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?

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

About the Author

Abhijit Divekar

Abhijit Divekar is the Managing Partner of Team Management Services (TMS), with 19+ years of experience in HR outsourcing, contract staffing, and statutory compliance across India. He has helped 450+ companies build compliant, scalable workforces.

India has two major government apprenticeship schemes for employers: NATS (National Apprenticeship Training Scheme) and NAPS (National Apprenticeship Promotion Scheme). Both offer government stipend reimbursement and PF/ESIC compliance relief — but they serve different purposes, cover different apprentice categories, and are governed by different ministries. Choosing the right scheme for your business can save significant cost and unlock maximum benefit.

NATS vs NAPS: Quick Summary

Reimbursement Deep Dive: Why NATS Pays More

The most significant difference is the reimbursement rate:

• NATS: 50% of stipend reimbursed, up to ₹4,500/month per apprentice
• NAPS: 25% of stipend reimbursed, up to ₹1,500/month per apprentice

For a company with 100 apprentices on ₹9,000/month stipend:

Which Apprentice Types Fit Which Scheme?

Choose NATS When:

• You want to hire fresh graduates (B.Tech, B.Sc, BCA, BBA, B.Com, BA) for technical or administrative functions
• You are an IT, BFSI, pharma, or manufacturing company needing degree-level talent
• You want the higher reimbursement rate (50% vs 25%)
• You are building a graduate talent pipeline with potential conversion to permanent employment

Choose NAPS When:

• You want to hire ITI-trained workers for trades (electrician, fitter, machinist, welder, etc.)
• You are in manufacturing, construction, automotive, or logistics needing skilled trade workers
• You want to hire school dropouts or Class 10/12 pass candidates under the Fresher Apprentice category
• You need longer training duration (up to 3 years for some trades)

Can You Use Both NATS and NAPS Simultaneously?

Yes — a company can engage apprentices under both schemes simultaneously. In fact, most large manufacturers and IT/BFSI companies benefit from running both: NATS for graduate apprentices in engineering and operations, NAPS for ITI-trained workers in the shop floor or service functions. The combined apprentice count contributes toward the 2.5%–15% mandatory band under the Apprentices Act.

Compliance Obligations: NATS vs NAPS

How TMS Manages Both NATS and NAPS for Employers

TMS manages NATS and NAPS compliance for employers across India from a single engagement point:

• Dual-scheme registration — Enrol on both the NATS portal (BOAT) and the Apprenticeship India portal (DGT) simultaneously
• Optimal scheme allocation — We advise on which candidates go under which scheme to maximise your reimbursement
• Single MIS report — Monthly compliance status across both schemes in one dashboard
• Combined reimbursement management — Quarterly claims on both portals, follow-up, and reconciliation

About the Author

Abhijit Divekar

Abhijit Divekar is the Managing Partner of Team Management Services (TMS), with 19+ years of experience in HR outsourcing, contract staffing, and statutory compliance across India. He has helped 450+ companies build compliant, scalable workforces.

One of the most compelling employer benefits under NATS is the government stipend reimbursement — the Government of India reimburses 50% of the stipend you pay to each NATS apprentice, up to ₹4,500 per apprentice per month. Yet many employers who are registered on the NATS portal either miss reimbursements or receive them months late due to process errors. This guide explains exactly how the reimbursement works and how to ensure you receive every rupee on time.

How the NATS Reimbursement Mechanism Works

The reimbursement is funded by the Government of India (Ministry of Education) and disbursed through BOAT (Board of Apprenticeship Training) regional offices. The process is quarterly:

1. Employer pays the full stipend to apprentice each month
2. Employer uploads monthly attendance data on the NATS portal
3. After 3 months of data, employer files a quarterly reimbursement claim
4. BOAT verifies attendance and training records
5. Government transfers 50% of stipend (max ₹4,500/month per apprentice) directly to employer’s bank account

Reimbursement Rates — What You Get Back

Example: A company with 50 graduate apprentices at ₹9,000/month stipend receives: 50 × ₹4,500 × 3 months = ₹6,75,000 per quarter from the government. Annually, that is ₹27,00,000 — in addition to saving ₹16–17 lakhs in PF/ESIC contributions.

Step-by-Step: Filing a NATS Reimbursement Claim

Pre-Requisite: Monthly Attendance Upload (Do Not Skip)

The reimbursement claim is only accepted if all three months of the quarter have attendance data uploaded. This is the most common reason for claim rejection or delay. Set a calendar reminder for the last working day of each month to upload attendance. Mark the following as per the portal format:

• Days present vs. days absent
• Training module progress (if applicable)
• Supervisor certification of training quality

Step 1: Log in to the NATS Portal

Go to nats.education.gov.in → Login as Establishment → Navigate to “Reimbursement” section.

Step 2: Select Quarter and Apprentices

Select the claim quarter (Q1: April–June, Q2: July–September, Q3: October–December, Q4: January–March). The portal auto-populates the list of enrolled apprentices for whom attendance has been uploaded.

