NAPS Scheme – Everything you need to know

What is National Apprenticeship Promotion Scheme (NAPS)?
The National Apprenticeship Promotion Scheme aims at providing skill-specific training to workers in a particular job. It was launched in August 2016 by the Government of India to promote Apprenticeship in the country by providing financial incentives, technology, and advocacy support. While arming the youth with employable skills, it provides financial support to establishments undertaking the apprenticeship training program. The training module includes basic training and on-the-job/practical training at workplaces.

Why are NAPS required? 
Despite the country’s economic growth continuing at a healthy rate, the Organization for Economic Cooperation and Development (OECD) has predicted that India’s unemployment rate will double from 4 percent to 8.3 percent by 2022. According to the same report, approximately 10 million youth will join the status being unemployed, bringing the unemployment tally to around 220 million. On the other hand, businesses are not able to find the skilled talent required to fill in vacant positions in their organizations leading to productivity and resource loss. With the help of NAPS, organizations can train and mold fresh talent according to their work requirement while collecting financial benefits from the government.

Which businesses can implement NAPS?
NAPS has been made compulsory by law for all industries with a workforce of 30 or more people (contractual and regular) to employ a minimum of 2.5% and a maximum of 15% apprentices of their overall headcount. 5% of the total is to be reserved for fresh and skilled certificate-holding apprentices. Employers must possess a few mandates to implement NAPS in their organization. 

• The employer shall engage apprentices in a band of 2.5% to 10% of the total strength of the establishment

• Employers must be registered with EPFO/ESIC/LIN/ UDYOGAADHAR

• Employers must have a TIN number.

• Employers must register on the apprenticeship portal.

• Employers must have an aadhaar-linked bank account

The tedious registration process can be handled expertly by Buzzworks – a NAPS facilitator that works as your ideal partner for enrolling on NAPS.

What does NAPS training comprise? 

The apprenticeship training comprises basic and on-the-job training/practical training at a workplace. Basic Training is given to individuals who have not received any kind of prior training. The government shares the cost of basic training up to Rs 7,500 with the employer.

On-the-job NAPS Training involves training the apprentice in a practical job/skill of the industry so that they can perform their tasks perfectly. The duration of on-the-job training can last from 6 months to 36 months. 

The employer does not have to invest any additional cost since the NAPS training is provided in their pre-established industry infrastructure. Employers are required by the Apprentices Act to provide apprenticeship training in both designated and optional trades. 

Benefits of enrolling for NAPS as an employer:

The National Apprenticeship Promotion Scheme benefits the employer in many ways, some of which are: 

• Employers are exempted from EPF and ESI contributions

• Sharing of 25% of prescribed stipend subject to a maximum of Rs. 1500/- per month per apprentice with the employers. The stipend support would not be given during the basic training period for fresher apprentices.

• Sharing of basic training costs in respect of apprentices who come directly to apprenticeship training without any formal trade training. The basic training cost is limited to Rs. 7500/- for a maximum of 500 hours/3 months per apprentice.

• Reduces expenditure on the recruitment process since the trainees start contributing productively after a short training.

• NAPS helps them to identify talent. Employers can evaluate the performance of the trainees and retain them if they wish to.

• Employers can train apprentices in-house or outsource training and can flex the duration from 6 to 36 months.

• Employers can hire apprentices from 2.5% up to 15% of the total workforce.

• Industry-related training creates a proactive workforce. This benefits the employers in the long run since trained employees add value to the organization.

• Employers can engage in skill training from their CSR funds over and above the minimum requirement under the Apprentices Act.

• Procreates industry-ready and skilled candidates through Short-Term Training of Candidates.

• Addresses the hiring gap of skilled candidates through industry-specific training.

• Employers get skilled candidates that are ready to hit the ground running.

• Reduces attrition as a loyalty factor in apprentices is relatively higher.

• The employer receives additional provisions for on (or before) time submission of reports, and contact information through the apprenticeship portal.

• Makes the brand image of the organization stronger and earns goodwill since it is recognized as a nation-building exercise.

Qualities of an ideal NAPS partner:
Along with the multitude of benefits, registering in the NAPS scheme as an employer and availing of financial benefits takes a fair amount of time and effort of your resource. Partnering with a NAPS facilitator relieves you from time-consuming registration and documentation processes.

An IDEAL NAPS FACILITATOR should unburden you from: 

• Stipend administration

• Providing basic training to apprentices (if required for specific profiles)

• Mobilization and registration of applicants in the apprenticeship portal

• Managing candidate payrolls. This can be either the client or NAPS facilitator or both

• Access to designated trades as defined by the Apprentices Act, as well as optional trades.

Choosing Buzzworks as your NAPS facilitator provides you with all the above-mentioned benefits. Connect with us now for more details.

Conclusion:

National Apprenticeship Promotion Scheme creates an industry-ready workforce through practical, on-the-job training for the youth of India. This Government of India initiative can prove instrumental in eliminating the skills gap by providing an optimum balance of theoretical and practical experience.