National Skill Certification & Monetary Reward (STAR scheme)
The National Skill Certification & Monetary Reward (STAR) Scheme is a government initiative designed to encourage youth to develop market-driven skills by offering both certification and a monetary reward. As a new MSME owner, this scheme can help you and your team upskill, making your business more competitive and productive.
If you’re looking to boost your business with skilled employees or upskill yourself, the National Skill Certification & Monetary Reward (STAR) Scheme is a great opportunity. Launched by the Ministry of Skill Development and Entrepreneurship, this scheme provides structured training in high-demand sectors, followed by a nationally recognized certificate and a cash reward. The aim is to bridge the skill gap in the workforce, making it easier for MSMEs like yours to find or train talent that meets industry standards.
What is the National Skill Certification & Monetary Reward (STAR) Scheme?
Launched in August 2013, the STAR Scheme is a government program to encourage skill development among Indian youth. It provides monetary rewards to those who complete approved training programs and pass standardized assessments. The scheme is implemented through public-private and public-public partnerships and is managed by the National Skill Development Corporation (NSDC).
Objectives of the STAR Scheme
Standardize the skill certification process across India.
Increase employment opportunities and support entrepreneurship.
Create a national registry of skills.
Encourage youth to participate in skill development certification programs with monetary rewards.
Train candidates in skills that match current market requirements.
Key Features of the STAR Scheme
When you successfully complete the program, you receive a cash reward, but the exact amount depends on your sector and skill level.
After passing the assessment, you are awarded a STAR certificate that is valid and recognized across India, and issued by the Government of India, NSDC, or the relevant Sector Skill Council.
Your training and assessment are managed by different agencies, ensuring the process is transparent and fair.
Once you qualify, the monetary reward is directly transferred to your bank account, making the process simple and hassle-free.
You are eligible to receive this reward only once under the STAR Scheme, so make the most of the opportunity.
Financial Assistance Offered Under the Scheme
Monetary Reward: Ranges from ₹7,500 to ₹15,000 depending on the sector and skill level.
Direct Benefit Transfer: Funds are credited directly to your bank account after certification.
Sector Type
NSQF Level 1 & 2
NSQF Level 3 & 4
Manufacturing Courses
₹10,000
₹15,000
Service & Other Sectors
₹7,500
₹10,000
Eligibility Criteria for the STAR Scheme
Eligibility
You are eligible if:
You are an Indian citizen.
You have completed at least 10th grade.
You are 18 years or older.
You are enrolling for the first time under this scheme.
You register with an approved training provider and pass the assessment.
Non-eligibility
You are not eligible if:
You have already availed the monetary reward under this scheme once.
You do not complete the training or fail the assessment.
Documents Required for National Skill Certification
Aadhaar card (or NPR number if Aadhaar is not available)
Proof of age (birth certificate, school certificate, etc.)
Proof of education (10th grade certificate or equivalent)
Passport-sized photographs
Bank account details for direct transfer.
How to Apply for the STAR Scheme?
Step 1: Approach your nearest Sector Skill Council (SSC), Training Provider (TP), or Assessment Agency (AA) to register.
Step 2: Submit all required documents to the training institute.
Step 3: Register with the Skill Development Management System (SDMS) using your Unique Identification (UID) or National Population Register (NPR) number.
Step 4: Pay the course fee (if applicable). If you can’t pay upfront, you can opt to pay after receiving the monetary reward.
Step 5: Complete the training and appear for the assessment.
Step 6: After passing, receive your STAR certificate and the monetary reward directly in your bank account.
Benefits of the STAR Scheme
Increased Employment Opportunities You or your employees gain skills that are in demand, making it easier to find jobs or grow your business.
Financial Incentive The cash reward acts as a scholarship, reducing the financial burden of skill development.
Nationally Recognized Certification The STAR certificate is valid across India, boosting your credibility with employers and clients.
Support for Entrepreneurship The scheme helps you develop the practical skills needed to start or expand your MSME.
Skill Registry Your skills are registered nationally, making it easier for employers to verify your qualifications.
Real-World Examples of the STAR Scheme
Young entrepreneurs using STAR certification to start their own ventures.
MSMEs hiring STAR-certified employees for shop floor roles.
Youth in rural areas gaining skills and employment through the scheme.
Related Government Support Plans with the STAR Scheme
Scheme Name
How it Links with STAR Scheme
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Similar focus on skill development and rewards
National Apprenticeship Promotion Scheme
Offers practical training and incentives
Skill India Mission
Umbrella initiative for all skill development
Final Words
If you are a new MSME owner, the STAR Scheme is a valuable resource to help you or your employees gain market-relevant skills, backed by a government-recognized certificate and a monetary reward. This not only boosts your business productivity but also opens up new opportunities for growth and expansion.
National Skill Certification & Monetary Reward (STAR) Scheme