Residency is a somewhat blurry transition for many medical students. When you’re a resident, you aren’t exactly a student, but you aren’t a full employee yet either. Despite that, residents work grueling shifts with long, irregular hours, so it’s important to know what type of compensation you’ll receive in return for all that hard work.
In this post, I’ll answer the question “Do you get paid during residency?” and share a few helpful tips medical residents can use to manage their finances well.
This post is all about do you get paid during residency
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Answering: Do You Get Paid During Residency
What Is a Medical Residency?
After completing medical school, some students may choose to go onto the next stage of training known as residency. Residency is a graduate medical education program that allows aspiring physicians to train alongside senior physicians in a clinical environment. If you want to be a licensed physician who can practice independently, you will have to go through residency.
Most residency programs last anywhere between 3 and 7 years depending on the specialty you pursue. One of the longest medical residencies, for example, is neurosurgery, which usually takes a full 7 years to complete. Shorter residencies include family medicine and pediatrics, both of which require only 3 years to complete.
How Much Do Residents Make?
So, you might be wondering, “Do I even get paid during residency?” Actually, and thankfully, you do!
The national average salary for a resident is over $63,000 per year. As you progress through your training, this amount incrementally increases by $2,000 to $5,000 for each subsequent year of your residency until you complete your training, earn your license, and step into the world of full-fledged physician salaries.
By the time you hit your 7th or 8th year in residency (if you opt for a specialty that requires such a long training), your annual earnings could be around $80,000. It’s all part of the journey, so hang in there – your hard work will pay off in due time!
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Factors That Affect Your Pay
Your level of experience, location, type of facility and what specialty you choose can impact your salary as a resident. Check out specific residency programs to get a more precise estimate of what your paycheck might look like.
Average Resident Physician Salary for Each Residency Year
Here’s a breakdown of the average annual salary for each year of residency in the United States. Use these numbers to give you a general idea. However, remember salaries can differ significantly based on your location and specialty.
- First Year: $57,100
- Second Year: $58,800
- Third Year: $61,000
- Fourth Year: $64.500
- Fifth Year: $66,800
- Sixth – Eighth Year: $68,500
Location of your Residency
Where you choose to do your residency matters! If you’re eyeing a spot in a bustling city like San Francisco or NYC, chances are you’ll be making more than your counterparts in quieter areas. It’s all about the cost of living – big cities usually mean bigger paychecks.
But don’t discount rural areas! They often sweeten the deal with higher salaries to entice you to work there because they’re usually in short supply of healthcare pros. So, if you’re open to a quieter life away from the city lights, you could score a nice paycheck.
The type of healthcare facility you work in also plays a part. Academic medical centers or big hospitals tend to have deeper pockets, which usually translates to fatter paychecks for residents compared to smaller clinics or community hospitals.
Location can also bring some cool extras. Urban dwellers might snag a housing stipend to tackle those high living costs. Meanwhile, rural folks could get a transportation allowance to ease their commute. These perks can make a big difference in your total compensation package.
Residency Specialty
Your choice of specialty plays a big role in how much you might earn as a medical resident. Being aware of these variations can help you make informed decisions about your career path. It’s all about finding a balance between your passion for a particular specialty and the financial aspects that come with it.
There are some general trends we can observe in terms of specialty salaries. Here’s a quick breakdown of the average salaries for medical residents based on specialties, from the lowest to the highest:
The Thrifty Residents
- Family Medicine: $58,500
- Psychiatry: $61,500
- OB/GYN: $61,500
- Internal Medicine: $61,500
- Emergency Medicine: $61,500
- General Surgery: $61,500
- Ophthalmology: $61,500
Middle of the Pack
- Pediatrics: $63,300
- Physical Medicine and Rehabilitation: $63,300
- Dermatology: $63,300
- Anesthesiology: $63,300
- Neurology: $64,600
- Urology: $64,600
- Otolaryngology: $64,600
- Radiology: $64,600
- Orthopedics: $64,800
The Heavy Hitters
- Pathology: $66,500
- Specialized Surgery: $69,500
- Plastic Surgery: $69,500
You might notice that some residents end up making anywhere from $1,000 to $10,000 more than others. Generally, longer and more complex specialties tend to offer higher salaries, both during and after residency.
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Balancing Act: Understanding Work Hours and Compensation
Get ready to work some serious hours during your residency! While the Accreditation Council for Graduate Medical Education has set a cap of 80 hours as the average workweek over a 4-week period, the hours are still pretty intense compared to a standard 9-5 job.
Back in the 1980s, resident doctors were grinding even harder, sometimes clocking over 100 hours a week with insane shifts lasting over 30 hours! Yikes, right? The idea back then was that this crazy workload was necessary to hone the clinical skills needed to be a top-notch doctor – an issue that’s still debated today.
Either way, the long hours intend to help residents learn critical skills and get valuable education, preparing them to make smart medical decisions even under intense pressure. However, some studies suggest that around 40% of a resident’s time is actually spent on non-patient care tasks like paperwork.
