Part of SKAD HR Group — HR for every stage of business  ·  HRTailor.com  ·  HRTailor.AI
Contact Now →
TMS
Employer of Record +
→ EOR in India PEO GCC India Business Expansion EOR US → India EOR UK → India EOR Japan → India EOR Pricing EOR Cost Calculator Hire Without an Entity GCC Setup Playbook Contractor → Employee Conversion
Contract Staffing +
→ 3rd Party Contract Staffing Manpower Outsourcing Temporary Staffing Staff Augmentation IT Staffing Third-Party Payroll Payroll Transfer NATS NAPS MYKPY
HR Services +
→ Full HR Operations Payroll Outsourcing Talent Acquisition HR Consulting & Advisory PoSH Compliance Statutory Compliance
HR Guides +
→ Free HR Guides Library Contract Staffing Guides EOR Guides Payroll Guides Statutory Compliance Guides Government Scheme Guides Talent Acquisition Guides HR & Staffing Glossary Labour Codes Explained Monthly Compliance Update
About +
→ About TMS Locations Jobs / Careers
☎ +91 22 4896 7640 WhatsApp Us

Written by

Abhijit Divekar

in

NATS vs NAPS: Which Apprenticeship Scheme is Right for You?

Quick answer

NATS full form: National Apprenticeship Training Scheme — run by the Ministry of Education for engineering, diploma and degree apprentices. The government reimburses 50% of the prescribed minimum stipend to employers.

NAPS full form: National Apprenticeship Promotion Scheme — run by MSDE / DGT for ITI, fresher and trade apprentices. The government reimburses 25% of the stipend (up to ₹1,500/month per apprentice).

In short: NATS suits technical and degree apprentices; NAPS suits skill-trade and fresher apprentices. Many Indian employers run both schemes in parallel — TMS manages registration, stipend reimbursement and compliance for both.

NATS vs NAPS: Which Apprenticeship Scheme is Right for You?

NATS vs NAPS-TMS

In today’s rapidly changing job market, apprenticeships play a crucial role in equipping individuals with the skills needed to thrive. The Indian government has introduced various schemes to address the skill gap, with NATS (National Apprenticeship Training Scheme) and NAPS (National Apprenticeship Promotion Scheme) being two prominent programs. While both focus on skill development and workforce readiness, they cater to different needs. This blog will help you understand the differences between the two, their benefits, and which one aligns best with your goals.

What is NATS?

The National Apprenticeship Training Scheme (NATS) is designed to provide technical training to fresh graduates, diploma holders, and students from engineering and technology backgrounds. It bridges the gap between theoretical knowledge and practical application, offering hands-on experience in industries.

NATS focuses on post-education training, ensuring that students can gain real-world exposure in sectors like manufacturing, IT, and engineering.

Key Features of NATS:

  • Primarily targets engineering, diploma, and ITI graduates.
  • Offers apprenticeships lasting between 6 months to 3 years.
  • Provides industry-specific training to enhance employability.
  • Government covers part of the apprentice stipend to reduce employer costs.

NATS is an excellent choice for students who have recently completed their education and are seeking to gain practical experience in their field of study.

What is NAPS?

The National Apprenticeship Promotion Scheme (NAPS) aims to encourage businesses, especially small and medium enterprises, to hire and train apprentices by offering financial incentives. Unlike NATS, NAPS is broader in scope and caters to industries ranging from healthcare and retail to manufacturing and IT.

NAPS not only benefits apprentices but also provides subsidies to employers, making it easier for them to hire and train a skilled workforce. This scheme promotes apprenticeships as an integral part of workforce development.

Key Features of NAPS:

  • Targets students, job seekers, and businesses across diverse industries.
  • Provides apprenticeships typically lasting 6 months to 1 year.
  • Offers financial incentives, including reimbursement of 25% of the apprentice stipend (up to ₹1,500 per month).
  • Focuses on creating a structured, well-supported training environment for apprentices.

