What distinguishes a stipend from a regular wage or salary?

A stipend is distinct from a regular wage or salary primarily because it is not necessarily payment for work performed. Unlike traditional wages or salaries that are typically tied to hours worked or specific tasks completed, a stipend is often associated with purposes such as education, training, or as a living allowance. This means that individuals receiving a stipend might not be exchanging it for a quantifiable amount of labor or service.

For example, stipends are frequently provided to interns, fellows, or graduate students to cover living costs while they engage in academic or research pursuits, without directly linking the payment to specific work outputs. This flexibility in the nature of payment is what fundamentally separates stipends from standard wage structures where compensation is directly proportional to the effort or work delivered.