Residents get paid a salary and rarely receive overtime. So when you break down your pay as a resident into an estimated hourly income, instead of dividing it by 40 hours as you would for a full-time job, divide it up over an 80-hour week.
For example, if you’re a first-year resident making the national average salary of $57,100, dividing this amount by 52 weeks in a year will bring you about $1,098 a week. Now, divide your weekly salary by between 40 and 80 hours a week, and you’ll discover that your hourly rate ranges from $27.50 an hour to as low as a few cents below $14 an hour.
What Are Highest and Lowest Paid Residencies?
Have you ever wondered which residencies bring in the big bucks and which ones might have you pinching pennies? Here’s the lowdown on the factors that lead to the varying salary ranges among different residency programs.
- By Specialty: The highest-paid residencies are in Plastic Surgery, Specialized Surgery, and Pathology, while the lowest-paid residencies often fall under the categories of Family Medicine, Emergency Medicine, and Internal Medicine.
- Based on Your Residency’s Location: Where you do your residency can definitely impact how much you get paid. If you’re hitting up big cities like New York, Los Angeles, or San Francisco, chances are you’ll be raking in more cash than if you were in a more rural area.
- According to the State You’re In: Some states just have more money to throw at healthcare training programs, which means higher salaries for residents. Take Wyoming, for example, where the average annual pay for a medical residency as of June 29, 2024, was a sweet $288,068.
- The Institution: Big-name hospitals and medical schools like Johns Hopkins, Mass General, or Stanford often dish out bigger stipends to their residents.
Perks and Benefits: What’s Included?
While the specifics might vary depending on where you are, it’s good to know that most residencies come with some pretty nice financial perks to help you navigate this challenging but rewarding time in your medical career.
First off, you’ll likely receive benefits included in your salary package, such as health insurance, paid time off, dental insurance, vision insurance, maternity leave, and life insurance. It’s always a relief to know that you’re covered in case anything unexpected happens.
Some programs also throw in smaller benefits that can make your life a little easier, such as meal cards, parking spots, and lockers—those little things that can really add up in convenience.
Most workplaces also give you paid vacation days and sick days because everyone needs a break now and then. And if you’re on-call, you’ll usually get a stipend to compensate you for your extra duties.
And here’s a cool trend—more and more places are starting to offer parental leave. So, if you’re a dad or a secondary caretaker, you might be able to take some paid time off to bond with your little one.
Examples from Different Residency Programs
Let’s get down to specifics. I’ll share real examples of residency programs and the salaries they offer so you can get an inside look at the financial experiences of residents in various programs to see what might work best for you.
Penn Medicine
Renowned for attracting top-ranking university graduates from around the globe who seek advanced training in academic medicine, Penn Medicine, located in the greater Philadelphia area, is highly sought after by the best candidates due to the unmatched expertise of our esteemed faculty, collaborative environment, and access to a wide range of procedures.
Annual Salary
- PGY1 $71,965
- PGY2 $74,712
- PGY3 $78,343
- PGY4 $82,720
- PGY5 $85,532
- PGY6 $89,130
- PGY7 $91,590
- PGY8 $93,634
- PGY9 $97,237
Benefits
- Comprehensive health insurance for yourself, your spouse/partner, and dependent children.
- Long-term disability plan, life insurance, and malpractice insurance
- Four weeks of paid vacation during the academic year, along with five personal days.
- Up to 12 weeks of FMLA leave annually, with six weeks paid and six weeks unpaid.
Corewell Health
Corewell Health in West Michigan offers competitive compensation packages to support you as you train and hone your skills in one of our 16 residency programs. They have a community of over 2,000 physicians and advanced practice providers who are dedicated to improving health, instilling humanity, and inspiring hope every day.
Annual Salary
- PGY-1 $64,722
- PGY-2 $67,177
- PGY-3 $69,492
- PGY-4 $71,465
- PGY-5 $74,437
- PGY-6 $77,184
- PGY-7 $80,707
- PGY-8 $83,935
Benefits
- Medical & Prescription Drugs: 2 plan options with mental health coverage included
- Dental: 2 plan options available
- Vision: 1 plan available
- Flexible Spending Account (FSA): Ability to contribute pre-tax funds each calendar year for health care ($2,650) and dependent care ($5,000)
- Paid Vacation: 4 weeks per year
- Conference days: 5 days per year
- Sick days: as needed
- Hospital-paid benefits: Covers medical licenses, required certifications, meal allowance, white coats & scrubs
- Educational Fund: Discretionary funds for educational expenses approved by the Program Director
- Professional memberships: Provided if required to meet accreditation standards
- Additional benefits: Access to medical library resources, research development, Resident/Fellow Council participation, employee assistance program, various discount programs
- Wellness days: Two days provided annually for medical appointments
- Parental leave & leaves of absence: Individualized based on needs, may impact program completion date
Providence St. Peter Hospital
For almost 30 years, St. Peter Family Medicine has trained family physicians in a multidisciplinary setting, including behaviorists, pharmacists, and physical therapists. As a resident, you’ll have the chance to strengthen your skills in inpatient care, pediatrics, and medicine while still having time for your continuity clinic. And don’t forget about the amazing location near the Puget Sound and National Parks.
