ESI calculator.
Work out the Employees’ State Insurance contribution on a salary — the employee’s 0.75%, the employer’s 3.25%, and whether ESI applies at all given the ₹21,000 wage limit. Rates come from ESIC. Everything runs in your browser.
Monthly wages
Total ESI contribution
₹720.00
- Employee share0.75% — deducted from salary
- ₹135.00
- Employer share3.25% — paid by the employer
- ₹585.00
The formula
if gross ≤ 21,000 → employee 0.75% + employer 3.25% of gross
An employee who crosses the ceiling mid-period continues to contribute until the end of the current contribution period, so check the period dates before stopping a deduction. Rates as reviewed by HelloTime on 13 May 2026.
ESI is not PF
The two statutory deductions behave in opposite ways, and confusing them is the usual cause of a wrong payslip. PF is calculated on basic pay plus dearness allowance and applies to everyone, with a capped base. ESI is calculated on gross wages and applies only below a ceiling, with no cap once it applies.
So an employee on ₹21,000 gross contributes ESI on the whole ₹21,000. An employee on ₹21,001 contributes nothing. There is no partial or tapered band between the two, which is why a small raise can remove the benefit entirely — worth knowing before you award one.
Rates last reviewed by HelloTime on 2026-05-13 against ESIC’s published contribution rates. Rates and ceilings change by notification — reconcile with ESIC before using a figure for an actual filing. This is not tax advice.
Frequently asked questions
What is ESI in salary?
ESI is the Employees' State Insurance contribution. It funds medical care, sickness benefit and related cover through ESIC. The employee contributes 0.75% of gross wages and the employer 3.25%, so the deduction on a payslip is the smaller of the two figures.
What is the ESI salary limit?
ESI applies where gross monthly wages are ₹21,000 or below. The limit is ₹25,000 for an employee with a disability. Above the limit no contribution is due — it does not taper.
Is ESI calculated on gross or basic salary?
On gross monthly wages. This is the opposite of PF, which is calculated on basic pay plus dearness allowance, and it is the most common mix-up between the two.
What happens if someone crosses the ESI limit mid-year?
Contributions continue until the end of the current contribution period rather than stopping the month the wages rise. Check the period dates before you stop a deduction.
Is this ESI calculator free?
Yes. It runs entirely in your browser, needs no signup, and nothing you type is sent to a server.
Related tools
- PF calculator — the EPF, EPS and EDLI split on basic + DA.
- PF and ESI calculator — both together across a team, with professional tax.
- Gratuity calculator — what is owed at the end of service.
- PF and ESI compliance guide — filings and due dates.
Payroll that knows who crossed the limit
HelloTime tracks attendance, leave and payroll together, so ESI eligibility follows the wages it actually paid. Free for one user.
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