what is the difference between consolidated pay and stipend ? What are the legal implications as far the employer is concerned?
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Consolidated pay is given only to bona fide staff members falling under Salary Income as per the IT Act. Stipend is given only to students as VIDYA VETAN. The claimant should be a bona fide student of any educational institute approved by the law. This stipend is totally tax-free for activities related to education or research. Whatever amount is paid to the student is mostly in lieu of out-of-pocket expenses or as a gesture only.
Regards,
Ramakant
From India, Pune
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71Regards,
Ramakant
From India, Pune
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Understanding Consolidated Pay vs. Stipend
Normally, consolidated pay means salary paid to individuals on probation, contractual assignments, etc., with the payment being considered for all statutory benefits. In contrast, a stipend is paid to apprentices and trainees with restricted statutory benefits such as ESI, no PF, and no bonus.
Regards,
N. Nataraajhan
Sakthi Management Services
HP: [Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]
From India, Bangalore
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Normally, consolidated pay means salary paid to individuals on probation, contractual assignments, etc., with the payment being considered for all statutory benefits. In contrast, a stipend is paid to apprentices and trainees with restricted statutory benefits such as ESI, no PF, and no bonus.
Regards,
N. Nataraajhan
Sakthi Management Services
HP: [Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]
From India, Bangalore
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Dear Nataraajhan ji, you have correctly said that a stipend is paid to Apprentices and Trainees. Apprentices and Trainees are those who are engaged under the law or under Standing Orders.
However, if an amount is paid to confirmed employees, temporary, casuals, etc., what will you call it?
Dear Ramakant ji, I would consider the word "bonafide employee" in place of "bonafide staff members." Consolidated pay is not defined anywhere, but the meaning of it is total salary with no break-up.
From India, Mumbai
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However, if an amount is paid to confirmed employees, temporary, casuals, etc., what will you call it?
Dear Ramakant ji, I would consider the word "bonafide employee" in place of "bonafide staff members." Consolidated pay is not defined anywhere, but the meaning of it is total salary with no break-up.
From India, Mumbai
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