ABOUT APPRENTICESHIP: Apprenticeship training refers to a course of training in any industry or establishment. Apprentices get an opportunity of undergoing 'on the job' training and are exposed to real working conditions.
APPRENTICESHIP ECOSYSTEM IN INDIA
Apprenticeship is regulated in India by Apprentices Act, 1961.
SALIENT FEATURES
- All the establishments having work force (regular and contract employees) of 40 or more are mandated to engage apprentices undertake Apprenticeship Programmes in a range from 2.5% -10% of their workforce (including contractual employees) every year.
- For establishments having a workforce between 6 and 40, engagement of apprentices is optional. Establishments having a workforce of 5 or less are not permitted to engage apprentices.
- National Apprenticeship Promotion Scheme has been launched to promote apprenticeship training and incentivize employers who wish to engage apprentices. Under the scheme, there is 25% of reimbursement of prescribed stipend and sharing of cost of basic training.
STATUS OF APPRENTICESHIP IN INDIA
- Currently India has only about 3 lakh apprentices as compared to the labour force of nearly 500 million people.
- This proportion of less than 0.01% of the workforce compares unfavourably with the countries such as Germany and Australia, which both have around 3.7% of their workforces participating in apprenticeships.
- India has set a target of skilling 500 million people with employable skills by 2022. Thus, apprenticeship will play a crucial role in the task of up-skilling India’s workforce and increasing employability.
REASONS FOR POOR APPRENTICESHIP IN INDIA
- Lack of enterprise engagement in the system: Only around 24,000 enterprises have taken up apprenticeship in India. The low number of participating enterprises is reported due to high regulatory compliance burden upon employers.
- Limited occupational coverage: The Indian formal apprenticeship system has a limited list of designated trades in which apprenticeships can be offered.
- Inadequate stipend: The stipend that is required to be paid to apprentices is very low.
- Limited progression into permanent employment: Normally, apprenticeships do not lead to permanent employment and hence there is low demand for apprenticeship among the youths.
- Lack of progression into higher qualifications: Apprentices who pass their trade tests (All India Trades Tests) obtain a National Apprenticeship Certificate. However, such certificates remain outside the formal educational system and are therefore relatively unattractive to potential entrants.
- Low status of apprentice training: India has a very long tradition of informal training and workplace learning. This tradition is preserved today in the ‘informal apprenticeship system’ that exists alongside the formal system.
RECENT CHANGES IN APPRENTICESHIP RULES
- 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.
- Size-limit of an establishment with a mandatory obligation to engage apprentices on an optional basis has been lowered from 40 to 30.
- 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.
- Establishments having four or more workers are eligible to engage apprentices.