Updated: Sep 22, 2019
Apprenticeship Training or Internship is one of the most efficient ways to develop skilled manpower. A young apprentice would work under the guidance of a master craftsman and learn the nuances of the craft. Craftsman will in return get affordable labour in exchange for the training he provides. This age-old practice has survived the test of time and revamped itself in the form of an internship.
One of the major benefits of internships is that it is a win-win situation for everyone. It helps in creating an industry-ready workforce and bridge the job versus experience gaps among fresh graduates. With an ambition to convert India into the world’s skill capital and to promote apprenticeship training Prime Minister, Shri Narendra Modi announced
National Apprenticeship Promotion Scheme (NAPS) in December 2016. Under NAPS, Central Government will provide a financial incentive to the employers to hire and train interns. Companies can also claim 25% of the total stipend paid to the intern (maximum of 1,500 rupees per month per apprentice). In addition, companies will get back 50% of the total expenditure incurred on providing basic training to an intern. This claim has a maximum limit of Rs. 7500 for 500 hours/3 months per apprentice.
This is an amazing opportunity for companies to hire more and more interns and get benefit from the central government. If you are an employer and wondering how to claim 50% stipend given to interns from the government of India, read on.
Eligibility Criterion for Employers:
For employers to be able to claim 50% stipend given to interns, they have to meet few basic eligibility criterion and follow certain rules.
1) Employer validation through TIN/TAN and EPFO/ESIC/LIN/ any other identifier decided by Govt.
2) Employer must have Aadhar linked bank account
3) Proper establishment with in-house training facility
4) Employer shall engage apprentices in a band of 2.5% to 10% of the total strength of the company.
It is mandatory for Establishments, Apprentices and BTPs (Basic Training Providers) to register and engage apprentices through the GoI Apprenticeship portal. They may shortlist candidates through their apprenticeship portal or may select interns offline and upload their details before starting the internship training.
It is also necessary to upload the contract of apprenticeship between the employer and the intern on the government portal.
How Employers can Submit Reimbursement Claims Towards Stipend of Interns
1) The employer should pay the interns only through the Aadhar linked bank account.
2) For stipend reimbursement claim, it is mandatory to submit the bank statement by the company of payments made to interns as proof.
3) Employers also need to upload details about the intern’s attendance particulars.
4) Employers will have to sign an undertaking to inform the concerned RDAT (Regional Directorates of Apprenticeship Training) or SAA (State Apprenticeship Advisers) about any dropouts.
Concerned RDATs/States will verify the information uploaded by the employers and on confirmation or training and verification of stipend, the reimbursement will be made to employer’s Aadhar linked bank account within 10 days.
How Switch Idea Make the Claim Process Easier
At Switch Idea, we take care of everything related from hiring qualified interns to setting up successful internship programs for your company. Yes, we help you claim the reimbursement too! As a CII-approved internship platform, we make sure that all the employers and internship applicants meet the basic eligibility criterion needed for the claim submission.
To claim the stipend, you'd need the following documents:
1. Internship Undertaking Form or Letter of Intent (printed on letterhead)
2. Business Registration Document (Annexure 1)
3. Attendance Sheet and Internship Report of the Intern (Annexure 2)
4. Proforma of Intern's Work Diary
5. Program Outcomes Sheet (optional)
To download the above documents, you first need to be registered on Switch Idea as an Employer. If you're already a verified employer, you can log in to your Switch Idea account and navigate to the Resources Page. On the Resources page, you can find the downloadable files of above-mentioned documents.
In case, if you need any further help in claiming the stipend, do not hesitate to get in touch with our support team by contacting us at support[at]switchidea[dot]com or simply call our helpline number +91-9555-141-142.
Recent Additions in the NAPS components:
1. Sharing of 25% of the prescribed stipend, subject to a maximum of INR 1,500 per month per apprentice per month to the employer.
2. Sharing of cost of basic training with Basic Training Providers (BTP); up to INR 7,500 for 3 months/500 hours.