligible apprentices, subject to applicable rules and scheme conditions |
| Employer responsibilities | Pay stipend, provide genuine training and meet contract and record requirements | Pay stipend, provide training and meet contract and record requirements |
Government support is conditional. Employers should not assume reimbursement is automatic or deduct anticipated support from their stipend obligation before confirming eligibility, approvals and payment conditions.
An apprenticeship contract is central to the programme. For designated trades, Section 4 of the Act requires a contract of apprenticeship. The amended Rules prescribe the portal workflow for forwarding contracts for registration, including specific arrangements for degree apprentices and sandwich-course students.
Employers should complete the required contract and portal process, verify the apprentice’s eligibility and qualification documents, and retain registration acknowledgements. The research brief identifies a seven-day portal-entry timeline for the relevant workflow; employers should verify the precise applicable requirement against the current Rules and portal instructions before setting internal deadlines.
A contract should not be treated as a one-time onboarding form. Employers also need a process for tracking changes, termination, training completion and the associated records.
Employers must provide training in accordance with the applicable curriculum and training arrangements. This includes practical workplace learning, appropriate supervision and the records needed to demonstrate progress.
The training plan should identify the skills to be developed, the workplace activities involved, the responsible supervisor and the method for recording progress. Apprentices should not be used as substitutes for regular employees without providing the prescribed training.
The Act and Rules also address working hours, leave, holidays, and safety. Employers must establish schedules consistent with the applicable requirements and provide safe training conditions, relevant instruction, and protective measures.
A reliable apprenticeship compliance process keeps records that connect eligibility, contract, training, stipend, and completion.
| Record category | Examples |
| Establishment and contract | Establishment details, apprenticeship contracts and portal acknowledgements |
| Apprentice eligibility | Qualification certificates, category and trade details |
| Training | Training plan, attendance, work undertaken, supervisor records and quarterly progress where required |
| Stipend | Category mapping, calculations, payment records and applicable scheme-support documentation |
| Assessment and completion | Assessment results, completion status and certification records |
| Compliance administration | Applicable returns, inspection evidence and records of changes or termination |
The required forms, reporting intervals and retention obligations should be checked against the current Rules and scheme instructions.
Non-compliance may arise from failing to meet applicable engagement requirements, not executing or registering contracts correctly, paying less than the prescribed stipend, failing to provide required training, or maintaining incomplete records.
The exact consequences depend on the provision breached and the current statutory framework. Employers should verify the applicable penalty provisions and amendments before relying on a penalty summary. A compliance review should identify the obligation, supporting evidence, responsible owner and corrective action rather than assuming every breach carries the same consequence.
Government programme reporting indicates that apprenticeship engagement and training completion have grown. In FY 2025–26, approximately 12.35 lakh apprentices were engaged under NAPS, while about 6.42 lakh completed on-the-job training.
A third-party evaluation of NAPS-2, as summarised by the Government, reported that around 72% of surveyed apprentices received offers of full-time employment after completing apprenticeship training. This is a survey finding, not a universal placement rate or a guarantee of employment for every apprentice.
At the 38th Central Apprenticeship Council meeting in May 2025, Minister Jayant Chaudhary described apprenticeship as “a bridge that connects education, industry and employment.”
For employers, these outcomes support treating apprenticeships as a structured workforce-development pathway. They do not replace the need for a genuine training plan, appropriate supervision and compliance controls.
A practical programme begins by assessing workforce needs and training capacity. Employers should identify the trades and roles in which apprentices can receive meaningful instruction, confirm eligibility and calculate the applicable intake.
The next stage is programme setup: establish the relevant portal workflow, prepare and register contracts, map each apprentice to the correct qualification and stipend category, and assign supervisors. During training, monitor attendance, stipend payments, progress and safety. At completion, arrange the applicable assessment, certification, and contract closure.
A documented process helps employers identify missed payments, incomplete records or training gaps before they become larger compliance issues.
An apprenticeship partner should understand the Act and Rules as well as the operational requirements of NAPS-2 or NATS. Employers should evaluate the provider’s experience with contract and portal administration, stipend calculations, scheme-support documentation, training coordination and compliance reporting.
Ask prospective providers to explain which activities they will manage, which remain the employer’s responsibility, how exceptions are escalated, and what evidence will be delivered. A written responsibility matrix can help prevent assumptions about who owns contracts, payments, records and claims.
CQUEL’s published services include compliance support, contract labour management and compliance technology. These capabilities may be relevant to employers seeking to coordinate apprenticeship administration with broader workforce-compliance processes.
Explore CQUEL’s services and products. Before engagement, confirm whether the required apprenticeship-specific services, including NAPS/NATS support, contract administration, stipend reconciliation, claims or training coordination, are within the agreed scope.
Planning an apprenticeship programme? Contact CQUEL to discuss your workforce and compliance requirements.
The minimum monthly rates introduced by the 2025 amendment range from ₹6,800 for school pass-outs in Classes 5–9 to ₹12,300 for graduate and degree apprentices, depending on the qualification category prescribed in the curriculum.
The amended Rule 7B makes engagement obligatory for establishments with 30 or more workers, subject to the prescribed workforce calculation and applicable conditions. Employers should confirm the current rule and their establishment’s applicability.
The prescribed annual band is generally 2.5%–15% of establishment strength, including contractual staff, with at least 5% of training places reserved for specified fresher and skill-certificate-holder categories. A separate monthly band of 2%–18% applies, subject to the annual minimum obligation and applicable conditions.
NAPS-2 is administered by MSDE and supports apprenticeship engagement across designated and optional trades. NATS is administered by the Ministry of Education and focuses on practical training for eligible graduates, diploma holders, and related categories. Their eligibility and stipend-support conditions differ.
The Act treats apprentices undergoing training under it as trainees rather than workers for the purposes specified in the law. Employers must still comply with apprenticeship-specific training, stipend, contract, recordkeeping, and safety obligations.
The contract must follow the Act and current Rules’ registration process. The applicable portal timeline should be confirmed against the current Rules and instructions for the apprentice category; employers should build contract registration into onboarding rather than delaying it until after training begins.
Employers should maintain contracts and portal acknowledgements, qualification and eligibility evidence, training plans, attendance and progress records, stipend payment proof, assessment and completion documentation, and applicable returns or inspection records.
The contents of this article are for information purposes only, and nothing in this article should be construed as legal advice.
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