ESI Calculator
Calculate monthly ESI (Employee State Insurance) contributions for both employee and employer under the ESIC Act 1948. Covers the ₹21,000 wage ceiling, exemption rules, and contribution rates - an essential payroll tool for HR teams in India.
Enter gross wages and click Calculate ESI to see employee share, employer share, and net in-hand wages.
How it works
ESI Contribution Formula
🆕 Example - Within Ceiling
Gross Wages = ₹18,000/monthEligible Wages = ₹18,000 (below ceiling)
Employee ESI = 18,000 × 0.75% = ₹135.00
Employer ESI = 18,000 × 3.25% = ₹585.00
Total ESI = ₹720.00
Net In-hand = 18,000 − 135 = ₹17,865.00
🔴 Example - Above Ceiling (Excluded)
Gross Wages = ₹25,000/monthEligible Wages = ₹0 (exceeds the ₹21,000 ceiling)
Employee ESI = ₹0.00
Employer ESI = ₹0.00
Total ESI = ₹0.00
Net In-hand = ₹25,000.00 (ESI does not apply; not capped at the ceiling)
Reference
ESI Rules & Rates (2026)
| Parameter | Value (2026) | Notes |
|---|---|---|
| Employee Contribution | 0.75% | Deducted from employee gross wages |
| Employer Contribution | 3.25% | Paid by employer, part of CTC |
| Total ESI Contribution | 4.00% | Combined employee + employer |
| Wage Ceiling (Regular) | ₹21,000/month | Effective January 2017 |
| Wage Ceiling (Disabled) | ₹25,000/month | Special category employees |
| Minimum Employees | 10 | 20 in some states |
| Contribution Periods | Apr-Sep, Oct-Mar | Two contribution periods per year |
| Benefit Periods | Jan-Jun, Jul-Dec | Following the contribution period |
| Governing Act | ESI Act, 1948 | Administered by ESIC |
Rates and ceilings are as per ESIC notifications current as of 2026. Verify with the latest ESIC circulars for official compliance. This calculator is for estimation only.
Guide
How to Use This Calculator
Choose Your Mode
Select "Monthly" for per-month calculation or "Annual" to enter yearly wages. The calculator normalises both to monthly for ESIC compliance.
Enter Gross Wages
Input total gross salary including basic, DA, HRA, and all allowances. Exclude washing allowance - it is not part of ESI-eligible wages.
Adjust Settings (Optional)
Expand "Advanced Settings" to modify contribution rates or the wage ceiling. Useful for disabled employees (₹25,000 ceiling) or modelling rate changes.
Click Calculate
Instantly see employee share, employer share, total ESI, net in-hand wages, and your eligibility status with a visual breakdown bar.
FAQ
Frequently Asked Questions
What is ESI (Employee State Insurance)?
ESI is a social security and health insurance scheme in India for workers, administered by the Employees' State Insurance Corporation (ESIC). It provides medical, disability, maternity, dependent benefits, and funeral expenses to insured employees and their dependents. The scheme is governed by the ESI Act, 1948.
What are the current ESI contribution rates?
As of 2026, the employee contributes 0.75% of gross wages and the employer contributes 3.25%, totaling 4.00%. These rates were reduced from 1.75% (employee) and 4.75% (employer) effective July 1, 2019 - a significant relief for both workers and businesses.
What is the ESI wage ceiling?
The ESI wage ceiling is ₹21,000 per month for regular employees and ₹25,000 per month for employees with disabilities. Employees earning above this threshold are generally not covered under ESI from the next contribution period. The ceiling was last revised in January 2017.
How is ESI calculated on wages?
ESI is calculated on gross wages - which includes basic salary, dearness allowance, HRA, and all other allowances except washing allowance. Employee ESI = Gross Wages × 0.75%. Employer ESI = Gross Wages × 3.25%. If wages exceed ₹21,000, ESI is calculated only up to the ceiling (if the ceiling option is applied).
Who is eligible for ESI?
Employees drawing monthly gross wages up to ₹21,000 (₹25,000 for disabled) working in establishments with 10 or more employees (20 in some states) are eligible. The scheme covers factories, shops, hotels, cinemas, motor transport, and other notified establishments across India.
What are the ESI contribution periods?
ESI has two contribution periods per year: April to September and October to March. The corresponding benefit periods are January to June and July to December of the following period. This lag ensures that employees have already contributed before claiming benefits.
What happens if salary exceeds ₹21,000 mid-year?
If an employee's wages exceed the ceiling during a contribution period, they continue to contribute for the remaining period. ESI coverage then stops from the next contribution period unless wages fall back below the ceiling. Employers should notify ESIC of the wage change.
Is ESI mandatory for all employees?
ESI is mandatory for eligible employees in covered establishments. Employers must register with ESIC, deduct contributions monthly, and remit them by the 15th of the following month. Non-compliance attracts penalties, interest (12% per annum), and possible prosecution under the ESI Act, 1948.
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