It refers to the support that an employer pays to an individual to meet their living expenses. This amount is specifically paid to an intern or an employee working in a fellowship. It is a bonus amount given to an employee or an intern to meet their necessary expenses. This helps interns cover their living and travelling expenses like home internet, commuting or gym membership. There is a vast difference between stipend and salary. A stipend is a small amount given to an underdeveloped employee who is learning for the company, and salary, on the other hand, is a comparatively large amount given to the employee who can work without basic training.
Eligibility of Stipend
Trainee
Clergy
Researcher
Intern
Working of Stipend
Unlike salary, the stipend is an amount that supports the learning and training experience. In other words, it is a training allowance and acts as motivation for the freshers or interns who are working and learning at the same time.
The Department of Labour has set a specific guideline for companies to access stipends. One of the key guidelines is that organisations can not use stipends to replace the existing employee with an intern. Other than this, the employer has to consider the intern’s growth and not the objective while working with it. The given stipend should be including the basic living expenses of an intern. The average stipend of an employee falls from 10,000 to 15,000 per month, which varies from company to company.
Factors to consider while calculating Stipend calculation
Purpose of Stipend: It must cover the specific needs of the intern
This may include factors like the cost of living in the area
The calculation is based on the salary scale of the job
General rules: Employer must offer fixed cost per month
The employee and employer can negotiate the stipend amount
Cost based calculator is essential
Source of Funding: Government institutions or public companies
Includes perusal agreements and negotiation with the sources
More flexible and has its own criteria
Type of Stipend: Scholarships have a predetermined formula for calculating stipend
Fix the stipend amount based on living costs and duration
The stipend is also based on the company and its policies
Types of Stipend
Academic research: These grants are based on followership. It acts as a scholarship for professional and experienced scientists, external sponsors, or members of non-profit companies. This helps give a higher focus on a specific researcher without worrying about financial accessibility.
Expenses related: These stipends are based explicitly on removing the financial roadmap of the student and allowing them to focus on other career goals rather than worrying about financial needs.
Wellness programs: Several companies offer stipends to wellness employees. They pay employees for accessing personal training for other employees regarding their mental and physical health.
Job training: Offering a stipend to the employees who want to learn about the practical career surrounding and are fresher. This helps the student develop professionalism and contributes to organisational growth.
