Pay & Salary

ESI Calculator

Updated November 2026 · Free · No sign-up

Calculate ESI (Employees’ State Insurance) — employee 0.75% + employer 3.25% of gross wages, for employees earning up to ₹21,000/month (₹25,000 with disability), with medical, sickness, maternity and disablement benefits.

Quick answer: ESI: 0.75% employee + 3.25% employer on gross wages, where gross ≤ ₹21,000/month at the start of a contribution period. ₹18,000 gross → ₹135 + ₹585 = ₹720/month. Once in, you stay covered for the whole contribution period even if a raise crosses the ceiling.

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The Scheme

Employee share0.75% of gross (waived below ₹176/day average wages)
Employer share3.25% of gross
Eligibility ceilingGross ≤ ₹21,000/month (₹25,000 for persons with disability) — tested at the START of each contribution period
CoverageFactories/establishments with 10+ employees (state variations) in implemented areas
Contribution periodsApr-Sep and Oct-Mar — crossing ₹21,000 mid-period keeps you contributing till the period ends

What ESI Buys (The Underrated Part)

Full medical care for you and dependants at ESIC hospitals/dispensaries (no cap), sickness benefit (70% of wages, up to 91 days/year), maternity benefit (100% of wages for 26 weeks), disablement benefits (90% for temporary; pensions for permanent), dependants’ pension on employment-injury death, and unemployment allowance (Atal Bimit — 50% for up to 90 days on retrenchment, conditions). For covered workers ESIC replaces the Maternity Benefit Act and Workmen’s Compensation obligations.

Worked Example

₹18,000 gross: you pay ₹135, employer ₹585. Against that: 26 weeks’ maternity at full wages (~₹1.08 lakh), 91 sick days at 70%, and capless family medical coverage. Rupee-for-rupee, India’s best statutory insurance — and why the ceiling debate (raising it to ₹30k has been proposed repeatedly) matters; verify current ESIC notifications.

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Mechanics

"Gross wages" for ESI includes basic + DA + HRA + allowances paid monthly (excludes annual bonus, retrenchment pay); contributions due by the 15th of the following month via ESIC portal; benefits need contribution-day thresholds (78 days in the period for sickness benefit; 70 days across two periods for maternity). Stack with EPF and PT for the full deduction picture.

Frequently Asked Questions

What are the ESI contribution rates?

Employee 0.75% + employer 3.25% of gross monthly wages — for employees whose gross is ₹21,000 or less at the start of the contribution period.

What happens if my salary crosses ₹21,000?

You keep contributing until the current contribution period (Apr-Sep or Oct-Mar) ends, then exit — benefits earned persist per the benefit-period rules.

What does ESI cover?

Unlimited medical care for the family, 70% sickness benefit for 91 days, 26-week full-pay maternity, disablement pensions, dependants’ pensions, and retrenchment unemployment allowance.

Which wages count for ESI?

Gross monthly remuneration — basic, DA, HRA, and regular allowances; annual bonuses and retrenchment compensation stay out.

Is ESI better than the Maternity Benefit Act?

For covered employees ESIC pays the 26-week maternity benefit (full wage) directly — employers’ MB Act duty is displaced; the funding is the contribution itself.

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✓ Formula verified  •  Last updated: November 3, 2026