The National Apprenticeship Training Scheme (NATS) is one of the most underutilised employer benefits in India. Companies with 30 or more employees are legally required to engage apprentices — and those that do receive a 50% stipend reimbursement from the Government of India, compliance relief from PF/ESIC, and a skilled pipeline of job-ready graduates. This step-by-step guide walks employers through the complete NATS registration process.
Who Must Register Under NATS?
NATS registration is mandatory for companies meeting either of these criteria:
- 30 or more employees — Mandatory; must engage apprentices equal to 2.5%–15% of total workforce (including contract workers)
- 4–29 employees — Voluntary; can opt in to access reimbursement and compliance benefits
The Apprentices Act, 1961 (as amended in 2014) governs NATS. The 2014 amendment is critical: it expanded the scheme to graduate and diploma holders (not just ITI-trained workers), introduced the 2.5%–15% band as a flexible range (previously it was a fixed ratio), and created the reimbursement mechanism.
NATS Registration: Step-by-Step Process for Employers
Step 1 — Register on the NATS Portal
Go to the official NATS portal: nats.education.gov.in (managed by the Board of Apprenticeship Training / BOAT, under the Ministry of Education). Click “Establishment Registration” and provide:
- Company name, registered address, CIN/LLPIN
- Total employee count (including contract workers)
- Industry sector and type of establishment
- PAN, TAN, GST details
- Authorised signatory details
Step 2 — Get Your Establishment ID
After registration, you receive a unique Establishment ID from BOAT. This ID is required for all future interactions — posting apprenticeship vacancies, uploading apprentice data, and claiming reimbursements.
Step 3 — Post Apprenticeship Vacancies
Log in to the NATS portal and post your apprenticeship requirements. Specify:
- Number of apprentices required
- Qualifying degree/diploma (B.Tech, B.Sc, Diploma, etc.)
- Trade/discipline (Engineering, IT, Finance, Operations, etc.)
- Location
- Stipend offered (must meet or exceed government minimum stipend rates)
Step 4 — Select and Enrol Apprentices
Candidates apply through the portal. You shortlist, interview, and select. Once selected, the apprentice is enrolled through the portal — their UAN (under NATS) is generated and their training period officially begins. The apprenticeship contract is executed online.
Step 5 — Upload Monthly Attendance and Progress
Every month, you must upload the apprentice’s attendance data and training progress to the portal. This is the basis for the quarterly reimbursement claim. Missing monthly uploads delays reimbursement.
Step 6 — Claim Quarterly Stipend Reimbursement
After 3 months of training data is uploaded, you raise a reimbursement claim on the portal. The Government of India reimburses 50% of the stipend paid, subject to a maximum of ₹4,500 per apprentice per month (i.e., ₹13,500 per apprentice per quarter). Processing time is typically 45–60 days after claim submission.
Step 7 — Issue Certificate on Completion
On completion of the apprenticeship period (typically 1 year), the apprentice receives a National Apprenticeship Certificate (NAC) from BOAT. This certificate is recognised across India as a skill qualification. You may offer the apprentice a full-time role at this point — there is no legal obligation to do so.
What Stipend Must Employers Pay?
| Qualification | Minimum Monthly Stipend | Government Reimburses (50%, max) | Net Employer Cost |
|---|---|---|---|
| Graduate Apprentice (B.Tech/B.Sc/BA/B.Com) | ₹9,000/month | ₹4,500/month | ₹4,500/month |
| Diploma Apprentice | ₹8,000/month | ₹4,000/month | ₹4,000/month |
| Vocational Certificate Holder | ₹7,000/month | ₹3,500/month | ₹3,500/month |
Employers who pay above the minimum stipend only receive reimbursement up to the 50%/₹4,500 cap. For example, if you pay ₹12,000/month, you receive ₹4,500 reimbursement (not ₹6,000).
Compliance Relief: PF and ESIC Exemption During NATS
Apprentices under NATS are specifically exempted from the Employees’ Provident Fund Act and the Employees’ State Insurance Act for the duration of the apprenticeship. This means:
- No employer PF contribution (saves 12% of stipend per apprentice per month)
- No employer ESIC contribution (saves 3.25% of stipend per apprentice per month)
- No compliance filings for apprentices under EPF/ESIC
For 100 graduate apprentices at ₹9,000/month stipend, this compliance saving equals: 15.25% × ₹9,000 × 100 = ₹1,37,250 per month — or ₹16.47 lakhs per year in saved statutory contributions, in addition to the stipend reimbursement.
Common Mistakes Employers Make in NATS Registration
- Not counting contract workers in the headcount — The Apprentices Act requires you to include contract workers in the total headcount for determining the 2.5%–15% band. Many companies undercount their headcount and engage fewer apprentices than required.
- Missing monthly uploads — If you fail to upload monthly attendance, the reimbursement claim for that quarter is disqualified.
- Paying below minimum stipend — Non-compliance with minimum stipend rates exposes the employer to penalties under the Apprentices Act.
- Treating NATS apprentices as employees — Assigning PF/ESIC to apprentices is unnecessary and incorrect; it creates confusion in EPFO records.
- Not renewing apprenticeship contracts — Contracts can be extended beyond 1 year for certain trades; renewals must be done on the portal.
How TMS Manages NATS for Employers
TMS manages the complete NATS cycle for 450+ employer clients across India:
- Registration assistance — Complete employer registration on the NATS portal, including establishment ID acquisition
- Apprentice sourcing — Access to a pool of pre-verified graduate and diploma candidates across disciplines
- Monthly compliance — Attendance data upload, training progress tracking, portal maintenance
- Reimbursement claims — Quarterly claim preparation and submission; end-to-end follow-up until government transfer
- Stipend management — Payroll processing for apprentices (separate from regular employee payroll)
- Certificate coordination — NAC issuance coordination with BOAT on completion
