Section 13 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.
Section 13 requires the employer to pay every apprentice a stipend during the period of apprenticeship training at a rate not less than the prescribed minimum rate or the rate the employer was paying on 1 January 1970 to that category of apprentices, whichever is higher. It also bars piece-rate pay and output bonus or incentive schemes for apprentices.
This article is based on the consolidated text of the Act consulted (amended up to Act 29 of 2014). Later amendments should be checked before you rely on it.
The stipend is specified in the contract of apprenticeship and must be not less than the prescribed minimum rate, or the rate which was being paid by the employer on 1st January, 1970 to that category of apprentices, whichever is higher. It is paid at such intervals and subject to such conditions as are prescribed. An apprentice cannot be paid on piece work or required to take part in an output bonus or other incentive scheme. The Act itself prints no rupee figure.
Sub-section (1): the floor and the contract
Sub-section (1) (the bracketed words are marked as substituted by Act 27 of 1973) has four moving parts.
| Part | What the text says |
|---|---|
| Who | The employer pays "every apprentices" (sic) during the period of apprenticeship training |
| How much | A 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 the apprentice falls, whichever is higher |
| Where recorded | The rate is "as may be specified in the contract of apprenticeship" |
| When and on what terms | The stipend is paid at such intervals and subject to such conditions as may be prescribed |
Reading it in order: first find the prescribed minimum rate for the apprentice's class; second, find out whether the employer was paying any rate to that category on 1 January 1970; third, take the higher; fourth, write a rate not below that figure into the contract. The text does not say that the employer must pay more than the floor, and it does not say how an employer that began business after 1970 treats the second limb. We do not fill that gap. For contract drafting, our payroll compliance audit team can check your stipend clauses against the floor.
The copy prints "to every apprentices" and "prescribed minimum, rate", with a stray comma. These are printing slips and are quoted as printed.
Sub-section (2): no piece work, no incentive scheme
Sub-section (2) (marked as substituted by Act 27 of 1973) says 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. The stipend is therefore a fixed amount for the training period, not a payment tied to output. This matters for payroll set-up: an apprentice should not be placed on a pay structure that varies with the number of pieces or the quantity produced.
The prescribed minimum: rule 11, with the date of the text
The Act prints no rupee amount; the "prescribed minimum rate" is in rule 11 of the Apprenticeship Rules, 1992. As printed in the copy of the Rules consulted (latest amendment marked: 20 January 2017), rule 11(1) sets the minimum monthly stipend payable to trade apprentices at seventy per cent. of the minimum wage of semi-skilled workers notified by the respective State or Union territory for the first year of training, eighty per cent. for the second year, and ninety per cent. for the third and fourth year. As printed in the same copy, rule 11(2) gives separate monthly rupee figures for graduate, sandwich course (degree), technician, sandwich course (diploma) and technician (vocational) apprentices. These are figures in a dated copy, not the stipend or limit in force today, and the Rules are amended often, so check the current Rules before fixing a stipend. The full rule, the payment date, deductions, deferred payment and stopping of the stipend are in our article on Rules 11 to 13 of the Apprenticeship Rules, 1992.
Because rule 11(1) refers to minimum wages notified by the State or Union territory, employers sometimes ask how those wages are fixed. Our post on the Minimum Wages Act, 1948 (fixation, revision and enforcement) covers that Act in general. This article does not work out any rupee stipend from any minimum wage.
Who bears the cost?
Section 13 says the employer pays the stipend. Section 9(8) of the Act separately provides, for stated classes and conditions, that the cost of stipends is shared between the employer and the Government up to a limit laid down by the Central Government; see our article on section 9 (practical and basic training). That is the only reimbursement of stipend found in the text. Section 13 itself says nothing about reimbursement.
Related points an employer should watch
- Class time. Time spent in related instruction is part of the paid period of work under section 10(3).
- Hours. Hours of work are dealt with in section 15; see our article on sections 14 and 15.
- Tax. For the tax treatment of a stipend, see our income-tax guides.
- Other labour law. Section 18 is explained exactly as printed in our article on section 18. The four Labour Codes are in force from 21 November 2025; check the current position before relying on any other labour law.
An example
Sparkle Print Works engages a trade apprentice, Imran, for a four-year period. The prescribed minimum for his class, in the Rules as consulted, depends on the year of training. Sparkle also checks whether it was paying a rate on 1 January 1970 to trade apprentices (it was set up much later and has no such rate, so it applies the prescribed minimum). It writes a stipend not below that figure into the contract. It does not give Imran a per-piece rate or enrol him in the shop-floor output bonus scheme, because sub-section (2) forbids both.
Need help with apprentice stipend and payroll?
Stipend rates, payment dates and the contract clause should all agree with each other and with the Rules in force. Our payroll compliance audit service can review your apprentice payroll set-up and the stipend clause in your contracts.
Key takeaways
- The stipend is specified in the contract and must be at least the higher of the prescribed minimum rate and the rate paid on 1 January 1970 to that category.
- Intervals and conditions of payment are as prescribed.
- Piece work, output bonus and incentive schemes are not allowed for apprentices.
- The Act prints no rupee figure; the prescribed minimum is in rule 11, to be read from the current Rules.
- Section 9(8) is the only provision on Government sharing of stipend cost.
Read next
- Rules 11 to 13: stipend, hours of work and leave
- Sections 14 and 15: health, safety, hours of work, overtime and leave
- Section 9: practical and basic training of apprentices
- Payroll 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.