{"id":2108,"date":"2024-09-09T14:37:45","date_gmt":"2024-09-09T09:07:45","guid":{"rendered":"https:\/\/www.sgcms.com\/regulatory-updates\/?p=2108"},"modified":"2026-03-26T12:59:13","modified_gmt":"2026-03-26T07:29:13","slug":"the-apprentices-act-1961","status":"publish","type":"post","link":"https:\/\/www.sgcms.com\/regulatory-updates\/the-apprentices-act-1961\/","title":{"rendered":"The Apprentices Act, 1961"},"content":{"rendered":"<p>This act provides for regulation and control of training of\u00a0Apprentices\u00a0and for matters connected therewith.<\/p>\n<p><strong>Applicability<\/strong><strong>: <\/strong>It extends to the whole of India.<\/p>\n<p><strong>Key Definitions: <\/strong><\/p>\n<ol>\n<li><strong>Apprentice<\/strong>: A person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship<\/li>\n<li><strong>Apprenticeship Training<\/strong>: A course of training in any industry or establishment undergone in pursuance of a contract of apprenticeship and under prescribed terms and conditions which may be different for different categories of apprentices<\/li>\n<li><strong>Designated Trade<\/strong>: Any trade or occupation or any subject field in engineering or non-engineering or technology or any vocational course which the Central Government, after consultation with the Central Apprenticeship Council, may, by notification in the Official Gazette.<\/li>\n<li><strong>Optional Trade:<\/strong> 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.<\/li>\n<li><strong>Graduate\/Technician Apprentice<\/strong>: An apprentice who holds, or is undergoing training in order that he may hold a degree or diploma in engineering or non-engineering or technology or equivalent qualification granted by any institution recognized by the Government and undergoes apprenticeship training in any designated trade.<\/li>\n<li><strong>Technician (vocational) Apprentice<\/strong>: An apprentice who holds or is undergoing training in order that he may hold a certificate in vocational course involving two years of study after the completion of the secondary stage of school education recognised by the All-India Council and undergoes apprenticeship training in any designated trade.<\/li>\n<\/ol>\n<p><strong>Qualifications:<\/strong><\/p>\n<ul>\n<li>The person is not less than 14 years of age, is a minimum of 5th class pass (for Optional Trade) and not less than 18 years of age for <strong>designated<\/strong> trades related to hazardous industries.<\/li>\n<li>Satisfies such standards of education and physical fitness as may be prescribed.<\/li>\n<\/ul>\n<p>*Provided that different standards may be prescribed in relation to apprenticeship training in different designated trades and for different categories of apprentices<\/p>\n<p><strong>Statutory Compliance:<\/strong><\/p>\n<ul>\n<li>An Apprentice is not a worker. He\/She is not covered under PF, ESI, Bonus Acts.<\/li>\n<li>Provisions of <strong>factory act<\/strong> (fitness, safety and welfare) are applicable to an apprentice.<\/li>\n<\/ul>\n<p><strong>Number of Apprentices:<\/strong><\/p>\n<ul>\n<li>All establishments having work force (regular and contract employees) of<strong> 30 or more<\/strong> are mandated to undertake Apprenticeship Programs in a range from<strong> 2.5% -15% of its workforce<\/strong> (including direct contractual employees) every year.<\/li>\n<li>For establishments having a workforce between <strong>4 &#8211; 29<\/strong> this is optional.<\/li>\n<li>Establishments have a workforce of<strong> 3 or less are not permitted<\/strong> to engage apprentices.<\/li>\n<\/ul>\n<p><strong>Training Completion and Grant of Certificate:<\/strong><\/p>\n<p>Post completion of apprenticeship, the apprentice shall appear for an exam held by National Council to evaluate his\/her capabilities.<\/p>\n<ol>\n<li>As per the sub-section (1), every apprentice who clears the apprentice test shall be awarded a certificate of skillfulness in the trade by the National Council.<\/li>\n<li>The employer will evaluate the development of every Graduate or Technician apprentice, or Vocational apprentice periodically.<\/li>\n<li>After successful completion of the apprenticeship training, each graduate or technician apprentice or Vocational Apprentice will be awarded a proficiency certificate by the regional board.<\/li>\n<\/ol>\n<p><strong>Key amendments in the Apprenticeship Act, 1961 (amended in the year 2015) &amp; Apprenticeship Rules, 1992 (amended in the year 2019):<\/strong><\/p>\n<ul>\n<li>A band from 2.5% to 15% of total strength of establishment has been introduced as a<br \/>\nresponsibility of the employer to engage apprentices in his establishment instead of a fixed<br \/>\n% earlier. Additionally, 5% reserved for Fresher apprentices.