Changes in Apprenticeship Rules 2019 – what you should know

Changes in apprenticeship rules

Taking the Government’s flagship project Make in India one step ahead the Apprenticeship Rules 2019 has been modified by the Government of India. The new rule is focused to increase the skilled manpower in the country and increase the remuneration for the apprentices. The newly amended rule has now raised the hiring limit to 15 percent of the total employee strength in an organization with a revised stipend that can go up to INR 9000. Mahendra Nath Pandey, Union Minister for Skill Development and Entrepreneurship has said the number of apprenticeships is expected to rise to 2.6 lakh as compared to 60,000 this year till September 2019. The new rule is effective from September 25, 2019. As per the new rule, the minimum amount of stipend prescribed ranges from INR 5,000 per month – for school pass outs between Class 5th and 9th – to INR 9,000 per month to graduate or degree apprentices in any stream. There had been major amendments to the Apprentice Act in the past, but despite of all the efforts, the number of apprentices in India remains a miniscule figure. In India, less than 0.1% of the employed workforce or just 0.3 million people are apprentices. In comparison, the UK has 1.5% or 0.5 million, China has 2.5% or 20 million, and Germany has 5% or 2.5 million apprentices.

Here are the key highlights of the new Apprenticeship (Amendment) Rules, 2019:

  1. As per the new rule the minimum stipend amount that will be paid to trade apprentices will be based on qualification. The amount can range anywhere between INR 5000 per month to INR 9000 per month from now onwards. 
  2. In the new amend, the size-limit of an establishment with a mandatory obligation to engage apprentices on an optional basis has been lowered from 40 to 30. It has also reduced the size-limit of an establishment wanting to engage apprentices from 6 to 4. This will allow smaller companies to hire more trainees and give more youths an opportunity to get into the apprenticeship fold. Apparently, this move may seem to be a costly affair for the organizations, but the Government thinks it will help the country in the long run in skilling its youth. It will also help the youth to earn while they learn that will definitely give a positive boost to their morale. 
  3. The new amendment also says that establishments having four or more workers are eligible to engage apprentices. The Government has appealed to the states to take all possible measures to implement the law related to apprenticeship in companies. 
  4. In conjugation, the MSDE Ministry has launched ‘Apprenticeship Pakhwada’, a 15-day cross-country event aimed at driving widespread awareness about the Apprenticeship scheme and its benefits. The Ministry has signed MoU with 21 third party aggregators and 19 states to boost apprenticeship in the country. This new collaboration with organizations across the country will play a key role to provide apprenticeship training programme to more than 2.5 lakh youths in India. 
  5. Among everything else, skill development has been given the maximum priority in the new amendment. Hence, the government also seeks to create a new structure of Kaushal Vikas Mitra from the state level to the village level. 

Also Read: Breaking Development – SME Friendly Fresh Reforms in Apprenticeship Act to Drive Up Numbers

What you need to know about trade apprentice?

A person who undergoes apprenticeship training in any designated trade i.e. any occupation/trade/any subject field in technology/engineering/non – engineering/any vocational course as notified by Union Government. To become eligible for trade apprenticeship class 8, 10, 12 and ITI (a certificate course) pass- outs are eligible to undergo apprenticeship in designated trades for trade apprentices. In some trades, B.Sc. pass is also a required qualification. 

With the new amendment in place, we are all poised to see more growth in the apprenticeship programme across India where more and more youth can get skilled and kick-off their career.