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NATS vs NAPS: Which Apprenticeship Scheme is Right for Your Business in India?

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

FactorNATSNAPS
Full NameNational Apprenticeship Training SchemeNational Apprenticeship Promotion Scheme
Governing MinistryMinistry of Education (MoE)Ministry of Skill Development & Entrepreneurship (MSDE)
Administered byBOAT (Board of Apprenticeship Training)DGT (Directorate General of Training)
Portalnats.education.gov.inapprenticeshipindia.org
Governing ActApprentices Act, 1961 (Education tracks)Apprentices Act, 1961 (as amended 2014)
Apprentice CategoriesGraduate engineers, diploma holders, post-graduates (technical/non-technical)ITI-trained workers, Fresher Apprentices (school dropouts), Optional Trade Apprentices
Min. Stipend₹9,000/month (graduates); ₹8,000/month (diploma)₹7,700–₹9,069/month (varies by qualification)
Government Reimbursement50% of stipend, max ₹4,500/month per apprentice25% of stipend, max ₹1,500/month per apprentice
Mandatory forCompanies with 30+ employeesCompanies with 30+ employees (overlapping obligation)
Duration6 months to 1 year (varies by trade)6 months to 3 years (varies by category)
Certificate IssuedNational Apprenticeship Certificate (NAC) — by BOATNational Apprenticeship Certificate (NAC) — by DGT

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:

NATSNAPS
Monthly stipend per apprentice₹9,000₹9,000
Government reimbursement₹4,500₹1,500
Net employer cost per apprentice₹4,500₹7,500
Total reimbursement (100 apprentices/month)₹4,50,000₹1,50,000
Annual government support (100 apprentices)₹54,00,000₹18,00,000

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

ObligationNATSNAPS
Monthly attendance uploadRequired (on NATS portal)Required (on Apprenticeship India portal)
Quarterly reimbursement claimEmployer files quarterlyEmployer files quarterly
PF contributionExemptExempt
ESIC contributionExemptExempt
Minimum wage complianceMinimum stipend rates apply (separate from min. wages)Minimum stipend rates apply
Training recordsMust maintain; inspectable by BOATMust maintain; inspectable by DGT
Basis for inspectionBOAT regional officesApprenticeship Adviser / DGT

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.

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