ESI contribution

ESI buys medical cover for lower-wage employees and their dependants. It is contribution-based, applies below a wage ceiling, and the employer pays the larger share.

ESI contribution

Employee 0.75 %, Employer 3.25 % — only when gross monthly wages ≤ ₹21,000.

Runs entirely in your browser. Nothing you type is sent anywhere or stored.

How it is calculated

1

Check the employee's gross monthly wages against the ESI wage ceiling.

2

If covered, the employee contributes 0.75% of gross wages.

3

The employer contributes 3.25% of the same gross wages.

4

Contributions are payable for the whole contribution period even if wages later cross the ceiling mid-period.

Worked example

On gross wages of ₹20,000 a month, the employee contributes ₹150 and the employer ₹650, for a total of ₹800.

What to watch for

Frequently asked questions

What happens if an employee crosses the ceiling mid-year?

Contributions continue until the end of the current contribution period. Coverage does not stop the moment wages rise.

Is ESI the same as health insurance?

No. ESI is a statutory scheme run by ESIC with its own hospitals and dispensaries. Many employers provide a group mediclaim policy in addition.

More Statutory & Tax calculators

There is an easier way to do this each month.

Garuda HR looks after payroll, attendance, leave and statutory compliance for Indian teams — the same arithmetic, run for you every month, with a full audit trail. We would be glad to show you around.