ESI contribution calculator
Whether an employee is covered by Employees' State Insurance, what the 0.75% employee and 3.25% employer shares come to each month and per contribution period, and why someone who crosses ₹21,000 in June keeps contributing until September.
Employee details
Result
Enter the wages and the result updates as you type.
How this is calculated
- Coverage test: an employee is covered if gross monthly wages are ₹21,000 or less at the start of the contribution period (₹25,000 or less for a person with disability). The test is applied at the start of each period, or on the day of joining. The ceiling has been ₹21,000 since 1 January 2017; a proposal to raise it to ₹30,000 has been reported but not notified as of November 2026.
- Employee share = 0.75% × gross monthly wages. Employer share = 3.25% × gross monthly wages. These rates have applied since 1 July 2019 (before that, 1.75% and 4.75%). Both are computed on actual wages, including amounts above the ceiling once covered, and the employer pays both to ESIC by the 15th of the following month.
- Rounding: each share is rounded up to the next higher rupee separately. On ₹23,000 the employee share of ₹172.50 becomes ₹173 and the employer share of ₹747.50 becomes ₹748.
- Contribution-period rule: the year has two contribution periods, April to September and October to March. Once covered at the start of a period, the employee stays covered and both shares continue on the full (higher) wage until the period ends, even if a revision takes wages past the ceiling. Coverage is re-tested on 1 October or 1 April. Each period earns benefits in a corresponding benefit period: January to June for April–September contributions, July to December for October–March.
- Per-period totals = six months of the monthly shares, computed on current wages. If wages changed mid-period, the actual total is a mix of the two monthly figures; the table shows both.
- Low-wage exemption: an employee whose average daily wage is ₹176 or less pays no employee share, but the employer still pays 3.25%. The tool flags this when monthly wages are at or below ₹5,280 (₹176 × 30); confirm with the daily-wage calculation for your wage period.
- Establishments are covered from 10 employees (20 in some states) in areas where the scheme has been implemented; the calculator assumes the establishment is covered.
ZekoHR applies the ceiling, the contribution-period continuation and the next-rupee rounding in every payroll run, and its pre-flight check stops a run where a covered employee has no ESI number. See how payroll works → Background: PF and ESI basics for employers and how a salary structure is built. Related tools: EPF calculator, professional tax calculator.
Common questions
What counts as wages for ESI?
Gross pay for the month: basic, dearness allowance, HRA, city compensatory and other regular allowances, overtime (for contribution, though not for the coverage test) and attendance or production incentives paid at intervals of two months or less. Excluded: the employer's own PF and ESI shares, washing allowance, annual bonus, gratuity, encashed leave and travel reimbursements against bills.
My salary crossed ₹21,000 in July. Why is ESI still deducted?
Because coverage is decided at the start of each contribution period. You were within the ceiling on 1 April, so you remain an insured person until 30 September and contributions continue on your full, higher wage. From 1 October, with wages above ₹21,000, you drop out of ESI. The same logic applies to a revision in the October–March period, which runs to 31 March.
Is the ESI ceiling going up to ₹30,000?
A proposal has been reported as under examination at ESIC, but as of 1 November 2026 nothing has been notified in the Gazette, so the ceiling remains ₹21,000 (₹25,000 for persons with disability). The September 2026 EPF ceiling increase to ₹25,000 did not touch ESI. Payroll should change only when a notification is issued.
Who pays if the employee's share is exempt?
Employees whose average daily wage is ₹176 or less are exempt from their own 0.75% share. The employer still pays 3.25% for them, and they receive the full range of ESI benefits. The employer is responsible for depositing both shares, including the deducted employee share, by the 15th of the following month.
Is ESI compulsory for a company with 10 employees?
Generally yes, for a non-seasonal factory or a notified establishment (shops, hotels, cinemas, road transport, newspapers, private medical and educational institutions, among others) employing 10 or more persons in an area where the scheme has been implemented. Some states apply 20 for certain establishment classes. Count everyone on the premises, including contract and casual workers, and register within 15 days of becoming coverable.