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Free ESIC tool

ESI Contribution Calculator

Enter monthly gross wages and the calculator checks ESIC eligibility against the ₹21,000 ceiling, applies the employee share of 0.75% and employer share of 3.25%, rounds each to the next rupee as ESIC requires, and shows the total cost for the month.

Gross wages
Gross includes basic, DA, HRA, conveyance and monthly incentives; excludes annual bonus and bill-based reimbursements.
₹

If wages crossed the ceiling mid-period (Apr–Sep or Oct–Mar), contributions continue until the period ends.

Total ESI contribution this month
₹720
Gross ₹18,000 is within the ₹21,000 ceiling
Contribution split
Employee share (0.75%, rounded up)₹135
Employer share (3.25%, rounded up)₹585
Total remitted by the 15th₹720
Checks
Eligibility ceiling₹21,000
Average daily wage (gross ÷ 26)₹692.31
Employee-share exemption (≤ ₹176/day)Does not apply
Annual cost to employer₹7,020

The ESIC ceiling stayed at ₹21,000 when the EPF ceiling moved to ₹25,000 on 17 September 2026. Treat the two schemes as separate rules in payroll.

Who is covered and on what wages

ESI applies to employees of covered establishments whose gross monthly wages are up to ₹21,000, or ₹25,000 for persons with disability. Coverage is decided at the start of each contribution period, April to September and October to March. An employee who crosses ₹21,000 in the middle of a period keeps contributing until the period ends, which is why a June increment does not stop ESI until October.

Contributions are calculated on gross wages, not basic. Gross includes basic, DA, HRA, conveyance, attendance incentives and other monthly cash payments; it excludes annual bonus, gratuity and reimbursements against bills. Overtime wages attract contribution but are not counted when testing the ₹21,000 eligibility ceiling.

  • Employee share 0.75% of gross wages, rounded up to the next rupee
  • Employer share 3.25% of gross wages, rounded up to the next rupee
  • Employees earning up to ₹176 per day are exempt from the employee share; the employer still contributes
  • Payment due by the 15th of the following month

ESI and the September 2026 EPF change

The EPF wage ceiling rose to ₹25,000 on 17 September 2026, but the ESIC ceiling stayed at ₹21,000. The two schemes test different wage bases, PF on basic plus DA and ESI on gross, so an employee can be inside PF and outside ESI or the reverse. Configure them as independent rules in payroll rather than one combined switch.

Frequently asked questions

Is ESI calculated on gross or basic salary?
On gross wages. All regular monthly cash components such as basic, DA, HRA, conveyance and incentives are included, while annual bonus, gratuity and bill-based reimbursements are excluded. Overtime is contributed on but not counted for the ₹21,000 eligibility test.
What is the ESI contribution rate in 2026?
The employee contributes 0.75% and the employer 3.25% of gross wages, a total of 4%. On ₹18,000 gross the employee pays ₹135 and the employer ₹585, each rounded up to the nearest rupee. The rates have applied since July 2019 and remain unchanged in 2026.
What happens if salary crosses ₹21,000 mid-year?
Contributions continue until the end of the running contribution period, either 30 September or 31 March. An employee whose gross rises to ₹24,000 in June contributes on ₹24,000 for June through September and exits ESI from 1 October. The calculator shows the continuing contribution when you mark the employee as covered at the period start.
Are daily-wage workers below ₹176 per day exempt from ESI?
They are exempt from the employee share only. The employer must still pay its 3.25% on their wages. This protects the lowest-paid workers from a deduction while keeping them insured for medical, sickness and maternity benefits.

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