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A stipend is a predetermined amount of money that’s regularly paid to an individual, often by a university, internship program, or any grant-awarding institution as a financial support. This payment is not considered a salary or wages, but is generally given to help cover living expenses or facilitate work. It’s often provided to those who are ineligible to receive a regular wage due to their academic or related research commitments.


The phonetics of the keyword “Stipend” is /ˈstaɪ.pɛnd/.

Key Takeaways

<ol><li>Stipend is a regular payment or a financial support awarded to an individual, usually for their work, training, or project commitment. It is often given to interns, scholars, students, or trainees who are not traditionally rewarded with a salary or income.</li><li>The main objective of a stipend is to cover the financial expenses such as accommodation, food, travel allowances, etc. that individuals would typically undertake during their training or learning period. However, it’s important to note that a stipend isn’t a salary, and therefore does not have to meet local minimum wage conditions.</li><li>Stipends may or may not be subject to tax, depending on the purpose for which they are paid and the tax laws of the particular jurisdiction. It is always advisable to seek professional advice regarding the tax implications associated with receiving a stipend.</li></ol>


A stipend, in business and finance, is important because it’s a predetermined amount of money paid to individuals, often interns or apprentices, to help cover living expenses while they’re gaining work experience in their respective field. Unlike a traditional salary or wage, a stipend isn’t dependent on the number of hours worked, but rather on an agreement to provide certain services. This mechanism allows for financial support, ensuring that individuals can focus on their training, research, or educational pursuits without the added stress of financial instability or burden. It’s an incentive tool that enables individuals to gain experience and participate in jobs that might not otherwise be financially viable.


Stipend is a pre-determined amount of money that’s often used as a partial financial support. While it’s typically lower than a traditional salary, the purpose of a stipend is to offset expenses rather than to compensate for work. It is generally offered to those who work in a position where they are fully engaged yet do not receive full pay. The core reason for this is to relieve financial burden and ease the pressure on the recipient so they can devote their full attention to their work or research.Stipends are commonly used in academic, internship, or training settings where the primary objective of the individual isn’t to earn a living, but to gain experience, develop skills or contribute to a field of knowledge. This is particularly useful for graduate students or trainees who might be offered stipends to help cover living expenses and academic costs such as tuition or research. Furthermore, non-profit organizations often provide stipends to volunteers to cover their basic costs like transportation to and from their work location.


1. Graduate Assistant Stipend: Many universities and colleges offer stipends to graduate students who assist with teaching or research. This stipend provides a set amount of money to help cover living expenses and tuition fees without requiring the student to repay the funds.2. Corporate Internship Stipend: Some companies pay internships in the form of a stipend. Instead of earning an hourly wage or salary, the intern receives a preset amount for the entire duration of the internship. This is common in industries like nonprofits, healthcare, and financial services.3. Government Stipends: Stipends are often used in government programs to support individuals who provide a public service. For example, Americorps is a national service program in the U.S. that offers stipends to volunteers who commit to several months of sustained service in fields like education, public safety, health care, and the environment.

Frequently Asked Questions(FAQ)

What is a stipend?

A stipend is a predetermined amount of money that’s given to an individual, often a student, intern, or volunteer, as a form of financial support during a period of work, study, or training.

Is a stipend considered income?

Generally, yes. In most cases, stipends are considered income and are subject to taxes. However, the specific tax rules may vary depending on local regulations and the nature of the stipend.

How is a stipend different from a salary?

A stipend is typically a fixed sum paid on a regular basis, often weekly or monthly. Unlike a salary, it doesn’t necessarily reflect the amount of work done but is provided for the individual’s support. On the other hand, a salary is a fixed annual amount that is broken down into monthly or weekly pay periods, tied directly to work performance and hours worked.

When are stipends typically used?

Stipends are often used to provide financial assistance to interns, students, researchers, and volunteers who are engaged in work or study that doesn’t involve regular paid employment. They can help cover basic living expenses.

Do stipends have any restrictions on what they can be spent on?

Not usually. Stipends are given to support an individual’s expenses, which may include transportation, food, housing, etc. However, some stipends can come with conditions outlining how the money is to be used, especially in the case of grants and scholarships.

Are stipends given to employees?

Typically, stipends are not given to regular employees, these are given to volunteers, trainees, interns, or students. However, some company policies or programs may provide employee stipends for specific purposes, such as covering remote work expenses.

Can stipends be negotiated?

In most cases, stipends are fixed and non-negotiable as they are set by an organization, institution, or company policy. However, in some cases, there may be room for negotiation, depending on the nature of the program or work and the policies of the providing organization.

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