News: PSUs and corporates given incentives for hiring apprentices

Employee Engagement

PSUs and corporates given incentives for hiring apprentices

Government has promised to give monetary incentives to all PSUs and corporates for every apprentice they hire.
PSUs and corporates given incentives for hiring apprentices

The Lok Sabha was informed on 20 July 2016 that Public Sector Undertakings (PSUs) or corporates in technical and service sectors will be given Rs. 18,000 by the government for each apprentice they hire in their organizations. 

Skill Development and Entrepreneurship Minister Rajiv Pratap Rudy stated during Question Hour that his Ministry has set a target of helping 50 lakh youth undergo apprenticeship in the next three years in PSUs and corporate houses. He also said that he has set aside Rs. 10,000 crore for the apprenticeship program and the money will be given to PSUs or private organizations directly if they offer apprenticeship to eligible youth. 

The establishments are required to engage number of apprentices equivalent to a minimum of 2.5% and a maximum of 10% of the total workforce, including contractual workforce. 

In China around 3 crore youth undergo apprenticeship, whereas in Japan, the number is 2 crore. But, in India only 2.5 lakh youth undergo apprenticeship. 

Rudy has appealed to all central ministries to direct PSUs under them to help in the apprenticeships for youths in all such organizations. 

The government claims that it is the first time that a scheme has been designed to offer financial incentives to employers to engage apprenticeship. In addition to this, 50% of the total expenditure incurred on providing basic training will be supported by the Central government.

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Topics: Employee Engagement, Skilling, #Hiring

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