Without examining the technical merits of this-whether a particular student X is delivering value to his company Z-let us see the assumptions behind this pay scale. The assumption seems that the summer intern will be active from Day-0(like any other full time employee) and will produce work of equivalent quality-if not at start then atleast from the mid/end. But the proposition of pay for work goes against the very tenets of summer internship being an academic requirement as against a work sampling program. Still, given the extreme level of competition to lure the best students to intern with(and eventually join) them, cos go to all levels. And the base Western scales are huge amounts for us Indians because we can live cheaply abroad(Ok most of us).
So while the purpose of the internship may not justify proration, look at 2-3 factors supporting pro ration
- Working hours-in these jobs, interns typically work 12+hr days.
- Work itself MAY be routine/boring/monotonous
- You pay peanuts you get monkeys