NAPS is ideal for businesses looking to onboard apprentices with financial backing from the government, as well as for individuals wanting short-term, flexible opportunities to build skills.

How Do NATS and NAPS Differ?

Dimension NATS NAPS
Full nameNational Apprenticeship Training SchemeNational Apprenticeship Promotion Scheme
Run byMinistry of Education, through the Regional Boards of Apprenticeship / Practical Training (BOATs/BOPT)Ministry of Skill Development & Entrepreneurship, through the DGT and NSDC
Registration portalnats.education.gov.inapprenticeshipindia.gov.in
Built forEngineering graduates (B.E./B.Tech), diploma holders and sandwich-course studentsITI-certified, fresher and optional-trade candidates across technical and non-technical roles
Typical rolesTechnical and engineering functionsRetail, manufacturing, logistics, hospitality, BFSI, IT-enabled and more
Apprenticeship duration6 months to 1 year6 months to 36 months
Monthly stipendRs 6,800 to Rs 12,300 by qualification (revised 2025)Rs 6,800 to Rs 12,300 by qualification (revised 2025)
Government stipend share50% of the stipend, reimbursed to the employer25% of the stipend, up to Rs 1,500 per month, paid to the apprentice by DBT
Employer PF / ESIC liabilityExempt (apprentices are not employees under the Apprentices Act)Exempt
Best fitHiring engineering and diploma talent for technical rolesMSMEs and large employers building a broad, scalable apprentice pipeline

Stipend and reimbursement figures follow the current Government of India notification (verified 2025).

While both schemes share the goal of enhancing skills and employability, they differ in their approach, target audience, and benefits.

  • Target Audience: NATS is specifically for students with technical backgrounds, such as engineering or ITI graduates. NAPS, on the other hand, is open to anyone, including students, job seekers, and businesses across all industries.

  • Focus Areas: NATS focuses on technical training and long-term apprenticeships, whereas NAPS offers short-term opportunities and financial incentives for businesses hiring apprentices.

  • Funding Model: In NATS, the government directly supports the apprentice by contributing to their stipend. In NAPS, the government subsidizes the employer, reimbursing part of the stipend and covering the cost of training.

  • Duration of Apprenticeships: NATS offers apprenticeships lasting up to 3 years, ideal for gaining in-depth technical knowledge. NAPS is typically shorter, ranging from 6 months to 1 year.

Which Apprenticeship Scheme is Right for Your Company?

For MSMEs and Small Businesses: NAPS

If you’re a small or medium-sized enterprise (SME), NAPS is the ideal choice. The scheme offers financial incentives that reduce the cost of hiring apprentices, making it easier for businesses to scale up. It’s particularly beneficial for industries like retail, hospitality, and manufacturing, where workforce needs can vary. NAPS also allows flexibility, with apprenticeships lasting between 6 months to 1 year.

For Large Enterprises: NATS

If your business requires specialized technical skills (e.g., in engineering, IT, or manufacturing), NATS is a better fit. It provides longer training durations (up to 3 years) and a more structured learning environment tailored to technical graduates. NATS is perfect for companies that need to invest in highly skilled workers for specific roles.

For Quick Talent Acquisition: NAPS

For companies needing a fast, cost-effective workforce, NAPS offers a quick solution. With shorter apprenticeship periods and broader industry applicability, businesses can address immediate labor needs while receiving financial support.

How to choose between NATS and NAPS

Choosing between NATS and NAPS depends on your business goals and workforce needs. If your company requires specialized technical skills, NATS provides long-term, structured training for engineering and diploma graduates, ensuring a steady pipeline of highly skilled talent tailored to your industry.

At Team Management Services (TMS), we specialize in guiding businesses to seamlessly integrate NATS and NAPS into their operations. From navigating application processes to maximizing government incentives, we ensure your organization benefits fully from these apprenticeship programs. Let us help you build a skilled workforce for a sustainable future.

