Type:Preventive Compliance Frequency: Specific Day

Action to be taken:
Pay all Apprentices the stipend specified in the contract and disburse the stipend by the 10th day of the following month.
The Minimum Stipend payable to different categories of apprentices is specified in Rule 11. No deductions can be made from the stipend for casual or medical leave. Ensure that no apprentice is paid on the basis of piece work, nor allowed to take part in any out put bonus or other incentive scheme. The permission of the Apprenticeship Adviser is required to discontinue the stipend for poor performance.

Audit Requirement:
Is the minimum prescribed stipend being paid on time without incorrect deductions to all apprentices ? Is the minimum rate of stipend payable to the apprentice in accordance with Rule 11 ?

Supporting Documents:
Details of stipends paid and any deductions made to all Apprentices

To be complied on the following days every year
10-January; 10-February; 10-March; 10-April; 10-May; 10-June; 10-July; 10-August; 10-September; 10-October; 10-November; 10-December;
Related Triggers:
Deduction or Fine From Wages
Payment of Wages

Related Keywords:
Apprentices
Deduction/Fine From Wages
Payment of Wages
Remuneration/Wages/Compensation

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Related Sections:
Apprentices Act, 1961
Chapter:Chapter II: Apprentices and Their Training| 13:Payment to apprentices:
(1) The employer shall pay to every apprentice during the period of apprenticeship training such stipend at a rate not less than the prescribed minimum rate, or the rate which was being paid by the employer on 1st January, 1970 to the category of apprentices under which such apprentice falls, whichever is higher as may be specified in the contract of apprenticeship and the stipend so specified shall be paid at such intervals and subject to such conditions as may be prescribed.

(2) An apprentice shall not be paid by his employer on the basis of piece work nor shall he be required to take part in any output bonus or other incentive scheme. Apprenticeship Rules, 1992
11:Payment of stipend to Apprentices:

(1) The minimum rate of stipend payable to trade apprentices shall be as follows, namely:-

(a) During the 1st year of training Rs. 1490 per month.
(b) During the 2nd year of training Rs 1700 per month.
(c) During the 3rd year of training Rs. 1970 per month.
(d) During the 4th year of training Rs. 2220 per month:

Provided that in the case of trade apprentices referred to in clause (a) of Section 6 of the act , the period of training already undergone by them in a school or other institution recognized by the National Council, shall be taken into account for the purpose of determining the rate of stipend payable.

(2) The minimum rates of stipend payable to Graduate, Technician and Technician (Vocational) Apprentices shall be as follows, namely:-

(a) Graduate Apprentices - Rs.3650 per month
(b) Sandwich Course (Students from Degree Institutions) - Rs.2530 per month
(c) Technician Apprentice - s Rs.2530 per month
(d) Sandwich course (Students from Diploma Institutions) - Rs.2070 per month
(e) Technician (Vocational) Apprentices -Rs.1970 per month

(3) The stipend for a particular month shall be paid by the tenth day of the following month.

(4) No deduction shall be made from the stipend for the period during which an apprentice remains on casual leave or medical leave. Stipend shall, however, not be paid for the period for which an apprentice remains on extraordinary leave.

(5) Notwithstanding anything contained in this rule, where an establishment has a system of deferred payment whereby only a portion of the stipend is paid to the apprentice every month and the balance is paid to the apprentice on the completion of training, such establishment shall be free to continue such system provided that the minimum amount paid to the apprentices every month shall not be less than the monthly stipend prescribed under these rules and no deduction is made from the said accumulated amount on any account. Establishments which do not already have such a system shall be free to institute a system on the same conditions.

(6) The continuance of payment of stipend to an apprentice shall be subject to the work and conduct of the apprentice being satisfactory.

(7) Where the work and conduct of the apprentice is not satisfactory, the employer shall report the matter to the Apprenticeship Adviser and with his consent may stop the continuance of payment of stipend to the apprentices:

Provided that the stipend of an apprentice shall not be stopped without intimating him the grounds thereof and giving him an opportunity of representing against the action proposed.

(8) On report being made by the employer under sub-rule (7), the Apprenticeship Adviser shall give his decision thereon within 30 days of the receipt of the report and where the Apprenticeship Adviser does not communicate to the employer refusal to consent to the stopping of the payment of stipend within the period of thirty days, it shall be deemed that he has consented to the stopping of the stipend.