PM Internship Scheme is an ambitious initiative launched by the Indian government to bridge the gap between academia and industry.
The scheme aims to provide one crore young Indians with invaluable internship opportunities in the top 500 companies over the next five years.
The initiative exposes young talent to real-world business environments, nurturing their skills and preparing them for future careers.
PM Internship Scheme Overview
Announced in the Union Budget 2024-25, the PM Internship Scheme targets top companies across 24 sectors such as energy, banking, automotive, and travel.
The scheme’s primary objective is to improve the employability of youth by providing them exposure to working in large companies.
The pilot phase of the scheme was set to launch on December 2, 2024. However, it has been deferred, with a new date yet to be announced.
Stipend Structure and Pay Parity
Under the PM Internship Scheme, each selected intern will receive a monthly allowance of ₹5,000 for one year. This will be on top of a one-time aid of ₹6,000.
The government will bear ₹54,000 towards monthly allowances and the one-time aid. This results in a total annual expenditure of ₹60,000 for each intern.
Participating companies will bear at least the training cost and 10% of the monthly allowance.
This amounts to ₹6,000 per candidate annually, sourced from their corporate social responsibility (CSR) funds.
Many large companies, including Reliance Industries, Tata Consultancy Services, HDFC Bank, Maruti Suzuki, Larsen & Toubro, Mahindra & Mahindra, Bajaj Finance, and Jubilant Foodworks, have placed about 127,000 internship offers through a portal designed to implement the PM Internship Scheme.
These companies are willing to top up the government’s stipend to ensure that interns receive a fair amount.
The idea behind topping up the stipend is to ensure that interns do not receive substantially less for doing the same work.
This practice helps maintain fairness within the company.
This move is also in line with the board policies on non-discrimination and ethics of many large companies.
By topping up the stipend, companies aim to maintain pay parity.
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