The difference is straightforward: a paid internship compensates you with wages for your work, while an unpaid internship offers experience, mentorship, or academic credit without direct pay.
When I first moved to Canada as a student, I landed an unpaid internship with a small marketing firm. At first, I felt disappointed—I needed money. But over time, I realized the value wasn’t just in a paycheck; it was the connections and skills that later helped me secure a well-paying full-time job.
That said, not all internships are created equal. Some are exploitative, while others are career-launching opportunities. Let me explain in detail how paid and unpaid internships work in Canada so you can make the right choice.
Are Internships Unpaid in Canada?
Not all internships in Canada are unpaid. In fact, the law is clear: if you’re performing work that benefits a business, you are generally entitled to at least the minimum wage—unless the internship is part of a formal educational program or falls under specific exemptions.
That’s why many unpaid internships are tied to college or university programs, where the focus is on learning rather than wages. For example, co-op placements in engineering, IT, or business programs often blend classroom theory with unpaid on-the-job experience.
However, unpaid internships outside of school settings are controversial. Some industries, like media, fashion, or non-profits, still rely heavily on unpaid interns, but governments have been tightening regulations to protect students and young workers from being exploited.
What Are the Benefits of Unpaid Internships?
While unpaid internships can feel discouraging, they do come with certain benefits. For students and newcomers to Canada, the biggest advantage is Canadian work experience—something employers value highly.
Unpaid internships can also help you:
Build a professional network in your industry.
Gain hands-on skills that may not be taught in classrooms.
Boost your résumé with relevant Canadian experience.
Open the door to future paid opportunities with the same employer.
That being said, the benefit is only real if the internship is structured around learning and mentorship. If you’re simply doing unpaid grunt work with little supervision, you may not gain much at all.
Are There Paid Internships in Canada?
Yes, absolutely. Many employers offer paid internships, especially in competitive fields like engineering, finance, tech, and healthcare. These internships not only pay but also provide structured mentorship and career development opportunities.
For example, large Canadian banks (RBC, TD, Scotiabank) run paid summer internship programs for students in finance and business. Likewise, tech giants like Shopify and Microsoft Canada pay their interns competitive salaries that sometimes rival entry-level positions.
The key difference is that paid internships treat you as both a learner and a worker, acknowledging the value you bring to the company while also investing in your growth.
Is It Worth It to Do Unpaid Internships?
This depends on your situation. If you’re a student, newcomer, or career changer struggling to get that first Canadian experience, then yes, unpaid internships can be worth it. They give you exposure, experience, and contacts that can help you land a real job later.
However, if you’re already skilled in your field, doing too many unpaid internships may hurt your career and finances. You should carefully evaluate:
Is there structured mentorship?
Will I gain new skills or industry exposure?
Is there a chance it could lead to paid employment?
If the answer is no, it might not be worth your time.
How to Tell If an Internship Is Paid or Not?
In Canada, employers are required to be transparent about whether a position is paid. Look at the job posting carefully:
If it says “stipend,” “honorarium,” or “academic credit only,” it’s unpaid or partially unpaid.
If it lists an hourly wage or salary, it’s paid.
You can also directly ask during the interview: “Can you clarify whether this internship is paid or unpaid, and if unpaid, what learning opportunities will be provided?”
Asking upfront shows confidence and ensures there are no surprises later.
Why Are You Interested in an Unpaid Internship?
This is a common interview question. Employers want to know that you’re not just looking for a paycheck but are genuinely interested in learning and contributing.
A strong answer could be:
“I’m interested in this internship because it will give me exposure to real industry experience, and I believe the mentorship I’ll receive will help me grow professionally. While compensation is always valuable, my primary goal here is to build my skills and knowledge.”
Does a Paid Internship Count as Work Experience in Canada?
Yes, paid internships count as legitimate Canadian work experience, and they can be listed on your résumé just like any other job. Many employers see internships as valuable stepping stones that prove you can adapt to a Canadian workplace.
In fact, some professional licensing bodies in Canada accept internship hours toward certification requirements, especially in fields like engineering, social work, and accounting.
Do Interns Get Paid for Their Work?
Interns get paid if the internship is structured as employment under Canadian law. That means they’re performing work that benefits the employer. In that case, interns must receive at least the minimum wage.
If the internship is strictly educational or voluntary (like volunteering at a non-profit), then payment may not apply.
What Is the Average Salary of an Intern in Canada?
The salary of interns in Canada varies by industry and location. On average, interns in paid positions make between $18 to $25 per hour, with tech, finance, and engineering internships paying on the higher end.
For example, tech interns at major companies in Toronto can earn over $25/hour, while smaller organizations may offer closer to the minimum wage.
Conclusion
So, what is the difference between paid and unpaid internships in Canada? Paid internships reward you financially while offering career growth, while unpaid internships focus on skills, mentorship, and experience without direct pay.
Here are the key points to remember:
Not all internships are unpaid—many are paid, especially in high-demand fields.
Unpaid internships can be valuable if they provide mentorship, Canadian experience, and networking opportunities.
Paid internships always count as real Canadian work experience and can pay anywhere from minimum wage to $25/hour or more.
If you’re considering an internship, weigh your options carefully: ask about mentorship, pay, and future opportunities. Remember, the best internship is the one that truly builds your career.