The National Apprenticeship Training Scheme (NATS) for Graduates and Diploma Holders

Unlock Growth with the National Apprenticeship Training Scheme (NATS) for Graduates and Diploma Holders

Are you a fresh graduate or diploma holder, eager to gain practical industry experience? Or a company looking to tap into young, skilled talent while fulfilling your corporate responsibility? The National Apprenticeship Training Scheme (NATS), an initiative by the Ministry of Education India, is designed to help both individuals and organizations grow together! 🚀

What is NATS?

NATS is a government-backed program that provides technical and non-technical graduates/diploma holders with hands-on, paid, on-the-job training in various industries. For companies, it not only offers a cost-effective way to train future employees but also provides structured development pathways. Meanwhile, for apprentices, it serves as a launchpad to build industry-specific skills, allowing them to earn as they learn and gain hands-on experience.

Apprenticeship Duration

For Non-Technical graduates/diploma holders

• 6 months to 3 years

For Technical Graduates/Diploma Holders

• 1 year

Stipend

• 9000 per month for graduates
• 8000 per month for diploma holders

Eligibility

1. Non-Technical Graduates/Diploma holders (General Streams/Faculties) and Technical Graduates/Diploma Holders (Engg., Tech., Pharmacy, HMCT, Arch. Etc.) from recognized Universities and Institutes can apply
2. The date of joining shall not be more than 5 years from the date of passing the course

Key Benefits of NATS:

• Stipend Support: Stipend is ₹9,000/month.
• Government Collaboration: Companies get government backing in developing the workforce of tomorrow. (Rs 4,500 is paid by the government.)
• Hands-On Experience: Apprentices get practical training, boosting their employability in the competitive job market.

Here’s an example that highlights how employers can benefit financially by hiring employees under the Apprenticeship Act versus hiring them under their payroll.

Scenario:

1. Hiring an Employee on Payroll:

Assume a company hires an employee under the Minimum Wages Act (MWA) as per Maharashtra’s Shop and Establishment regulations, with a monthly CTC (Cost to Company) salary of ₹17,920 on their standard payroll.

Employee Basic + DA as per MWA (Minimum wages): ₹14,882/m

Employee Gross Salary: Basic + HRA (5% of Basic salary + DA):  ₹ 14,882 + ₹ 744 = ₹ 15,626/m

Employer’s Contribution to Provident Fund (PF): 12% of basic salary: ₹14,882 + 12% = ₹1,786 per month

ESIC Employer’s Contribution: 3.25% of gross salary: ₹15,626 + 3.25% = ₹508 per month

Total Cost for the employer per month:

Total Monthly Cost for the Employer per employee: CTC = ₹17,920

Total Monthly Cost for the Employer for 100 employees: ₹17,920 X 100 = ₹17,92,000

Total Yearly Cost for the Employer for 100 employees: ₹17,92,000 X 12 = ₹2,15,04,000

2. Hiring an Apprentice Under the Apprenticeship Act:

Now, let’s consider the company hires an apprentice under the Apprenticeship Act. Let’s assume the stipend for the apprentice is ₹9,000 per month.

Stipend: ₹9,000

No PF Contribution: Employers are not required to contribute to the PF for apprentices.

No ESIC Contribution: ESIC contribution is also not required for apprentices.

No Minimum Wages: Minimum Wages are also not required for apprentices.

No PT Deduction: There’s no PT Deduction.

Total Monthly Cost for the Employer: ₹9,000

Comparison:

Cost of Employee on Payroll: ₹17,920 per month

Cost of Apprentice: ₹9,000 per month (However, with the government covering ₹4,500 per month, the company effectively only pays ₹4,500 to the employee.)

Savings per month by hiring an apprentice: ₹17,920 – ₹4,500 = ₹13,420

Annual Savings:

If there are 100 employees, you can save up to:

₹13,420 X 100 = ₹13,42,000 X 12 months (a year) = ₹1,61,04,000/ year.

Conclusion:

By hiring employees under the Apprenticeship Act, the employer can save ₹1,61,040 per employee annually compared to hiring regular employees on payroll, while also benefiting from a reduced regulatory burden. This provides a significant financial advantage, especially for businesses looking to reduce labor costs.

Whether you’re a company looking to train skilled employees or a graduate seeking practical experience, NATS is the perfect bridge to success.

For more insights into the National Apprenticeship Training Scheme and real-life success stories, watch our video here to see how NATS is transforming career journeys! 📽️🌟

Get in touch with EXERTION HR SOLUTIONS PVT. LTD today to start enjoying immediate benefits and create a brighter future! 🌟

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