Apprentice Stipend continually surging in India: Report
In terms of employment roles, agriculture field officer tops the list with Rs 15,200 per month, followed by retail sales with Rs13,800 per month and HR with Rs 13,600 per month.
Apprentice Stipend continually surging in India: Report
In many industries, stipend growth has outpaced pay increase in India. According to TeamLease’s ‘Stipend Primer Report,‘ the stipend provided to apprentices working in the agriculture and agrochemicals industries has increased by 12%.
According to the report’s results, average stipends increased by 2% in FY-2022 compared to FY-2021. While the overall percentage rise has been minor, the research illustrates a wide range of stipend pay-outs across businesses, cities, and educational levels. Indeed, stipend payments in many industries have gained more traction than salary developments in the last year.
In terms of employment roles, agriculture field officer tops the list with Rs 15,200 per month, followed by retail sales with Rs13,800 per month and HR with Rs 13,600 per month.
ALSO READ: Microsoft No hike for full time staff in 2023
Furthermore, the majority of localities (9 out of 14) saw a rise in stipends in FY-2022 compared to FY-2021, according to the survey findings. In FY-2022, the highest-paying cities were Chennai (INR 13,100 per month) and Kochi (INR 13,000 per month), followed by Bengaluru and Coimbatore, each of which offered INR 12,900 per month. Furthermore, Nagpur and Lucknow had a 9% increase in stipends, while Chandigarh saw a 6% increase and Delhi and Hyderabad each got a 5% increase.
The majority of industries polled reported promising stipends for apprentices. Six out of ten industries in the manufacturing sector gave a greater stipend in 2022 than in 2021. Agriculture and agrochemicals, with a current stipend of Rs 14,000, grew by 12%.
Similarly, payouts increased in apparel & textiles (22%), FMCG (8%), handicrafts & jewellery (6%), and infrastructure & capital goods (5%). Power and energy (-10%) and healthcare (-7%), on the other hand, experienced declines.
Throughout the fiscal year, 11 of 13 industries in the services sector paid a higher stipend. The leading industries were media and entertainment (18%), services including repair and maintenance (11%), education (9%), life science (8%), and e-commerce and technology products (8%). Nonetheless, despite technological advancements and the rollout of 5G, telecommunications (-4%) and IT/ITeS (-2%) saw budgetary declines.
Even when considering the apprenticeship category and education level, many cohorts of apprentices obtained higher stipends than the nominal base. Diploma and Trade (Regular) apprenticeships earned more than 50% more than minimum stipends, whereas Trade (Degree) apprenticeships earned around 40% more.
Diploma holders receive premium stipends that are 30% to 50% greater than normal stipends in approximately 6 of 14 locations. Similarly, graduates in 5 of 14 locations received premium stipends that were 55% to 75% greater. Postgraduates got premium stipends that were 50% to 80% greater than average stipends in Chennai, Hyderabad, Indore, Bengaluru, Chandigarh, and Delhi.
The Stipend Primer Report FY-2022 covers 14 hub cities across 24 industries, with a total of 553 distinct businesses covered.
Sumit Kumar, Chief Business Officer, TeamLease Degree Apprenticeship, shared his thoughts, saying, “Employers are willing to pay higher stipends than industry mandates because they see the value of investing in apprentices to bridge the skill crisis and create a sustainable talent supply chain.”
Companies are seeing firsthand how apprentices may have a dramatic impact on their operations. We are confident that the generous stipends would persuade more young people to pursue apprenticeships, which will help them improve their employability and livelihood chances.”
“As the demand for skilled professionals continues to rise, businesses are embracing apprenticeships as a powerful tool for talent development and acquisition. By providing valuable on-the-job training, mentorship, and real-world experience, organisations are equipping apprentices with the necessary skills to thrive in today’s competitive job market.
The evolution of stipend trends is a testament to the changing dynamics of the workforce and the strategic vision of forward-thinking organisations,”, said Dhriti Prasanna Mahanta, Business Head, TeamLease Degree Apprenticeship.
CONCLUSION/ANALYSIS
However, according to the research, stipends in various apprentice categories have climbed dramatically during the last two years. In other industries, stipends have increased by 70%. This resulted in a 2% total change. This is a very encouraging sign for attracting more job seekers to pursue apprentice training and develop their industrial abilities. In terms of financial means, this benefits both employers and trainees. Furthermore, the increase in apprentice stipends in industries is a part of their Organisational labour strategy to help the organisation maintain low labour costs and high profit.
- Withdraw PF from ATMs Starting 2025: Labour Ministry - December 12, 2024
- Oral Complaints Cannot Replace Written Complaints Under PoSH Act: Kerala High Court - December 12, 2024
- Bengaluru Woman Rejects Job Offer Due to CEO’s Behavior During Interview - December 10, 2024
