Requirement of Mandatory Apprenticeship Program for SMEs brought down to 10% of Total Workforce
Reform ID B134
Reform Description Before: It was mandatory for all businesses to employ 20% of the workforce as apprentices which meant extra cost to businesses for unskilled employees.

After: Now, for the SMEs, mandatory apprenticeship threshold has been reduced to 10% of the workforce.

Sector All Sectors
BeneficiariesAutomotive Owners  All Businesses
Jurisdiction/ Location Balochistan
Department Technical Education and Vocational Training Authority, Govt of Balochistan
Date of Implementation 02-01-2018
Details Difficulty The Factories Act, 1934 required that every business had to employ and train apprentices; and the threshold was set to be 20% of total employment.  This was a challenge for SMEs because of their limited resources. SMEs had to bear expenses of un-skilled apprentices who had little to contribute to the efficiency or productivity of business.
Analysis The requirement for apprenticeship at a rate of 20% of total employees was an unnecessary burden for SMEs which required reconsideration.
Solution To facilitate SMEs, the threshold of apprenticeship programs under the law has now been reduced from 20% to 10%. This will reduce the financial burden of SMEs and provide them space to hire skilled employees.

Was this information helpful?