Articleship Stipend as per ICAI and Big4

A CA Student is compelled to complete three years of Articleship Training under the supervision of a Chartered Accountant, who pays him an Articleship Stipend for the job he does.

However, as per the new scheme introduced by ICAIin 2023 Articleship period has been reduced to 2 years. Moreover, a Candidate is only eligible for Articleship after completion of both the Groups in CA Inter. ICAI has provided relaxation in this respect. Any student who had cleared either or both groups or registered through Direct Entry wasallowed to opt for 3 years by applying by 30th September 2023. Post that, candidates are eligible for 2 years of Articleship Training only upon passing both groups in CA Inter.

Only chartered accountants with three, five, or ten years of experience may provide articleship practice to students.

Despite the fact that a CA Student's articleship training lasts three years, he is qualified to take the CA Final Exams in the last six months of his articleship. In other words, after 2.5 years of instruction, a CA student is eligible to take the CA Final Exams.

This is another aspect that has been altered in the new scheme. A student is only eligible to take the CA Final Exams 6 months after the completion of the 2 years of Articleship.

The Institute of Chartered Accountants of India, or ICAI in short, has established a minimum articleship amount that must be paid to all the articles by their employer every month.

The figures indicated above is the monthly articleship stipend that must be paid every month in the first, second, and third years of articleship, accordingly.

The stipend should be provided by the Chartered Accountant to his Article either by -

• A monthly crossed account payee cheque against a stamped receipt acquired from the Article.
• Or by depositing the funds on a monthly basis into an account formed in the Article's name with a bank branch designated by the employer accountant.

Although the ICAI sets a minimum articleship stipend, there is no maximum limit for the same. Hence, the employer Chartered Accountant is entitled to give his Article whatever amount he sees fit as a stipend. Typically, the Big 4 accounting firms pay the most generous stipends often including Travelling expenses to CA Articles.

In the Big Four, the average stipend is rather substantial. The monthly compensation provided by KPMG is 15,000, E&Y is 12,000, Deloitte is 13,000, and PWC is 12,000.

This figure appears to be greater than that of small accounting businesses. However, in order to work for these organisations, you must have a good grade and pass CA Inter on your first try.

The following is an estimate of the average articleship stipend paid by the Big 4 to CA Articles in Metro Cities -

• Year 1 - 15,000
• Year 2 - 20,000
• Year 3 - 25,000

This is an estimation of the average articleship allowance given by Big 4 firms, which may vary across states and cities.

Students need to bear in mind that there is a huge difference between the stipend and salary of a chartered accountant. The point of an Articleship is for the student to get experience. Aside from the monetary stipend,there is an important attainment of practical knowledge and skill. In small businesses the job is usually manual, while can be mechanised in the Big Four.

Recommended Read:

• Top 10 CA Firms for Articleship
• A big question: Articleship in a Big 4, Medium or Small Firm?
• Articleship Experience in a Big 4 CA Firm