The stipend offered to chartered accountants is as per the chartered accountant’s regulations, 1988. And it is commendable. The stipend falls under three slabs as per the population, where the Articled assistant takes training. In place of city or town with more than twenty lakhs, the student gets a payment of 2000, 2,500 and 3000. In a city or town with more than four lakh but less than twenty lakh, the rate goes like 1500, 2000 and 2500. In a city or town with less than four lakhs, the rate is 1000, 1500 and 2000. On the contrary, CMA students get stipend of 8,000, 10,000, 12,500, and 15,000 respectively. The stipend of the articled clerk of CA is not taxable as income as it is similar to a scholarship for education. The ultimate goal of the stipend is to meet the conveyance expenses and motivate the learner when doing service. But, if the amount is smaller, it de-motivates the student.
As there is inflation in the city, it has its influence on food, travel and other miscellaneous expenses. Should ICAI increase the minimum article ship stipend amount is the frequently asked question by the students. Chartered accountancy students expect the institute to make some changes with the Article ship stipend as per ICAI & Big 4. Since 2018 the students have raised concerns regarding stipends. The Payment of stipend – ICAI also creates disputes among the CA and the other counterparts like CMA and ACS. For CMA and ACS, the training period is 15 months and 21 months which are comparatively lesser than the chartered accountants. This period implies that practical learning is more in chartered accountancy. Students at a young age tend to compare the training structure and the stipend amount. And this is the area that needs focus for retaining the confidence of the students. Already students have filed their grievances with the ICAI portal. This blog talks about the work of an articled assistant, challenges faced by an articled assistant, stipend offered to chartered accountants in India and foreign countries.
Work of articled assistant:
Chartered accountants with experience of three years or five years or ten years only can offer the article ship training to the students. The articled assistant ratio to the number of employee ratio goes as 1:1. For every hundred employees, one articled assistant works as an assistant. If the number of employee count is 101 to 500, then the proportion is one for the first hundred and two hundred for the next four hundred. This number is half of the previous count. Totally 300 numbers are vacant for the post of articled assistant. In the case of more than 500 employees, the upper limit of articled assistants is 500. In the case of professional bodies out of India, the recognition is allowed to the Company Secretary, Advocate, cost accountant, Engineer, architect and actuary member. He or she needs to be associated with the professional bodies to provide the auditing expertise to the articled assistant. For the termination of the articled assistant with a valid reason, the process is to get permission from the council. The average stipend in Big Four Companies is high. In KPMG the salary offered per month is 15,000, in E&Y the offer amount is 12,000, in the case of Deloitte the stipend is 13,000, and in PWC it is 12,000. This amount seems to be higher than the small CA firms. But, for joining these companies, mark and first attempt pass is the pre-requisite. In small firms, the work is manual, and in Big Four, it is automated work. They work for 9 to 7 with 35 hours per week. Depending upon the project report, they undergo training in Accountancy, auditing, corporate law, tax law, management services and information technology. If the student opts for industrial training in the final level, then he earns 10,000 per month.
Stipend and salary of chartered accountants in India:
The stipend that the student earns is an interesting story to look back after he gets into the job. The salary or return of Chartered accountant practising in India ranges from 50 lakh, 21.3 lakh and 10 lakh per year. If he does service for big corporate clients, then it reaches the upper limit of 50 lakhs. If he joins Big Four Companies, then the range is 7 lakh to 40 lakhs. Apart from individual practice, chartered accountants can join a partnership with big audit firms. There are changes in the tax brackets to manage inflation. The different slabs and deductions of tax are to be applied with complexities. So, there is evolving demand for chartered accountants to plan taxation and auditing. The stipend is 1000 to 3000 depending upon the year in which the student is studying. There is a vast difference between the stipend and salary of a chartered accountant. Students need to bear in mind that there is a vast difference between the stipend and salary. Referring to inflation, the government needs to change the stipend amount to some extent.
Stipend and salary of chartered accountants in foreign countries:
Students studying in India can take article ship training abroad. The principal providing training must be a member of ICAI. The student needs to submit Form 103 for taking training abroad. The stipend amount offered to Indian students is as follows: USA 30,000, Australia 25,000, Canada 22,000, Dubai 20,000, UK 20,000, Singapore 15,000 and Nigeria 15,000. The MOU of ICAI with other countries allows the Indian chartered to get approval for working in foreign countries or learn foreign accounting qualifications. The salary per month for an Indian chartered accountant is roughly 2,00,000 to 2,25,000. The payment depends upon the profile and exchange rate.
Conclusion:
The knowledge and application of knowledge have gaps in practical terms. The skill of the student before and after the course is not the same. This has its reflection in the course structure and stipend structure of the Chartered accountancy program. The change in stipend has been pending for around the past 30 years. So, it needs to be reviewed to motivate the students. The stipend is only for motivation, and the commercial play starts after completing the course.
