March 17, 2019: The growing demand for skilled talent coupled with revisions in the apprenticeship act seems to be positively impacting the apprenticeship eco-system states TeamLease Skill University Stipend Primer Report. According to the report, the stipends offered to apprentices are higher than the minimum wages. In fact, the median stipend is around 41% higher than the applicable minimum wages in the majority of the sectors and cities. Further, as per the study apprentices who are under the Other Employability Schemes (OEES) received a higher stipend (7.66% higher) than the stipend paid under the Apprenticeship Act.
From a state perspective, with a stipend that is 159% higher than the minimum wages, Maharashtra topped the list as the highest paying state. Amongst sectors Construction & Real Estate (125%), IT & ITeS (122%), FMCG (110%) and Automotive (82%) were the top paying sector for apprentices.
Further, as per the report, the stipend payouts increases in proportion with the educational qualification. Post- graduates and engineering graduates are the best paid across sectors as per both OEES and Market (Apprentice Act). Non-Engineering Graduates and Diploma holders are paid almost on par across sectors; however, Non-Engineering Graduates are paid significantly higher than Diploma holders in Construction, Banking & Financial Services and Tourism & Hospitality. Except in the construction sector, ITI pass-outs are paid marginally higher than 10th / 12th pass-outs in most of the industries. ITI and Diploma Holders are paid almost similar stipends across sectors. School drop outs are paid significantly low.
KEY FINDINGS OF THE SURVEY
Commenting on the report, Mr. Sumit Kumar, Vice President, TeamLease Skills University, said: “The growing optimism coupled with the right initiatives made by the government will not only encourage better participation from corporates, but it will instil confidence in the talent community also to participate in the program.”
The report also delved into comparative analysis between stipends paid by large businesses vs. stipend paid by Medium and small businesses. While large businesses paid significantly higher stipends [12% to 34%] than others, and the difference in stipends between medium and small businesses is not very significant. Further, the report brought to the forefront of employers expectations with regard to skills. Some of the skills employers looked for in applicants were domain awareness, quantitative abilities, analytical abilities in specialized domains like IT, finance and accounting, production and manufacturing. In addition to domain expertise, employers also looked for soft skills and functional skills in generic as well as support function domains like administration, HR, sales and marketing.
The Stipend Primer is a detailed analysis pertaining to payouts to apprentices by sector, region, educational qualification and roles. The study covers apprentices employed in nine sectors across nine cities.
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