Are Residency Programs Paid? Understanding Compensation for Resident Physicians
One of the most common questions medical students have when considering residency programs is: Do residents get paid? After years of accumulating debt in medical school, many students want to understand how they will be compensated during their postgraduate training. Residency is a demanding period in which newly graduated doctors work long hours to gain hands-on experience in their chosen specialties. While it is technically still a phase of education, residents are also providing essential services in hospitals and clinics, leading to the expectation of fair compensation.
We will explore key questions related to residency salaries, including how much residents make, what benefits they receive, how salaries change over time, and what factors influence compensation. Additionally, we will look at how residency programs are funded and the financial realities residents should prepare for.
Are Residents Paid a Salary?
Yes, residents in accredited programs receive a salary. Residency is a full-time job with structured training, and compensation reflects the workload and responsibilities residents undertake. Salaries vary by institution, specialty, and geographic location, but they generally increase each postgraduate year (PGY) as residents gain more experience and seniority.
How Much Do Residents Make?
Resident salaries are determined by the institution and funding sources, primarily Medicare. While there is no standardized salary across all programs, most institutions provide a competitive stipend. Below are examples of resident salaries from well-known programs:
University of California, Irvine (2024–2025 Salaries)
PGY I: $81,734.50
PGY II: $85,227.23
PGY III: $90,279.75
PGY IV: $94,467.82
PGY V: $97,903.65
PGY VI: $101,151.33
PGY VII: $104,164.11
(Source: UC Irvine School of Medicine)
University of California, Los Angeles (2024–2025 Salaries)
PGY I: $84,261
PGY II: $87,754
PGY III: $91,809
PGY IV: $96,997
PGY V: $101,434
PGY VI: $104,683
PGY VII: $107,695
PGY VIII: $112,627
PGY IX: $113,220
(Source: UCLA School of Medicine)
What Benefits Do Residents Receive?
Beyond salaries, residency programs provide various benefits that support residents' well-being and professional development. These include:
Health, Dental, and Vision Insurance – Coverage for residents and, often, their families.
Educational Allowances – Funds for books, courses, and conference fees.
Housing Stipends – Financial assistance for living expenses in high-cost areas.
Meal Allowances – Stipends for food, particularly during long shifts.
Relocation Reimbursement – Support for moving expenses for incoming residents.
For instance, UCLA offers a $1,000 monthly housing stipend, a $3,000 annual meal stipend, and a $2,750 relocation allowance for incoming residents.
How Are Residency Salaries Funded?
Residency training is primarily funded through federal programs, with Medicare being the largest contributor. Medicare provides two types of payments to teaching hospitals:
Direct Medical Education (DME) Payments – Cover resident salaries and benefits.
Indirect Medical Education (IME) Payments – Help offset the costs associated with training physicians in a hospital setting.
However, residency funding has remained relatively stagnant despite increasing costs, leading to concerns about residency program expansion and future funding models.
Do Resident Salaries Differ by Specialty?
Generally, the base salary for residents does not vary significantly by specialty during the initial years. However, certain programs may offer bonuses, stipends, or additional funding based on factors such as research involvement or cost of living. Fellowships and subspecialty training after residency may also impact earnings.
Residency programs in the U.S. provide structured clinical training while compensating residents with a salary and benefits package. While salaries may not compare to attending physicians' earnings, they are designed to support residents through this rigorous phase of medical training. Understanding salary structures, benefits, and funding sources helps medical students make informed decisions about their future training.
The Importance of a Residency Interview
It all begins with an idea.
Making a Great First Impression
Residency programs aren’t just looking for applicants with strong credentials; they want future colleagues who will be a great fit for their team. Your interview is your chance to show them who you are—your passion for medicine, your dedication to patient care, and your ability to work well with others. Confidence, professionalism, and preparation go a long way in leaving a lasting impression.
Your ERAS Application: Let’s Make It Shine
Before you even get to the interview stage, your ERAS application needs to tell your story in the best possible way. The most important parts of your application include:
USMLE Scores – Programs often look at these first, so a strong score can give you a competitive edge.
Visa Status – If you're an IMG, understanding visa sponsorship options is crucial.
Personal Statement – This is your opportunity to highlight your strengths and show programs why you belong there.
Letters of Recommendation – Strong, well-written letters from physicians who know your work can make a huge difference.
If you’re feeling unsure about any of these, don’t stress—that’s exactly what we’re here for.
We’ll Help You Every Step of the Way
We know this process can feel overwhelming, but you don’t have to figure it out alone. With our 1-hour consultation, we’ll go through your ERAS application, help you emphasize your strengths, and prepare you for your interviews so you walk in with confidence. Whether you need help refining your personal statement, answering tough interview questions, or making sure your application is as strong as possible, we’re here to guide you.
You’ve worked so hard to get to this point—let’s make sure your application reflects that.
Book a consultation today, and let’s get you one step closer to the residency program of your dreams.