Do we get salary during an internship?

The reality of receiving a paycheck during an internship is often more complicated than a simple yes or no answer; it heavily depends on where you are, what industry you are in, and crucially, the legal structure defining the relationship between the intern and the hiring organization. ^[1]^[8] For many prospective interns, particularly those early in their educational path, the question looms large: Will this experience provide income, or is it purely a trade of time and labor for experience and academic credit? Understanding the underlying rules that govern payment, particularly in the United States, is the first step to setting realistic expectations. ^[1]^[4]

# Legal Guidelines

In the United States, federal law plays a significant role in determining whether compensation is mandatory, primarily through the Fair Labor Standards Act (FLSA). ^[4] The legal determination often hinges on who primarily benefits from the arrangement. ^[9] If the intern is essentially performing the work of a regular employee, they are typically entitled to minimum wage and overtime pay under the FLSA. ^[4] However, if the trainee is the primary beneficiary, meaning the experience is structured primarily for the intern's educational benefit, payment might not be required. ^[4]^[8]

# Primary Beneficiary Test

The U.S. Department of Labor (DOL) has established criteria to help distinguish a genuine trainee from an employee masquerading as one. ^[4] When an employer seeks to maintain an unpaid internship, they must satisfy several key points derived from this test. ^[4]^[9] If the intern is doing work that benefits the employer, and the employer operates for profit, the law leans toward requiring payment. ^[4]

Key factors suggesting the employer is the primary beneficiary (and thus payment is likely due) include:

The internship is similar to training given in a vocational school, even if no formal classes are taking place. ^[4]
The internship is closely integrated with the intern's formal education program. ^[4]
The training is closely related to the intern's field of study. ^[4]
The employer allows the intern to displace regular employees. ^[4]
The employer assumes no real risk that the internship experience might disrupt its operations. ^[4]
The employer does not guarantee the intern a job at the end. ^[4]
The understanding is that the intern is not entitled to a job at the end of the internship. ^[4]
The employer and the intern clearly understand that no wages are expected. ^[4]

When an internship in a for-profit setting fails to meet these criteria and operates more like employment, the employer risks legal liability for back wages. ^[5] Conversely, for non-profit organizations, the standards are often less stringent, allowing for more flexibility in whether an arrangement must be paid. ^[4]

# Industry Practice

While the law provides the backbone for mandatory payment, industry standards and the type of work performed often dictate the actual compensation offered. ^[1] The general consensus, especially within sectors known for high hiring competition or high starting salaries, is that internships should be paid. ^[3]

In technology and certain professional services, paid internships are increasingly the norm rather than the exception. ^[3] Companies recognize that offering compensation helps attract top-tier talent and signals that they value the intern’s contributions. ^[7] Unpaid internships, while sometimes persisting in fields like media, fashion, or certain non-profits, often draw scrutiny and can narrow the pool of eligible candidates to only those who can afford to work for free. ^[1]^[8]

One way to gauge local expectations is to examine posted opportunities within your specific field. If the majority of postings for entry-level roles in your city or sector specify a paid opportunity, the expectation is clearly set, regardless of the bare minimum legal requirements. ^[3] For instance, a student aiming for a software engineering role might find that 9 out of 10 summer postings include a specified hourly rate, while an internship in a smaller, non-profit arts organization might offer only course credit. ^[6]

# Forms of Remuneration

Payment doesn't always arrive as a traditional hourly wage subject to standard overtime rules. Compensation can take several forms, which an employer might use to structure an arrangement that skirts strict FLSA requirements, assuming the primary beneficiary test is still met. ^[5]

These forms include:

Hourly Wages: The most straightforward method, directly subjecting the intern to minimum wage and overtime laws if they are deemed an employee. ^[4]
Stipends: A fixed sum paid to cover expenses like housing or travel. These are often used for internships that are slightly more educational in nature but still require significant time investment. ^[8] Stipends can sometimes provide more flexibility for the organization than a strict hourly calculation. ^[5]
Course Credit: In academic settings, an internship might be structured to fulfill degree requirements. However, if the student is also performing productive work for the employer, the DOL maintains that an employer cannot use academic credit alone to justify unpaid status. ^[4]

A helpful way for an organization to evaluate its compensation strategy involves looking beyond immediate budget concerns. If an employer is considering an unpaid role, they should actively calculate the opportunity cost. Paying an intern a modest wage, say, $15 per hour for a 10-week, 40-hour-per-week internship, amounts to$ 6,000. Compared to the cost of recruiting, onboarding, and training a full-time employee later, that $6,000 investment in a pre-vetted, tested intern can yield a much higher return on investment when that intern converts to a full-time hire. ^[9]

How long does it take for salary to get credited?

