ESI (ESIC) Calculator
Calculate employee and employer ESI contributions on gross wages. ESI applies when gross monthly wages are ₹21,000 or below.
ESI eligibility ceiling: ₹21,000/month (₹25,000 for persons with disabilities).
Monthly contributions
Employer's annual ESI cost: ₹7,020
Current contribution period
1 April 2026 – 30 September 2026
How ESI is calculated
The Employees' State Insurance (ESI) scheme is funded by contributions from both employee and employer. The employee contributes 0.75% of gross wages and the employer contributes 3.25%, for a total of 4%. ESI is mandatory for employees whose gross monthly wage is ₹21,000 or less, and provides medical, sickness, maternity and disablement benefits through ESIC.
Contributions run in two fixed six-month periods each year — 1 April to 30 Septemberand 1 October to 31 March. A lesser-known but important rule: if an employee is covered at the start of a contribution period, coverage (and the deduction) continues for that entire period even if a mid-period salary revision takes their wage above ₹21,000 — the ceiling is only re-checked at the start of the next period.
Frequently asked questions
What is the ESI contribution rate?⌄
The employee contributes 0.75% of gross wages and the employer contributes 3.25% of gross wages, for a total ESI contribution of 4% of gross wages.
What is the ESI wage limit?⌄
ESI applies to employees whose gross monthly wage is ₹21,000 or less (₹25,000 for employees with disabilities). If gross wages exceed the limit, ESI is not deducted.
If my salary crosses ₹21,000 mid-year, does ESI stop immediately?⌄
No. ESI contribution periods run 1 April–30 September and 1 October–31 March. If you're covered at the start of a period, coverage continues for the entire six months even if a mid-period revision takes your wage above ₹21,000 — the ceiling is only re-checked at the start of the next period.
What benefits does ESI provide?⌄
ESI provides medical care, sickness benefit, maternity benefit, disablement benefit, and dependant benefit to insured employees and their families through ESIC dispensaries and hospitals.
Disclaimer: These calculators provide indicative estimates for FY 2025-26 based on standard statutory rules and the inputs you enter. Actual figures depend on your salary structure, state, applicable exemptions and the latest government notifications. Please consult a qualified payroll or tax professional before making decisions.