Resurfacing a May 2023 report: Apprentice stipends rose across apparel, FMCG and consumer sectors in FY22: TeamLease
Resurfacing a report first shared in May 2023, TeamLease found average apprentice stipends rose 2% in FY22, with gains of 22% in apparel and textiles, 8% in FMCG and 6% in handicrafts and jewellery. Chennai and Kochi were the highest-paying cities, pointing to rising entry-level labour costs for consumer businesses.
What happened
TeamLease reported higher apprentice stipends across Indian industries in FY22, including apparel and textiles, FMCG, and handicrafts and jewellery. Chennai and
Key facts
- Average stipend payouts increased 2% in 2022 versus the previous fiscal
- 6 of 10 manufacturing industries paid higher stipends in 2022
- Agriculture & Agrochemicals stipend growth: 12%; current stipend: Rs14,000
- Apparel & Textiles stipend growth: 22%
- FMCG stipend growth: 8%
- Handicrafts & Jewellery stipend growth: 6%
- Infrastructure & Capital Goods stipend growth: 5%
- 11 of 13 service industries provided higher stipends
- 9 of 14 cities recorded stipend increases
- Chennai: Rs13,100 per month
- Kochi: Rs13,000 per month
- Bengaluru: Rs12,900 per month
- Coimbatore: Rs12,900 per month
- Nagpur and Lucknow stipend growth: 9%
- Chandigarh stipend growth: 6%
- Delhi and Hyderabad stipend growth: 5%
Why this matters
For acquisitions or expansion in consumer manufacturing, diligence should test labor-cost escalation, apprentice dependence and exposure to higher-paying hubs such as Chennai and Kochi.
What to watch
- Further apprentice stipend increases in FY23-FY24, particularly in apparel and textiles.
- Retail and FMCG employee-cost-to-sales ratios and supplier requests for price revisions.
- Apprentice enrollment, completion, attrition and full-time conversion rates.
- Minimum-wage changes, labour-code implementation and state-level apprenticeship incentives.
- Hiring demand and wage gaps between Chennai, Kochi and other production or retail hubs.
- Consumer demand elasticity following price increases in value apparel and packaged consumer goods.
- Benchmark apprentice and entry-level pay by city, especially Chennai and Kochi, against store, factory and warehouse staffing budgets.
- Prioritize retention, training completion and conversion-to-full-time metrics so higher stipends produce measurable productivity gains.
- Renegotiate supplier contracts and sourcing plans where apparel labour-cost inflation is concentrated.
- Test targeted price, pack-size and promotional changes in labour-intensive categories before pursuing broad price increases.
- Accelerate automation business cases for repetitive store, fulfilment, quality-control and back-office work.