# The Intern's Perspective

From the intern’s standpoint, the compensation structure directly impacts the viability of taking the role. If you are taking time away from a paid job or incurring expenses for housing in a new city, an unpaid role might be entirely unaffordable. ^[1]^[7]

When you receive a job offer, it is critical to clarify the compensation details before accepting. You should know definitively if it is an hourly wage, a flat stipend, or if payment is tied to academic credit. ^[6] If the arrangement is paid, understanding the payroll frequency is important for personal budgeting. Do they pay weekly, bi-weekly, or monthly? This directly influences whether you will receive a formal payslip detailing deductions, taxes, and gross earnings. ^[2]

If you are receiving a regular payment, even if structured as a stipend, you should expect documentation. A formal payslip is the standard record showing the hours worked (even if fixed), the rate of pay, any withholdings (taxes), and your net income. ^[2] The absence of such documentation for a role that seems clearly employee-like should raise questions about the employer's compliance practices. ^[2]

When assessing an opportunity, an often-overlooked step is to ask about the nature of the work during the interview process. A probing question you could ask is: "Can you describe a project where the intern's direct output significantly impacted a company deliverable?" If the answer focuses entirely on shadowing or administrative tasks, it leans toward an educational setup. If the answer describes a tangible project with business value, the case for payment strengthens significantly. ^[6] Conversely, if you are tasked with work that clearly replaces the duties of a full-time, salaried employee, even if you are labeled an "intern," the arrangement is suspect under the FLSA guidelines. ^[4]

# Employer Compliance and Paperwork

For organizations bringing on interns, understanding the paperwork aspect is just as crucial as understanding the wage law. ^[9] When an intern is classified as a bona fide trainee under the DOL guidelines and is unpaid, the employer still has administrative duties, though they are different from those for a standard employee. ^[5]

If the intern is an employee (and therefore must be paid minimum wage), they generally need to be treated similarly to other non-exempt staff regarding payroll administration. This means:

Tracking Time: Accurate record-keeping of all hours worked is essential for calculating wages and overtime. ^[4]
Payroll Processing: Payment must be issued according to company policy, and taxes must be withheld if applicable. ^[5]
Documentation: Issuing payslips is standard practice, detailing earnings and deductions, which builds trust and ensures transparency with the intern. ^[2]

Consider the scenario where an organization is operating in a state or jurisdiction with stricter minimum wage laws than the federal standard. In such cases, the employer must always adhere to the higher standard. ^[1] Furthermore, some states have their own interpretations or rules regarding internships that might differ from the federal DOL guidance, requiring employers to research local statutes as well as federal ones. ^[9]

It is worth noting the difference between paying interns and classifying them as temporary staff. A paid intern receiving a wage is essentially a temporary, fixed-term employee. If they are receiving course credit and being paid, the arrangement is often viewed as a strong employee relationship, especially if the work is substantive. ^[4]

Can you get paid biweekly on salary?

# Setting Boundaries and Expectations

For any intern, paid or unpaid, establishing clear expectations upfront prevents later conflict or disappointment. ^[6] A good internship structure involves defined learning objectives, mentorship, and supervision, regardless of the pay rate. ^[4]

If you accept an unpaid internship based on the expectation that it will lead directly to employment or significant portfolio work, document those specific goals in writing with your supervisor during the first week. ^[7] If you are being paid, your commitment should be to the productivity that justifies the wage. For example, if you are receiving $20 an hour, the company is paying for 40 hours of focused, productive output, not 40 hours of passively reading manuals. ^[1]

A key indicator of a high-quality, well-structured paid role, often seen in competitive industries, is the presence of a formal performance review schedule—not just at the end, but mid-way through the term. This demonstrates that the organization views the intern’s time as a valuable, measurable resource, worthy of the investment. ^[9] If you are being paid, treat the role with the professionalism expected of any employee; show up on time, meet deadlines, and communicate proactively about your progress. This confirms to the employer that the investment was worthwhile and bolsters your chances for a return offer.

The experience itself holds value, whether compensated monetarily or not, but understanding the legal landscape ensures that companies are adhering to fair labor practices. ^[8] Whether you see a direct deposit in your account or not, the true long-term currency of any internship remains the skills you acquire, the network you build, and the professional references you earn. ^[7] If the role is unpaid, ensure the learning opportunities significantly outweigh the financial sacrifice, otherwise, the experience may not be worth the opportunity cost. ^[1]