News: Stipends to apprentices continue to surge in India: Report

Compensation & Benefits

Stipends to apprentices continue to surge in India: Report

The majority of industries surveyed have indicated promising stipends for apprentices. Average stipends increased by 2% in FY-2022 as compared to FY-2021.
Stipends to apprentices continue to surge in India: Report

Stipend growth in India has outperformed salary growth in many industries. There has been a 12% growth in stipend paid to candidates deployed with Agriculture & Agrochemicals industries, reveals TeamLease’s ‘Stipend Primer Report’.

According to the findings of the report, average stipends increased by 2% in FY-2022 as compared to FY-2021. While the overall percentage increase has been a marginal spike, the report highlights a significant variation in stipend pay-outs across industries, cities and educational qualifications. In fact, stipend payouts in certain sectors have gained better traction than salary trends over the past year.

In terms of job roles, with Rs 15,200 per month, the agriculture field officer has topped the list followed by retail sales with Rs13,800 per month and HR 13,600 per month.

Furthermore, according to the report findings, the majority of cities (9 out of 14) experienced an increase in stipends in FY-2022 compared to FY-2021. The top-paying cities in FY-2022 were Chennai (INR 13,100 per month) and Kochi (INR 13,000 per month), followed by Bengaluru and Coimbatore, both offering INR 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.

Majority of industries surveyed have indicated promising stipends for apprentices. In the manufacturing sector, six out of ten industries provided a higher stipend in 2022 as compared to 2021. Agriculture & agrochemicals, with a current stipend of Rs 14,000, witnessed a 12% growth. Similarly, apparel & textiles (22%), FMCG (8%), handicrafts & jewellery (6%), and infrastructure & capital goods (5%) also witnessed an increase in payouts. On the other hand, industries like power & energy (-10%) and healthcare (-7%) saw a decline.

 In the services sector, 11 out of 13 industries provided a higher stipend in the fiscal. The top industries included media & entertainment (18%), services including repair and maintenance (11%), education (9%), life science (8%) and e-commerce & techpProducts (8%). However, despite the technology boom and the advent of 5G, telecommunication (-4%) and IT/ITeS (-2%) saw a dip in the fiscal.

Even from the apprenticeship category perspective and an education qualification viewpoint, many cohorts of apprentices earned better stipends than the nominal base. Diploma and Trade (Regular) apprenticeships earned more than 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. 

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

Sharing his views, Sumit Kumar, Chief Business Officer, TeamLease Degree Apprenticeship, said, " 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. Companies are witnessing first-hand the transformative impact apprentices can have on their operations. We are hopeful that lucrative stipends being paid out will attract more youth to take up apprenticeships that will help them enhance their employability and livelihood opportunities."

“As the demand for skilled professionals continues to rise, businesses are embracing apprenticeships as a powerful tool for talent development and acquisition. By providing valuable on-the-job training, mentorship, and real-world experience, organisations are equipping apprentices with the necessary skills to thrive in today's competitive job market. The evolution of stipend trends is a testament to the changing dynamics of the workforce and the strategic vision of forward-thinking organisations,”, said Dhriti Prasanna Mahanta, Business Head, TeamLease Degree Apprenticeship. 

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Topics: Compensation & Benefits

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