Stipend for CA Articleship: An Overview

Nimisha Panda
Apr 2
8 min read

A student pursuing a career as a chartered accountant (CA) must complete the CA Articleship. A candidate must complete two years of CA Articleship training under the direction and supervision of an active chartered accountant. Two years of these three years must be spent working under a chartered accountant in the field. The student has two options for their final year: Industrial Training under an employed chartered accountant or continuing their articleship under a working chartered accountant. After clearing the first or second group of the CA Intermediate or CA IPCC, a student enrolled in the CA course may register for the practical training. Following the publication of the CA Intermediate results, the CA Articleship application will be accessible. While this phase enables students to gain hands-on experience, they are also paid a stipend as remuneration. In this article, we will highlight the stipend given to students during CA Articleship.

Stipend for CA Articleship

According to the present curriculum, a student can begin articleship if they have passed one or both intermediate groups. The type of firm that a student chooses to pursue their articleship with can affect the stipend that is provided to CA students. Big4s and top-tier companies typically pay a stipend that is significantly higher than that of mid- or small-sized companies. However, the exposure that top-tier companies offer is restricted to a single field, meaning that students can focus on that field and must work in that field for the duration of their three-year articleship. In contrast, exposure at mid- or small-sized companies is fairly diversified, meaning that students can experience all fields. CA firms are classified as follows:

BIG 4s
Mid-Size firms
Small firms

Minimum Stipend for CA Articleship

A supervising chartered accountant (principal) is required by the Institute to pay their articles a minimum monthly stipend amount. The minimum stipend amount for CA Article trainees is shown in the table below:

Classification of the Normal Place of Service	Minimum Stipend
	During 1st year of training	During the 2nd year of training	During the 3rd year of training
Cities/Towns having a population of 20 lakhs and above	Rs 2,000	Rs 2,500	Rs 3,000
Cities/Towns having a population of 4 lakhs and above but less than 20 lakhs	Rs 1,500	Rs 2,000	Rs 2,500
Cities/Towns having a population of less than 4 lakhs	Rs 1,000	Rs 1,500	Rs 2,000

The monthly stipend for CA Articles, which will be paid regularly throughout the first, second, and third years of their training, is represented by the numbers in the table. For further leaves taken by the CA Articles, there is no compensation due. The length of the student's training under any prior firms will be taken into account for determining the overall Articled training period in the event of an Articleship transfer. Even in the event that the supervising Chartered Accountant changes, this guarantees an accurate description of the training experience.

CA Articleship Stipend by the Top Firms

Despite the ICAI establishing a minimum, companies are allowed to choose because there is no upper limit on the articleship stipend. The stipends offered by the Big 4 accounting firms—EY, PWC, Deloitte, and KPMG—are generally far higher. In metro areas, on average, during the course of three years:

Year 1: Rs. 15,000+ Travel Costs
Year 2: Rs 20,000+ Travel Costs
Year 3: Rs. 25,000+ Travel Costs

Here is a list of top 10 firms for CA Articleship:

Deloitte India: Offers a range of services, such as audit, taxation, consulting, and advising, on a worldwide basis.

Ernst & Young (EY) India: Offers an internship program for articleship in audit, advisory, and assurance services, and is acclaimed for a good track record.

Pricewater House Coopers (PwC) India: Combines internships in audit, tax, advice, and assurance services addressing the perspective of innovation as well as technology, but the solution.

KPMG India: Through its global network of audit, tax, advising, and risk consulting areas, it serves a range of clients and creates prospects for article ships.

Grant Thornton India: Its vibrant work environment and encouragement of professional development in areas like audits, taxation, and advisory consulting contribute to its positive reputation.

BDO India: With mid-market clients as our objective, we advise you to have a look at these job openings if you're thinking about a career in auditing, taxes, advice, or consulting services.

RSM India: Encourages articleships with a focus on customer connections and service quality in order to launch a career in audit, tax, and consulting services.

Baker Tilly DHC: Known for its expertise in audit, tax, and consulting services, this firm serves clients across a range of industries.

Notably, a CA articleship can be completed overseas or in India. The stipend paid in other nations such as the United States, Canada, Australia, the United Kingdom, Dubai, Nigeria, and Singapore is Rs. 30,000, Rs. 22,000, Rs. 25,000, Rs. 20,000, Rs. 15,000, and Rs. 15,000, respectively, according to the sources. This can be more than 10 times the stipend that the ICAI prescribes.

In a draft published by ICAI, it is suggested that CA Regulation 48(1) be amended to double the stipend for CA students during their articleship. It should be mentioned that ICAI has only released a draft notification thus far that suggests doubling the stipend rates for CA articles; approval of the final notification and its effective date are still pending. Additionally, CA members and students have been invited by ICAI to provide insightful recommendations regarding the change of stipend rates.

Mode of Payment for CA Articleship Stipend

The stipend must be paid to the articled assistant by the CA using one of the two methods listed below:

Payment is made each month using a crossed account payee cheque and a stamped receipt that was acquired from the articled assistant.
Depositing the monthly payment into an account that the articled assistant has opened in their own name at a bank branch designated by the certified public accountant.

