What is NEEM Scheme?

what is neem scheme?

NEEM Scheme, also known as National Employability Enhancement Scheme, is a pioneering initiative taken jointly by AICTE and Government of India. The Scheme aims at producing skilled labors and counters the problem of the skilled labor shortage in India. It provides for on the job training to the candidates. NEEM Scheme also has some great incentives for the participating industries. Industries becoming part of the NEEM Scheme enjoy liability free workforce. They can train the manpower as per their requirements and also have an option of absorbing them full time if need be.

AICTE exercising its power of under subsection 1 of Section 23, Read with section 10 of the AICTE act of 1987, (52 of 1987), has made certain regulations offering practical on the job training to students pursuing graduation and diploma. NEEM scheme is a part of this effort.

The scheme offers some really good incentives for the Industries too. Firstly, the labor or the workforce provided under NEEM Scheme is regulated by an agent. Hence the Industry does not have to worry about any legal liabilities. Secondly, the trainees are more disciplined and have a tendency to learn the skills faster. The Industry has the option of letting the trained labor go or they can absorb them full time. This creates a win-win situation for both the parties. Trainees get to learn the latest skills and get paid a stipend, the Industries get hassle-free skilled manpower.

Details of NEEM Scheme

Governing Agency: AICTE & Government of India

Objective as per official declaration: The objective of National Employability Enhancement Mission (NEEM) is to offer on the job practical training to enhance the employability of a person either pursuing his or her PostGraduation/graduation/diploma in any technical or non-technical stream or has discontinued
studies after Class 10th to enhance his/her employability.

The scheme clearly mentions that it aims to provide the underprivileged and under skilled youth of India with proper skill development avenue. What could be more beneficial for them than to get the latest skills that too without any expenditure? its one of the finest skills development scheme that the government has come up with.

NEEM Agent: Also known as NEEM Facilitator in official terminology.

The official document as issued by the government of India says the following about the NEEM Agent (known as neem facilitator )


Any Society/Trust/Company registered under Section 25 of Companies Act, 1956 / Section 8 of Company Act, 2013 or Relevant Act as amended from time to time /Bodies of Central Government/ Bodies of State Government / Government Institutes and Universities shall be eligible to apply for registration as NEEM Facilitator.

This basically shows how flexible yet responsible the governing bodies are when it comes to increasing the scales of operations.

NEEM Facilitator shall be in the business of training for at least five years or the parent company under which a Section 25 Company /Section 8 of Company Act, 2013 or Relevant Act as amended from time to time, is formed to meet the objective of NEEM shall be in the business of training for at least five years.

NEEM Facilitator shall have turnover and capacity to place students in registered companies or registered industries for the purpose of providing training under the objective of NEEM as per following:

  • Turnover  25Cr  above: 5000 Trainee capacity per year
  • 15 -25 Crore: 3000 Trainees
  • 5-15 Crore: 1000 Trainee
  • The NEEM Facilitator shall submit an affidavit as per proforma given in Appendix I for registration with AICTE in addition to the submission of online data for the purpose of such
  • The Society/Trust/Company registered under Section 25 of Companies Act, 1956/ Section 8 of Company Act, 2013 or Relevant Act as amended from time to time /Bodies of Central Government/ Bodies of State Government seeking registration as NEEM Facilitator shall submit an affidavit in the proforma appended to these Regulations stating that the information submitted by it in the application for registration is correct and if any information submitted by the applicant found incorrect in future, the NEEM Facilitator so registered on the basis of such the information shall be liable for revocation or withdrawal of its registration and also penal and civil action.
  • If any member of Society/Trust/Company registered under Section 25 of Companies Act, 1956/ Section 8 of Company Act, 2013 or as amended from time to time, or Society/Trust/Company registered under Section 25 of Companies Act, 1956/ Section 8 of Company Act, 2013 or as amended from time to time is facing an inquiry including a vigilance inquiry or if there is any criminal investigation/prosecution by police or CBI, then such Society/Trust/Company registered under Section 25 of Companies Act, 1956/ Section 8 of Company Act, 2013 or as amended from time to time, shall not be eligible to apply and seek registration and approval as NEEM Facilitator under these Regulations.

So it is clear that only serious and responsible people are allowed to handle this scheme.

Now let us see what it takes to become a NEEM Trainee


A person registered under this NEEM Regulation is called a Trainee under NEEM.

So we know that NEEM trainee in the official language is deemed to be a Trainee under NEEM.

Age Criterion :
A person seeking training under NEEM shall be at least 16 years of age and not more than 40
years of age as on the date of registration

Education :
A person seeking training under NEEM may either be pursuing his or her Post Graduation/graduation/ Diploma in any technical or non-technical stream or may have discontinued studies
after Class, 10th Satisfies standards of physical fitness as prescribed by NEEM Facilitator.

Broadly speaking anyone falling between the given age criterion is eligible to be a trainee under NEEM.

Other Points to be considered and be aware of.


  • A contract shall be signed between NEEM Facilitator and the NEEM Trainee to capture all terms & conditions which would govern the relationship.
  • The NEEM training shall be deemed to have started from the date of joining of the NEEM Trainee as mentioned in the contract letter as per proforma given in Appendix II.
  • The NEEM contract shall not be either an offer of employment or a guarantee of employment.
  • Any remuneration/stipend paid to a trainee is a consolidated amount not subject to any other
    deduction of payment as applicable in a regular employment.


