National Apprenticeship Promotion Scheme (NAPS)

India has a large young workforce and a persistent mismatch between formal education and workplace skills. Employers complain that graduates need months of internal training before they are productive. Young workers complain that the only way to learn workplace skills is to first land a job, which is hard without those skills. Apprenticeships, structured contracts between an employer and a young learner with regulated stipend and training, are the standard global mechanism for closing this gap.

NAPS was launched in 2016 to encourage employers to take on apprentices. The Apprentices Act, 1961, regulates the contract; NAPS adds a financial incentive by sharing a portion of the stipend cost with the employer. The 2024 update raised the maximum reimbursement to Rs 1,500 per apprentice per month while keeping the 25 percent share of stipend.

The result is that an employer paying a stipend of Rs 6,000 per month to an apprentice receives Rs 1,500 back from the government, reducing the effective cost to Rs 4,500. For an employer engaging 50 apprentices, this is a meaningful reduction in the financial barrier to apprenticeship intake.

Register on apprenticeshipindia.gov.in. Create a profile with educational qualifications, preferred trades, language preferences and location. The portal matches your profile to employer requirements across India.

Browse openings by sector, location and trade. Sectors with high apprenticeship intake include automotive, electronics, retail, banking, food processing, textile and IT services. Many openings are in urban industrial clusters but employers in tier two and tier three cities have grown their participation steadily.

Apply to multiple openings. Each application generates an interview opportunity with the employer. If selected, the contract is drafted on the portal and registered by the employer with the regional Apprenticeship Adviser. Once registered, the apprenticeship begins and the apprentice starts receiving the regulated minimum stipend.

The minimum monthly stipend is Rs 5,000 for school pass holders, Rs 6,000 for ITI passed apprentices, Rs 7,000 for diploma holders and Rs 9,000 for degree holders in engineering. The stipend rises by 10 to 15 percent in the second year and again in the third year. These are minimums; many employers pay above the minimum to attract better candidates.

The apprentice is expected to follow the structured training plan defined for the trade. This includes on the job training, related classroom instruction at a partner training institute, periodic assessments and a final assessment leading to the National Apprenticeship Certificate.

Apprentices are not employees in the traditional sense. They are not entitled to ESI, PF or gratuity. However, the establishment is responsible for safety, basic medical care during work and provident contribution where the apprenticeship contract specifies. Read the contract carefully before signing and clarify any ambiguity with the employer or the National Career Service helpline.

Employers register the establishment on the portal with PAN, bank details and Udyam registration. Each apprentice contract is uploaded and registered within the timeline prescribed by the Apprentices Rules. The portal maintains a running record of contracts, stipend payments and reimbursement claims.

Reimbursement is monthly based on certified stipend payment. The employer pays the apprentice the full regulated stipend by direct transfer. The portal calculates the reimbursable share, typically 25 percent up to Rs 1,500 per apprentice, and processes the credit to the employer's registered bank account within 30 to 60 days of claim submission.

Employers should treat NAPS as a workforce strategy rather than a subsidy. The financial saving is real but small relative to the broader benefit: a structured pipeline of trained young workers who understand the employer's processes and are productive from day one of full employment, if the firm chooses to hire them post apprenticeship.

Confusion between schemes is common. PMKVY funds short term training, typically two to six months, in training centres. The trainee is not employed during training. The certificate qualifies the trainee to apply for entry level roles.

NAPS funds apprenticeships in establishments. The apprentice is engaged by an employer for six months to three years, receives a stipend, performs real work and earns a National Apprenticeship Certificate.

The National Apprenticeship Training Scheme covers graduate, technician and vocational apprentices through the Boards of Apprenticeship Training under the Ministry of Education. Stipend reimbursement structure and contract administration differ from NAPS.

For a young person, the practical advice is: if you have an entry level qualification but no work experience, look first at NAPS apprenticeships. They pay a stipend, give you real work experience and end with a credential. PMKVY is a useful fallback if no apprenticeship in your sector is available locally.

• 01For apprentices: Indian citizen aged 14 years or above with the minimum educational qualification prescribed for the trade
• 02For establishments: registered private and public sector employers with at least four employees can engage apprentices voluntarily; with 30 or more, engagement is mandatory in defined trades
• 03Apprentices must register on the National Apprenticeship Portal
• 04The apprenticeship contract must be registered with the regional Apprenticeship Adviser within the prescribed time
• 05Stipend payment must comply with the minimum stipend regulations

• §Aadhaar of the apprentice
• §Educational qualification certificates as required for the trade
• §Bank account details of the apprentice for stipend payment
• §For establishments: Udyam registration or equivalent, PAN and bank details
• §Apprenticeship contract in the prescribed form registered on the National Apprenticeship Portal

• Apprenticeship contract not registered on the portal within the prescribed time
• Stipend paid below the regulated minimum, blocking reimbursement
• Trade not notified for apprenticeship engagement
• Establishment not registered on the portal or with incomplete details
• Apprentice exceeding the prescribed age and qualification limits for the trade

• National Apprenticeship Portal and NAPS guidelines, Ministry of Skill Development and Entrepreneurshiplink ↗
• Apprentices Act, 1961 and rules as amended, Ministry of Skill Development and Entrepreneurshiplink ↗