Central Apprenticeship Council has put forth a major proposal to increase the minimum stipend for apprentices in India by up to 36%, marking a significant step in the government’s efforts to make vocational training more attractive and financially viable for youth. This would be the first major stipend hike since 2019, affecting lakhs of trainee students and industry trainees if approved by the Ministry of Skill Development and Entrepreneurship (MSDE).
The Central Apprenticeship Council — the highest statutory body to make recommendations to the central government on apprenticeship policy — cleared the proposal in its 39th meeting convened on May 24, 2025. The suggestion proposes amending the minimum stipend for specified trades under the Apprentices Act, 1961, keeping in view inflation and the economy’s shifting conditions.
The council’s recommendation suggests raising the minimum monthly stipend for school pass-outs who receive two years of training in ITI from the existing ₹8,050 to ₹10,950. Graduate apprentices will see their stipend go up from ₹9,000 to ₹12,250 a month. Similarly, diploma holders will get ₹11,100 against the present ₹8,000.
Officials in the discussions said that this action is meant to not only match the escalating cost of living but also to encourage young people to get involved more proactively with the formal vocational and industrial training schemes. After the Central Apprenticeship Council‘s suggestions are notified by the government, the alterations will become law under the Apprenticeship Rules.
Addressing the gathering after the meeting, Ministry of Skill Development and Entrepreneurship Secretary Atul Kumar Tiwari said, “The government is determined to make the apprenticeship a strong career-launching opportunity. The increase in stipends as proposed indicates our commitment towards rewarding youth talent and enhancing retention within the skilling ecosystem.”
India now has more than 6.8 lakh active apprentices registered across sectors like manufacturing, automobiles, IT/BPO services, construction, and electronics. These apprentices are employed in private and public sector enterprises, receiving on-the-job training under a systematic programme and earning a stipend. The Central Apprenticeship Council‘s recent recommendation is made when young unemployment remains a great challenge, with the 15–29 age bracket having a disproportionately high rate of unemployment of more than 16%, the latest CMIE data indicate.
Central Apprenticeship Council: Will the hike in stipend enhance student enrollment in skill programs?
The key issue now is if the Central Apprenticeship Council recommendation will encourage more young individuals, particularly from lower-income families and rural areas, to choose apprenticeships. With increasing cost of living in urban areas where most industrial training facilities are found, a higher stipend may ease the financial burden on trainees and their families.
Skilling experts believe this revision could boost both enrolment and completion rates. “A 36% increase in stipend is a much-needed morale booster,” said Dr. Shweta Mishra, an education economist at the Indian Institute of Labour Economics. “We’ve seen dropout rates due to low stipends and inadequate support. With this increase, apprenticeships may finally become a viable alternative to academic degrees for many.”
The Central Apprenticeship Council also suggested tying stipend variations to inflation measures in the future, so stipends can be made more enduring over a period of time. Currently, stipend levels are updated at intervals of a few years as per ad-hoc recommendations, which are frequently unable to match market realities surrounding students and employers.
The suggested increase is also anticipated to eliminate inequalities between private and government sector apprenticeship schemes. Some big private-sector employers, even while adhering to the minimum stipend standards, tend to retain trainees badly due to non-lucrative wages against other such informal entry-point jobs. The Council expects the amendment to bring parity and standardization across sectors.
The Central Apprenticeship Council works under the MSDE and has members from several ministries, state governments, industry associations, employer organizations, and trade unions. The decisions of the Council are advisory in nature but have substantial influence in framing regulations related to apprenticeships.
Industry reaction to the proposed increase has been varied. While big business houses like Tata Motors and Infosys have joined the bandwagon, hailing the move in terms of promoting youth participation, a few small and medium-sized enterprises (SMEs) have complained of affordability. “For the SMEs, an overnight jump of more than 30% in stipend expense can be heavy,” claimed Rajiv Mehra, president, Indian SME Federation. We condone the intent of the decision, but we also call for graded implementation or financing mechanisms.
In response to similar concerns, the MSDE has been said to have set up consultations on providing fiscal incentives to small companies that hire apprentices. At present, in accordance with the National Apprenticeship Promotion Scheme (NAPS), the government reimburses 25% of the stipend with a ceiling of ₹1,500 every month for each apprentice. The Central Apprenticeship Council has suggested amending this ceiling upwards to be aligned with the proposed new stipend norms.
The student community, however, has mostly embraced the proposal. Various apprentice trainees in Delhi, Pune, and Bengaluru welcomed the move to increase stipends. “This shift will make it simpler to pay rent, eat, and travel,” stated Rani Kumari, who works as a diploma apprentice in a Noida-based electronics company. “Beforehand, I used to have to opt for part-time shifts just to meet essential expenses.”
The Council’s move is also in line with the National Education Policy (NEP) 2020, which aims to integrate vocational education into mainstream learning. The Central Apprenticeship Council is seen as a key instrument in achieving the policy’s goal of exposing at least 50% of learners to vocational training by 2025.
With the Ministry’s approval awaited, the reforms can be rolled out within the coming quarter. The step reiterates the government’s commitment to turning India into a skilled talent pool by making apprenticeships not only learning-based but also economically sound.
As the country waits for the official notification, everyone’s eyes are on the Ministry of Skill Development and Entrepreneurship to implement the Central Apprenticeship Council‘s proposal to the ground — one that has the potential to change the image and scope of apprenticeship for India’s youth.
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