Salary and Stipend

Who receives a salary?

Salaries are typically received by individuals who hold formal employment positions within an organization, whether they are permanent or temporary employees. Salary recipients perform work as part of their job responsibilities and receive regular compensation for their services.

Who receives a stipend?

Stipends are received by individuals participating in temporary engagements, such as internships, fellowships, apprenticeships, or research projects. Stipend recipients may include students, trainees, researchers, or participants in specific programs or activities.

Are stipends taxable?

Stipends can be taxable depending on the nature of the stipend and the laws of the country. Typically, stipends associated with work, such as research or internships, are considered taxable income. However, stipends for certain types of educational expenses may be tax-exempt.

Can stipends be negotiated?

Stipends may be negotiable depending on the organization and the specific circumstances. However, since stipends are often associated with programs like internships or fellowships, there may be less flexibility in negotiating compared to traditional employment contracts.

How is salary determined?

Salary is determined based on various factors including the nature of the job, industry standards, the candidate’s qualifications and experience, and negotiations between the employer and employee. It can also be influenced by factors like location, company size, and economic conditions.

Salary and Stipend both involve the payment of money to individuals. Salaries are typically associated with employment contracts and regular work performed within an organization, whereas Stipends are often provided for temporary or educational purposes, such as internships, research, or training programs.