Source: SGEntrepreneurs, Jan 2012
Here’s the story. A few start-ups took part in an internship program and offer positions to various candidates. Each one arbitrarily decided the salary which they would pay an intern. Let’s put a few numbers up first before we continue on. The pay ranged from S$700 to S$1.2K per month and no company actually spoke with each other on how much they were paying.
The average worked out to be about S$900-S$950, based on the range offered by the start-ups. The minimum market rate pay for a polytechnic internship is advised to be about S$400 a month and university undergraduate at about S$550. Just to compare, an investment bank internship (which is possibly the highest-paying one) would cost about S$1.6K per month.
To deal with the volatility, structure the intern’s pay to be about 15-20 percent above the market value.