Verified · 29 Sept 2026
ESI Calculator – Employee & Employer Contribution
Calculate employee (0.75%) and employer (3.25%) ESI contributions, and check whether ESI applies to your establishment and employee.
✓ Verified against official notifications · 29 Sept 2026 · How we verify →
Recent change: Central Rules under all four Labour Codes notified (8 May 2026)
Everything paid in cash for the month, excluding annual bonus and employer PF.
Wage ceiling is ₹25,000 instead of ₹21,000.
ESI applies to this employee
Employee (0.75%)
₹135
₹1,620 / year
Employer (3.25%)
₹585
₹7,020 / year
Total monthly
₹720
Due by the 15th of next month
- Contributions are rounded up to the next rupee.
4 Codes in force 21 Nov 2025 · Central Rules 8 May 2026 (G.S.R. 342–344(E))Verify on EPFO / ESIC →Share on WhatsApp
For estimation only. This calculator applies the rules as we understand them on 29 Sept 2026. It is not legal or tax advice. Verify with the official notification or consult a Chartered Accountant / labour-law professional before filing or changing payroll.
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How ESI is calculated
ESI is charged on gross monthly wages, which includes basic, DA, HRA and most allowances, but excludes annual bonus, employer PF and gratuity. Both shares are rounded up to the next rupee.
Worked example
Gross wages of ₹18,000: employee share = ₹18,000 × 0.75% = ₹135; employer share = ₹18,000 × 3.25% = ₹585. Total monthly deposit: ₹720.
Rounding shows up on uneven wages. At ₹17,550, the employee share is ₹131.63 and the employer share ₹570.38. Both round up, to ₹132 and ₹571, for a deposit of ₹703.
Coverage and contribution are tested differently
Overtime is the usual source of confusion. It is left out when deciding whether an employee is within the ₹21,000 ceiling, but included in the wages on which contribution is charged. An employee on ₹20,000 who earns ₹3,000 of overtime in a month stays covered, and pays ESI on ₹23,000 that month.
| Pay item | Counts for the ₹21,000 test | Counts for contribution |
|---|---|---|
| Basic, DA, HRA, other regular allowances | Yes | Yes |
| Overtime | No | Yes |
| Annual bonus, gratuity, retrenchment pay | No | No |
| Employer PF contribution | No | No |
Contribution periods
The year is split into two six-month contribution periods, and each one feeds a later benefit period. An employee who was covered on the first day of a contribution period stays covered for the whole of it, even after a raise takes pay above ₹21,000.
| Contribution period | Benefit period |
|---|---|
| 1 April – 30 September | 1 January – 30 June of the next year |
| 1 October – 31 March | 1 July – 31 December |
What the 4% buys
| Benefit | What is paid |
|---|---|
| Medical | Full treatment for the employee and family at ESI dispensaries and hospitals, from the first day of insurable employment |
| Sickness | 70% of average daily wages for up to 91 days a year |
| Maternity | 100% of average daily wages for 26 weeks |
| Temporary disablement | 90% of wages for as long as the disablement lasts |
| Dependants | 90% of wages, shared among dependants, on death from an employment injury |
| Funeral expenses | ₹15,000 |
Cash benefits other than medical care depend on a minimum number of contribution days in the matching contribution period, so a brand-new employee gets treatment immediately but sickness cash only later.
Paying late
Contributions for a month are due by the 15th of the next month, through the ESIC employer portal. Late deposits carry simple interest at 12% a year, and ESIC can also levy damages at a yearly rate that rises with the delay: 5% for under 2 months, 10% for 2–4 months, 15% for 4–6 months and 25% beyond that. Deducting the employee share and not depositing it is also an offence under the Act.
Building a full payslip? The CTC to in-hand salary calculator combines ESI with PF, professional tax and income tax.
Official sources
Frequently asked questions
What are the current ESI contribution rates?
Employees pay 0.75% of gross wages and employers pay 3.25%, a total of 4%.
Who is covered by ESI?
Employees earning up to ₹21,000 a month (₹25,000 for persons with disability) in establishments with 10 or more employees in areas where ESI is implemented.
What happens if salary goes above ₹21,000 mid-year?
Contributions continue until the end of the contribution period (April–September or October–March) in which the employee was covered. Coverage stops from the next period.
Is any employee exempt from paying their share?
Employees whose average daily wage is ₹176 or less do not pay the employee share. The employer still pays 3.25%.
When is ESI due?
Contributions for a month must be paid by the 15th of the following month.