What Is Stipend and How Does It Work in Internships?
For students and recent graduates in the Philippines, internships are frequently the first significant step into the working world. They provide opportunities for practical experience and an understanding of how workplaces function.
In addition, a lot of internships come with a stipend. This is intended to assist interns as they do tasks and gain knowledge while working. Each organisation has a different amount and structure.
It's important to note that candidates are more confident while selecting internships when they know exactly what to expect.
Meaning of Stipend
A stipend is a set sum of money given to interns as financial assistance. Essentially, it is intended to help cover daily expenses such as transportation, meals, and other necessities.
Instead of a formal employment contract, it is typically provided as part of a training program. It is frequently offered to acknowledge the time and work an intern puts forth while continuing their education. Gaining experience continues to be the primary goal rather than making a full-time living.
Purpose of Offering a Stipend
Stipends are provided by companies to help candidates manage internships. Regular attendance and, perhaps, travel to the workplace are prerequisites for internships. The financial strain associated with these obligations is lessened by a stipend. Notably, it also creates prospects for more candidates, particularly those who cannot afford unpaid positions. Organisations get interns that are eager to learn, help with daily tasks, and contribute while undergoing training in exchange.
How Stipends Work in Internships
Details about the stipend are often disclosed at the time of the offer. Before the internship starts, these are explicitly stated in the contract. Although some businesses may opt for weekly or one-time payments based on their internal procedures, payments are typically given monthly. Although it can differ between businesses, the sum is usually set for the duration of the internship. A stipend is not regarded as a salary in reality. Interns are not regarded as full-time workers. Benefits like paid time off or required contributions could not be available as a result. However, depending on how their internship program is structured, some companies may still offer extra assistance in the form of training, diplomas, or modest stipends.
Factors That Influence Stipend Amount
A stipend's potential amount depends on a number of practical considerations.
Industry Type: Some industries such as IT, finance, and consulting usually offer higher stipends than smaller organisations.
Nature of the Role: Roles requiring technical or specialised skills often receive higher stipends compared to general or basic tasks.
Location: Internships in major cities like Metro Manila tend to offer higher stipends due to higher living costs.
Company Size and Budget: Larger companies follow structured programmes, while smaller firms adjust stipend amounts based on available resources.
Internship Duration and Structure: Longer or full-time internships may offer higher stipends compared to short-term or part-time arrangements depending on policy.
Difference Between Stipend and Salary
A salary and a stipend are two different things. Under a formal employment contract, employees receive a wage along with perks like insurance, paid time off, and government-mandated contributions. In contrast, a stipend is intended for interns who are still in the process of learning. In essence, a stipend helps the intern while they are undergoing training. It has nothing to do with long-term work obligations. Under supervision, interns are supposed to watch, learn, and help. Employees, on the other hand, manage specific roles and have continuous obligations inside the company. This difference is important to understand before joining an internship.
Conclusion
One useful component of many internship programs in the Philippines is a stipend. While interns concentrate on learning and acquiring practical experience, it offers financial support. It helps pay for necessities during the training term even though it does not match the salary. In actuality, candidates can choose opportunities more wisely if they are aware of how stipends operate.
Platforms like Foundit Philippines help significantly in this process. Interns may concentrate on learning and maximise the experience when there are clear expectations.