ESI Calculator — Employee & Employer Contribution
Enter gross monthly wages — see whether ESI applies and the employee and employer contribution.
Result
- Employee ESI (0.75%)
- ₹139.00
- Employer ESI (3.25%)
- ₹602.00
- Total ESI
- ₹741.00
Each contribution is rounded up to the next rupee, as ESIC does. Pay by the 15th of the next month.
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Quick answer
ESI means Employees' State Insurance — a medical and cash-benefit scheme run by ESIC for employees earning up to ₹21,000 gross a month (₹25,000 for persons with disability). The employee pays 0.75% and the employer 3.25% of gross wages, 4% in all. Employees earning up to ₹176 a day pay nothing; the employer still pays 3.25%.
| Wage ceiling | ₹21,000 a month (₹25,000 for persons with disability) |
|---|---|
| Employee share | 0.75% of gross wages |
| Employer share | 3.25% of gross wages |
| Employee exempt | Average daily wage ₹176 or less |
ESI stands for Employees' State Insurance. Run by the Employees' State Insurance Corporation (ESIC), it gives covered employees and their families medical care at ESI hospitals and dispensaries, plus cash benefits during sickness, maternity, disablement and unemployment.
It applies to factories and establishments with 10 or more employees, for every employee whose gross wages are within the limit. Rates and limits as of 12 October 2026.
The formula
- Employee contribution
0.75% × Gross monthly wages (rounded up to the rupee)- Employer contribution
3.25% × Gross monthly wages (rounded up to the rupee)- Coverage
Gross wages ≤ ₹21,000 a month (₹25,000 for persons with disability)
ESI calculation example
Gross wages of ₹18,500 a month: employee ESI = 0.75% = ₹138.75, rounded up to ₹139. Employer ESI = 3.25% = ₹601.25, rounded up to ₹602. Total ₹741 is paid to ESIC by the 15th of the following month.
Gross wages include basic, DA, HRA, overtime and most allowances; they exclude the employer's PF contribution, gratuity and annual bonus.
Contribution periods — why ESI continues above ₹21,000
ESI runs in two six-month contribution periods, April–September and October–March. If an employee was covered at the start of a period, contributions continue to its end even if a raise takes wages above ₹21,000 mid-way. Coverage stops from the next period.
ESI in payroll
Because coverage depends on each month's gross and the contribution period, ESI is easy to get wrong by hand when overtime pushes wages over the limit. Payroll software that tracks the period per employee deducts it correctly and produces the monthly challan figures.
Questions people ask.
What does ESI mean?
Employees' State Insurance — a government social security scheme giving medical care and cash benefits to employees earning up to ₹21,000 a month, funded by employee and employer contributions.
What is the ESI contribution rate?
0.75% of gross wages from the employee and 3.25% from the employer — 4% in total. These rates have applied since 1 July 2019.
What is the ESI salary limit in 2026?
₹21,000 gross a month, or ₹25,000 for persons with disability.
Who does not pay the employee share of ESI?
Employees whose average daily wage is ₹176 or less. The employer still pays its 3.25% share for them.
Is ESI deducted on basic or gross salary?
On gross wages — basic, DA, HRA, overtime and allowances paid in the month — not on basic alone.
What is the full form of ESIC?
Employees' State Insurance Corporation, the body under the Ministry of Labour and Employment that runs the ESI scheme.
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