Guidance on Stipend for ITI Trainees and Apprenticeship: Expert Insights

Hi all,

I need your guidance on the payment of stipends to ITI students as trainees. We plan to hire ITI freshers and train them for one year. I wanted to know if there is any limit (minimum & maximum) to the stipend that we can pay.

I need this information urgently.

Regards,
Chakradhar

Hi Gouri,

You have not given any details about what sort of job/post/pay these guys will be finally absorbed in. But still, you can consider the stipend based on these guidelines:
- Min - 1/3 of total pay and Max 1/2
- Lunch free/subsidized can be provided.
- Transportation can be provided.
- If in a remote location, subsidized hostel accommodation can be provided.

You can also look at it from the point of view of the candidate. Your stipend should be able to cover:
- His stay/rent
- Basic Food
- Transportation
- A little bit extra

Riyaz

Dear Member,

If the trainees are not engaged under the Apprentice Act, you can fix the national level minimum wage per day and calculate the same for 26 days to determine the monthly stipend.

Regards,
Murugavel B.

Normally, ITIs are taken as trainees following the Apprentices Act of 1961. In fact, all ITIs who have undergone two years of classroom sessions under different trades, such as Turners, Machinists, Fitters, Welders, etc., have to undergo practical training in companies for one year. Only after completing this one-year training, known as an apprenticeship, can they appear for the National Trade Apprentices Exam. Therefore, it is somewhat mandatory for these individuals to undergo one year of apprenticeship training.

For hiring such trainees, contact the Apprentice Adviser of the ITI in your locality, who will be the head of the RI Centre (Related Instruction) and will provide you with a list of outgoing ITIs under different trades. You can select the trainees after conducting interviews. Then, enter into an agreement with the guardian/trainee for one year. Every week, the trainee will attend a theory class at the RI Centre, and such days will be counted as workdays for the determination of their monthly stipend. They are not supposed to work overtime and are not entitled to bonuses, etc.

The stipend will be as fixed by the Government of India.

There is no obligation on the employer's part to offer employment to the trainee upon the completion of the one-year training, and similarly, the trainee has no obligation to accept any employment offered by the employer. They are not covered under ESI or EPF.

Regards,

Madhu.T.K

Dear Madhu,

Madhu's post is informative, concise, and pointed.

With Regards,

V. Sounder Rajan

Hi,

We are an engineering organization, and due to the economic scenario, we have decided to freeze recruitment this year. We might consider having engineering freshers as interns in our organization, but before we proceed, I would like help with the following questions:

1. Can an internship (not apprenticeship under the Act) be provided to an engineering fresher who has graduated this year? If yes, what is the maximum tenure for which such an internship can be provided?
2. Will the intern have any right to demand full-time employment in the organization upon completion of the training?
3. What will be our legal obligations if we decide to take some freshers as interns for one year?

Any help on the above questions would be much appreciated.

Regards,
DS

Dear DS,

Answer to your questions may be given as under:

Q.No. 1: Internship is provided as per the request of the college management. The tenure will also be specified in the request letter.

Q.No. 2: No.

Q.No. 3: Your obligation will be to impart internship training to the concerned student as this is a part and parcel of the engineering course.

Submitted as requested.

Regards,

R.N. Khola

Skylark Associates, Gurgaon

Dear Mr. Madhu,

Could you please inform us about the required stipend amounts for various apprenticeships? Where can we find information on the minimum stipend that needs to be paid to apprentices?

Regards,
Amit

Dear Amit,

You are advised to contact the Principal of ITI in your area to obtain details on the subject and the rates of stipend for apprentices.

Regards,
R.N.Khola

(Labour Law & Legal Consultants)
09810405361

Is it mandated by law that summer internships should be paid any stipend? The summer interns in my college are expected to do live projects in the companies. In that case, is it mandated that the companies pay the interns?

Regards, Vijay T
MA HRM LR, TISS

What is the actual rate of stipend to be payable for ITI apprentices in Maharashtra? Where can I get this information? Is there any Gazette published by the Maharashtra state, or is it required to be paid as per minimum wages? If yes, then as per which notification?

Can I obtain the rate of stipend from the Apprenticeship Adviser?