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Despite COVID 19, stipend payouts witnessed a positive growth in 2020; expected to see a 3% rise


Chandigarh, (Aditi) : India’s largest degree apprenticeship program, National Employability through Apprenticeship Programme [NETAP] from TeamLease Skills University launched its annual report, 'Stipend Primer - Post-pandemic special', a detailed analysis on stipend payout trends for apprentices. According to the report, despite the disruption caused by the pandemic, the average stipend payouts for apprentices had witnessed a growth in 2020 and this positivity is expected to continue even in 2021. In fact, the average stipend payout is expected to witness more than 3% point rise in 2021

As per the analysis, in the manufacturing sector apprentices in the Electrical & Electronics and Healthcare & Pharmaceuticals industry saw a positive 2020. Apprentices in the Electrical & Electronics and Healthcare & Pharmaceuticals sectors saw a 17% point and 11% point growth in the stipends that were rolled out. Similarly, in the service sector, the Ecommerce and Education segment rewarded their apprentices handsomely. While apprentices in Ecommerce saw a 39% point growth, Education witnessed a 34% point rise. In fact, Education and Ecommerce are two of the sectors who have witnessed a big leap in the last 3 years, from 11th and 14th position in 2018, Ecommerce and Education sectors today hold 1st and 2nd ranks respectively, with regard to stipend payouts. While Ecommerce ranking jumped by 8 points, Education leaped by 13 points making them the sectors who reward their apprentices well.

Commenting on the report, Mr Sumit Kumar, Vice President – NETAP, TeamLease Skills University said, “The disruption over the last year has reiterated the need for building a robust pool of employable and skilled talent, who are better prepared for future of work. Companies have realized the need to invest in apprentices to build a steady talent pool. As a matter of fact, companies have become keen to hire more apprentices (as per Apprenticeship Outlook Report H2 2020, 46% of employers were keener to increase their apprentice pool). This report is re-instating the same sentiment as well as the fact that India Inc today is more open to pay apprentices with better stipends. From 2018 to 2020, there is a steady 11% linear growth in the payouts. This positive sentiment is largely driven by growing acceptance towards apprenticeship model as an ideal solution to build human capital.”

“Ecommerce and education have been the most promising sectors for stipend payouts. This was largely fueled by the exponential growth and 4X digital transformation that the sectors witnessed in 2020.”

A deep drill down, as per the report Pune and Delhi are the cities wherein apprentices are being paid significantly higher stipends. With an average of INR 12,350 Bangalore is the city that pays the highest stipend.

From a qualification viewpoints, stipend growth has been moderate across all education levels. However, post graduates emerge to be the one who command the highest stipends. Further according to the report, job roles with highest stipends were Software Developer (INR 16300), Chemist (INR 16250) and Design Engineer (INR 15900).

This detailed study also makes a comparative analysis by job profiles and business size. The study details that large businesses pay about 4% - 18% higher stipends than medium and 20% - 35% higher stipends than small businesses.

Analyzing average vs. minimum stipend basis city and apprentice category, the report entails that variance between the minimum stipend and the average paid stipend in slightly higher for Trade apprentices when compared to Technician and Graduate apprentices. Moreover Bangalore, Chennai and Hyderabad emerge as the best pay masters.

'Stipend Primer - Post-pandemic special', a detailed analysis on stipend payout trends for apprentices from 2018 to October 2020 across business sizes and industries. The report has considered inferences from 296 employer respondents pan India.

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ABOUT TEAMLEASE SKILLS UNIVERSITY (TLSU): TeamLease Skills University (TLSU) located in Vadodara, Gujarat, is India’s first “Skills University” established under Public–Private Partnership between the Government of Gujarat and TeamLease Services - India's largest manpower, recruitment & staffing solutions Company that has placed more than 1.7+ million people in India over the last few years. It is notified as a Private University by Govt. of Gujarat by Gazette Notification under the Gujarat Private Universities (Amendment) Act w.e.f. 22nd April’ 2013 and is promoted by TeamLease Education Foundation. In FY2015, TeamLease rolled out NETAP (National Employability through Apprenticeship Program) to provide on-the-job training to unemployed youth. TLSU aims to provide a holistic education through traditional & non-traditional programs focusing on academic, vocational, professional, technical and life skills – all aimed at making graduates “job-ready” from day-1. TLSU vision is to contribute to workforce productivity, socio-economic development and social harmony through well rounded and industry relevant educational programs with employment at the heart of academic offerings, technology at the heart of operation and academic mobility as the focus deploying inclusive, distributed and low cost delivery methodology.

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