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Skill Development Allowance (SDA) Scheme

Skill Development Allowance

Skill Development Allowance (SDA) Scheme

The Government of Himachal Pradesh has initiated the Skill Development Allowance to promote rural livelihoods by providing an opportunity for the unemployed youths of the state. This scheme aims at providing assistance to educated unemployed persons to enhance their skills and enter the experienced workforce in developing sectors of the economy. Let us look in detail about the Industrial Skill Development Allowance Scheme in this article.

To know more about the National Skill Development Mission

Objective of the Scheme

This Skill Development Allowance scheme focus on skilling and placement in the formal sector for the unemployed youth citizens of the state. The primary objective of the SDA Scheme is to enable such youth to improve their skill in employment and support prospectives of better employment. This scheme promotes entrepreneurship and creates self-employment opportunities, specifically in rural areas.

Eligibility Criteria

To apply for the Industrial  Skill Development Allowance Scheme with subject to the provisions of the scheme, all the unemployed youth citizens must be eligible for the grant, who  fulfil the following criteria:

  • The applicant should be unemployed (i.e. neither employed in any Government sector nor in any private sector nor self-employed) and must be a bonafide Himachali.
  • The applicant should have at least passed minimum 8th standard from any Board/University or Institution recognized by Himachal Pradesh Government. There is no requirement of minimum qualification for the admissibility of allowance under the scheme when the applicant wants to pursue training in the following sectors such as masonry, blacksmithy, carpentry, or plumbing etc.
  • The applicant should have been already registered with any Employment Exchange in the state of Himachal Pradesh as on the date of applying for the scheme.
  • The applicant’s family annual income for the Financial Year immediately preceding the date of scheme application must be less than Rs.2 Lakhs from all sources including that of the spouse.
  • The applicant’s age limit should be above 16 years and below 36 years of age, as on the date of application.
  • The applicant should not be self-employed
  • The employment under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) will not be counted as employment.
  • The applicant must not be a dismissed Government employee.
  • The applicant should not be convicted of any offence resulting in imprisonment for a period of 48 hours or more.
  • The applicant should be enrolled in skill development training.


The State and Central Government employees and also such of the Public Sector undertakings, Local Bodies and Quasi-Government foundations who have been excluded from the service and persons who have been imprisoned for 48 hours or more are not eligible to apply under this scheme.

To know about Assistance Scheme to Women for Self-Employment in Himachal Pradesh – Click here

Documents Required

The required documents must be furnished along with the application form are as follows:

  • Attested copy of Employment Registration Card (X-10)
  • A valid family income certificate (to be attested) issued by the Executive Magistrate issued not before 6 months from the date of application for the allowance to be submitted.
  • Affidavit by the applicant (Self Certified Declaration) mentioning that she/he is unemployed as per the format prescribed by the Department.
  • Attested copy of Bonafide Himachali Certificate to be submitted.
  • Attested copy of enrollment or admission certificate in skill development training is attached
  • Bank details to be verified by the concerned Bank Branch Officer with the signature and stamp of Bank
  • Attested copies of 8th/10th age certificate issued by the competent authority to ascertain age and educational qualification to be furnished.

Note: Fake documents and any discrepancy in the documents will lead to the rejection of the application. Therefore, the applicants are advised to provide the original documents while applying for the scheme.

Implementation of the Scheme

On implementation of the Skill Development Allowance (SDA) Scheme, the State Government ensures the consolidation and qualitative improvement of education, capitalization on natural advantages in tourism, socio-economic upliftment of weaker section of the society by providing them with skilled manpower as per the demand of the industry to meet the future challenges set up by the rapidly changing economy.

Nature of Assistance

The Government would pay allowance, to each educated unemployed applicant for a maximum period of two years subject to fulfilling the eligibility criteria and timely submission of attested copies of 8th standard mark sheet/certificate to assert to ascertain age and educational qualification and Affidavit as per the form, at the following rates:

  • For a physically disabled person who has minimum 50%, permanent disability recorded in her/his Employment Exchange record (X-I), at Rs.1500/- per month will be provided as assistance by the Government.
  • For all other categories of Persons at Rs.1000/- per month will be provided as assistance by the Government.

