Indian firms paid higher stipends to apprentices in FY22 compared to FY21, said a report by Teamlease on Tuesday.
According to the ‘Stipend Primer Report’, the average stipend pay out witnessed a 2 per cent increase in FY22, compared to the previous fiscal, with stipend payouts in certain sectors gaining better traction than salary trends over the past year.
A stipend, also sometimes called an allowance, is remuneration paid to trainees, scholars, or students to compensate for living and training expenses . The report observed stipend trends in the FY22 received by apprentices with varied educational levels sprawled across 24 industries, and 14 cities in India.
A majority of cities (9 out of 14) experienced an increase in stipends in FY22 with southern Indian faring better. Chennai (Rs 13,100) led the list, followed by Kochi (Rs 13,000), Bengaluru ( Rs 12,900), Coimbatore (Rs 12,900) and Pune (Rs 12,400).
Agriculture field officer apprentices earned the highest monthly stipend (Rs 15,200), followed by those in retail sales (Rs 13,800) and HR (Rs 13,600).
Six out of ten industries in manufacturing provided a higher stipend in 2022. At least 22 per cent industries in apparel and textiles paid higher stipend, followed by 8 per cent industries in consumer goods and 6 per cent in handicrafts.
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In the services sector, 11 out of 13 industries provided a higher stipend in FY22. The top industries included media and entertainment (18 per cent), services including repair and maintenance (11 per cent), education (9 per cent) and life science (8 per cent).
Telecommunication (4 per cent) and IT/ITeS (2 per cent) companies saw a dip in the stipend provided in FY22.
Sumit Kumar, chief business officer at TeamLease Degree Apprenticeship, said that firms are recognising the value and return on investment that come with engaging apprentices.
“Employers are willing to pay higher stipends than industry mandates as they see the value of investing in apprentices to bridge the skill crisis and create a sustainable talent supply chain. Companies are witnessing first-hand the transformative impact apprentices can have on their operations,” he said.