Rules 5 and 7B explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 5 of the Apprenticeship Rules, 1992 reserves training places for the Scheduled Castes and the Scheduled Tribes, by State, through the ratios in Schedule IIA, and provides for the Other Backward Classes. Rule 7B sets the number of apprentices an employer engages: who is eligible, how strength is counted, a percentage band over a financial year, monthly limits, and quarterly disclosure of intention on the portal-site.
This article is based on the consolidated copy of the Rules consulted (latest amendment marked: 20 January 2017). The Rules are amended often, so check the current Rules before relying on it.
Rule 5 implements sections 3-A and 3-B: places are reserved by the employer in every designated trade, by the State ratios in Schedule IIA. Rule 7B implements section 8(1). As printed in the copy of the Rules consulted (latest amendment marked: 20 January 2017), employers with six or more workers are eligible to engage apprentices, engagement is not obligatory up to forty workers, and each establishment engages apprentices in a band of 2.5 per cent. to 10 per cent. of its total strength in a financial year. These are dated figures, not the current limits.
Rule 5: reservation of training places (sections 3-A and 3-B)
Sections 3-A and 3-B of the Act leave the number of reserved places "as may be prescribed". Rule 5 fills that. Our article on sections 3, 3-A and 3-B explains the sections.
Sub-rule (1). For each State specified in column (2) of Schedule IIA, training places are reserved by the employer for the Scheduled Castes and Scheduled Tribes in every designated trade, so that the ratio of apprentices belonging to those groups to the total number of apprentices in the designated trade or trades is as specified in columns (3) and (4) of the Schedule. Where an establishment has more than one designated trade, places are reserved also on the basis of the total number of apprentices in all designated trades in the establishment. The copy prints "Schedule Castes" in this sub-rule, a slip.
The proviso allows substitution. When the prescribed number of persons belonging either to the Scheduled Castes or to the Scheduled Tribes are not available, the places so reserved may be filled by persons belonging to the Scheduled Tribes or, as the case may be, the Scheduled Castes; and if the places cannot be filled even in that manner, they may be filled by persons not belonging to those groups.
Sub-rule (2) (printed as "2." without brackets): training places for the Other Backward Classes in designated trades are reserved by the employer according to the prescribed norms followed in the respective State or Union territory, and if they cannot be filled from the Other Backward Classes, the places lying unfilled may be filled by persons not belonging to those classes. The rule prints no ratio for them.
Two footnotes are printed below rule 5(1): "Inserted vide GSR No. 107, dated 27th May 1998" and "Inserted vide GSR No. 300, dated 23rd August 2003". The passages they belong to are not clear in the copy, so we attribute nothing to them.
Schedule IIA: the ratios
Schedule IIA (see rule 5) lists 36 States and Union territories with two ratios each: Scheduled Caste apprentices to total apprentices in the designated trade, and Scheduled Tribe apprentices to total apprentices. A dash is printed where no ratio is given. As printed in the copy of the Rules consulted (latest amendment marked: 20 January 2017), for example, Andhra Pradesh shows 1:7 for the Scheduled Castes and 1:15 for the Scheduled Tribes, Delhi shows 1:6 and 1:13, and Arunachal Pradesh shows a dash for the Scheduled Castes and 1:2 for the Scheduled Tribes. These are rows from a dated copy and are not stated as the ratios in force today. Your State's row must be read from the current Rules.
Rule 7B: number of apprentices (section 8(1))
Section 8(1) says the Central Government shall prescribe the number of apprentices to be engaged by the employer for designated trade and optional trade; see our article on sections 6-8. Rules 7A, 7B and 7C are printed inside one square bracket with a mark that has no matching footnote, so no notification is attributed to rule 7B here.