Step 3: Verify Stipend Payment Proof

Upload bank transfer proof showing stipend payment to each apprentice. The payment must be made by bank transfer (not cash) to the apprentice’s registered bank account. Cash payments do not qualify for reimbursement.

Step 4: Submit Claim

Submit the claim. You receive an acknowledgement number. BOAT verifies the claim — this typically takes 30–45 days. You can track status on the portal.

Step 5: Receive Transfer

The government disburses the reimbursement directly to the company’s registered bank account. Total claim-to-transfer timeline is typically 45–75 days from claim submission.

Why Claims Get Rejected — And How to Avoid It

Tax Treatment of NATS Reimbursement

The stipend reimbursement received from the Government of India under NATS is a capital/revenue receipt received in connection with your business. It is generally treated as income under the head “Business Income” and is taxable. The full stipend paid is a deductible business expense, and the reimbursement is taxable income — effectively making the net employer cost (stipend paid minus reimbursement) the deductible amount. Consult your tax advisor for entity-specific treatment, particularly for companies with significant NATS engagement.

How TMS Maximises NATS Reimbursement for Employers

TMS manages the complete reimbursement cycle as part of our NATS management service:

• Zero missed uploads — Our compliance team uploads attendance on the last working day of every month, without exception
• Bank transfer stipend disbursement — All apprentice stipend payments processed via bank transfer through our payroll system, with payment proof auto-generated
• Quarterly claim preparation — We prepare and submit all claim documentation; you review and approve
• Claim tracking and follow-up — We track each claim to final transfer and flag any BOAT queries
• Annual reimbursement reconciliation — We provide an annual summary of total reimbursements received vs. expected, with any variance explained

Across our client base, TMS has maintained a 98%+ reimbursement success rate with an average claim-to-transfer time of 52 days.

About the Author

Abhijit Divekar

Abhijit Divekar is the Managing Partner of Team Management Services (TMS), with 19+ years of experience in HR outsourcing, contract staffing, and statutory compliance across India. He has helped 450+ companies build compliant, scalable workforces.

The National Apprenticeship Promotion Scheme (NAPS) allows Indian employers to hire ITI-trained apprentices, fresher apprentices, and optional trade apprentices with 25% of their stipend reimbursed by the Government of India (up to ₹1,500/month per apprentice). Unlike NATS which covers graduates and diploma holders, NAPS specifically targets school leavers and vocationally trained workers — making it the primary apprenticeship route for manufacturing, construction, automotive, and trade-based businesses.

Who Administers NAPS and Where to Register?

NAPS is administered by the Directorate General of Training (DGT) under the Ministry of Skill Development and Entrepreneurship (MSDE). Employer registration is done on the Apprenticeship India portal: apprenticeshipindia.org.

This is distinct from NATS (managed by BOAT under the Ministry of Education on nats.education.gov.in). Employers running both NATS and NAPS need separate registrations on both portals.

Apprentice Categories Under NAPS

Step-by-Step NAPS Registration for Employers

Step 1 — Register on the Apprenticeship India Portal

Go to apprenticeshipindia.org → “Register as Establishment”. Provide: company name, address, CIN/LLPIN, industry sector, total workforce, authorised signatory details, PAN, TAN, and GSTIN. You receive an Establishment ID after verification by your regional Apprenticeship Adviser (from DGT).

Step 2 — Define Trades and Post Vacancies

Designated trade apprentices must match NCVT (National Council for Vocational Training) approved trades. Optional trade apprentices can be defined by you — upload the trade definition and get it approved. Post vacancies specifying: trade, number of apprentices, stipend, location, and qualifying criteria.

Step 3 — Contract Execution

Once an apprentice is selected, the contract is executed digitally on the portal. The contract requires: apprentice details, trade details, stipend amount, training duration, and employer and apprentice digital signatures. This contract is submitted to the Apprenticeship Adviser for registration.

Step 4 — Monthly Training and Attendance Records

Maintain monthly training records and upload attendance data on the portal. Designated trade apprentices must complete both on-the-job training and related instruction (RI) — some trades require off-the-job classroom training at a recognised institute for RI components.

Step 5 — Quarterly Reimbursement Claim

After 3 months of attendance data, file a reimbursement claim on the portal. Provide bank transfer proof of stipend payment. Government reimburses 25% of stipend paid, up to ₹1,500/month per apprentice, quarterly. Processing time: 45–75 days from claim submission.

Step 6 — Certificate on Completion

On successful completion, the apprentice appears for the All India Trade Test (AITT) conducted by NCVT. Passing earns the National Trade Certificate (NTC) — the nationally recognised qualification for skilled workers in India.

NAPS Compliance: PF and ESIC Exemption

Just like NATS, apprentices under NAPS are exempt from the Employees Provident Fund Act and the Employees State Insurance Act for the duration of the apprenticeship. This saves the employer 15.25% of the stipend per apprentice per month in statutory contributions — a significant cost reduction particularly for manufacturing companies with large apprentice cohorts.

