Is an Internship Paid? Things Students Need to Note

Is an internship paid?

An intern may or may not be paid, depending on each enterprise’s policy, the nature of the work and the type of internship. There is no compulsory regulation requiring enterprises to pay interns, however many companies still proactively pay to attract talent and show responsibility to learners.

Should you take an unpaid internship?

The decision on whether to take an unpaid internship depends on many personal factors and there is no common answer for all students. Below are the factors to consider carefully.

• Determine the career goal: If you want to accumulate experience at a reputable company, a particular profession or a hard-to-access position, then an unpaid internship can be a reasonable choice.
• Consider the value the internship brings: Evaluate whether that internship opportunity brings any value to your future career. If you get to work with top experts, participate in real projects, learn deep professional skills, then not having a salary for a short time can be acceptable.
• Evaluate your personal financial ability: This is an important practical factor. Students need to consider whether they and their family have enough financial ability to support during the unpaid internship. Travel costs, meals, tuition (if still studying) are the amounts to calculate. If the financial pressure is too great, students can look for paid or part-time internship opportunities to balance.
• Evaluate long-term opportunities and benefits: Consider the long-term benefits instead of just focusing on short-term income. An unpaid internship that brings good skills, experience and a relationship network can help you get a better job with a higher salary in the future.
• Consider time and other opportunities: If you have many internship options, compare the opportunities in terms of the working environment, learning opportunity, the possibility of becoming an official employee rather than just based on the salary factor. However, if two opportunities are equivalent in study value, you should prioritise choosing the paid opportunity to ensure your own rights.

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Do companies have an obligation to pay internship salaries to students?

According to the current legal regulations in Vietnam, companies do not have a compulsory obligation to pay interns. Based on the Labour Code 2019, interns are not considered employees under a labour contract, therefore they are not subject to the regulations on minimum wage, compulsory social insurance and other rights for employees.

Article 3 of the Labour Code 2019 defines an employee as a person who works for an employer under an agreement, is paid a salary and is subject to the management, administration and supervision of the employer. Meanwhile, interns are usually considered people in the process of studying and training career skills at the enterprise, who have not yet officially signed a labour contract.

However, according to Circular 28/2015/TT-BLĐTBXH, if the enterprise and the intern sign an internship contract clearly stating the allowance or internship salary, then this becomes a contractual obligation. Therefore, the enterprise must carry out according to the commitment.

Should students take an unpaid internship?

To make the right decision, students need to consider both the positive and negative sides of taking an unpaid internship.

The positive side

An unpaid internship helps students have the opportunity to access the real working environment, learn skills and professional processes early. This is also an important stepping stone to build experience, relationships and increase the advantage when applying for jobs after graduation. Specifically such as:

• Meeting the school’s compulsory requirement: Most universities require students to complete at least 2-3 months of internship at an enterprise to qualify for graduation. Therefore, whether paid or not, students still need to take the internship.
• The opportunity to intern at large companies: Many large corporations and multinational companies have high-quality internship programmes but do not pay. However, the professional working environment, the opportunity to learn from top experts and the possibility of being officially recruited after the internship are values that cannot be measured by money.
• Adding experience to the CV: Internship experience at reputable companies is a big plus in the job-application dossier. Recruiters usually highly rate candidates with internship experience in a professional environment, showing proactive learning and the ability to adapt to real work.
• Real experience and the opportunity to become an official employee: An internship is an opportunity for students to better understand the profession, enterprise culture and career orientation. Many companies use the internship programme as a recruitment channel, evaluating the intern’s capacity during the working time before deciding on official recruitment.

The negative side

Besides the positive side, having no income can create financial pressure, especially for students who have to cover their own living costs. Below are the points students should consider:

• The intellectual effort spent is not compensated appropriately: Interns still have to invest time, effort and intelligence in the work, but do not receive any financial compensation. In some cases, interns even have to pay for travel and meals without support, causing considerable financial pressure.
• Lack of motivation and self-worth: Not a few interns feel undervalued when working for free. This can affect work motivation, the learning spirit and the quality of work.
• Uncomfortable psychology and financial pressure: Students have to cover their own living costs and tuition while their peers may already have income from internships or part-time jobs. This creates psychological pressure, especially for students with difficult family circumstances.

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Things to note when taking an unpaid internship

If deciding to take an unpaid internship, students need to remember some important notes below to maximise the value and protect their rights. Specifically as follows:

Clearly determine the goal

Before starting the internship, ask yourself: What is my goal when taking this internship? Is it to learn professional skills, build a relationship network, better understand the profession or to have the opportunity to become an official employee? A clear goal will help you focus your efforts in the right direction and evaluate the real value of the internship.

At the same time, set a specific plan for each internship stage: the first month getting familiar with the environment and learning the process, the second month participating deeply in the project, the third month perfecting skills and building relationships with colleagues and superiors. At the end of the internship, self-evaluate how many percent of the initial goal you have achieved.

Don’t put too much weight on the internship-salary issue

If you have decided to take an unpaid internship, focus on learning and developing yourself instead of complaining about not being paid. A positive attitude will help you have a better experience and create a good impression with recruiters. Many students with a professional, enthusiastic work attitude during the internship have been highly rated by the company and invited to work officially with an attractive salary.

Give appropriate value

Even without pay, students should still work with a sense of responsibility, complete the assigned tasks well and contribute real value to the company. Don’t work carelessly and without commitment just because there is no salary. Demonstrating capacity and a good attitude will open up many opportunities in the future, from recommendation letters, professional relationships to official job opportunities.

Keep learning

An internship is a valuable opportunity to access the real working environment, learn from experienced people and develop soft skills as well as professional skills. Proactively ask and answer, take notes of knowledge, participate in internal training sessions and ask for feedback from the mentor to continuously improve.

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Questions related to whether an internship is paid

Whether an internship is paid is a big concern of many students when preparing to enter the real working environment. Below are frequently asked questions that help students clearly understand the rights, conditions and choose the internship form suitable to themselves.

Do interns need to sign an internship contract?

To ensure the rights and obligations for both parties, signing an internship contract is still strongly encouraged even though the law does not require it. The internship contract should clearly state the internship time, the work content, the rights and obligations of the intern and the enterprise, the allowance regime (if any), the insurance regime and other terms.

Do interning students pay social insurance?

According to the regulation in the Social Insurance Law 2014, interning students are not subject to compulsory social insurance participation because they are not yet considered employees under a labour contract. However, some enterprises voluntarily buy accident insurance or health insurance for interns to ensure safety during the working process. Students should ask clearly about the insurance policy before starting the internship.

Are medical students paid when interning?

Similar to interns in other disciplines, medical students are also not considered employees so they are not required to be paid. However, in reality many hospitals and medical facilities have a policy of supporting a small allowance for interning students. The allowance level usually ranges from 1-3 million VND/month depending on the medical facility.

Whether an internship is paid depends on many factors and there is no common compulsory regulation. However, more important is that students need to clearly determine the goal, evaluate the real value of the internship opportunity and consider the financial ability to make a suitable decision. If you have any other questions, contact HUFLIT for specific advice.

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