Online Application Procedure

Before applying for the Skill Development Allowance scheme, the applicant has to register their name or the Employment Exchange in Himachal Pradesh. Kindly follow the below steps to get registered online.

Step 1: The applicant has to go to the Labour and Employment Department of Himachal Pradesh to apply for the Skill Development Allowance scheme.

Step 1 – Skill Development Allowance (SDA) Scheme

Step 2: One needs to register into the portal as the new user to apply for the scheme.

Step 3: Click on the “Online Registartion” menu which is displayed on the webpage of the portal.

Step 3 – Skill Development Allowance (SDA) Scheme

Step 4: The applicant needs to enter the required details on the form.

Step 5: Then click on the “Register” button for successful registration.

Step 6: After registration, the applicant will have to click on the “Online SDA Application Submission” link that is visible on the portal.

Step 7: Upon clicking on the link, it redirects to the SDA Application Form on the new page.

Step 7 – Skill Development Allowance (SDA) Scheme

Step 8: After that, the applicant will be required to fill the application form with all the mandatory details.

Step 9: Then, upload all the supporting documents onto the portal before submitting the application.

Step 10: Finally, the applicant will have to click on the Submit icon.

Step 11: The applicant will get a message like registration is successful to their valid mobile number.

Step 12: Then, the applicant will be provided with an acknowledgement slip for further reference.

Step 13: The assistance amount will be credited to the applicant’s bank account by NEFT/RTGS/ECS through Banks as mentioned in the Application Form, on a monthly basis at the cost of the State Government.

Offline Application Procedure

Follow the procedure given to apply for the Skill Development Allowance (SDA) Scheme through the Employment Exchange office in Himachal Pradesh is explained in detail below:

Approach  Employment Exchange Office

Step 1:  The applicant has to address the nearest Employment Exchange Office for the registration of Skill Development Allowance Scheme.

Get Application Form

Step 2: Now, get the application form from the concerned office and have to fill out an application form in a prescribed format.

 Note: An educated unemployed applicant may make an application on being eligible for the grant of assistance along with the above-mentioned documents to that Employment Exchange where his/her name is registered or the Employment Exchange, in whose jurisdiction the applicant is obtaining training.

The SDA Scheme form can also be downloaded from the website by the applicant for the registration under this scheme. The online application form is reproduced below for the ready reference.

application form of SDA scheme

Fill out the Application Form

Step 3: A duly completed application form will be sent by post or be delivered at that Employment Exchange office in HP where the applicant’s name is being registered already.

Filing of Claim

Step 4: After the initial filing of a claim in the prescribed form every claimant to the Allowance shall be required to submit Affidavit-C in the subsequent month of March to the Employment Exchange where his/her name is registered.

Processing of Applications

 Step 5: The Employment Exchange will thoroughly examine applications received under Section 7 and conclude with regard to the admissibility of the assistance to the applicant, within 45 days and in case if the claim is refused, suitable orders would be issued under intimation to the applicant as per the form ‘D’.

Step 6: If the applicant is aggrieved by any decision intimated to them as per the rules, the applicant would file an appeal to the Director whose decision thereon will be final.

Remittance of Allowance

Step 7: The assistance amount would be credited to the recipient by NEFT/RTGS/ECS through Banks as given in the Application Form, on a monthly basis at the cost of the Government.

Step 8: The assistance amount would become payable for the term commencing from the month of application (if suitable) till March of that Financial Year and thereafter on making of new Affidavit in March month of that Year or till the user becomes unsuitable, whichever is earlier.

Verification Process

Step 9: The Director would have the power of supervision and control in respect of the assistance payable under this Scheme and may from time to time issue directions for the smooth functioning of this Scheme.

Beneficiaries Details

Step 10: The details of the beneficiaries will be displayed on the Notice Board of the Employment Exchanges, on the official Department’s website and at any other suitable place, for the information of public at large.