Amendments under Apprentice Rules

Union Ministry for Skill Development and Entrepreneurship (MSDE) has notified changes in Apprenticeship Rules (1992) as Apprenticeship (Amendment) Rules, 2019 with an aim to increase skilled manpower in the country, and raise minimum stipend payable to trade apprentices.

MSDE Ministry has also launched ‘Apprenticeship Pakhwada’, a 15-day cross-country event aimed at driving widespread awareness of the Apprenticeship. It is in collaboration with 22 organizations to provide apprenticeship training to more than 2.5 lakh youth in India.

With skill development being the priority, the government also seeks to create a new structure of Kaushal Vikas Mitra from the state level to the village level.

Following are the amendments under Apprentice Rules and the same shall be effective from 25th Sept, 2019:

1. Employers having four or more workers are eligible to engage apprentices on voluntary basis.

2. Period of apprenticeship training for optional trade shall be 6 months to maximum 3 years. (Under the Act, optional trade is defined as any trade or occupation or any subject field in engineering or non-engineering or technology or any vocational course as may be determined by the employer for the purposes of the Apprentice Act, 1961.)

3. It will be obligatory to engage apprentices by establishments having 30 or more workers.

4. Maximum number of apprentices increased from 10% of total strength to 15% of total strength (including contractual staff) subject to minimum 5% to be reserved for fresher apprentices and skill certificate holder apprentices, during the financial year.

5. It has been clarified that apprentices will be only trainees and not labours. No labour law will apply to apprentices.

6. Minimum Rate of stipend

7. Provision of Annual Increase

8. Within a financial year, each establishment shall engage apprentices of minimum 2.5% to 15% of the total strength of the establishment including contractual staff.

9. In no month number of apprentices should be less than 2% of the total strength and more than 18% of the total strength.

10. An establishment can engage apprentices of age eighteen and above in normal working hours of the establishment. Apprentices under the age of eighteen shall be engaged in such training between the hours of 8.00 am and 6.00 pm only.

11. The Amendment Rules has introduced definitions to important terms under Apprentices Act, 1961 and the Apprenticeship Rules, 1992 such as:-

A. Degree Apprentice

B. Fresher Apprentice

C. National or State Certificate Holder

D. School Pass Out (only for optional trade)

E. Skill Certificate Holder (only for optional trade)

12. All concerned Departments / Establishments are to ensure that the apprentices under the Act being paid monthly stipend on the basis of above mentioned revised minimum prescribed stipend w.e.f. 25th September, 2019.

13. The 50% of minimum prescribed rate of stipend as Central Govt. share of stipend in respect of Graduate, Graduate Sandwich, Technician and Technician Sandwich Apprentices shall be reimbursed by BOPT(ER)- Board Of Practical Training Eastern Region as per past practice.

14. In the case of Fresher apprentice, during Basic Training for a period up to three months, the stipend amount to be paid by the establishment shall be 50 Per cent. of the prescribed stipend. Further, in case of simultaneous Basic Training (BT) and On-the-Job Training, full amount of the stipend is to be paid.

With this, the number of apprenticeships are expected to rise to 2.6 lakh as compared to 60,000 this year till now.

For more details, kindly refer :-