National Apprenticeship

Promotion Scheme
 Apprenticeship in India
The Apprentices Act, 1961 was enacted with the objective of regulating the program of training of apprentices in the industry by utilizing the
facilities available therein for imparting on-the-job training. As the 1961 law was old and with changing times needed revamping – GOI has
brought about comprehensive reforms in the Apprenticeship Act in 2014 & the Apprenticeship Rules in 2015 to make apprenticeship more
industry friendly. Features of the act and key changes made are:

• Ministry of Skill Development and Entrepreneurship (MSDE) & Ministry of Human Resource & Development (MHRD) are responsible for implementation of
the Act.
• Any establishment with headcount > 4 is eligible but Mandatory as per law for any establishment with headcount > 30 to engage apprentices.
• An apprentice cannot be an employee of the organization - Section 18 of the Apprentices Act, 1961 stipulates that the apprentices are trainees and not
workers.
• The provisions of any law with respect to labour shall not apply to or in relation to such apprentice. An apprentice is paid consolidated monthly stipend,
without statutory ESI and EPF contributions and deductions
• Removal of prescriptive, quota-based apprenticeship norms and the introduction of a flexible need-based band minimum 2.5% to a maximum of 15% of
total headcount to be engaged.
• Introduction of Optional Trades under the apprenticeship programme, which shall be designed by industry.
• Linking short term skill development programs and training to the apprenticeship programme
• You can choose the apprentice you want – fully at liberty to follow the normal selection process.
• No Physical Visit from any government official – all sanctions approvals etc to be online.
 Value Proposition – Why an Apprentice

Mandatory Trained Financial Reduced Lower Compensation

Compliance Manpower Rewards Attrition Levels

Nation
Building
 Apprentice Onboarding Process

My Company’s Will my Company need to do something

Conventional Hiring Process / Style different to Engage an Apprentice?

Campus / Open Source / Job Mela Campus / Open Source / Job Mela
Recruitment Cons or any other Source Recruitment Cons or any other Source

Sign a
Issue a Standard
Offer Digital
Letter Contract

Officer / Executive Apprentice Trainee

 Apprentice vs Employee

Minimum wages No fixed job

Designated as a Covered under
‘worker’
defined by state duration unless
PF and ESI Employee
& skill levels specified

Fixed stipend Pre Defined

Designated as a Not covered
‘trainee’
levels across Training period
under PF and ESI Apprentice
India for each job role
 Apprenticeship – Eligibility and Stipend

Educational Qualification and Apprenticeship duration for different

categories of candidates.

However, we suggest companies to pay same take home to apprentices as

those of regular employees of the same job role & experience.
National Apprenticeship Promotion
Scheme (NAPS)
Scheme Details
 NAPS Explained

The Government of India had launched the National Apprenticeship Promotion Scheme (NAPS) in August 2016, to
promote the apprenticeship program in India by introducing a package of financial incentive to establishments engaging
apprentices.

The financial benefit has following components:

I. Reimbursement of 25% of prescribed stipend, subject to a maximum of INR 1,500 per month per apprentice
II. Reimbursement for cost of basic training, up to INR 7,500 per apprentice for a maximum period of 3 months/500
hours.
III. Employers exempted from contribution to EPF & ESI and other Statutory Compliances
IV. Any expenditure on the Apprenticeship Training over and above of 2.5% minimum mandate intake, can be booked
under CSR funding.

Program Structure - Consists of two parts

• Basic Training – upto 500 hours/3 months - should account for 20-30% of overall duration of Apprenticeship Training.
• On-the-Job-Training/Practical Training at workplace in the industry
 Apprentice Cost Benefit 1 (NAPS)

Employee Apprentice

Monthly CTC = ₹ 15,000 Monthly Stipend = ₹ 15,000

Less Contribution - PF, ESI & Professional Tax = ₹

Not Applicable / No Deduction
3,000

Net in Hand = ₹ 12,000 Net in Hand = ₹ 15,000

Annual NAPS Rewards:

No Financial Rewards
[₹ 1500 x 12 Months i.e. ₹ 18,000]
PF & ESIC cost fully being passed on to
No Compliance Savings
apprentices as part of their monthly take home.

