What is the difference between salary and stipend?
Employees, owners, workers, and interns are the major players in an organization. These individuals are paid wages, salary, or stipend as a form of compensation for work done.
The guide from detailed insight into the core difference between salary and stipend in tabular form. This is will one to know an instance when salary and stipend are paid.
A salary is the amount of money given to an employee regularly at the end of the month by the employer. Examples of people benefiting from salary are white-collar workers, managers, directors, and professionals.
The amount tends to be fixed though it is supplemented with holidays, health insurance, and paid vacations.
Also, the growth of an employee in an organization is determined by the amount of salary being paid monthly.
Salary is an external motivation for an employee to encourage them to perform their duties, increase productivity, and also improve their living standards.
The stipend is a preordained amount of money given to interns to help them offset expenses while working at the organization.
The amount tends to be quite low but the intern ends up gaining experience and knowledge in the area of specialization.
Other groups of people that benefit from stipends are apprentices, fellows, and clergy. The amount is meant to encourage them to perform their duties with passion.
Comparison Chart: Salary Vs Stipend
|Definition||It is the compensation given to employees at the end of the month regularly for the service rendered.||It is the compensation given to interns or trainees to cover the cost of their expenses.|
|Paid to||White-collar workers, managers, directors, and professionals.||Interns, trainees, fellows and clergy|
|Relationship between parties||Employer to employee relationship||The student to mentor relationship|
|Taxability||Taxable||Either taxable or non-taxable|
|Increment||Tend to increase due to performance||Remain fixed irrespective of the performance|
|Core Objective||Earn money for a living||Increase the knowledge and experience base|
Core Difference between Salary and Stipend In Point Form
- Salary is the compensation amount given to an employee for performing certain duties assigned to her or him while stipend is the amount given to interns or trainees to help cover for expenses when performing their tasks.
- Salary is the amount paid on a monthly basis to employees for performing their duties while stipend is the amount paid to trainees to cover their expenses.
- Salary is the remuneration given when there exists a contract between an employer and employee while stipend amount paid to a person when joining an organization for the experience.
- Salary is taxable based on available tax rates while stipend can either be taxable or non-taxable depending on the country.
- Salary is subjected to annual increment according to the contract and performance while stipend remains to be fixed regardless of the performance
- The main objective of an employee is to earn a salary while an intern is to increase skills and knowledge base.
- Examples of a person who benefit from salary are white-collar workers, managers, directors, and professionals while stipends are interns, trainees, apprentices, fellows, and clergy
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Both salary and stipends are two different terms offered to different people. Therefore, a full-time employee earns a salary while the intern earns stipends.
Understanding the difference between salary and stipend is quite important when seeking employment or internship in an organization.
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