Maha apprentices paid 159 per cent higher than minimum wages

Mumbai: The growing demand for skilled talent coupled with revisions in the Apprenticeship Act seems to be positively impacting the apprenticeship ecosystem in India, with Maharashtra topping the list as the highest paying state.

While the median stipend is around 41 per cent higher than applicable minimum wages in majority of sectors and cities, a study report released by Team Lease Skill University has revealed that the apprenticeship stipend in Maharashtra is 159 per cent higher than minimum wages.

This is followed by Andhra Pradesh (132 per cent), Tamil Nadu (112 per cent) and Gujarat (84 per cent). The report also highlighted that apprentices under the other employability scheme (OEES) received 7.66 per cent higher stipend than what was paid under the Apprenticeship Act.

Interestingly, the study noted that the higher payout failed to meet the candidate’s expectation by a huge margin across cities.

In Mumbai, the average apprenticeship payout stood at `9,400 per month, 36 per cent lower than `12,800 expected by candidates, according to the report. In cities like Delhi and Bengaluru, the percentage variation in actual payout and expectation was as high as 71 per cent and 42 per cent, respectively.

According to the report, the stipend payout increased in proportion with the educational qualification. Post-graduates and engineering graduates were the best paid across sectors, as per both other employability schemes (OEES) and Market (Apprentice Act).

Non-engineering graduates and diploma holders were paid almost on par across sectors. However, non-engineering graduates were paid significantly higher than diploma holders in construction, banking and financial services, and tourism and hospitality.

A majority of employers (46 to 77 per cent of those who participated in the survey) expected applicants to be aware of essential soft skills and a good 63 per cent expected them to possess domain awareness.