What is the difference between a stipend and a salary?

Research personnel can receive a stipend or a salary.

A stipend is a fixed payment made to an individual registered in a graduate program to cover their living expenses during a period of training. To be considered in training, the individual must be actively involved in the research of a faculty member in their related area of study and must be gaining experience in this area as a result of their research assistantship. A stipend is not paid in exchange for quantifiable work performed or for financial gain. There are no deductions at the time of payment, and the individual will receive a T4A for the amount paid during the calendar year. Only graduate students and postdoctoral fellows may be paid a stipend.

A salary is paid when an employee-employer relationship exists and a quantifiable amount of work has been performed. Salary payments, whether hourly, recurring, or lump sum, are subject to mandatory source deductions and will include 4% vacation pay. Personnel with this type of income will receive a T4 denoting the total amount of employment earnings paid during the calendar year.

Carleton does not have established maximum rates of pay for research personnel (minimum rate of pay must follow minimum wage).

For all individuals paid a salary, the researcher must budget for additional costs, above and beyond the rate of pay to the individual, which will be charged to the grant.

For example, if an hourly rate of $25/hr is promised to the research personnel, then the researcher’s account will be charged as follows:

• Hourly rate: $25/hr
• Statutory deductions (includes 4% vacation pay): 12%
• Discretionary benefits, if applicable*: 15%
• Amount Charged to the fund: $32.75/hr

* Discretionary benefits may be included at the request of the researcher in consultation with their research personnel. Discretionary benefit rates vary based on the individual’s circumstances but are usually between 15-17%.