Remember how until a few years back, you probably struggled to make some pocket money as an apprentice? However, according to a recent report, Indian employers are now recognising the importance of investing in apprenticeships and are willing to pay stipends higher than industry standards. This proactive approach aims to bridge the skill crisis and establish a sustainable talent supply chain.
The TeamLease Degree Apprenticeship's 'Stipend Primer Report' for FY-2022 reveals that stipend growth in India has surpassed salary growth in various industries. Many sectors are even offering stipends higher than the minimum prescribed amounts. This highlights the increasing value employers place on apprentices and their potential to contribute to the workforce.
According to the report, the average stipend pay outs witnessed a two percent increase in the financial year 2021-2022, compared to the previous fiscal. It notes that while the overall percentage increase has been a marginal spike, there is a significant variation in stipend pay-outs across industries, cities and educational qualifications.
Sumit Kumar, Chief Business Officer, TeamLease Degree Apprenticeship, said, the upward trend signifies a growing recognition among companies of the immense value and return on investment that come with engaging apprentices in their organisations.
He said firms are witnessing the first-hand transformative impact apprentices can have on their operations. In the last few years, the government too has taken various initiatives to promote apprenticeship adoption, he added.
“Introduction of optional trade for broader coverage of job roles, availability of TPA support to industry to improve adoption and execution, financial incentives under the National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS), and the recent Direct Benefit Transfer (DBT), which streamlines the payment system, ensuring greater efficiency, transparency, and financial inclusion for apprentices, are all progressive steps,” Kumar said.
Top jobs with the highest stipends include agriculture field officer (Rs 15,200 per month), retail sales (Rs 13,800 per month) and HR (Rs 13,600 per month), the Teamlease report said.
As per the Teamlease report, in the manufacturing sector, six out of ten industries provided a higher stipend in 2022 as compared to 2021.
Agriculture and agrochemicals, with current stipend of Rs 14,000, witnessed a 12 percent growth. Similarly, apparel and textiles (22 percent), FMCG (8 percent), handicrafts and jewellery (6 percent), and infrastructure and capital goods (5 percent) also witnessed an increase in payouts. On the other hand, industries like power and energy (-10 percent) and healthcare (-7 percent) saw a decline.
In the services sector, 11 out of 13 industries provided a higher stipend in the fiscal. The top industries included media and entertainment (18 percent), services including repair and maintenance (11 percent), education (9 percent), life science (8 percent) and e-commerce and tech products (8 percent). However, despite the technology boom and the advent of 5G, telecommunication (-4 percent) and IT/ITeS (-2 percent) saw a dip in the fiscal.
Among top cities with highest stipends, Chennai topped Rs 13,100 stipend, followed by Kochi (Rs 13,000), Bengaluru (Rs 12,900), Coimbatore (Rs 12,900) and Pune (Rs 12,400).
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