The Ministry of Skill Development and Entrepreneurship (MSDE) has given assurance of stipend to 2.43 lakh apprentices under the National Apprenticeship Promotion Scheme (NAPS).
Owing to the lockdown in the country to contain the spread of the covid-19 pandemic the ministry has invoked a provision under the act. The total cost borne by the government will be Rs 36.3 crore.
On Tuesday, the ministry had notified all the establishments to pay full stipend to apprentices engaged with them.
The ministry said in a statement, “Additionally, reimbursement of stipend to establishments under National Apprenticeship Promotion Scheme (NAPS) shall be paid by the Government for the lockdown period as per the NAPS guidelines.”
Presently there are total of 24,884 establishments engaging 2.42 lakh apprentices. The NAPS provisions allows the government to reimburse 25% of the stipend amount to be paid to apprentices monthly subject to Rs 1500 per month.
Owing to the lockdown the government will be paying Rs 36.3 crore to establishments claiming refunds under NAPS.
The Apprentice Act 1961 allows if there any events where the apprentice is unable to complete the apprenticeship training due to strike, lockout or layoff, the period of his apprenticeship has to be extended for a period of equal to the period where he’s not working for the above reasons stated and shall be paid stipend for the same period.