Annual Salary
PGY-1: $61,769.59
PGY-2: $64,205.16
PGY-3: $66,835.30
PGY-4: $78,000
PGY-5; $83,538
PGY 6: $86,483
Benefits
- Relocation Allowance: $1,500
- Paid Time Away: 25 Days (covers vacation, sick, and holidays)
- Insurance: Generous flexible benefits program (medical, dental, vision) for you and your family
- Fitness Center: Free membership at Providence St. Peter Hospital’s Fitness Center
- Meal Stipend: $60 per month for first and second year residents
- Malpractice Insurance: Provided
- Education Stipend:
- Up to $250 for first year residents
- Up to $500 for second year residents
- Up to $1,000 for third year residents
- Certifications: BLS, ACLS, NRP, ALSO, and PALS training provided
- Medical License and DEA Certification: Fees paid in full, includes all associated fees (e.g. USMLE report, transcript fees)
- ABFM Board Fee: Reimbursed, resident must provide board scores
- Part III Boards Fee: Reimbursed, resident must provide Step III Score Report
- Travel: Mileage reimbursed for rotation travel to off-campus sites at current hospital rate
Is It Possible to Have a Side Hustle and Earn Extra Money While in Residency?
Feeling ambitious? During your medical residency, you do get paid, but it might not be enough to cover all your expenses, especially student loan debts. So, you might be thinking of ways to earn extra cash, like picking up side gigs or moonlighting. Take inspiration from Ali Abdaal, who started his biggest side hustle business as a medical student and is now a successful YouTuber, coach, and podcaster with over 1.8 million subscribers and earning upwards of 5.7 million last year.
If you’re wondering if squeezing in a side hustle is doable during your residency, here’s how you can potentially earn some extra cash on the side. However, while the extra money is tempting, remember to balance work with self-care to avoid burnout. Set boundaries and prioritize your well-being.
- Tutoring: If you’re passionate about a particular subject or have a knack for teaching, tutoring can be a great way to earn money on the side. You can offer tutoring services to medical students, college students, or even high school students.
- Freelance Writing/Editing: If you have a way with words, consider freelancing as a writer or editor. You can pick up freelance gigs writing articles, editing papers, or creating content for websites.
- Creating Digital Products: Ever thought about sharing your medical knowledge and expertise with others? You can create ebooks or online courses on topics that you’re passionate about. Whether it’s a guide to acing medical exams or a course on self-care for healthcare professionals, this type of income stream has worked very well for me!
- App Designing or Coding: If you’ve got a knack for design or coding, why not use those skills to develop an app? It could be a medical reference tool, a wellness tracker, or even a productivity app tailored for busy residents. You could potentially earn passive income from app sales or in-app purchases.
- Virtual Assistant: Many businesses and professionals need virtual assistants to assist with tasks such as email management, social media scheduling, and online research.
More Side Hustle Ideas During Residency
- Medical Transcription: This job involves transcribing medical reports dictated by healthcare professionals, which can be done remotely.
- Fitness Instructor: If you’re into fitness, consider becoming a part-time fitness instructor. You can lead classes at a local gym, offer personal training sessions, or even teach virtual classes.
- Photography: If you have a passion for photography, you can offer your services for events, portraits, or stock photos. This can be a fun and creative way to make extra money.
- Etsy Shop: If you’re crafty or artistic, consider opening an Etsy shop to sell your handmade creations. Whether it’s jewelry, artwork, or handmade candles, there’s a market for unique, handmade items.
- Pet Sitting/Dog Walking: If you love animals, pet sitting or dog walking can be a rewarding side hustle. You can offer your services to friends, family, or through platforms like Rover or Wag.
- Uber/Lyft Driver: If you have a car and some free time, driving for Uber or Lyft can be a flexible way to earn money on the side. You can choose your own hours and pick up passengers whenever it fits into your schedule.
Summing Up: Do You Get Paid During Residency?
As a medical resident, you’ll put in crazy long hours and carry a ton of responsibility, providing treatment under the watchful eye of attending physicians. But as a resident, you’re still in training, which means while you’ll get paid, you’re not bringing in the big bucks just yet.
Life as a medical resident is challenging enough without financial worries! So, to recap, keep in mind the following financial considerations to help you manage your finances during residency.
- Your salary varies based on your year of residency, benefits, location, and specialty.
- Comparing different specialties and locations can help you maximize your earnings.
- Understanding your work hours in relation to your salary helps with effective financial planning.
- Explore the earning potential of various specialties and consider a side hustle for extra income, balancing it wisely to avoid burnout.
Hopefully, these tips have given you some insight into managing your finances during residency while still working towards your long-term goals and enjoying yourself along the way!
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