Effective Annual CTC = Annual stipend – Annual

Effective Annual CTC = ₹ 180,000 NAPS Rewards = 1,62,000
 Apprentice Cost Benefit 2 (NAPS)

Employee Apprentice

Monthly CTC = ₹ 15,000 Monthly Stipend = ₹ 12,000

Less Contribution - PF, ESI & Professional Tax = ₹

Not Applicable / No Deduction
3,000

Net in Hand = ₹ 12,000 Net in Hand = ₹ 12,000

Annual NAPS Rewards:

No Financial Rewards
[₹ 1500 x 12 Months i.e. ₹ 18,000]
Monthly PF & ESIC Savings – Rs. 3,000
No Compliance Savings
Annual PF & ESIC Savings – Rs. 36,000

Effective Annual CTC = 1,80,000 – (PF&ESIC

Effective Annual CTC = ₹ 180,000 Savings + NAPS Rewards) = 1,26,000
 2COMS Group’s role in
Implementation of NAPS
2COMS is an authorized TPA
Edujobs is a approved BTP

Partner with us to empower your internal workforce with National Apprentice Promotion Scheme

National Apprenticeship
Promotion Scheme
 Role of 2COMS (Apprenticeship TPA)

2COMS Group will serve as the end-to-end Apprenticeship Implementation & Management agency for your firm

Advisory / Help
Apprenticeship Coordination with
Create Apprentice
Portal Registration NSDC & SSC officials
Policy Framework

Basic Training, Stipend Payouts,

Documentation and
Assessments and Claims and
Contract Generation
Certification Reimbursements
Sample Certificate of Merit
 Engagement Cycle

MOU Signed and Reconcile exits /

Interaction with
Client Registration terminations as
NSDC & SSC
completed applicable

Establishment and Quarterly payroll Ongoing claims

BTP / TC Setup and documents submission and
Approval uploaded clearance

Attendance collated
Management fee
Candidate Selected and agreed stipend
disbursement
paid

Candidates Candidate contract

documents letter, hiring
Collection and formalities
submission concluded
 2COMS Credentials

Largest Third Party

Aggregator (TPA) in India

28 Years of HR Services
Experience
2COMS
Credentials
70k plus Optional Trades
We have an integrated
eco-system to cater to End
contracts generated
to End functioning of the
NAPS Implementation
Dedicated Team across
functions

720+ NAPS Clients

2COMS Performance Report

Ranked #1 TPA in India in 2 categories Contracts generated

(As per NSDC Report – Numbers updated till 28 Feb ’22) 37,958 in FY 21-22.
Total contracts generated has been
68,782 81,184 until 10 April ’22
Cumulative Contracts Generated
2COMS Clients have received 19 Crores 18 Lakhs
34 rupees out of 100 Crores disbursed so far by the
State & Union Territories Presence Central Government.

2COMS has maintained 100% success in claims

2COMS has 19% share on the basis of
disbursement against claims submission on behalf
claims received.
of it’s clients under NAPS Scheme.

National Apprenticeship
Promotion Scheme
SUCCESS Story – Monetary claims received by one of our premium clients

Spencer’s has received till date 2.7 Crores plus rupees under NAPS Scheme
SUCCESS Story – Claims obtained of more than 1 Crore rupees

2,74,25,280 INR
Claim Received

2,23,12,284 INR
Claim Received

1,94,66,367 INR
Claim Received

1,69,93,815 INR
Claim Received

1,55,80,046 INR
Claim Received

National Apprenticeship
Promotion Scheme
Top 10 Clients in terms of contract generation

134 Clients have more

than 10% apprentices’
intake.

National Apprenticeship
Promotion Scheme
Few Clients Signed Up

National Apprenticeship
Promotion Scheme
Few Clients Signed Up

National Apprenticeship
Promotion Scheme
 2COMS NAPS Performance Update

Establishments
Contracts Establishments Signed Up
SSC Coverage
Generated Signed Up
21 Till Date
136
Approx. 81000+ 700+ Till Date

Opt Contract
Team Deployed Opt Contract States & UT
Potential
Potential Covered
54 1,00,000+
1,80,000+ 34
 2COMS USP

QUICK PAN INDIA DEDICATED UNPARRELLELED

SUCCESS BASED
TURNAROUND SUPPORT ACCOUNT IMPLEMENTATION
FEE MODEL
TIME TEAM MANAGER EXPERTISE

National Apprenticeship
Promotion Scheme
Huge Possibilities
Lets make it Big