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

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 name	National Apprenticeship Training Scheme	National Apprenticeship Promotion Scheme
Run by	Ministry of Education, through the Regional Boards of Apprenticeship / Practical Training (BOATs/BOPT)	Ministry of Skill Development & Entrepreneurship, through the DGT and NSDC
Registration portal	nats.education.gov.in	apprenticeshipindia.gov.in
Built for	Engineering graduates (B.E./B.Tech), diploma holders and sandwich-course students	ITI-certified, fresher and optional-trade candidates across technical and non-technical roles
Typical roles	Technical and engineering functions	Retail, manufacturing, logistics, hospitality, BFSI, IT-enabled and more
Apprenticeship duration	6 months to 1 year	6 months to 36 months
Monthly stipend	Rs 6,800 to Rs 12,300 by qualification (revised 2025)	Rs 6,800 to Rs 12,300 by qualification (revised 2025)
Government stipend share	50% of the stipend, reimbursed to the employer	25% of the stipend, up to Rs 1,500 per month, paid to the apprentice by DBT
Employer PF / ESIC liability	Exempt (apprentices are not employees under the Apprentices Act)	Exempt
Best fit	Hiring engineering and diploma talent for technical roles	MSMEs 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.

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 4149 8942 / WhatsApp +91 91360 24090.

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