Apprenticeship Act 1961
NAPS & NATS
Apprenticeship Act 1961 NAPS & NATS
Eligibility for Implementation of Apprenticeship Act 1961
Apprenticeship
Eligibility for Apprenticeship
Employee Strength Band (On total
Apprenticeship Duration (Month)
manpower strength)
0-3 Not Eligible Not Eligible Not Eligible
4-29 Optional 2.5% - 15% 6 - 36
>30 Mandatory 2.5% - 15% 6 - 36
Apprenticeship Act 1961 NAPS & NATS
Schemes Under Apprenticeship Act 1961
NATS- National Apprenticeship Training Scheme
Ministry of Education
NAPS- National Apprenticeship Promotion Scheme
Ministry of Skill Development & Entrepreneurship
Apprenticeship Act 1961 NAPS & NATS
Stipend Paid under Apprenticeship Act 1961
Category Prescribed Minimum Stipend
School pass-out (Class 5th- 9th) ₹ 5000 per month
School pass-out (Class 10th) ₹ 6000 per month
School pass-out (Class 12th) ₹ 7000 per month
National or State Certificate Holder ₹ 7000 per month
Technician (vocational) apprentice or vocation Certificate holder or Sandwich Course
₹ 7000 per month
(Students from Diploma Institutions)
Technician apprentices or diploma holders in any stream or sandwich course
₹ 8000 per month
(Students from degree institutions)
Graduate apprentices or degree apprentices or degree in any stream ₹ 9000 per month
Skill certificate holder to get stipend as per his/her educational qualification.
10% & 15% hike in second and third year respectively for apprenticeship training.
The above prices are indicative, however, the prevailing Take Home Salary for the particular region is benchmarked
Apprenticeship Act 1961 NAPS & NATS
Difference Between Apprenticeship Schemes
Parameters NAPS (MSDE) NATS (MOE)
Category 1 Category 2 Category 3
Authority DGT NSDC BOAT/ BOPT
Portal [Link] [Link]
Diploma/ Graduate/ 10th Pass, 12th
Graduates Engg. & Non Engg./
Minimum Qualification ITI Pass, Vocational, ITI/ 5th Pass &
Diploma Holders in Engg &Non Engg.
above
With in 5 years of their Graduation pass out
Age Limit 18-35 Year
date
Designated Optional (Created by SSC &
Trade Category Optional (Define by Establishment)
(Created by CSTARI) Establishment)
Flexible 06-36 Months based on Industry Requirement & Job
Duration 06-36 Months
Role
Graduate:- 4500, Diploma:- 4000
Reimbursement from Govt. PM/ PC for Rs. 1500 or 25% Stipend (Whichever is less) Credited into or 50% of Stipend whichever is less paid into
max 1 year Candidate Account on Monthly basis . max. for 1 year candidate account on monthly basis. max.
for 1 year
Apprenticeship Act 1961 NAPS & NATS
Benefits to Employers
SR. Benefits to Employers NATS NAPS
Rs. 4500/- (or 50% of stipend Rs. 1500/- (or 25% of stipend
1 Reimbursement per apprentice per month towards a stipend paid to candidates.
whichever is less) whichever is less)
Delinking of stipend from state’s minimum wage rates (minimum stipend to be paid is
2
linked to education qualification).
Establishments can engage apprentices aged 18 years and above in normal working
3
hours of the establishment (including night shifts).
Trainees under the NAPS & NATS Scheme are not entitled to any statutory
4 contribution from the employer. Stipends paid do not attract any statutory deduction/
payment obligation on the part of the corporate/ industry (No PF, ESIC, etc.)
Expenditure on engaging apprentices of more than 2.5% can be booked under CSR
5
liability/ funds.
6 Apprentices cannot participate in Union activities.
7 The laws related to labor/employment are not applicable to apprenticeship training.
An employer is not obliged to employ the apprentice after of completion of an
8
apprenticeship.
9 Extension of apprenticeship to non-engineering occupations.
Apprenticeship Act 1961 NAPS & NATS
CSR Funding
• Expenditure on engaging apprentices of more than 2.5%
can be booked under CSR liability/funds. (e.g. If your
Company strength is 200 then you can engage a
minimum of 5.
• Candidates (2.5%) and a maximum of 30 Candidates
(15%) as per apprentice in NATS) The candidates are
more than 2.5% (i.e. 30-5= 25). You can book their
stipend amount also in CSR funding.
Apprenticeship Act 1961 NAPS & NATS
BENEFITS TO THE
APPRENTICE
Apprenticeship Act 1961 NAPS & NATS
Cost Benefits
NATS Benefits To Employer NAPS Benefits To Employer
Current Costing on Current Costing on
[Link]. Description Contractual OJT under NATS S. No. Description Contractual OJT under NATS
Manpower Manpower
1 Basic + DA (Gross Salary) 12500 12500 1 Basic + DA (Gross Salary) 10500 10500
2 PF (Co) 12% 1500 0 2 PF (Co) 12% 1260 0
3 ESIC (Co) 3.25% 406 0 3 ESIC (Co) 3.25% 341 0
4 Bonus 8.33% 1041 0 4 Bonus 8.33% 875 0
5 EDLI (0.5%) 63 0 5 EDLI (0.5%) 53 0
6 PFA(0.5%) 63 0
6 PFA(0.5%) 53 0
7 Gratuity (4.81%) 601 0
7 Gratuity (4.81%) 505 0
Leave Encashment(15 Days
8
Salary/12Month)
521 0 8
Leave Encashment(15 Days
438 0
Salary/12Month)
9 Total CTC / Candidate (INR) 16695 12500 9 Total CTC / Candidate (INR) 14023 10500
Total Difference in Salary Total Difference in Salary
10
/Month
4195 10 3523
/Month
11 NATS Max. Reimbursement 4500 11 NAPS Max. Reimbursement 1500
Total Benefit Per Month Per Total Benefit Per Month Per
12 12
Candidate 8695 Candidate 5023
Apprenticeship Act 1961 NAPS & NATS
Establishment Information Required for Registration
[Link] Document type Mandatory
1 GST Certificate Yes
2 PAN card Yes
3 Mobile number Yes
4 Incorporation certificate Yes
5 Bank account details and proof (Cancelled cheque) Yes
6 ITR filing acknowledgement receipt for NATS only Yes
7 Training module on letter head for NATS only Yes
8 Total no of Manpower (Onroll +Contractual ) yes
Apprenticeship Act 1961 NAPS & NATS
Candidate’s Information Required for Registration
[Link] Document type Mandatory
1 Aadhaar card (Must be link with mobile number) Yes
2 PAN card Yes
3 Mobile number Yes
4 Passport size photograph Format: JPEG, Size: Less than 1 Yes
MB
5 Aadhaar seeded/mapped Bank account details(DBT Enabled) Yes
6 Eductional certificate,Qualifying Degree / Provisional Yes
Certificate, Format: PDF, Size: Less than 1 MB
7 First page of Bank passbook / Bank account statement, Yes
cancelled cheque Format: PDF, Size: Less than 1 MB
Apprenticeship Act 1961 NAPS & NATS
Role of Vidya Vahini as Apprenticeship TPA
Vidya Vahini Group will serve as the end-to-end
Apprenticeship Implementation & Management agency for your
organization
Advisory / Help
Apprenticeship Coordination with
Create
Portal Govt. officials
Apprentice Policy
Registration
Framework
Documentation Basic Training, Coordination with
and Contract Assessments and Govt. officials
Generation Certification
Apprenticeship Act 1961 NAPS & NATS
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THANK
YOU
Dushmant Sharma
dushmant@[Link]
9599415950