Conclusion

The 2024 CA Articleship Stipend from the ICAI is a significant milestone in the development of chartered accounting by establishing minimal requirements and giving employers freedom. The established criteria acknowledge the important contributions made by articled assistants and guarantee a fair wage structure for aspiring certified public accountants during their training. The stipend paid to the students also keeps them motivated along the way as they navigate the rigorous journey to complete their degrees.

FAQ

Q1. What is CA Articleship?

The term "CA Articleship" describes the three-year practical training component of the Chartered Accountancy program, during which students obtain practical experience working under the supervision of a licensed chartered accountant.

Q2. Who is eligible for the CA Articleship?

Depending on whether they apply through the CA Foundation Route or the Direct Entry Route, students must fulfill different requirements in order to be eligible for CA Articleship. The eligibility conditions for both routes are as follows:

Pass one or both CA Intermediate groups. - Finish the four weeks of orientation training (OT) and information technology training (ITT).
Students in the science or other streams must graduate with more than 60% of the possible points, while those in the commerce stream must graduate with at least 55%. It is required that ITT and OT training be completed.

Q3. How can I register for a CA Articleship?

You must download and complete Forms 102 (Deed of Articles) and 103 (Statement of Particulars) in order to register for CA Articleship. Send these forms to the Institute of Chartered Accountants of India (ICAI) together with the necessary paperwork and registration fee.

Q4. How many years of articleship for CA under the new scheme?

A redesigned CA New Scheme of Education and Training has been introduced by the Institute of Chartered Accountants of India, with plans to implement it in 2024. The lowering of the CA articleship duration period from three years to two years is a significant change in the current plan.

Q5. How much can a CA earn during an Articleship?

In India, the average compensation for a CA articleship is 1.4 lakhs per year, or Rs. 11.7k per month. Recent salaries from a variety of CA articleships in a range of businesses served as the basis for these estimations. Additionally, see the aforementioned article for additional details on the CA Articleship Stipend.

Q6. What is the stipend for Big 4 Articleship?

In Big 4 companies, stipends normally fall between Rs. 10,000 and Rs. 15,000 per month. However, depending on variables like location and yearly raises, this may change. Stipends from mid-size companies are often lower, with monthly maximums of about Rs. 8,000.

Q7. Can I pursue other courses along with CA Articleship?

Yes, you can take other courses in addition to your CA Articleship, such as a B.Com. or computer science. However, within a month of beginning your practical training, you must submit Form 112 to the ICAI to request approval.

Q8. Which are the top CA firms for articleship?

Deloitte, PwC, Ernst & Young, KPMG, BDO International, Grant Thornton International, SS Kothari Mehta and Co., Sahni Natrajan and Bahl, Lodha & Co., and RSM International are a few of the leading CA firms in India for articleships.

Q9. What are the CA articleship working hours and leaves?

A maximum of 157 leaves may be taken by articles during the three-year CA articleship duration. Taking too many leaves can cause issues because they can prolong the articleship duration. As a result, articles must follow the leave guidelines established by the ICAI. Depending on the workload, the minimum working hours for articles are 35 hours per week, but they can go up to 10 hours per day or 60 hours per week. Different CA businesses may have different working hours.

Q10. Is CA articleship stipend taxable?

Yes, the stipend is taxable under ‘Income from Other Sources,’ but deductions may apply based on actual expenses incurred.

Q11. Can CA articles claim deductions on expenses incurred during articleship?

Expenses like books, professional courses, and commute costs may be deductible under relevant tax provisions.

Q12. Does stipend amount vary between Big 4 firms and small firms?

Yes, Big 4 firms generally offer higher stipends due to the nature of work and brand reputation.

Q13. Can a CA article claim HRA if they relocate for articleship?

If they pay rent and have a valid rental agreement, they may claim HRA under Section 10(13A).

Q14. Are there any tax-saving investments available for CA articles?

CA articles can invest in ELSS, PPF, and NPS to reduce taxable income under Section 80C.

Q15. How does stipend structure change over the three years of articleship?

Most firms follow a progressive structure where stipends increase each year based on ICAI guidelines.

Q16. Can articleship stipend be received via cash payments?

No, ICAI mandates electronic transfers for transparency and compliance with tax laws.

Q17. Is there any minimum stipend requirement set by ICAI?

Yes, ICAI prescribes a minimum stipend based on city classification, which firms must follow.

Q18. Can CA articles work part-time alongside their articleship?

No, ICAI prohibits full-time articles from engaging in other employment during articleship tenure.

Q19. Does stipend affect eligibility for education loans?

Stipend earnings are not considered significant income, but they may support minor loan repayments.

Q20. Can stipend be negotiated based on prior work experience?

Some firms may consider prior accounting experience while deciding stipend amounts, but it’s not mandatory.

Q21. How do taxation rules apply if a CA article earns freelance income?

Freelance income is taxable under ‘Income from Business or Profession’ and may require GST registration if above limits.

Q22. What happens if a firm fails to pay the minimum stipend?

Articles can report such firms to ICAI, which may lead to disciplinary action against the employer.

Q23. Are stipends in PSU articleship higher than in private firms?

Yes, PSUs generally offer better stipends than mid-sized private firms, along with additional allowances.

Q24. Do articles get provident fund benefits along with stipends?

No, since articles are trainees and not employees, PF benefits do not apply to them.

File Your ITR now

Table of Contents: