Hyderabad apprentices earn 132 per cent more than counterparts

The TeamLease Skill University Stipend Primer Report also revealed that Telangana tops the list as one of the highest paying state

Published: 29th May 2019 09:41 AM  |   Last Updated: 29th May 2019 09:41 AM   |  A+A-

By Express News Service

HYDERABAD: The stipend paid to apprentices in Hyderabad is 132 per cent higher than the applicable minimum wages in the state. Not only companies in Hyderabad, but corporates across Telangana are also generous when it comes to rewarding apprentices, according to the latest TeamLease Skill University Stipend Primer Report.  With a stipend that is 132 per cent higher than the minimum wages, Telangana tops the list as one of the highest paying state. Amongst sectors Automobile and Allied industries, Tourism and Hospitality, Consumer Goods and Durables were the top paying sector for apprentices in the city. The growing demand for skilled talent coupled with revisions in the apprenticeship act seems to be positively impacting the apprenticeship eco-system, the report states. TLSU is located in Gujarat and is considered India’s first “Skills University” established under Public–Private Partnership between the Government of Gujarat and TeamLease Services, a manpower, recruitment & staffing solutions company.  

According to the report, graduates in Hyderabad commanded premium stipends. Further, from a profile point of view, while quality technician and IT support are garnering better payouts as compared to other apprentices, Trade and tech apprentices are paid significantly lower in sectors as compared to the market stipend. Apart from stipends the adoption rate of job profiles like Service technicians, Quality engineer, Product apprentice and customer support technicians are fasting gaining traction in the south especially in Hyderabad and its surrounding cities.

Sumit Kumar, Vice President, TeamLease Skills University, said, “We are confident that this growing reception coupled with the right initiatives made by the government will encourage further participation from corporates; aiding in the creation of a stronger workforce.”

At national level also as per the analysis the stipends offered to apprentices are higher than the minimum wages. According to the report, candidate expectations are significantly higher than stipends paid by employers in Hyderabad with candidate expectations being 30 per cent more than the market stipend. Apprentices who are under the Other Employability Schemes (OEES, which comprises programs such as NETAP – National Employability Through Apprenticeship Program) received a higher stipend (7.66 per cent higher) than that under the Apprenticeship Act.

Other findings

Other Employability Schemes (OEES) pay 7.66 per cent higher than the stipend paid under the Apprenticeship Act

Market stipends (as per Apprentice Act) are 23 per cent higher for Technical graduates than for non Technical apprentices; OEES stipends are higher for Technical graduates in 6 of the 9 cities covered by the study.

The apprenticeship market has matured and pays out handsome stipends at a significant premium over minimum wages. Top sectors and states (premium paid over minimum wage)

Top sectors: Construction & Real Estate (125 per cent), IT & ITeS (122 per cent), FMCG (110 per cent), Automotive (82 per cent) Manufacturing and Services sectors both pay fairly high stipends in the average range of Rs.9,000 – Rs.10,000 per month.

The Services sector pays marginally higher stipends compared to the Manufacturing sector (median measure).

Top 3 Manufacturing sectors: Construction/Building , Automotive & Allied Industries, Electrical & Electronics.

Top 3 Services sectors: Tourism and Hospitality, Banking & Financial Services, Consumer Products / FMCG

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