Difference Between Stipend and Consolidated Salary
A stipend is an allowance paid to trainees, whereas a consolidated salary refers to a salary without any breakdown such as Basic Salary, Dearness Allowance, House Rent Allowance, etc. A stipend is also a consolidated sum as there will not be any breakdown for the same.
A stipend is considered a training cost, whereas a consolidated salary is part of the operational cost. Stipends will not attract EPF and ESI contributions, but a salary, even if it is a consolidated amount, will attract EPF and ESI if the respective employee is covered. However, a stipend paid to trainees other than apprentices will attract EPF and ESI.
Regards,
Madhu.T.K