The Ministry of Skill Development & Entrepreneurship, Government of India (MSDE), on October 29, 2025, issued an advisory to all establishments covered under the Apprentices Act, 1961, clarifying the applicability of benefits under the Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS) in the context of the Government’s objective to train 4.6 million youth during 2022–23 to 2025–26 through apprenticeship training.
The Ministry reiterated that, in terms of Section 18 of the Apprentices Act, 1961, apprentices engaged under the Act are trainees and not workers, and therefore, labour laws applicable to regular employees (such as EPF, ESI, etc.) do not apply to them. It was further clarified that NAPS-2 benefits are available only to eligible apprentices as defined under the Act, and no stipend support is admissible for apprentices engaged by Central/State Government Departments or Public Sector Undertakings, including Public Sector Banks.
Accordingly, establishments have been prohibited from claiming NAPS benefits for personnel classified as workers or regular employees under labour statutes. Any attempt to register regular employees as apprentices for availing NAPS stipend reimbursement or incentives shall be treated as a scheme violation. Establishments have been advised to periodically review apprenticeship records to ensure compliance, failing which regulatory scrutiny and penal action may be initiated.
[Advisory No. MSDE-5/01/2022-AP]
