Apprenticeship - Do the employers need to pay the apprentice? Is there a slab for the stipend in the construction industry in Kerala?

Do the employers need to pay the apprentice? if yes, is there a slab for the stipend in the construction industry in Kerala? Are they eligible for PF/ESI? Are they to be given a letter of an apprentice? Any specific points to be included?

Apprenticeship has to be as per the Apprenticeship Act 1961, which means there is a contract of Apprenticeship signed by the employer and apprentice and registered under the Act, for being treated to be so. This caveat is made as several organisation would call their trainees as apprentice to avoid legal compliances that are mandatory but later have ran into problems. It is clarified that apprentices engaged under the Apprentice Act, 1961, after registering with the Related Instruction Centre (RI Centre) of the Government are exempted from the operation of both EPF and ESI, otherwise they are to be covered under both the Acts. An apprentice is paid stipend by the employer in the first instance, later the Government reimburses the amount as per its notified rates. The stipend does not come within wages under both the Acts.

You can engage trainees under both designated trades as well as non designated trades. If you have employment strength of more than 40 employees, it is mandatory that you should engage 2.5% of your total strength of permanent employees as trainees. If you do not have work related to designated trades, you can opt for non designated trades which may even include Front Office Executives and housekeeping staff. The stipend to be paid shall be equal to 70% of the minimum wages as applicable to semi skilled workers for the first year, 80% of the same during second year and 90% of the same during the third year. Since they are not workmen but are trainees, they need not be paid PF or ESI. Under National Apprentice Promotion Scheme, a small amount of stipend paid by you (I believe it is subject to a maximum of Rs 1500 per month) is refunded to the employer by the government.

For more details please visit https://www.apprenticeshipindia.gov.in/