Summary of the Common Cost Norms of Skill Development (As per the 5th Notification)

Introduction

Skill development is a crucial pillar for India’s economic growth, bridging the gap between employment demand and workforce readiness. To streamline financial aspects, the Common Norms for Skill Development Schemes (5th Notification, 2021) standardizes training costs, mobilization, lodging, and support for special groups.

Training and Mobilization

The cost per hour of training is structured into three categories, ranging from ₹35.10 to ₹49.00. Mobilization efforts, critical for enrolling candidates, receive 3-4% of the total training cost.

Support for Candidates

To promote inclusivity, additional funding is allocated for persons with disabilities (PwDs), women, and those below the poverty line (BPL). Boarding, lodging, and transport assistance ensure that financial constraints do not hinder participation.

Employment and International Opportunities

Beyond training, financial support extends to job placement assistance, with post-placement incentives of up to ₹3,000 per month. For candidates securing jobs overseas, a ₹10,000 incentive and ₹3,500 for certification assessments help facilitate international employment.

The Common Norms for Skill Development Schemes standardize training costs and operational expenses across various programs under the Government of India. Key highlights include:

1. Training Cost

• Increased by 5% from January 1, 2021, rounded to the nearest 10 paise.
• Per-hour training costs:
  • Category I Sectors: ₹49.00 per hour
  • Category II Sectors: ₹42.00 per hour
  • Category III Sectors: ₹35.10 per hour

2. Mobilization Cost

• Above 1,000 trainees: 3% of the training cost.
• Below 1,000 trainees: 4% of the training cost.
• If the Training Partner (TP) assists in refining the mobilization list, they receive 1% of the mobilization cost.

3. Boarding & Lodging Costs

Reimbursement rates per trainee per day:

• X Category Cities: ₹375
• Y Category Cities: ₹315
• Z Category Cities: ₹250
• Rural & Non-Municipal Areas: ₹220

4. Support for Special Groups (PwDs, Women, BPL)

• Additional training cost increments:

  • Physically Handicapped: +10%
  • Visually/Hearing Impaired: +20%
  • Mentally Disabled: +25%
  • PwD in Special Areas: Extra 10% increase.

• Transport Allowance:

  • Within home district: ₹1,000/month
  • Outside home district: ₹1,500/month

5. Post-Placement Support

• General Candidates:
  • ₹1,500 per month (for 1-3 months based on job location).
• PwD Candidates:
  • ₹3,000 per month (for 2-6 months).

6. International Placement Support 

• ₹10,000 per trainee for international job placement.
• ₹3,500 per trainee for international certification assessment.