<\/li>\n<li>The employers have been given the liberty to run industry driven \u201cOptional Trades\u201d for<br \/>\napprentices instead of only the \u201cDesignated Trades\u201d notified by the Govt of India under<br \/>\nthe Act<\/li>\n<li>The scope has been extended to <strong>include non-engineering pass-outs<\/strong>. Outsourcing of basic<br \/>\ntraining component of the Apprenticeship program (which can be about 20-25% of the<br \/>\nentire duration of the program) has been permitted to an institute of the employer\u2019s choice.<\/li>\n<li>Penalty in the form of fine has been provided for noncompliance of provisions of the Act. The provision for imprisonment has been removed.<\/li>\n<li>The entire process of searching &amp; contracting the apprenticeships and submission of<br \/>\nreturns &amp; other information and reimbursement of GOIs contribution towards the stipend<br \/>\nin a time bound manner has been online.<\/li>\n<li><strong>Duration of Apprenticeship<\/strong> (including basic training) is between 6-36 months for Designated Trade and Optional Trade at the discretion of an establishment.<\/li>\n<li>The minimum rate of stipend payable to apprentices per month has been delinked from<br \/>\nminimum wages schedule and fixed based on educational qualification of the apprentice.<\/li>\n<\/ul>\n<p><strong>Minimum stipend to be paid to an apprentice:\u00a0<\/strong><\/p>\n<table style=\"height: 500px;\" width=\"902\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" width=\"75\"><strong>S.No.<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"312\"><strong>Category<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"142\"><strong>Prescribed Minimum amount of stipend per month (Rs.)<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"75\">\n<p style=\"text-align: center;\">1<\/p>\n<\/td>\n<td width=\"312\">School pass-outs (class 5th &#8211; class 9th)<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">6,800<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">\n<p style=\"text-align: center;\">2<\/p>\n<\/td>\n<td width=\"312\">School pass-outs (class 10th)<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">6,800 &#8211; 8,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">\n<p style=\"text-align: center;\">3<\/p>\n<\/td>\n<td width=\"312\">School pass-outs (class 12th)<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">7,000 &#8211; 9,000+<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">\n<p style=\"text-align: center;\">4<\/p>\n<\/td>\n<td width=\"312\">Technician (vocational) apprentice or Vocational Certificate holder or Sandwich Course (Students from Diploma Institutions)<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">7,000-9,000+<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">\n<p style=\"text-align: center;\">5<\/p>\n<\/td>\n<td width=\"312\">Technician apprentices or diploma holder in any stream or sandwich course (students from degree institutions)<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">8,000 &#8211; 10,000+<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">\n<p style=\"text-align: center;\">6<\/p>\n<\/td>\n<td width=\"312\">Graduate apprentices or degree apprentices or degree in any stream<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">9,000 &#8211; 12,300+<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>In the case of Skill Certificate Holder, stipend payable per month shall be as per his\/her<br \/>\neducational qualification as mentioned in the table above.<\/li>\n<li>During the second year of apprenticeship training, there shall be an increase of 10 per cent.<br \/>\nin the prescribed minimum stipend amount and further 15 per cent increase in the prescribed<br \/>\nminimum stipend amount during the third year of apprenticeship training.<\/li>\n<li>In the case of National or State Certificate holder, the period of training already undergone<br \/>\nby him or her in a school or other institution recognized by the National Council or State Council, shall be taken into account for the purpose of determining the minimum payable rate of stipend.<\/li>\n<li>In the case of Fresher apprentice, during Basic Training for a period up to three months,<br \/>\nthe stipend amount to be paid by the establishment shall be 50 Per cent. of the prescribed stipend.<\/li>\n<li>Further, in case of simultaneous Basic Training (BT) and On-the-Job Training, full amount of the<br \/>\nstipend is to be paid.<\/li>\n<\/ul>\n<p><strong>National Apprenticeship Promotion Scheme (NAPS):<\/strong><\/p>\n<p>National Apprenticeship Promotion Scheme (NAPS) is a scheme of Government of India to<br \/>\nprovide financial support to establishments undertaking the apprenticeship training. NAPS was<br \/>\nlaunched on 19th August 2016.<\/p>\n<p>The scheme has the following two components:<\/p>\n<ul>\n<li>Reimbursement of 25% of prescribed stipend subject to a maximum of Rs. 1500\/- per<br \/>\nmonth per apprentice by the Government of India to all employers who engage apprentices.<\/li>\n<li>Reimbursement of cost of basic training (up to a limit of Rs. 7500\/- for a maximum of 500<br \/>\nhours= Rs. 15\/hour) by the Government of India to Basic Training Providers (BTPs) in<br \/>\nrespect of apprentices who come directly for apprenticeship training without any formal<br \/>\ntraining.