If you’ve ever wished HR processes could be simpler, faster, and way less manual — you’ll want to read this. We’ve unpacked how AI is making HR more human again. Explore the world’s first AI platform built for HR Professionals, Candidates, Employees & Employers. Learn more about AI in Human Resources and AI-powered HR operations.

Made Your Choice? TMS Can Handle the HR Operations.

Whether you choose NATS, NAPS, or both — you’ll need compliant staffing, payroll, and statutory filings. TMS has helped 450+ companies manage these functions since 2006.

Talk to Our Team →

For Employers
Run NAPS / NATS apprenticeships at your company
TMS handles registration, stipend reimbursement claims & full compliance — since 2006.
Talk to TMS →
For Candidates
Looking for an apprenticeship or job?
See current openings with TMS and our client companies across India.
View open roles →
TMS Service Contact

Frequently Asked Questions

What is the main difference between NATS and NAPS?

NATS is run by the Ministry of Education and is meant for engineering graduates and diploma holders in technical roles, with the government reimbursing 50% of the stipend to the employer. NAPS is run by the Ministry of Skill Development and covers a much wider range of trades and candidates, with the government paying 25% of the stipend, up to Rs 1,500 a month, directly to the apprentice. In short, NATS is the technical-talent route and NAPS is the broad-workforce route.

Can a company run NATS and NAPS at the same time?

Yes. Many employers engage engineering and diploma apprentices under NATS while running ITI and fresher apprentices under NAPS in the same organisation. The two schemes use different portals and separate reimbursement claims, so the paperwork stays distinct even when the apprentices sit in the same office.

Which scheme gives the employer a bigger benefit?

On a per-apprentice basis NATS shares more of the stipend, at 50% against 25% under NAPS. But NAPS suits a larger and more varied intake, so the total saving depends on how many apprentices you take and in what roles. We usually model both for a client before deciding.

Do employers pay PF or ESIC for apprentices?

No. Apprentices engaged under the Apprentices Act, 1961 are not treated as employees, so there is no employer PF (12%) or ESIC (3.25%) liability on their stipend under either NATS or NAPS. This is one of the main reasons the schemes work out cheaper than a regular hire.

Which scheme is better for a small company or MSME?

For most MSMEs, NAPS is the easier starting point. It covers non-technical and ITI roles, the duration is flexible from six months, and registration is keyed to your EPFO or ESIC number. NATS makes more sense once you are hiring engineering or diploma talent for technical work.

Does an apprenticeship have to end in a permanent job?

No. Neither scheme obliges you to offer permanent employment when the apprenticeship ends. It gives you a structured, low-cost way to assess talent first, and you convert only the apprentices who fit. Many of our clients use it exactly this way.

Not sure which scheme fits your hiring plan?

Team Management Services has run apprenticeship compliance for Indian and multinational employers for over 20 years. We register your establishment, source and onboard apprentices, run the stipend payroll and file the reimbursement claims for both NATS and NAPS, so you capture the savings without the portal headache.

Book a 30-minute apprenticeship consult

Or call +91 22 4896 7640 / WhatsApp +91 91360 24090.

Related: NATS apprenticeships · NAPS apprenticeships · NATS registration for employers · Statutory compliance

More posts

Difference Between NAPS and NATS: The 2026 Decision Guide

The confusion between NATS and NAPS is understandable — both are central government apprenticeship schemes, both exempt apprentices from PF and ESI, and both share stipend costs with employers. But they answer different hiring questions. The table below settles the difference in one view, updated for how both schemes actually operate in 2026.

