How Much Should Engineering Interns Be Paid for a 6-Month Internship? Seeking Advice!

Hi, What stipend amount should be paid to final year BE students for their 6-month internship in an engineering company?

Thanks & Regards,
Jayashree Salian

Hi, It is company-specific. You may fix it based on your company's policy on interns.

Thanks, sir, for your quick reply. Is there any rule to deduct PF/ESI on a stipend?

Hi, no need for PF/ESI deductions for interns.

Interns' stipend may be more than 21K per month consolidated. In such cases, technically, they are not eligible for PF & ESI. Otherwise, for stipends, PF & ESI are normally not applicable. However, if the intern is working in technical areas where there are chances of accidents, in those cases, if the stipend is below 21K per month, the ESIC authority may raise questions. Even beyond PF & ESI coverage, for technical job exposure due to the possibility of accidents, it is better to have EC Insurance coverage and any additional insurance such as Group Personal Accident Insurance.

Regards, S K Bandyopadhyay

Thanks, sir. Is the same rule applicable to Maharashtra as well?

If students are from government-recognized colleges and the respective college issues a letter for an internship, then it will not attract PF/ESI. If students are from a private college, then you have to deduct their PF/ESI.

Insurance Considerations
If you are not deducting ESI, then take EC/WC (workman's compensation) policy as suggested by Mr. S K Bandyopadhyay.

It is strongly recommended that you check and confirm the above and make a decision.