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ESI calculator — employee and employer contribution
Enter a monthly gross wage to see the employee share (0.75%), employer share (3.25%), and total ESI contribution — or a plain "not covered" result above the ₹21,000 wage ceiling.
Effective , reviewed 12 Jul 2026.Ministry of Labour & Employment GSR 423(E) dated 13 Jun 2019; ESIC — https://www.esic.gov.in/contribution
Live calculator
Calculate ESI contribution
Coverage ceiling: ₹21,000/month gross. Above this, the employee is not covered under ESI.
total monthly ESI contribution
₹15,000 × 0.75% = 112.50 → rounded up to ₹113
₹15,000 × 3.25% = 487.50 → rounded up to ₹488
Copyable result linkMethodology
How this calculator works.
ESI contribution is a flat percentage of gross monthly wages, applied only when the wage falls at or below the coverage ceiling. There is no slab structure and no wage-reclassification step (unlike EPF or gratuity, where the Code on Wages' 50%-floor rule can reclassify allowances as wages) — that is what makes ESI safe to compute directly from a single gross-wage input.
employee contribution = gross wage × 0.75%, rounded up to the next rupee
employer contribution = gross wage × 3.25%, rounded up to the next rupee
total = employee contribution + employer contribution
coverage = gross wage <= ₹21,000; above that, not covered
Assumptions: "gross wage" here means total monthly wages before statutory deductions, including basic, DA, HRA and most cash allowances, following ESIC's own wage definition. The calculator assumes the employee is already covered under ESI (see the applicability note below); it does not determine coverage for your establishment.
Effective , reviewed 12 Jul 2026.ESI (Central) Rules 1950, Rule 50 (amended); ESIC — https://www.esic.gov.in/contribution
Worked example
A ₹15,000 gross wage, step by step.
- Start with gross wage. ₹15,000/month, below the ₹21,000 ceiling — covered.
- Employee share. ₹15,000 × 0.75% = 112.50, rounded up to ₹113.
- Employer share. ₹15,000 × 3.25% = 487.50, rounded up to ₹488.
- Total contribution. ₹113 + ₹488 = ₹601/month, paid to ESIC.
Honest limits
What this calculator doesn't decide.
ESI coverage is establishment-level, not employee-level. A non-seasonal factory or establishment employing 10+ persons is covered in most major states — a few states and establishment categories still apply a 20-person threshold, so the exact rule varies by state. This tool computes the contribution given that an employee is covered under ESI; it does not tell you whether your establishment itself is covered. Confirm your establishment's ESI registration status and state-specific threshold before relying on this figure for payroll.
LekhaHR's payroll module is not released yet (M4 gate) — this calculator is a standalone reference, not a preview of automated ESI deduction inside the product.
FAQ
Questions before you calculate.
How is ESI calculated on salary?
ESI is a flat percentage of gross monthly wages, not basic pay alone — it includes basic, dearness allowance, HRA, and most cash allowances before statutory deductions. The employee pays 0.75% of gross wages and the employer pays 3.25%, effective 1 Jul 2019. On a ₹15,000 gross wage: employee share = ₹15,000 × 0.75% = 112.50, rounded up to ₹113.
What is the ESI wage ceiling and what happens above it?
Employees drawing gross monthly wages up to ₹21,000 are covered (₹25,000 for a person with disability). Cross the ceiling and no ESI contribution applies going forward — this calculator shows a "not covered" result above ₹21,000. One exception: an employee who crosses the ceiling mid contribution-period (April–September or October–March) stays covered until that period ends.
Is ESI calculated on gross salary or basic salary?
Gross salary. ESI's wage definition is broader than EPF's basic+DA base — it counts most cash components paid to the employee, which is why an employee's ESI contribution is usually higher, proportionally, than a basic-only calculation would suggest.
Who is covered under ESI — does every company have to enroll?
ESI applies establishment-by-establishment, not to every employer. Non-seasonal factories and establishments employing 10+ persons are covered in most major states; a few states or establishment categories still apply a 20-person threshold, so confirm the rule for your state. This calculator computes the contribution given that an employee is covered — it does not determine whether your establishment is covered.
Do employees get their ESI contribution back?
No — ESI is not a refundable deduction like a security deposit. It funds ESIC medical, sickness, maternity, disablement and dependent benefits for the covered employee and family, drawn on as needed rather than returned as a lump sum.
Is ESI applicable for a ₹25,000 salary?
Not for the general workforce — ₹25,000 gross is above the ₹21,000 ceiling, so no ESI contribution applies (the ₹25,000 figure is the separate, higher ceiling that applies specifically to persons with disability). Enter ₹25,000 above to see the calculator's "not covered" state.
What is the employer's ESI contribution rate?
3.25% of gross wages, reduced from 4.75% effective 1 Jul 2019. It's paid in addition to the employee's 0.75% share, not deducted from the employee's pay.
How does ESI rounding work?
Contributions are rounded up to the next whole rupee — a computed 112.50 becomes ₹113, not ₹112. This calculator applies that rounding to both the employee and employer share before totaling them.