What You Need to Know About the NAPS

What you Need to Know About the NAPS

What You Need to Know About the NAPS

In August 2016, the government of India launched the national apprenticeship promotion scheme to develop India’s young workforce where it would financially support establishments that offered apprenticeship programs.

In order to further facilitate the NAPS, the ministry of skill development and entrepreneurship validated the creation of third-party aggregators. A TPA, also called a NAPS agencyundertakes apprenticeship activities like arrange basic training for new apprentices, maintaining of their records, filing of returns and stipend administration.

Components of the NAPS 

The NAPS has 2 major components:

  • The reimbursement of 25% of stipulated stipend up to a maximum of ₹ 1500/- per month per apprentice by the Government of India. This will be paid toll the employers or industrial bodies who are involved in employing apprentices in designated roles.
  • Reimbursement of the entire valuation of basic training up to a limit of ₹ 7500/- for a maximum of 500 hours over a duration of 3 months to basic training providers (BTPs). They provide apprenticeship training candidates who approach these bodies without any experience of formal training.

Eligibility for Third Party Aggregators

To be eligible to become a NAPS agency or a third-party aggregator, a few criteria have to be met:

  • The concern applying to become an agency must have been involved in the fields of industrial training/skilling/ education/ placement/ non-profit activities for a minimum period of 5 years.
  • The agency must have a fully equipped headquarters with sufficiently developed infrastructure which will provide trainees or apprentices enough exposure.
  • The agency should have had some experience in the field of mobilizing a potential workforce for education, skill-based interventions, facilitating wage/ self-employment or entrepreneurship/non-profit-based activities for the development of the community
  • A minimum of 20 establishments must have signed letters of support to take on some of the apprentices from the agency.
  • The agency or any related concerns should not have been blacklisted.

Apprenticeship – What you Need to Know: 

  • Any individual, who has completed 14 years of age, is physically fit and has a minimum educational qualification prescribed for a trade can undergo apprenticeship training. in establishments that are under the central/state government or even in private sectors and establishments that offer apprenticeship
  • Apprentices are given on-the-job training, mandatory training in real workplaces and workplace scenarios. Almost every sector imparts on the job training to apprentices including agriculture, banking and finance, retail and logistics, entrepreneurship, entertainment and media, fabrication and so on. There are 259 trades designated by the government of India.
  • Establishments engage apprentices that are 2.5% to 10% of their total manpower, including contractual staff. For instance, an establishment with a total strength of 100 workers can take on a maximum of 10 apprentices and a minimum of 3 apprentices.

Benefits of the NAPS to Industries

  • The NAPS directly addresses skill gaps in industries. This will also enable industries to customize learning material for future apprentices to suit their requirements and culture better.
  • The NAPS Increases the availability of skilled manpower with an awareness of company culture. Given that organizations may find it difficult to keep track of competent apprentices, payroll processing services can help in keeping track of their documents, performance and wages.
  • Other key benefits include the reduction of attrition and cost of the recruitment process. Apprentices that are offered more permanent positions are more loyal.
  • The organizations that support the NAPS and hire apprentices receive financial support directly from the government.

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