Industries That Use NAPS Most

• Manufacturing & Automotive — Fitters, Electricians, Machinists, Welders, CNC Operators
• Construction — Plumbers, Carpenters, Masons, Electricians
• Electronics & Electrical — Electronic Mechanic, Wireman, Instrument Mechanic
• Retail & Hospitality — Front Office, Food and Beverage, Retail Operations (under Optional Trade)
• Logistics & Warehousing — Material Handler, Warehouse Assistant (under Optional Trade)
• Healthcare — Health Sanitary Inspector, Lab Technician (where ITI equivalent courses exist)

How TMS Manages NAPS for Employers Across India

TMS manages NAPS registrations, contract execution, monthly compliance, reimbursement claims, and certification coordination for employers across 100+ cities. Our NAPS management service includes:

• Portal registration and Establishment ID acquisition from Apprenticeship Adviser
• Trade definition advisory — optimal trade structure for designated, optional, and fresher apprentices
• Apprentice sourcing — ITI-pass candidates across all major trades
• Monthly compliance — attendance upload, training record maintenance
• Quarterly reimbursement claims — preparation, submission, and follow-up
• NAPS + NATS dual management — single engagement for employers running both schemes

About the Author

Abhijit Divekar

Abhijit Divekar is the Managing Partner of Team Management Services (TMS), with 19+ years of experience in HR outsourcing, contract staffing, and statutory compliance across India. He has helped 450+ companies build compliant, scalable workforces.

India’s manufacturing sector — automotive, heavy engineering, textiles, food processing, chemicals — depends on a steady supply of skilled tradespeople: fitters, welders, electricians, machinists, and CNC operators. The National Apprenticeship Promotion Scheme (NAPS) is the most cost-effective legal pathway to build and maintain this skilled workforce. This guide covers everything manufacturing employers need to know about NAPS.

Why NAPS is Purpose-Built for Manufacturing

NAPS covers Designated Trade apprentices — workers trained in NCVT (National Council for Vocational Training) designated trades. Most of these trades are manufacturing and engineering trades. The scheme was specifically designed with factory floors and workshops in mind, and the Factories Act and the Apprentices Act have always been closely interlinked for this sector.

Key manufacturing advantages:

• No PF/ESIC on apprentices — 15.25% cost saving per apprentice vs permanent workers
• 25% stipend reimbursed by government — up to ₹1,500/month per apprentice
• No obligation to absorb post-training — training period ends with no compulsory conversion to permanent employment
• CLRA compliance relief — apprentices are not “workmen” under the Industrial Disputes Act; simpler exit framework
• Pre-assessed skill level — ITI-pass apprentices enter with a baseline trade competency, reducing training costs

Most Common NAPS Trades in Manufacturing

Calculating the Cost Benefit for a Manufacturing Plant

Consider a manufacturing unit with 500 workers engaging 50 NAPS apprentices (10% of workforce) in designated trades at an average stipend of ₹9,000/month:

Related Instruction (RI) Requirement for Manufacturing Trades

Designated trade apprentices in manufacturing trades must complete both on-the-job training (OJT) and Related Instruction (RI) — theoretical/classroom learning related to their trade. RI can be delivered:

• In-house — if the employer has a Basic Training Centre (BTC) approved by DGT
• At an external ITI — employer coordinates with a local ITI to deliver the RI component
• Online — DGT has approved some online RI delivery for specific trades

For most manufacturing employers, partnering with a local ITI for the RI component is the easiest path. The ITI handles the theoretical instruction and issues attendance certificates. TMS can facilitate ITI tie-ups in most industrial belts.

Mandatory Apprentice Band for Factories

Under the Apprentices Act, factories (as defined under the Factories Act, 1948) are specifically required to engage apprentices. The mandatory band is 2.5%–15% of total workforce including contract workers. For a 500-person plant, this means engaging a minimum of 12–13 apprentices and up to 75.

Factories that fail to engage the minimum required number of apprentices are liable for prosecution under Section 30 of the Apprentices Act. In practice, compliance inspections for manufacturing units have increased significantly since 2020.

How TMS Supports Manufacturing Plants with NAPS

• Pan-India ITI network — We source qualified ITI-pass apprentices across all major trades in industrial hubs: Pune, Chennai, Surat, Ahmedabad, Ludhiana, Faridabad, Coimbatore
• Trade-specific compliance — Different trades have different NAPS stipend rates and training durations; we manage the complexity across all your trades
• RI facilitation — We coordinate with local ITIs for Related Instruction where required
• Multi-plant NAPS management — For manufacturers with multiple plants across states, we manage unified compliance across all locations with a single MIS report
• AITT preparation support — We help ensure your apprentices are prepared for the All India Trade Test at the end of their training

About the Author

Abhijit Divekar

Abhijit Divekar is the Managing Partner of Team Management Services (TMS), with 19+ years of experience in HR outsourcing, contract staffing, and statutory compliance across India. He has helped 450+ companies build compliant, scalable workforces.