Stipends vs. Salary
Comparison of Stipend vs. Salary
| Stipend | Salaries & Wages |
| Financial assistance or support paid to university students; no work assigned | Compensation for performance of assigned work |
| No scope of work | Scope of work assigned |
| No Rutgers Patent Agreement | Rutgers Patent Agreement signed |
| No Workers' Compensation coverage | Workers' Compensation coverage |
| No required fringe benefits or remissions | Applicable Rutgers employee fringe benefits and Tuition and Fee Remission as appropriate based on eligibility |
| Trainee-mentor relationship; no employer-employee relationship | Employer-employee relationship |
| No grant and contract support unless the purpose of the award is to provide fellowship or scholarship | Can be paid from grant and contract funds, and other internal funding sources |
| Pay at the beginning of the quarter. No obligation to perform any assigned tasks or specific projects. | Pay based upon hours or percentage of time worked performing assigned job specific duties |
| Selection based upon University policies that determine student's financial need or merit through competition | Selection by the individual Principal Investigator or based on competency, skills, knowledge, and ability and coordinated with Human Resources |
|
Salary/wages disbursed by Payroll. When supported by extramural awards made to Rutgers, requires additional coordination with Research and Sponsored Programs and Research Financial Services. |
| Amounts based upon reasonable need or stipend limits set by the sponsor of the training or fellowship grant | Amounts restricted by University salary/ negotiated contracts |
Please note:
Stipends on Fellowships are tax-free if the following conditions are met:
- You're a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
- The amounts you receive are used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.