NATS vs NAPS at a glance

DimensionNATSNAPS
Governing bodyMinistry of Education, administered through regional Boards of Apprenticeship Training (BOAT/BOPT)Ministry of Skill Development & Entrepreneurship (DGT/NSDC)
Target groupEngineering and eligible degree graduates, diploma holders, sandwich-course studentsITI passouts, fresher apprentices, dual-learning and trade apprentices
Eligibility (candidate)Fresh graduates/diploma holders without prior formal training or employment in the fieldBroader — from Class 5–12 passouts (fresher category) up to ITI and short-term skill certificate holders
Portalnats.education.gov.in (NATS 2.0)apprenticeshipindia.gov.in
Stipend supportGovernment bears 50% of the prescribed minimum stipendGovernment bears 25% of the stipend, subject to a monthly cap per apprentice
How the government share flows (2026)Direct Benefit Transfer to the apprentice's bank account (mandatory since October 2025) — no longer reimbursed to the employerDirect Benefit Transfer to the apprentice, released against employer-validated portal records
Typical durationAround one yearSix months to three years, depending on trade
Typical rolesGraduate engineer trainees, design, quality, IT, project and process rolesShop-floor trades, technicians, service, retail, logistics and operations roles
CertificationCertificate of Proficiency from the apprenticeship boardTrade certification following assessment under the skill ecosystem
Best forEmployers building an engineer/graduate talent pipeline with a year-long evaluation windowEmployers scaling entry-level and trade workforces quickly, including MSMEs

Which scheme should your company choose?

Work backwards from the role, not the subsidy:

  • Choose NATS when the seat needs a graduate or diploma holder — a graduate engineer trainee programme, a design or quality function, junior IT roles. The 50% stipend support is the deeper subsidy, and the one-year structure doubles as an extended, low-risk probation before you convert the best performers.
  • Choose NAPS when the seat is a trade or operations role — technicians, machine operators, service and warehouse staff. Eligibility is far broader, durations are flexible, and it is the practical route for volume entry-level intake. Note that if your establishment has 30 or more employees, engaging apprentices is a statutory obligation, and NAPS is usually how that band is met.
  • Run both if your workforce spans both profiles — a manufacturer taking graduate engineers under NATS and shop-floor trainees under NAPS is the textbook configuration. The registrations, portals and record-keeping are separate, so treat them as two parallel compliance tracks, not one.

Whichever you pick, the 2026 operating reality is the same: the government share now reaches apprentices through DBT against your portal records, so the scheme's economics only hold if attendance, stipend payments and contracts are logged accurately every month. Employers who under-resource this administration lose the subsidy in practice while remaining liable for the stipend. Our walkthroughs on the NATS registration process and the NATS stipend and reimbursement workflow show what disciplined administration looks like, and both schemes sit within our wider government schemes practice.

Frequently asked questions

What is the main difference between NAPS and NATS?

The candidate pool and the ministry behind each. NATS (Ministry of Education) is for graduates and diploma holders and carries 50% government stipend support; NAPS (Ministry of Skill Development) is for ITI, fresher and trade apprentices and carries 25% capped support. Everything else — portals, durations, certification — follows from that split.

Which is better for an MSME: NATS or NAPS?

Usually NAPS, because most MSME apprentice demand is in trades and operations, where NAPS eligibility is widest and durations are flexible. But an MSME hiring even a couple of graduate engineers should still register under NATS for those seats — the schemes are not mutually exclusive and the NATS subsidy per graduate is stronger.

Do employers still claim reimbursement under these schemes in 2026?

The model has shifted. The government's stipend share under both schemes now flows to the apprentice through Direct Benefit Transfer rather than as a cash reimbursement to the employer — NATS made DBT mandatory from October 2025. The employer pays its own share and keeps portal records current; the subsidy shows up as a lower employer share of the total stipend, not as money back.

Can an apprentice move from NAPS to NATS?

Not within the same engagement — a candidate registers under the scheme matching their qualification, and a registered apprenticeship generally cannot be repeated in the same field. A NAPS trade apprentice who later completes a diploma or degree may become eligible for NATS as a fresh graduate, subject to the scheme's prior-training rules.

Still weighing the two? Tell TMS the roles you are hiring for and we will map each seat to the right scheme, register your establishment on both portals where needed, and run stipends and records end to end. Contact us or call +91-22-4896-7640.

Powered by Joinchat