Why are interns paid so low?

What is an internship contract?

Many employers have the question “How much should I pay my intern? In part, this is due to a lack of knowledge of the labor market, but also because of the complexity of the different relationships that currently exist in legislation for the hiring of interns. In any case, in this article we are going to give you the guidelines so that you have all the information and these doubts are resolved so that you can proceed with the hiring of interns in your business in accordance with current legislation.

In fact, the first question to resolve in order to find out how much I should pay my intern is whether or not he/she really has an employment contract. This has nothing to do with complying with the legislation, since the regulations include all these hiring possibilities without it being a real employment relationship as such. Here are the two main ways of having interns in your company:

As they are employees of the company, their remuneration is fixed by the agreement itself (sectoral or company). It is generally linked to a percentage of the salary that the same worker with previous experience would receive. In addition, this contract entitles the employee to unemployment benefits in case of dismissal, as well as to sick leave, severance pay and all labor issues covered by labor regulations.

How are grantees paid?

It is important to clarify, on this last point, that in Mexico there is no designated amount for this type of agreement. In fact, there are scholarship holders who do not receive any compensation at all. However, on average, companies pay them the equivalent of the minimum wage and up to $5,000 pesos per month.

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How much is paid to Social Security for an intern?

The terms of the contribution

The contribution for common contingencies will be 36.61 euros (30.52 euros payable by the company and 6.09 euros payable by the employee).

How much does a 2021 trainee earn?

A single monthly contribution of 54.73 euros for common contingencies. 79.37 (corresponding to the application of the minimum base as from September 2021 (‘1,125.90) at a rate of 7.05% (5.50% to be paid by the company and 1.55% to be paid by the employee).

University internships are paid for

The vast majority of university or vocational training students, when they finish their studies and want to enter the labor market, do not have enough experience to develop a job. A good way to avoid this is that, during their studies, they complement their training by doing an internship in a company. This is the purpose of the so-called “internship contracts” and they are not only beneficial for the students, but also for the company, because the labor cost of incorporating interns is always lower than that of hiring an employee under normal working conditions.

As a human resources manager, do you know what the requirements are for hiring a student as an intern? Do you know if you have to register them with social security? So that you can correctly process internship contracts and avoid problems with the Administration, you should read this post, because I am going to provide you with all the keys that you should take into account when hiring an intern in the company. You will learn what types of internships interns can do, their rights and how to hire them.

How long can I be hired as an intern?

Its duration will be established by collective bargaining agreement, but it will be a minimum of 6 months and a maximum of 2 years. The employee has a university degree or vocational training of intermediate or higher degree, and will develop a job to gain experience on the studies he/she has completed.

How much are practitioners paid?

Apprentices in the training stage may be paid 50% of the minimum wage, while those in the apprenticeship stage may be paid 75% of the minimum wage. If they are university students, the allowance will be one minimum wage. The apprentice does not receive bonuses, severance pay or vacations.

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What type of contract does an intern have?

an intern is a student who does an internship and learns in a company, but is not an employee. He/she does not have an employment contract, but is governed by a collaboration agreement between an educational institution (e.g. a university) and the company.

An intern is entitled to vacation time

In this article we are going to know all the benefits of incorporating an intern in an organization. But do you also know what are the requirements for hiring an intern? We explain them below.

Let’s start with the basics. It is important to understand the figure of the intern or trainee. In principle, one of the frequent doubts of employers about this role is whether it is a worker. If they are, they would have the same rights as other employees. But in this case, we must say that he/she is not just another employee.

The Federal Labor Law clearly establishes what an employment relationship is. “Employment relationship is understood to be, whatever the act that gives rise to it, the rendering of subordinate personal work to a person, through the payment of a salary.”

As for trainee definition, in principle it is a university student. He or she may be in the second half of his or her career or have recently graduated from his or her studies. What defines a trainee is that he/she enters a professional internship program in a company. There he/she obtains complementary training to his/her academic training and this is usually his/her first approach to the labor market.

How much Social Security is paid for extracurricular internships?

The contribution for non-working practices would be 61.78 euros, which would correspond to the sum of the following contingencies: For Common Contingencies: 54.73 euros. For accidents at work and occupational diseases: €6.28.

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How much is paid for an internship contract?

Internship contracts pay unemployment contributions and therefore workers with this type of contract, once the contract is terminated, are entitled to receive unemployment benefits if they have paid sufficient contributions.

How do internship contracts pay Social Security contributions?

Are Social Security contributions paid? Yes, internship contracts are regulated by Article 11.1 of the Workers’ Statute and, being an employment contract, they carry the same rights as other workers, including vacation and the right to unemployment benefits.

How to be an intern in a company

The second question has to do with the reality around us. Because perhaps the problem, beyond what happens in the kitchens of our chefs, is that our entrepreneurs are more evil or our young students more naive than those in other countries. Well, neither. For comparison we will use this 2013 Eurostat report on traineeships in the EU. Eurostat defines “traineeships” (scholarships or internships in Spanish) as the period of time in which a student or recent graduate works in a position in which he or she is also supposed to acquire job training. This distinguishes it from normal employment and “apprenticeships”, which would include dual vocational training-type programs that combine work and more formal training.