How Much Stipend Should an Employer Pay Interns in India?

Last updated: 23 October 2026 · By the Asuraa Team

Quick answer: No law sets a minimum stipend for private internships in India, so employers should benchmark by role, city and hours. Public anchors as of October 2026: the PM Internship Scheme pays Rs 5,000 a month, graduate apprentices must get at least Rs 9,000 under the 2019 apprenticeship rules, Internshala reported an Rs 8,000 average in December 2024, and Indeed reported an Rs 25,432 national average for internship postings in March 2025.

Key takeaways

• No general Indian law sets a minimum stipend for private internships, and the AICTE internship policy allows paid, unpaid or partly paid internships.
• The PM Internship Scheme pays Rs 5,000 a month, of which the company pays Rs 500 and the government Rs 4,500, plus a one-time Rs 6,000 grant.
• Under the Apprenticeship (Amendment) Rules, 2019, the minimum monthly stipend is Rs 9,000 for graduate apprentices and Rs 8,000 for diploma apprentices.
• Internshala reported an average internship stipend of Rs 8,000 a month in December 2024, while Indeed reported a national average of Rs 25,432 a month for its internship postings in March 2025.
• Asuraa's October 2026 job market report found that only 3.1% of listings reviewed showed salary, so stating the stipend helps a listing stand out.

There is no legal minimum stipend for a private internship in India, so the right amount depends on the role, the city, the hours and what similar employers in your market pay. Public reference points give you a range to work within: the PM Internship Scheme pays Rs 5,000 a month, the prescribed minimum for a graduate apprentice is Rs 9,000 a month, Internshala reported an average stipend of Rs 8,000 a month in December 2024, and Indeed reported a national average of Rs 25,432 a month for internship postings in March 2025. This guide shows Indian founders and HR teams how to read those numbers and set a stipend in a decision table. It is part of our employer guide to hiring freshers in India.

Is there a minimum stipend for interns in India?

No general law sets a minimum stipend for internships, but minimums do exist for apprentices and for government schemes. The AICTE internship policy for technical students says internships may be paid, unpaid or partly paid and advises competitive incentives without fixing a figure. Apprentices are different: the Apprentices Act, 1961 requires employers to pay apprentices at least the prescribed stipend, and the Apprenticeship (Amendment) Rules, 2019 set monthly minimums by qualification, from Rs 5,000 for school pass-outs of classes 5 to 9 up to Rs 9,000 for graduates and degree holders, rising 10% in the second year and a further 15% in the third.

If your "intern" works like an employee, the label alone may not decide which law applies. Read our explainer on whether an intern is an employee under Indian law before fixing terms.

What do public benchmarks say about intern stipends?

The public figures differ because they measure different things, so use them as anchors rather than a single market rate. As of October 2026, these are the most useful reference points:

The Internshala figure includes many short, part-time and work-from-home internships across non-technical roles, which pulls the average down. The Indeed figure is based on postings on its site, and Indeed said Hyderabad, Bangalore, Mumbai, Pune and Gurgaon paid above its average while Chennai and Kolkata paid below. Neither is a survey of what interns were actually paid, so treat both as listed rates.

How should an employer decide the stipend?

Decide the stipend by matching the intern's expected output and hours to the right benchmark, then adjusting for city and duration. The decision table below is a framework, not a rate card; the anchors are the verified figures above.

Add relocation or travel support where you require on-site work in a city the intern does not live in. A stipend that does not cover rent in Bengaluru or Mumbai shrinks your applicant pool to students who already live there.

How do you benchmark stipends for your own market?

You can build a reliable local benchmark in an afternoon. Follow these steps:

1. Write down the role, required skills, hours per week, duration and location before looking at any numbers.
2. Pull 15 to 20 current listings for the same role and city from two or three job portals, and record the stated stipend, hours and duration.
3. Remove listings that are unpaid, commission-only or missing a stipend, and note how many there were.
4. Find the middle value of what remains and compare it with the anchors in the table above.
5. Set your stipend at or above the middle value if you need full-time, skilled work; within the range if the internship is mainly learning-focused.
6. Write the amount, payment date and any deductions into the offer letter.
7. Review the figure every hiring season, because listing rates move quickly.

