The day of the apprentice 

A multi-city report reveals that during financial year 2022 various industries in India had been generous with their stipend payouts

May 16, 2023 08:23 pm | Updated May 17, 2023 10:48 am IST

Not long ago, stipends could be equated with pocket money. The tide seems to be turning for apprentices now — the ‘Stipend Primer Report’ for financial year 2022 by TeamLease Degree Apprenticeship, a degree apprenticeship programme from the house of TeamLease Services, indicates a growing positive synergy amongst Indian companies to pay higher stipends than the mandated minimum notified stipends.

The report highlights a significant variation in stipend payouts across industries, cities and educational qualifications.

In fact, stipend payouts in certain sectors have gained better traction than salary trends over the past year, says the report.

The list of industries

A majority of industries surveyed have indicated promising stipends for apprentices.

In the manufacturing sector, six out of 10 industries provided a higher stipend in 2022 as compared to 2021.

Agriculture and Agrochemicals, with current stipend of ₹ 14,000, witnessed a 12% growth. Similarly, Apparel and Textiles (22%), FMCG (8%), Handicrafts and Jewellery (6%), and Infrastructure and Capital Goods (5%) also witnessed an increase in the payouts.

On the other hand, industries like Power and Energy (-10%) and Healthcare (-7%) saw a decline.

In the services sector, 11 out of 13 industries provided a higher stipend during the fiscal.

The top industries included Media and Entertainment (18%), Services including Repair and Maintenance (11%), Education (9%), Life Science (8%) and E-commerce and Tech Products (8%). However, despite the technology boom and the advent of 5G, Telecommunication (-4%) and IT/ITeS (-2%) saw a dip during the fiscal.

Top cities

The report also says that nine out of 14 cities experienced an increase in stipends in FY-2022 compared to FY-2021.

The top-paying cities in FY-2022 were Chennai (₹ 13,100 per month) and Kochi (₹ 13,000 per month), followed by Bengaluru and Coimbatore, both offering ₹ 12,900 per month.

Additionally, Nagpur and Lucknow saw a 9% increase in stipends, while Chandigarh had a 6% increase, and Delhi and Hyderabad each had a 5% increase in stipend.

Educational qualification also impacted the stipend. Diploma and Trade (Regular) apprenticeships earned around 50% above minimum stipends and Trade (degree) apprenticeships earned about 40% above minimum stipends. Premium stipends paid to diploma holders are 30% to 50% higher than the average stipends in nearly 6 out of 14 cities.

Similarly, graduates enjoyed premium stipends that were 55% to 75% higher in 5 out of 14 cities.

Postgraduates, specifically in Chennai, Hyderabad, Indore, Bengaluru, Chandigarh and Delhi received premium stipends that were 50% to 80% higher than the average stipends.

In terms of job roles, Agriculture Field Officer was topping the chart with ₹15,200 per month, followed by Retail Sales (₹13,800 per month) and HR (₹ 13,600 per month).

In a press release, Sumit Kumar, Chief Business Officer, TeamLease Degree Apprenticeship, said: “This upward trend signifies a growing recognition among companies of the immense value and return on investment that come with engaging apprentices in their organisations.

Employers are willing to pay higher stipends than industry mandates as they see the value of investing in apprentices to bridge the skill crisis and create a sustainable talent supply chain.”

The Stipend Primer Report FY-2022 covered 14 hub cities across 24 industries, and the total number of unique employers covered in the report are 553.

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