Embarking on a career in medicine is a monumental achievement, marked by years of rigorous study and dedication. The final, critical stage of this journey is residency—a period of intensive, hands-on training. While the ultimate financial rewards of being a physician are significant, it's crucial for aspiring doctors to have a realistic understanding of their income during these formative years.
So, how much can you expect to earn during residency? While it's a modest figure compared to an attending physician's salary, the average medical resident in the United States earns approximately $67,400 per year, according to the 2023 Medscape Resident Salary & Debt Report. This article will break down that number, explore the key factors that influence it, and provide a clear picture of what to expect financially during your medical training.
What Does a Medical Resident Do?
A medical resident, or resident physician, is a doctor who has graduated from medical school (with an M.D. or D.O. degree) and is now training in a specific medical specialty. They are not students; they are practicing physicians working under the supervision of senior physicians (attendings) in a hospital or clinic setting.
Residency is where medical theory is put into practice. The core responsibilities of a resident are vast and demanding, including:
- Diagnosing and treating patients.
- Developing and managing patient care plans.
- Performing medical procedures relevant to their specialty.
- Admitting patients and managing their hospital stay.
- Working long hours, including nights, weekends, and holidays, often in high-pressure environments.
In essence, residents are the frontline medical providers and the backbone of teaching hospitals, gaining the practical skills and experience necessary to become independent, fully licensed specialists.
Average Medical Resident Salary
The salary earned during residency is more accurately described as a stipend to cover living expenses during this advanced training period. It is not intended to reflect the full market value of a physician's work.
According to the 2023 Medscape Resident Salary & Debt Report, the most authoritative source on this topic, the average salary for medical residents in the U.S. is $67,400.
This figure doesn't tell the whole story, as pay is highly structured and increases with each year of training. Here is a typical progression based on the Medscape data:
- PGY-1 (Intern Year): ~$63,000
- PGY-2: ~$65,500
- PGY-3: ~$68,000
- PGY-4 and beyond (Fellows/Senior Residents): ~$70,000 - $78,000+
It's important to remember that these are national averages. Your actual salary will be influenced by a combination of powerful factors.
Key Factors That Influence Salary
While all residents are in a similar training stage, not all stipends are created equal. Several key variables can significantly impact a resident's annual earnings.
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Years of Experience
This is the single most significant factor in determining a resident's salary. "Experience" in this context refers to the Post-Graduate Year (PGY) of training. Hospitals and institutions use a standardized, tiered pay scale that increases with each year a resident completes. A PGY-1 resident (often called an "intern") will always be at the bottom of the pay scale, while a PGY-5 chief resident in a surgical specialty will be at the top. This incremental increase recognizes the resident's growing competence, autonomy, and responsibilities.
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Geographic Location
Where you complete your residency plays a major role in your compensation. Hospitals in regions with a high cost of living must offer higher stipends to attract residents and ensure they can afford housing and other necessities.
For example, data from salary aggregators often shows higher resident stipends in major metropolitan areas like New York City, Boston, and San Francisco compared to those in the Midwest or the South. According to Salary.com, a Resident Physician in New York, NY, might earn around 5-10% more than the national average, while a resident in a smaller city like Little Rock, AR, might earn slightly less. This difference is a direct adjustment for the local cost of living.
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Level of Education
For medical residents, the minimum level of education is a doctorate (M.D. or D.O.). This is a baseline requirement, and having one degree versus the other does not impact salary. Similarly, the prestige of the medical school you attended has no direct bearing on the stipend you receive as a resident.
The "level" that matters is your training level—specifically, if you are a resident or a fellow. A fellow is a physician who has already completed a full residency and is pursuing further, sub-specialty training (e.g., a cardiologist who first completed an internal medicine residency). Because fellows are more experienced, their stipends are typically higher than those of residents, often falling into the PGY-4 to PGY-6+ salary range.
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Company Type
The type of institution where you train significantly affects compensation and benefits. Residents primarily work in three types of settings:
- University-Affiliated/Academic Medical Centers: These are large teaching hospitals connected to medical schools. They often handle the most complex cases and offer robust research opportunities. Their stipends tend to be competitive and closely align with national averages.
- Community Hospitals: These may be private or non-profit hospitals that are not directly affiliated with a university. Their stipends can vary widely. Some may offer higher pay to attract top candidates, while others may offer slightly less.
- Government Hospitals (e.g., VA Hospitals): These federally funded institutions offer standardized pay scales that are competitive and often come with strong government benefits.
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Area of Specialization
While PGY year is the primary driver of salary, specialization can have a minor influence during the training years, primarily by dictating the *length* of training. For instance, specialties like Family Medicine or Pediatrics have three-year residencies, while surgical specialties like Neurosurgery can last seven years.
During residency itself, the stipend difference between, for example, a PGY-2 surgery resident and a PGY-2 internal medicine resident at the same hospital is often minimal or non-existent. The massive salary divergence between specialties occurs *after* residency is completed and you become an attending physician.
Job Outlook
While the residency stipend is modest, the long-term career outlook for physicians is exceptionally strong. The investment of time and hard work during residency pays off significantly upon completion.
According to the U.S. Bureau of Labor Statistics (BLS) Occupational Outlook Handbook, employment for physicians and surgeons is projected to grow 3 percent from 2022 to 2032, which is about as fast as the average for all occupations.
The BLS cites several reasons for this sustained demand:
- An aging and growing population requiring more medical care.
- A wave of currently practicing physicians nearing retirement age.
- Continued expansion of healthcare services across the country.
This stable, consistent demand ensures that completing a residency leads to a secure and highly sought-after career.
Conclusion
For anyone on the path to becoming a doctor, understanding the financial landscape of residency is a crucial step in planning your future. While the average salary of around $67,400 may seem low given the hours and responsibility, it's vital to view it as a temporary training stipend—an investment in a future career that is both personally and financially rewarding.
Here are the key takeaways:
- Expect a Modest Stipend: The salary is meant to cover living expenses during your advanced training.
- Pay Increases Annually: Your income will rise predictably with each Post-Graduate Year (PGY) you complete.
- Location Matters: Expect higher pay in high-cost-of-living areas.
- The Future is Bright: Residency is the gateway to a stable, in-demand, and well-compensated career as a physician.
Enduring the challenges of residency is a rite of passage. By managing financial expectations and focusing on the invaluable training you're receiving, you can successfully navigate this period and prepare for a long and prosperous career in medicine.