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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Apprentices Act, 1961

Under the central text of section 13(1) of the Apprentices Act, 1961, the stipend an employer must pay to an apprentice is at a rate not less than:

The stipend must be at least the prescribed minimum rate or the rate the employer paid on 1 January 1970 to that category of apprentices, whichever is higher, as specified in the contract. State-specific formulas arise only from state amendments.

  1. AThe prescribed minimum rate, or the rate paid by the employer on 1 January 1970 to that category of apprentices, whichever is higherCorrect
  2. BThe prescribed minimum rate, or the rate paid on 1 January 1970, whichever is lower
  3. CThe minimum wages for unskilled workers notified by the State Government
  4. DSeventy per cent of the minimum wages of semi-skilled workers notified by the State

Explanation

Section 13(1) requires stipend not less than the prescribed minimum rate or the rate paid by the employer on 1 January 1970 to that category, whichever is higher, as specified in the contract. The 'lower' option reverses this. The unskilled-wage and seventy per cent rules are Rajasthan and Maharashtra amendments respectively.

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