An important consideration for employers offering paid internships is setting intern salaries. To stay competitive, it is also an undertaking that should be performed annually to keep pace with influences and fluctuations that affect salaries.
Some of the steps employers take and factors they may consider when establishing salaries for interns include:
- Understanding interns’ employee classification—Interns typically fall into the “non-exempt” category due to the nature of their positions. As such, they are paid an hourly wage.
- Having a basis for salaries—Many employers use the salaries they pay new college hires as the starting point for determining intern wages. Intern pay rates vary based on the student’s major and the functional area in which the student is assigned. Many employers also use the student’s degree and year of study in setting rates. Average salaries for interns tend to increase as students persist toward attaining higher degrees and by ascending class years.
- Making adjustments for location—If the internship is in a city with a high cost of living, some employers will pay students interning there a higher salary to account for this factor.
- Otherwise, being consistent—Interns will talk amongst themselves, so many organizations ensure that they apply their pay scales consistently.
- Establishing this as an annual process—Organizations can ensure they are in line with current intern pay rates by setting intern salaries each year.
- Practicing pay transparency—Including salaries in job descriptions removes some of the uncertainty and hesitation for job seekers.
Intern salary data are reported through NACE’s 2026 Guide to Compensation for Interns & Co-ops.
For more on internships, see “Legal Issues: Internships” on NACEWeb.