Hike in CA articles stipend: ICAI announces the long-awaited revision to articleship stipend.

• ICAI has finally increased the articleship stipend rates for CA students.
• This change aligns with the new CA education scheme, launched on 1st July 2023.

ICAI hikes stipend rates

The Institute of Chartered Accountants of India (ICAI) has made significant revisions to the stipend rates for CA students’ articleship.

Previously, ICAI had issued a draft of the CA 2nd Amendment Regulations 2022, proposing a revision of CA Regulation 48(1), to double the articleship stipend rates for CA students.

CA students are required to undergo a 3-year articleship, which has been revised to 2 years through the amendment announced on 23rd June 2023.

These amendments are part of the implementation of a new education scheme for the CA course. The new CA education scheme has been launched on 1st July 2023, coinciding with CA Day.

This news comes as a welcome announcement for aspiring Chartered Accountancy (CA) students.

Let’s look at the revised minimum stipend rates, as specified by the ICAI.

The amended stipend rates for CA Articles, following the necessary notification of changes in CA Regulation are as follows:

A. For cities/towns with a population of 20 lakhs and above:

• First year: INR 4,000
• Second year: INR 5,000
• Third year: INR 6,000

B. For cities/towns with a population of 5 lahks and above but below 20 lakhs:

• First year: INR 3,000
• Second year: INR 4,000
• Third year: INR 5,000

C. For cities/towns with a population below 5 lakhs:

• First year: INR 2,000
• Second year: INR 3,000
• Third year: INR 4,000

It’s important to note that these rates represent the minimum stipend requirements set by the ICAI, and firms have the freedom to determine their own maximum stipend rates.

The minimum monthly stipend rates for CA articleship, according to the previous regulations set by the ICAI, are as follows:

A. For cities/towns with a population of 20 lakhs and above:

• First year: INR 2000
• Second year: INR 2500
• Third year: INR 3000

B. For cities/towns with a population of 4 lakhs and above but less than 20 lakhs:

• First year: INR 1500
• Second year: INR 2000
• Third year: INR 2500

C. For cities/towns with a population of fewer than 4 lakhs:

• First year: INR 1000
• Second year: INR 1500
• Third year: INR 2000

Closing…

There is no doubt that the change in ICAI’s regulation will carry a positive impact.

But the issue of stipend structure for CA articles has been a subject of ongoing debate for a considerable period of time.

CAs have expressed concern over the low stipend negatively impacting the article trainees. Living expenses like rent and food can create obstacles that hinder their focus on their studies.

Firms would also have to recognize the article trainees’ dedication and provide fair remuneration that supports their well-being and academic progress.