Salary vs. Stipend

Main Difference

The main difference between Salary and Stipend is that Salary paid to an employee who is on the payrolls of a company and Stipend is a form of salary, such as for an internship/training. It usually paid as the ability for someone to work who is usually unpaid.

Salary vs. Stipend — Is There a Difference?

Difference Between Salary and Stipend

Salary vs. Stipend

Salary is the compensation paid to the employee for performing the work or task assigned to him or the job for which he/she is accountable. The stipend described as the form of payment made to the interns and fellows, to provide financial support to them.

Salary vs. Stipend

Salary paid when there exists an employment contract between the parties, i.e., there must be an employer and employee relationship. Conversely, the stipend paid when a person binds the organization as a trainee, the relationship among the supervisor and the trainee is of mentor and student.

Salary vs. Stipend

Salary is subject to annual increment, which based on the execution or merit of the employee. Conversely, stipend remains fixed, regardless of the performance or merit of the trainee.

Salary vs. Stipend

When a person works as an employee, the goal is to earn money by way of salary. On the other hand, when someone connects an organization as a trainee, the primary goal is to increase the knowledge base and know the practical application of the way pursued.


A fixed amount of money paid to a worker, usually calculated on a monthly or annual basis, not hourly, as wages. Implies a degree of professionalism and/or autonomy.


A scholarship granted to a student.



To pay on the basis of a period of a week or longer, especially to convert from another form of compensation.


A fixed payment, generally small and occurring at regular intervals; a modest allowance.

My stipend for doing public service is barely enough to cover living expenses.


(obsolete) Saline.


To provide (someone) with a stipend.


something that remunerates;

wages were paid by checkhe wasted his pay on drinkthey saved a quarter of all their earnings


a sum of money allotted on a regular basis; usually for some specific purpose


Comparison Chart

Salary is the remuneration given to employees for the services provided by them to the company.The stipend is the amount paid to the trainees, to the cover cost of living.
Relationship Between Parties
An employer-employee relationship exists.Student-mentor relationship exists.
Paid to
EmployeesInterns or Apprentices
TaxableMay or may not be taxable
Earning moneyIncreasing the knowledge base
It may increase based on performance.It stays fixed irrespective of the performance level.

Salary vs. Stipend

A salary is a payment or remuneration that one receives in return for the work and services provided. It is paid periodically, i.e., over a certain interval of time, such as weekly, or more commonly, monthly. Whereas stipend usually paid during the term of an internship or apprenticeship as it not paid as remuneration for work provided. Salary may also be dependent on the qualifications of the worker or employee and the amount that the company can or is willing to pay to hire and retain those qualifications, on the other hand, the stipend paid to the person, which allows him to learn and not focus on working to earn a salary.

If a lot of people can do that job, then the salary would be less as a number of those people would be vying for that single job, whereas, if there are a lot of jobs but not enough people to fill those jobs, then the company would be willing to pay a larger salary to fill that position. On the other side, the stipend is usually less than a salary and is expected to cover the needs of the trainee or apprentice, as opposed to the wants. In some instances, stipends paid in addition to some other benefits, such as accreditation, instruction, food, and accommodation. An employer pays her employees salaries at regular intervals; employers do not make one-time salary payments. Although stipend payments sometimes paid at regular intervals, there are also one-time stipend payments.

What is Salary?

A salary is a regular payment by an employer to an employee for employment that is expressed either monthly or annually but is paid most commonly every month, especially to white-collar workers, managers, directors, and professionals. A salaried employee or salaried employee is paid a fixed amount of money each month. Their earnings typically supplemented with paid vacations and public holidays, healthcare insurance in country’s without universal coverage, and other benefits. Salary occupies a strong place in an employee’s work-life, as his/her standard of living, productivity, efficiency and condition or status in the society depends on it. Furthermore, the growth and success of an employee in his career also indicated by the salary drawn by him from the organization. It may also be dependent on the qualifications of the employee and the amount that the company can or is ready to pay to hire and maintain those qualifications. Also, the number of people that are capable of providing the same service or do the same kind of work also has an impact on the salary.

What is Stipend?

A stipend is a preordained amount of money that is provided periodically to help offset expenses. Stipends often provided to those who are incompetent to receive a regular salary in replace for the duties they perform, such as interns. A stipend usually reduced than a salary would be, but the recipient is at the same time able to obtain experience and knowledge in a specific field. A stipend allows an individual to follow work that is normally unpaid by helping meet living expenses. Interns, apprentices, fellows, and clergy are ordinary recipients of stipends. In place of being paid for their services, they are provided with stipends to provide financial support while engaged in the service or task. Often, a stipend accompanied by other benefits.

Stipends may be provided to researchers at academic institutions or other organizations to aid them in emphasis on their projects. Much like grants, these stipends may be furnished by third-parties who wish to see a particular study or form of research advance further without fiscal distractions that might otherwise hamper the researcher. Foundations and comparable entities might also offer stipends on similar terms, to support the work of researchers and the projects they are developing.


In brief the discussion, both salary and stipend are different terms, as they offered to different persons. When a person is acquiring employment, he/she provided with a salary for the work performed in the organization. As against, the stipend provided to the persons imparting training in the organization, i.e., interns, to cover living expenses.