Unmasking Stipend: Your Guide to Explore the Form of Compensation
In a time when no generation wants to work for free, stipends, also known as allowances, have become more popular. So, let’s explore the various forms of compensation, their significance, and their operation.
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Whether you are a student or a graduate, you have certainly come across the term "stipend" while searching for internships, fellowships, or training programmes. In fact, in today's modern world, where no one wants to work for nothing, this type of pay has emerged as a significant asset. Navigating the complexities, however, continues to perplex people. Don't worry! This article will guide you through the world of stipends, explaining what they are, their significance, and how they work.
What is Stipend?
So, what does a stipend actually mean? As per the gathered information, it is a fixed and regular amount of money typically paid to individuals. This allowance is often used to cover basic living expenses like accommodation, food, and transportation while you are engaged in a particular program.
The average base salary interns get in India is around Rs 15,000, with additional cash compensation of Rs 417, ranging from Rs 87 to Rs 3,452, as per Glassdoor.
Unlike the traditional salary, stipends are most commonly offered in situations where the primary focus is on learning and development rather than generating a profit. So, now that you have understood the definition of a stipend, let’s discuss some common types and how they work:
i) Internship Stipends: Paid to interns preparing for real-world experience and entering the workforce.
ii) Fellowship Stipends: Paid to those engaged in research and advanced studies under a fellowship program like the Mahatma Gandhi National Fellowship, the Prime Minister Research Fellowship, and so on.
iii) Researcher Stipends: Paid to researchers and graduates who are engaged in academic work.
iv) Non-Profit Stipends: Paid to volunteers who work with non-profit organisations.
Thus, you can think of it as a financial lifeline, supporting you as you gain valuable experience in your field.
How it works?
Undeniably, the mechanism of stipends still confuses many. And if you are one of them, don't worry, down below is the chart prepared for you to understand its process.
Why are Stipends Important?
Stipends play a significant role in opening gateways for valuable learning and career development opportunities. Here’s how:
i) Accessibility: Stipends make internships, fellowships, and training programs financially accessible without pressuring them to support anyone.
ii) Focus on Learning: By covering basic costs, stipends free up recipients from financial constraints, allowing them to fully immerse themselves in the learning experience.
iii) Motivation and Retention: Stipends demonstrate a program's commitment to its participants, encouraging individuals to persevere through challenging experiences.
Today, stipends have become a valuable tool used to support learning and development opportunities. And, if you are fortunate enough to receive a stipend, remember to create a realistic budget, try to be tax-savvy, and track your spending before you splurge on everything.