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>\u00a0<\/strong>For more information, please refer to the attached document:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2162\" src=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-210x300.png\" alt=\"pdf icon\" width=\"18\" height=\"26\" srcset=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-210x300.png 210w, https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-105x150.png 105w, https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon.png 512w\" sizes=\"auto, (max-width: 18px) 100vw, 18px\" \/>\u00a0 <a href=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/Apprentice-Act-1961.pdf\" target=\"_blank\" rel=\"noopener\">Apprentice Act 1961<\/a><\/p>\n<p><strong>For Employers:<\/strong><\/p>\n<p><strong>NATS Registration-<\/strong><\/p>\n<ul>\n<li>An establishment can do the registration itself as it contains information that only company knows and has to enter.<\/li>\n<li>It is always advisable to fill in the apprenticeship establishment registration themselves by the company as there are many mandatory fields which only the company knows and plans to keep. <strong>User manual attached<\/strong> for your reference.<img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2162\" src=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-210x300.png\" alt=\"pdf icon\" width=\"18\" height=\"26\" srcset=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-210x300.png 210w, https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-105x150.png 105w, https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon.png 512w\" sizes=\"auto, (max-width: 18px) 100vw, 18px\" \/> <a href=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/NATS_Establishment-Enroll_User_manual.pdf\">NATS_Establishment-Enroll_User_manual<\/a><\/li>\n<li>The forms asks basic things like Role with establishment, Training modules in the company, Training officers details, type of employees to be kept, Manpower\/Graduate\/Technician details, Infrastructure details, no. of apprentices to be kept from the apprenticeship portal. For more details, please refer to the attached <strong>FAQs.<img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2162\" src=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-210x300.png\" alt=\"pdf icon\" width=\"18\" height=\"26\" srcset=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-210x300.png 210w, https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-105x150.png 105w, https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon.png 512w\" sizes=\"auto, (max-width: 18px) 100vw, 18px\" \/>\u00a0<\/strong> <a href=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/Apprenticeship_FAQs.pdf\">Apprenticeship_FAQs<\/a><\/li>\n<li>Once done, please take a screenshot of the 12 digit establishment enrollment number allotted, you will need to share the same on the email ID mentioned in the letter.<\/li>\n<li>Once registered, you would need to post an opening for apprentices on the portal to keep apprentices\/trainees.<\/li>\n<li>Every hiring, if done from apprentice portal, would need to be reported back on the portal (create the contract online within a week of joining) along with the number and details.<\/li>\n<\/ul>\n<p>You can always reach out to us while filling the application form in case there are discrepancies.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This act provides for regulation and control of training of\u00a0Apprentices\u00a0and for matters connected therewith. Applicability: It extends to the whole of India. Key Definitions: Apprentice: A person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship Apprenticeship Training: A course of training in any industry or establishment undergone in pursuance of a&hellip; <a class=\"more-link\" href=\"https:\/\/www.sgcms.com\/regulatory-updates\/the-apprentices-act-1961\/\">Continue reading <span class=\"screen-reader-text\">The Apprentices Act, 1961<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":2116,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[68,57],"tags":[54],"class_list":["post-2108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apprenticeship-act","category-compliance","tag-compliance","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Apprentices Act, 1961 - Regulatory Updates by SGCMS<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sgcms.com\/regulatory-updates\/the-apprentices-act-1961\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Apprentices Act, 1961 - Regulatory Updates by SGCMS\" \/>\n<meta property=\"og:description\" content=\"This act provides for regulation and control of training of\u00a0Apprentices\u00a0and for matters connected therewith. 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Applicability: It extends to the whole of India. 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