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India – Minimum Stipend Payable To Trade Apprentices.

27 October, 2014


Recently, the Ministry of Labour and Employment, through its Notification G.S.R. 680(E) dated September 22, 2014 prescribed the minimum rate of stipend per month payable to trade apprentices. The minimum rate of stipend per month shall be calculated at a percentage of the minimum wage of semi-skilled workers of the respective state or union territory which will be, namely (a) seventy per cent during the first year of training, (b) eighty per cent during the second year, and (c) ninety per cent during the third and the fourth year. Further, in the event the minimum rate of wage for a trade is not notified by any state or union territory, then, the maximum of minimum wages of the scheduled employment for semi-skilled workers shall be considered for paying the stipend.

 
The minimum rate of stipend per month for trade apprentices shall be calculated as percentage of minimum wage of semi-skilled workers. As a result of the change, the minimum wage payable to trade apprentices has increased and will be subject to change in the event of the change of minimum wage payable in each state and union territory. The amendment shall come into force with immediate effect from the date of publication i.e. September 22, 2014.

 
Previously, the minimum rate of stipend per month payable to trade apprentices was as under (a) INR 2,100 during the first year of training, (b) INR 2,400 during the second year, (c) INR 2,800 during the third, and (d) INR 3,100 during the fourth year.

 

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For further information, please contact:

 

Reena Grover, Partner, Rajani Singhania & Partners

reena.grover@rsplaw.in

 

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