  • NEEM training shall be in a registered company/Industry as registered with the NEEM Facilitator.
  • NEEM training shall be for a minimum of 3 months and a maximum of 36 months and the training must be NSQF compliant.
  • The duration of NEEM training shall be determined by the nature of Industry or trade where aNEEM trainee would be engaged in such training and shall be at the sole discretion of NEEM
  • Termination of contract as per the laid down rules. The contract of the training shall expire on the completion of training as mentioned in the contract letter signed between the NEEM trainee and NEEM Facilitator. Either party can terminate the contract by notifying in writing to the other party by giving a notice thirty days in advance. NEEM Facilitator can terminate the Training contract with the NEEM trainee on account of any unlawful behavior on the part of the NEEM trainee or on account of repeated flouting of company/Industry policies or for continuous irregularity in attending to the scheduled training as notified for the NEEM trainee.NEEM trainee can terminate the contract entered into with the NEEM Facilitator where the NEEM Facilitator fails to honor any of the terms of the contract by giving a written notice 30 days in advance to the NEEM Facilitator. The selection of a NEEM trainee does not constitute an employment contract with NEEMA facilitator or the company/Industry where the NEEM trainee is placed for training under the contract.
  • There is more information that still needs to be imparted and explained through our blog. Stay tuned for more reliable information coming from us. The blog article has taken inputs from the gazette published by the government of India on NEEM Scheme.

Neem Scheme and Youth Development

The NEEM Scheme is an outstanding program rolled out with various top ranking industries in the country. The rate of employability is quite low in India and this is the reason why the government is taking up measures in the form of bringing up various schemes like the NEEM scheme. This unique apprenticeship program is brought to the people under the aegis of the government and the AICTE.

Bridging the gap:

It goes without saying that unemployment is one of the greatest crises of the country. Any industry would require candidates with a lot of working skills such as communication, technical work and team work along with various others. But the reality is that the students do not get access to this skills in their general stream of studies. So the NEEM scheme allows the candidates to receive the hands-on experience in all the important aspects of industry.

The aim of this scheme lies in the development of youth: by bridging up the gap between the individuals willing to work in various industries and the industry itself. The NEEM scheme allows the willing candidates to boost their employability as per the needs and preferences of the concerned industries.

The actual scenario:

After completion of their degrees or leaving their course in the middle, the candidates appear for various kinds of job interviews. But they often fail to get something which is at par with their score and this is because they lack the skills and competence required to work in the industry. Regardless of whether they have their degrees or not, they definitely fail to match the industry requirements.

The uplifting caused by the NEEM scheme:

With the assistance of the practical job training under the NEEM scheme, the candidates get to acquaint themselves with the latest technologies and tools required to work in the different industries. They are also taught to handle various machineries and their basic maintenance which make them more adept than a non-technical person. Moreover, while getting the requisite training from the NEEM scheme, the students also earn a stipend generated by the government, which surely motivates them to be more diligent and industrious. The most important aspect of the NEEM scheme with respect to youth development is that the candidates are given a platform to learn and to work at the same time. They can test their abilities in the real-world situation where the employer can directly hire them on the basis of their merit and performance.

When any company hires candidates who are practically efficient and possess remarkable dexterity in their area of work, they are bound to prosper. This prosperity is not restricted to the individuals only and can supremely affect the industries and Indian economy at large. This is because the recruiters are now able to see the difference between an untrained and a trained candidate along with the benefits that the latter proffers. This scheme is a wonderful approach of the government that allows them to find meaning and necessities of life during their training course so that they can apply it later on in their area of work.

FAQ on National Employability Enhancement Mission (NEEM)

What is NEEM Scheme?

The National Employability Enhancement Mission, abbreviated as NEEM Scheme is pioneered by the Government of India along with AICTE. It offers skill development training to the young people in India. This training scheme is purposely meant for the unprivileged sector of society.

What is the way to register as the facilitator of the scheme?

The applicant must submit the application under the scheme on the portal of AICTE by logging in to the portal with the newly generated username and password.

What is the fee for registration?

The total amount to be paid by an applicant as processing fee is Rs. 50 with which an amount of Rs. 5,000 has to be paid for registration.

Is there any prescribed age group for the trainees willing to enroll under the scheme?

A trainee who is willing to enroll in the NEEM Scheme should be at least 16 years of age and not more than 40 years when registering.

Who offers training under the NEEM Scheme?

The training under the scheme is provided by the registered facilitator of the companies who has collaborated with the NEEM scheme.

Is there any grant offered to the facilitator after completion of the training?

There is no provision for any grant under the completion of the training. But the trainees are eligible to receive a stipend which is payable by the facilitator. The amount is at par with the prescribed wages of the unskilled workers.

Is there any certificate issued to the trainees after the completion of the training?

The candidates are given a system generated certificate after the completion of the training. This certificate can be downloaded from the official portal of AICTE.

What is the maximum capacity of training students in registered industries for providing training?

Clause 3.3 of NEEM Regulation, 2017 has prescribed the training capacity of the authorized companies and industries. And it is advised to the trainers not to exceed the limit as prescribed by the regulation.

What is the duration of training under the NEEM scheme?

NEEM training is offered for a minimum span of 3 months and a maximum of 3 years. Each variant of training must be compliant with NSQF.

Is it important to take attendance of the trainees?

It is mandatory to take attendance of the students along with uploading the monthly progress report of the trainees in the portal.

Will it be possible to add a trainee in case an existing trainee drops in between?

It is not possible to edit the information of the students at the middle of the course. Even a student cannot change his or her name after the data has been uploaded.

Do the scheme and its exemptions fall under the ESI and PF Act?

The PF, as well as ESI authorities, go by their concerned Act which is considered Supreme over others and the NEEM trainees are exempted as per the Apprenticeship Act.

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