Our candidate-side guide to internship stipends in India shows what students compare when they read your listing.

Does showing the stipend in the listing help?

Yes, a listing that states the stipend is easier for candidates to judge and filter, and it saves you from interviewing people whose expectations do not match. Few listings do it: in Asuraa's October 2026 job market report, only 3.1% of the listings reviewed showed salary. A clear figure, hours and duration in the listing make your internship easier to compare and harder to confuse with a scam. When you are ready, you can post a paid internship on Asuraa jobs.

What do most guides on intern stipends get wrong?

Most guides quote one average and present it as the market rate. That number hides huge differences: Internshala's 2024 average of Rs 8,000 and Indeed's 2025 average of Rs 25,432 are both real, but they describe different pools of listings. A company that pays a full-time software intern in Bengaluru based on the lower figure will struggle to hire, while a small NGO offering a part-time content internship does not need to match the higher one.

The second error is treating stipend as the only cost. Interns also need a mentor's time, equipment and access, and sometimes a certificate process for their college. A slightly higher stipend with a well-run programme usually produces better hires than a low stipend with no supervision. Our guide on how to design an internship programme covers the rest of the cost.

The third error is ignoring tax and paperwork. Whether you deduct tax on a stipend depends on how the payment is treated, which is explained in our guide to TDS on internship stipends.

Are unpaid internships allowed in India?

Unpaid internships are not banned for students, and the AICTE policy accepts non-compensated internships, but they carry real risks. If the intern does productive work like an employee, the arrangement may be judged by its substance rather than its name. Unpaid listings also attract fewer applicants and are a common feature of scams. If budget is the issue, offer a shorter, part-time internship with a modest stipend rather than an unpaid full-time one.

This is general information, not legal or tax advice. Confirm current rates and rules with official sources before you set terms.

Related guides

• Hiring Freshers in India: The Complete Employer Guide
• How to Design an Internship Programme for a Small Company
• How to Reduce Offer Dropouts After Campus Hiring
• How a Startup Can Start Campus Hiring From Zero

FAQ

What is the minimum stipend for an intern in India?

There is no general legal minimum for private internships, and the AICTE internship policy allows unpaid internships. Minimums apply to apprentices: under the Apprenticeship (Amendment) Rules, 2019, graduate apprentices must get at least Rs 9,000 a month and diploma apprentices Rs 8,000. Government schemes also fix amounts, such as Rs 5,000 a month under the PM Internship Scheme.

What is the average internship stipend in India?

It depends on whose data you use. Internshala reported an average of Rs 8,000 a month in December 2024 across its listings, while Indeed reported a national average of Rs 25,432 a month for internship postings in March 2025. Both are listing figures that cover different mixes of roles and hours, so benchmark against listings for your own role and city.

How much should a startup pay a software engineering intern?

For a full-time software internship in a metro, compare against Indeed's March 2025 national average of Rs 25,432 a month and against current listings for the same skills in your city. For part-time or learning-focused internships, a lower figure can work. If the intern may get a pre-placement offer, benchmark against your own fresher salary instead.

How much does a company pay under the PM Internship Scheme?

According to the scheme guidelines released through PIB in October 2024, the partner company contributes Rs 500 a month of the Rs 5,000 monthly payment, subject to attendance and conduct, and the government pays Rs 4,500 by direct benefit transfer. The government also pays a one-time Rs 6,000 grant. Internships run for 12 months.

Should the stipend be different for different cities?

Usually yes. Indeed's March 2025 data showed internship postings in Hyderabad, Bangalore, Mumbai, Pune and Gurgaon paying above its national average, and Chennai and Kolkata below it. If you require on-site work in a high-rent city, either pay more or add travel or accommodation support so students from other cities can accept.

Can a company offer an unpaid internship in India?

Unpaid internships for students are not banned, and the AICTE policy accepts non-compensated internships. However, if an unpaid intern does productive work like an employee, the arrangement may be judged by its substance. Unpaid listings also attract fewer applicants. A short, part-time internship with a modest stipend is often a safer choice. This is general information, not legal advice.

Final thoughts

Set the stipend from the work you expect, the city and current local listings, and use public figures only as anchors. State the amount clearly in the listing and the offer letter. When your internship is ready to advertise, you can post it on Asuraa jobs.