As printed in the copy of the Rules consulted (latest amendment marked: 20 January 2017), rule 7B provides:
| Sub-rule | What it says |
|---|---|
| (1) | Employers having six or more workers shall only be eligible to engage apprentices; engagement by an establishment having workers not exceeding forty shall not be obligatory |
| (2) | The strength of workers is calculated on the basis of average strength in the preceding financial year |
| (3) | Within a financial year, each establishment shall engage apprentices in a band of 2.5 per cent. to 10 per cent. of the total strength of the establishment, including contractual staff |
| (4) | In no month shall the number of apprentices be less than 2 per cent. of the total strength and more than 15 per cent. of the total strength, subject to the condition that the employer shall fulfil apprentice months corresponding to the 2.5 per cent. obligation in a financial year |
| (5) | Every employer shall disclose their intention of engagement of apprentices, in designated and optional trade, on the portal-site as well as the establishment's portal-site (if existing), by quarters: 1 April to 30 June, 1 July to 30 September, 1 October to 31 December, and 1 January to 31 March |
Each figure in the table is as printed in that copy and is not the current limit. The Rules are amended often; check the current Rules.
Reading rule 7B
- Eligibility and obligation are different. An employer with six or more workers is eligible; an establishment with up to forty workers is not obliged. The text leaves open how the two interact for an establishment between six and forty workers beyond those words.
- Strength is an average. Sub-rule (2) uses the average strength in the preceding financial year.
- The count includes contractual staff. Sub-rule (3) counts "total strength of the establishment including contractual staff". Compare the definition of "worker" in section 2(r), which reaches persons engaged through a contractor; see our article on section 2 (trade apprentice, graduate apprentice, optional trade and worker).
- A band and a monthly corridor. Over a financial year the band is 2.5 per cent. to 10 per cent.; in any month the number must be within 2 per cent. to 15 per cent., with the 2.5 per cent. apprentice-month obligation to be fulfilled.
- Disclosure by quarter on the portal-site. The Rules name no website, and neither does this article.
The copy prints "fulfill" and "portal site" for "portal-site" in places, and the last quarter line ends with two full stops. These are layout slips.
What happens on a shortfall
Under section 30(1) and (1A), an employer that contravenes the provisions on the number of apprentices is first given a month's notice in writing and, if the reply is not given or is not satisfactory, is punishable with a fine as the section prints. Our article on section 30 sets it out. Our labour law compliance team can help you check your head-count and quarterly disclosures against rule 7B before a notice arrives.
An example
Vega Textiles averaged 120 workers (including contractual staff, for the purpose of rule 7B(3)) in the preceding financial year. Reading the printed rule 7B, the plant manager, Shalini, sees that Vega is above the forty-worker figure in sub-rule (1), which is the figure up to which engagement is stated not to be obligatory, and that the yearly band printed in sub-rule (3) is 2.5 per cent. to 10 per cent. of total strength. She plans her intake for the year within that band, checks the monthly corridor, and records the disclosure for each quarter. For reserved places she opens Schedule IIA to read her State's ratios from the current Rules.
Need help planning your apprentice numbers?
Head-count, reservation and quarterly disclosure interact, and an error in one can trigger a notice. Our labour law compliance service can set up a simple planner for your establishment.
Key takeaways
- Rule 5 fills sections 3-A and 3-B with State ratios in Schedule IIA and a rule for the Other Backward Classes.
- If reserved places go unfilled, the proviso to rule 5(1) and rule 5(2) allow other persons to fill them as printed.
- Rule 7B fills section 8(1); the figures (six workers, forty workers, 2.5 to 10 per cent., 2 and 15 per cent. in a month) are as printed in the copy consulted, not the current limits.
- Disclosure of intention goes on the portal-site by quarter.
- A shortfall is dealt with under section 30.
Read next
- Sections 3, 3-A and 3-B: qualifications and reservation of training places
- Sections 6-8: period of training, termination and number of apprentices
- Rules 7A and 7C: optional trade and inspection
- Labour law compliance checklist for employers
Disclaimer: Based on a consolidated text of the Apprentices Act, 1961 amended up to Act 29 of 2014, on the Gazette of India copy of the Apprentices (Amendment) Act, 2014, and on a consolidated copy of the Apprenticeship Rules, 1992 in which the latest amendment marked is dated 20 January 2017, as consulted on 2 October 2026. Stipend rates and other figures are as printed in those texts and may have been revised; later amendments and the position under the Labour Codes in force from 21 November 2025 should be checked. This article is general information, not legal advice; check the official text before acting.