When you are not appointed on salary basis and work under training, you get stipend. Many companies take freshers, train them and for their services the companies pay them stipends which are minimal amount paid for their services. So now you might have got a bit of idea about what is a stipend. It was carried massively in western countries, but these days stipend has become much more common.
A stipend is offered to cover living expenses and is commonly given to people who are doing internship, graduate work, apprenticeship, fellowship, or something else. It is basically a fairly low wage which is given as per the norms set by the company for receiving work on time from an employee, even though the person is not eligible to work permanently. Stipend is given to those who dedicate their necessary time for something or for the company by doing specific work and increasing productivity. However, this avoids the problem of a person for some time until he/she doesn’t get a fixed job. Stipends may come along with other benefits that make it acceptable for the person to take even at lower wage. Benefits may include certain numbers of meals a day, living arrangements, additional knowledge and work experience, and college credit. These are beneficial not only personally but also add weight to the resume.
Certain companies also pay stipend on less frequent basis than regular paychecks. It can be paid once a month or can be paid as lump sum once. This is why it becomes important for the person to manage money of the stipend accordingly. This type of payment is given to only those people who will dedicate their work for specific duration. It is not a thing to continue forever. So, you can take it for three to six months or as followed by the company in its rule book.
A stipend can also be given by a non-profit organization to its workers even though many of them are simply participating as volunteers. A stipend is a guaranteed sum that satisfies an individual while taking internship or apprenticeship. At the end, the company also has to ensure that the individual is delivering the amount of work as promised for receiving stipend on regular basis. Still, it is not an hourly job where the individual is responsible for complete task or work to be delivered. He/she is still counted as a trainee and the work is done accordingly.