Employer Benefits for Hiring Apprentices Under NAPS

The National Apprenticeship Promotion Scheme (NAPS) was launched by the Government of India in the year 2016. The aim of the program is to enhance employment opportunities amongst the youth, as well as contribute to the economic growth of the country.  

Employers or organizations undertaking the NAPS program are provided with financial support by the Government of India.  

The national apprenticeship promotion scheme is typically a training program for candidates who meet certain criteria as mentioned in the NAPS program. Candidates work in a particular field in an organization, as apprentices, wherein they are trained by experts for a period of 6 – 12 months, depending on factors like the field of training, ability to learn etc. The program was introduced with a vision to provide apprenticeship opportunities for over 50 lakh youngsters. The MSME segment is encouraged to largely focus on enforcing the apprenticeship culture owing to the many advantages it offers, as well as enhancing the productivity of the organizations.  

NAPS has two main components-  

• 25% of the GOI prescribed stipend amount is to be shared with the employer, per apprentice every month, which is subject to a maximum of Rs.1500/-, as against 50% for an engineering degree and diploma holders. 
• Rs.7500/- of stipend amount for a maximum of 500 hours/3 months, is provided by the government, per apprentice, which includes the basic training cost,  

While organizations have to mandatorily undertake the NAPS program, they need to meet certain criteria before they implement it.  

The GOI has made it mandatory for every organization or industry that constitutes a workforce of 30 or over (permanent or contractual) to employ a minimum of 2.5% and a maximum of 15% of apprentices in their overall headcount. 5% of the total is reserved for fresh apprentices holding the certificate.  

There are a few other “must-haves” for employers to implement NAPS. They are- 

• The employer must be registered with EPFO/ESIC/LIN/UDYOAADHAR 
• Must have a TIN number 
• Register and engage apprentices on the apprenticeship portal  
• Contact registration is a must for designated and optional trades 
• Have an aadhar linked bank account  

How does an employer benefit by undertaking NAPS?  

NAPS creates an industry-ready workforce through practical on-the-job training for the youth of India, and most importantly, helps eliminate the skill gap and proves to be an invaluable asset in the organization, enhancing overall productivity.  

Some of the benefits that employers get by undertaking NAPS are- 

• Employers are exempted from EPF and ESI contributions.
• On-the-job training creates a proactive workforce benefitting the employers in the long run as the trainees prove to be assets to the organization. 
• Reduces costs on recruitment process since the apprentices are up-skilled in a short period of time and start contributing productively.  
• On completion of training, based on the performance of the apprentices, the employers are allowed the flexibility to retain or let go of the employees. 
• CSR funds can be made used to engage the candidates in skill training under the Apprentices Act. 
• Skill gap shortage can be addressed efficiently by providing on-the-job training to candidates, specific to the business needs.
• The reduced attrition rate, as there is a higher loyalty factor among apprentices. 
• Further provisions are provided in regard to the submission of returns, other information and contract of apprenticeship through the apprenticeship portal, for time-bound approval.
• Helps build brand recognition, as the primary objective of the NAPS program was to enforce apprenticeships and promote employment opportunities for the youth.  

Engage a NAPS facilitator to further the benefits 

As established, an employer benefits hugely by undertaking NAPS, but the registration process including availing the financial benefits requires a lot of time and effort. As a certified NAPS facilitator, we relieve you from all the activities that involve the registration and documentation process.  

What we do -

As an authorized Third-Party Aggregator (TPA): 

• We do stipend administration for both the employer and the candidate  
• We undertake or arrange basic training through Basic Training Providers for fresher apprentices 
• Manage payrolls of the apprentices. This can be done by the client or NAPS facilitator or both 
• Identify/ select (not more than 3) establishments for apprentice OJT after studying their infrastructure facilities available for on-the-job/practical training with individual employers to ensure that the above establishments meet the requirement of the prescribed curriculum of the trade. 

Other assistance to establishments- 

• Assist the establishment in signing the apprenticeship contract on the apprenticeship portal. 
• Assist in the entire registration and mobilization process of the applicants in the apprenticeship portal 
• Assist the employer in posting all the returns on the portal  
• Provision of access to designated trades as well as optional trades (PMKVY courses/ courses created by employers) as defined by the Apprentices Act 
• Assist employers with formalities required for assessment & certification of candidates if required. 

Alp Consulting has always encouraged employers to get eminently involved in mobilizing employment in India. In the journey of contributing towards government schemes, our clients have benefitted and have been equipped with a potential workforce to suit the exact requirement of their organizations. Alp Consulting also gives access to a large pool of talent and future workforce along with consistent assistance through each step of the implantation of the National Apprenticeship Programme Scheme.