In this, you’ll discover what a stipend really means, how it differs from a salary, and its role in internships.
A stipend is a fixed payment given to an individual, often an intern, student, or trainee, to help cover specific expenses such as housing, transportation, or living costs. It differs from a salary, which is full compensation for employment and regulated by minimum wage laws. Instead, stipends are considered a form of financial support tied to educational or training programs. Depending on their purpose and structure, some stipends may still qualify as taxable income.
You’ll often find stipends in internships, fellowships, apprenticeships, or research roles. The purpose isn’t to replace a full paycheck but to reduce financial stress while the person gains practical experience or academic knowledge.
Yes, many students receive stipends during internships. In 2023, the Times of India reported that the Education Ministry revised the fellowship stipend chart, raising the monthly stipend for PhD researchers. A stipend internship usually provides a fixed monthly amount (or sometimes a lump sum for the program duration) to cover basic expenses while the student works on real-world projects.
The stipend amount can vary based on the industry, company size, location, and length of the internship. While not every internship is paid, stipends are becoming increasingly common in India as companies recognize the value of supporting interns financially.
Example: In India, companies often provide stipends to interns during summer training programs. For instance, an IT firm in Bengaluru might offer a monthly stipend of ₹10,000 to cover living and travel expenses while the student gains hands-on experience.
It depends on your stage of career. A salary is better for long-term employment, stability, and financial growth. A stipend is ideal for students, trainees, or professionals looking to upskill while covering basic expenses.
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Yes, stipends are usually paid monthly. However, some organizations pay them weekly, quarterly, or as a one-time amount depending on the program.
In most cases, stipends are taxable if they are paid for services like internships or training. However, research stipends and certain scholarships may be tax-exempt. It’s always best to check the current tax rules and clarify with the employer.
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