Mumbai, May 16 (PTI) The average stipend payouts witnessed a marginal 2 per cent increase in 2021-22, compared to the previous fiscal led by the manufacturing sector, a report said on Tuesday.

"Our findings indicate 2 per cent increase in average stipends during FY22, compared to the preceding year. This upward trend signifies a growing recognition among companies of the immense value and return on investment that come with engaging apprentices in their organisations," TeamLease Degree Apprenticeship Chief Business Officer Sumit Kumar said quoting 'Stipend Primer Report for FY-2022'.

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The majority of industries surveyed have indicated promising stipends for apprentices, the report stated adding that in the manufacturing sector, six out of 10 industries provided a higher stipend in 2022 compared to 2021.

Agriculture and agrochemicals, with current stipend of Rs 14,000, witnessed a 12 per cent growth.

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Similarly, apparel and textiles (22 per cent), FMCG (8 per cent), handicrafts and jewellery (6 per cent) and infrastructure and capital goods (5 per cent) also witnessed an increase in the payouts, it said.

On the other hand, industries like power and energy (10 per cent) and healthcare (7 per cent) saw a decline, it added.

In fact, Kumar noted that the stipend growth in India has outperformed salary growth in many industries, with many sectors paying higher than the minimum notified stipends.

"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. In the last couple of years, even the government has taken various initiatives to promote apprenticeship adoption," he said.

He said, introduction of optional trade for broader coverage of job roles, availability of TPA support to industry to improve adoption and execution, financial incentives under the National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS), and the recent Direct Benefit Transfer (DBT) ensuring efficiency, transparency and financial inclusion for apprentices, are all progressive steps.

"These are motivating even small and medium enterprises to scale apprenticeships. We are hopeful that lucrative stipends being paid out will attract more youth to take up apprenticeships that will help them enhance their employability and livelihood opportunities," he added.

The Stipend Primer Report 2021-22, is based on a survey with 553 employers across 24 industries in 14 cities.

Further, the report revealed that the majority of cities (9 out of 14) experienced an increase in stipends in FY22 compared to the previous fiscal.

The top-paying cities in FY22 were Chennai (Rs 13,100 per month) and Kochi (Rs 13,000 per month), followed by Bengaluru and Coimbatore, both offering Rs 12,900 per month.

Additionally, Nagpur and Lucknow saw a 9 per cent increase in stipends, while Chandigarh had a 6 per cent increase, and Delhi and Hyderabad each had a 5 per cent growth in stipends, it stated.

TeamLease Degree Apprenticeship Business Head Dhriti Prasanna Mahanta said as the demand for skilled professionals continued to rise, businesses are embracing apprenticeships as a powerful tool for talent development and acquisition.

"Especially in the services sector, stipend pay-outs are increasing significantly, specifically in industries like media and entertainment, services, life science and e-commerce and tech products. We are delighted to witness the positive transformation for apprentices, which signifies a promising future for both companies and apprentices alike,” Mahanta added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)