Requirement of Mandatory Apprenticeship Program for SMEs brought down to 10% of total workforce
Reform IDS200
Reform Description
Requirement of Mandatory Apprenticeship Program for SMEs brought down to 10% of total workforce

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.

SectorAll Sectors
BeneficiariesAll Businesses
Jurisdiction/ LocationSindh
DepartmentTechnical Education and Vocational Training (TEVTA) - Sindh
Date of Implementation11-08-2023
DetailsDifficulty 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.
AnalysisThe 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.
Evidence