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The average stipend payout witnessed a marginal 2 per cent increase to ₹11,600 per month in FY22, compared to the previous fiscal, according to a report by TeamLease Degree Apprenticeship.
While the overall percentage increase has been a marginal spike, the report highlights a significant variation in stipend pay-outs across industries, cities, and educational qualifications. In fact, stipend payouts in certain sectors have gained more traction than salary trends over the past year.
The majority of industries surveyed have indicated promising stipends for apprentices. In the manufacturing sector, six out of ten industries provided a higher stipend in 2022 as compared to 2021. Agriculture and agrochemicals, with a current stipend of ₹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 payouts. On the other hand, industries like power and energy saw a drop of 10 per cent, and healthcare saw a drop of 7 per cent.
In the services sector, 11 out of 13 industries provided a higher stipend in the fiscal year. The top industries included media and entertainment (18 per cent), services including repair and maintenance (11 per cent), education (9 per cent), life science (8 per cent), and e-commerce and tech products (8 per cent).
However, despite the technology boom and the advent of 5G, Telecommunication (-4 per cent ) and IT/ITeS (-2 per cent) saw a dip in the fiscal.
“This upward trend signifies a growing recognition among companies of the immense value and returns on investment that come with engaging apprentices in their organisations. 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,” said Sumit Kumar, Chief Business Officer, TeamLease Degree Apprenticeship.
Moreover, the report stated that companies are witnessing firsthand 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.
According to the report, the majority of cities (9 out of 14) experienced an increase in stipends in FY22 compared to FY 2021. The top-paying cities in FY22 were Chennai (₹13,100 per month) and Kochi (₹13,000 per month), followed by Bengaluru and Coimbatore, both offering ₹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 increase in stipends.
Better payouts
Even from the apprenticeship category perspective and an educational qualification viewpoint, many cohorts of apprentices earned better stipends than the nominal base, such as Diploma and Trade (Regular) apprenticeships, which earned more than 50 per cent above minimum stipends, and Trade (Degree) apprenticeships, which earned about 40 per cent above minimum stipends.
Premium stipends paid to diploma holders are 30 per cent to 50 per cent higher than the average stipends in nearly six out of 14 cities. Similarly, graduates enjoyed premium stipends that were 55 per cent to 75 per cent higher in 5 out of 14 cities.
Post-graduates, specifically in Chennai, Hyderabad, Indore, Bengaluru, Chandigarh, and Delhi, received premium stipends that were 50 per cent to 80 per cent higher than the average stipends.
In terms of job roles, Agriculture Field Officer was topping the chart with ₹15,200 per month, followed by Retail Sales (₹13,800 per month) and HR (₹13,600 per month).
The Stipend Primer Report FY22 is a comprehensive analysis of the current trends in apprenticeship stipend payouts across the country. The report covers 14 hub cities across 24 industries, and the total number of unique employers covered in the report is 553.
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