Is There a Link Between Apprentice Stipends and Minimum Wages? Let's Discuss!

Dear friends,

Is there any correlation between the stipend, which is given to apprentices under the Apprentice Act, and minimum wages? Does the minimum wage matter at the time of fixation of stipend? Please explain the same.

Regards,

Purshottam Saini

Stipend is the remuneration paid or payable to a trainee or apprentice engaged under the Apprentice Act, whereas minimum wages stand for the minimum rates of wages fixed by the government for payment to different categories of workers or employees in different industries or scheduled employment. Stipend as per the Apprentice Act is fixed by the Central Government, and the minimum wages are fixed by the State Governments. Minimum wages depend on skills (such as Unskilled, Semi-skilled, Highly skilled) and vary from industry to industry. Stipend for the first year, second year, and so on differs. If stipend is paid to trainees appointed by the company (other than under the Apprentice Act), the amount shall be fixed by the company as stated in the standing orders of the company. There is no relation between these two.

Regards,
Madhu.T.K

Dear Madhu,

Your explanation is fair enough. But I would request you to give your valued and useful opinion about the last line in your above comment:

"If stipend is paid to trainees appointed by the company (other than under the Apprentice Act), the amount shall be fixed by the company as stated in the standing orders of the company."

I belong to Gujarat state where we follow the Model standing order and not the company's own certified Standing Orders. In Gujarat, it is not compulsory to get the standing orders of the company certified. Now, the Model standing orders in Gujarat classify and define Trainee but do not stipulate a minimum stipend limit. Does it mean that a Trainee (not an Apprentice) can be paid any amount as stipend as per the Trainee appointment letter, or should the stipend be at least equal to the Minimum Wages? In our case, training is given to workers, but it is not obligatory for the trainees to accept employment even if we offer full-time employment after the completion of training.

Your kind cooperation is solicited.

Janak