NAPS & NATS Apprenticeship Services for Employers

Build a lower-cost, fully legal talent pipeline — with government subsidising the stipend. TMS manages end-to-end apprenticeship programmes under NAPS and NATS: portal registration, contracts, stipend processing, compliance and conversion to your rolls. Since 2006: 450+ clients, every Indian state and UT, zero statutory penalties.

Planning an apprentice intake? Get a programme design in 48 hours. Call +91-22-4896-7640

NAPS and NATS, Explained for Employers

India runs two national apprenticeship schemes, and most employers use the wrong one — or neither.

NAPS — National Apprenticeship Promotion Scheme

Run under the Ministry of Skill Development & Entrepreneurship, NAPS covers apprentices engaged under the Apprentices Act, 1961 — trade apprentices, fresher apprentices and skill-certificate holders across manufacturing, services and retail roles. The government shares the stipend cost: 25% of the prescribed stipend, up to ₹1,500 per apprentice per month, for the training duration — and under NAPS 2.0 this share is paid directly into the apprentice’s bank account via DBT.

NATS — National Apprenticeship Training Scheme

Run under the Ministry of Education, NATS covers graduate and diploma (technician) apprentices — engineering and other degree/diploma holders completing a structured 1-year apprenticeship. Prescribed minimum stipends are ₹9,000/month for graduate apprentices and ₹8,000/month for diploma (technician) apprentices, with the Government of India sharing 50% of the prescribed minimum stipend — up to ₹4,500 and ₹4,000 per month respectively.

Which one for you? Shop-floor, service and operations roles → NAPS. Engineering graduates and diploma trainees → NATS. Most 100+ employee companies should be running both.

It’s Not Just Optional — Check Your Obligation

Under the Apprentices Act, establishments with 30 or more workers (including contract staff) are required to engage apprentices within a band of 2.5%–15% of total strength; engagement is optional for establishments with 4–29 workers. If you have never run an apprenticeship programme, you may be carrying an unnoticed compliance gap — TMS audits this as step one.

Why Apprentices Cut Workforce Cost — Legally

This is the part CFOs care about, so here it is plainly:

• Stipend, not salary. Apprentices receive a stipend prescribed under the scheme — typically well below the fully loaded cost of an equivalent entry-level employee.
• No PF or ESI on stipends. Apprentices engaged under the Apprentices Act are expressly excluded from the definition of “employee” under PF and ESI law — a position upheld by the courts and carried forward into the Code on Social Security, 2020 — so the statutory loading on regular hires does not apply.
• Outside most labour law. Under Section 18 of the Apprentices Act, apprentices are trainees, not workers, so most labour legislation — retrenchment, bonus and similar obligations — generally does not apply. Workplace safety and POSH protections still do.
• Government pays part of the bill. NAPS/NATS subsidies directly offset stipend cost.
• A hiring funnel you’ve already assessed. Convert the best apprentices to your rolls (or to contract staffing via TMS) after the training period — pre-vetted, pre-trained, zero sourcing cost.

Done wrong, however — fake “apprenticeships” masking regular work, unregistered engagements, missed portal compliance — the model collapses into disguised employment with full back-liability. Which is why the execution layer matters.

How TMS Manages Your Apprenticeship Programme

TMS runs your NAPS/NATS apprenticeship programme as a managed-service partner — you remain the principal employer, and we operate the programme end to end on your behalf, handling:

1. Eligibility & obligation audit. Headcount analysis, applicable bands, which scheme fits which roles.
2. Portal registration & setup. Registering your establishment on the apprenticeship portals and mapping the applicable trades/courses, so your programme is set up correctly under your name.
3. Sourcing & selection. Apprentice candidates sourced against your role and location matrix; you select.
4. Contracts & onboarding. Apprenticeship contracts executed and registered on the portal; joining formalities and basic-training coordination.
5. Stipend processing & subsidy claims. Monthly stipend disbursement, records, and NAPS/NATS claim administration — including the portal workflows (contracts, attendance, assessments) on which the government’s DBT payout to apprentices depends.
6. Compliance & records. Registers, portal updates, assessments coordination, inspections support — with programme visibility through our HRMS portal.
7. Conversion management. End-of-term assessment support and structured absorption to your rolls or transition to TMS contract staffing / third-party payroll.

Who Apprenticeship Programmes Suit

• Manufacturers with high-volume operator, technician and quality roles — the classic NAPS use case
• Logistics, retail and QSR chains building a steady entry-level pipeline across sites
• Engineering and infrastructure companies absorbing graduate/diploma engineers via NATS at a fraction of lateral-hire cost
• BFSI and IT/ITES back offices running structured trainee-to-employee funnels
• Any establishment with 30+ workers that currently engages zero apprentices — the mandatory band applies whether or not you run a programme

Apprenticeship + Contract Staffing: The Blended Workforce Play

The strongest cost structure we build for clients blends three layers: a core team on your rolls, a flexible layer on contract staffing, and an apprentice pipeline underneath feeding both. Apprentices cut entry-level cost today; conversion cuts hiring cost tomorrow; and TMS runs all three layers on one HRMS, one account team, one invoice. If you already run contract staffing with us, adding an apprenticeship layer is an incremental conversation — ask your account manager.

Ask us for an apprenticeship cost model for your sites. Call +91-22-4896-7640

Frequently Asked Questions

What is the difference between NAPS and NATS?

NAPS (Ministry of Skill Development) covers trade and fresher apprentices under the Apprentices Act — typically shop-floor, service and operations roles. NATS (Ministry of Education) covers graduate and diploma engineer-apprentices in a structured one-year programme. Both carry government stipend support.

How much subsidy does the government pay under NAPS?

The government bears 25% of the prescribed stipend, capped at ₹1,500 per apprentice per month, for the training period — paid directly into the apprentice’s bank account via DBT under NAPS 2.0; the employer pays the balance.

Do we have to pay PF and ESI for apprentices?

No — apprentices engaged under the Apprentices Act receive a stipend, not wages, and are excluded from the employee definitions under PF and ESI law, a position carried into the Code on Social Security, 2020. This is a major component of the cost advantage versus regular hiring.

Is engaging apprentices mandatory?

Establishments with 30 or more workers (including contract staff) must engage apprentices within the 2.5%–15% band of total strength. TMS’s programme audit tells you exactly where you stand.

Can apprentices do regular production work?

Apprentices train on real work under supervision, per their course curriculum — but an “apprenticeship” that is simply a regular job with a cheaper label is non-compliant and creates back-liability. TMS structures programmes so roles, training plans and assessments hold up to inspection.

What happens when the apprenticeship ends?

You assess and absorb the apprentices you want — onto your rolls or onto TMS contract staffing — and release the rest with their certificates. There is no statutory obligation to absorb (Section 22 of the Apprentices Act — unless your apprenticeship contract provides otherwise), which is exactly what makes it a low-risk pipeline.

How many apprentices can we engage?

Within the 2.5%–15% band prescribed under the Act, calculated on total workforce including contract staff. TMS calculates your exact permissible and obligated numbers during the audit.

What does TMS charge for apprenticeship management?

A per-apprentice-per-month management fee covering sourcing, portal compliance, stipend processing and records. Programme size and role mix drive the rate — share your sites and volumes for a quote in 24 hours.