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ESI Calculator

Calculate ESI Contribution

ESI is calculated on gross monthly wages, not just basic salary. Enter the gross salary to see the employee and employer share.

Standard Employee Person with Disability
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ESI rate has been 4% of gross wages (0.75% employee + 3.25% employer) since July 2019. Standard wage ceiling is ₹21,000/month; ₹25,000/month for persons with disability.

What is ESI?

Employee State Insurance (ESI) is a self-financing social security scheme run by the Employees' State Insurance Corporation (ESIC), providing medical, sickness, maternity, and disability benefits to employees earning within the wage ceiling.

Employee: 0.75% of gross wages
Employer: 3.25% of gross wages

Unlike EPF, which is calculated on basic salary + DA, ESI is calculated on gross wages — including basic, DA, HRA, and most other cash allowances.

ESI Applicability

  • Applies to non-seasonal factories and establishments with 10 or more employees (20+ in some states)
  • Covers employees earning up to ₹21,000/month in gross wages
  • Wage ceiling is ₹25,000/month for persons with disability
  • Once covered, contributions continue for the full contribution period even if wages later cross the ceiling

ESI Contribution and Benefit Periods

Contribution Period Benefit Period
1 April – 30 September1 January – 30 June (next year)
1 October – 31 March1 July – 31 December
  • Employers must remit both shares to ESIC by the 15th of the following month
  • ESI provides medical care, sickness benefit, maternity benefit, disablement benefit, and dependant benefit
  • Registration and monthly filing are done through the ESIC portal
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FAQ

Frequently Asked Questions

Common questions about ESI contribution

How is ESI calculated on salary? −

ESI is calculated as a percentage of gross monthly wages, not just basic salary. The employee contributes 0.75% and the employer contributes 3.25%, for a total of 4%. For example, on a gross salary of ₹18,000, the employee pays ₹135 and the employer pays ₹585, totaling ₹720/month.

What is the ESI wage ceiling? −

The standard ESI wage ceiling is ₹21,000/month in gross wages. Employees earning above this are not covered under ESI. For persons with disability, the ceiling is higher, at ₹25,000/month.

Is ESI calculated on basic salary or gross salary? −

ESI is calculated on gross salary, which includes basic pay, dearness allowance, HRA, and most cash allowances. This is different from EPF, which is calculated only on basic salary + DA. A few components, like travel reimbursements and statutory bonus, are typically excluded from ESI wages.

What happens if my salary crosses ₹21,000 during the year? +

Is ESI registration mandatory for all businesses? +

Have more questions? Check our knowledge base or contact us.

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