Medical residency is a crucial step on the journey to become a physician. If you’re an ambitious undergraduate student considering a career as a MD or DO, or are a medical student nearing the end of medical school, you may be wondering if you get paid during residency.
The short answer is yes. But it’s important to note, medical residency is on-the-job training, and an extension of medical school. Thus, salaries paid to medical residents are reflective of those paid to trainees.
As with most careers, physician salaries increase with time and experience. With an average salary near $250,000 per year, doctors are some of the top earners in the US. But it takes a lot of time and commitment to get there. And medical residency is one of those steps along the journey.
What Is Medical Residency?
Medical residency is a multi-year (approx. 3 to 8 years) postgraduate training program aspiring physicians must undergo after completing medical school. The purpose of residency is to increase the physician’s medical knowledge, and to provide hands-on experience within a chosen specialty.
Completion of a medical residency program is required to become a licensed physician and to practice medicine within the United States.
Duration and requirements of residency are based on medical specialty. A few of the most popular specialties include:
- Family medicine (3 year residency)
- Pediatrics (3 year residency)
- Anesthesiology (4 year residency)
- General surgery (5 year residency)
- Radiology (4 to 5 year residency)
While each residency program is different, one thing they have in common is how each designates medical residents, which is by Post-Graduate Year or PGY.
For example, residents in their first year are said to be in PGY-1 or Post-Graduate Year one, while those in year two are said to be in PGY-2.
This is important to understand because a resident’s PGY designation plays a role in determining residency salary. Even more so than medical specialty itself.
How Much Do Residents Get Paid?
The average salary for medical residents is around $60,000 per year. With the low end near $45,000 and the high end near $70,000. Similar to most jobs in corporate America, resident salaries increase with time and experience. So PGY-2 residents typically earn more than their PGY-1 peers, and so forth.
A few things to note:
- Residency salaries are fairly consistent across specialties. For example, you may think General Surgery residents would be compensated higher than Family Medicine. But they’re actually quite comparable at $60,000 per year.
- Resident salaries may be influenced by geographic location and cost of living. Thus, salaries in metropolitan New York City are likely to be higher than rural communities like Charleston, West Virginia.
- Salaries vary by program, and are determined by the medical institution offering said residency program.
Why Is Residency Pay So Little?
Now, imagine you’re an aspiring physician who just completed a demanding, strenuous four year medical school. Prior to that, you completed an almost as demanding undergraduate science program, and studied six months to ace the Medical College Admissions Test (MCAT).
Now, you’re about to enter a grueling 3+ year medical residency program where you can expect to work 60 hours per week….and earn $60,000 per year or around $20 per hour.
All that time and effort to earn a salary comparable to the guy bagging your groceries at Walmart. Doesn’t sound very appealing, does it?
Which begs the question, why do medical residents get paid so little? Here are a few reasons:
- As discussed earlier, medical residents are still in training. And while they may have the same education as a licensed MD or DO, they’re missing one critical component: a medical license. So, much of what they do in residency is under the supervision of a licensed physician, similar to a nurse practitioner or physician’s assistant (PA).
- Medical institutions are taking on risk by employing unlicensed medical residents, especially medical malpractice. With less practical, hands-on experience, the likelihood of life-altering error among residents is much higher. Thus, institutions offset some of this cost by offering lower compensation.
- To recruit physicians, some hospitals and medical institutions offer to pay-off student loans if the physician agrees to remain employed at the institution for a certain period of time. This may also influence the salary offered to medical residents.
In essence, medical residents are paid a salary similar to registered nurses (RNs) who also work under the guidance and direction of licensed physicians.
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Medical Residents and Debt
Medical school is expensive. The average cost of a four year medical school education is over $230,000. And that’s just tuition and fees, not to mention basic living expenses like housing, food, and transportation. Thus, the average medical student exits medical school with a substantial amount of debt, which takes around 8 years to repay after graduation.
So, while $60,000 per year during residency isn’t great, it’s better than earning zero income. Which is what most medical students earn during their four years of medical school because there’s simply not enough time to go to school, study, and hold down a job.
And anything is better than nothing to start paying down debt.
Pros and Cons of Medical Residency
Pros
1) Employment Benefits
Most medical institutions offer some form of benefits to residents, including:
- Disability insurance
- Health and dental insurance
- Life insurance
- Medical malpractice insurance
- Meal allowance
- Paid leave
- Prescription coverage
- Mental health benefits
2) Skill Development
During residency, physicians acquire the skills necessary to operate in a medical specialty. They develop expertise, and learn medical techniques outside the classroom. Additionally, physicians can complete more than one residency program if they have interest in multiple specialties.
3) Mentorship and Networking
Finally, physicians build meaningful relationships with other physicians and medical professionals during residency. These relationships are beneficial, not only for consulting on medical issues and topics, but also for future career and development opportunities.
Cons
1) Low Salary
As discussed, $60,000 per year isn’t a lot of money with 8 years of post high school education and $200,000 in debt. But if you can make it through residency, you’ll likely find yourself among the top 10% of earners upon obtaining your medical license.
2) Long Hours
Medical residency requires working 60 hours per week, with many long days and little time off. Working this type of schedule for an extended period of time is draining and stressful, and could lead to physical or mental health issues.
3) Limited Time Off
Most residency programs offer paid time off, but residents can expect to work 6 days per week on average. While on duty, many residents work 16+ hour shifts which can be physically and emotionally draining.
What Is The FREIDA Database?
FREIDA stands for Fellowship and Residency Electronic Interactive Database Access, and is a member-only database sponsored by the American Medical Association. It’s basically the Indeed of medical residency opportunities, and provides loads of information on medical specialties, training requirements, average salary, work hours, and a lot more.
It’s an excellent resource for medical students seeking residency program opportunities. Or for students interested in learning more about different medical specialties.
Is Medical Residency Worth It?
You’ll notice that from the time you graduate high school until the time you start earning a doctor’s salary, it takes approximately 12 years. That’s a long time. But for those few willing to put in the time and effort, there’s a reward in the end.
The average salary for primary care physicians is over $250,000 per year. While specialists, those physicians who’ve completed a specialty residency program, earn nearly $370,000. That’s 6x the salary these physicians earned during residency.
Yes, there is short-term pain in undergraduate studies, medical school, residency, licensing, and salary. But those are quickly forgotten when anticipating a rewarding, 30-year career of serving others while earning $250,000+ per year.
It’s an investment with incredible return over the course of a lifetime.
