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ESI Calculator (India)

ESI is mandatory only when an employee's gross monthly wage is ₹21,000 or below (₹25,000 for persons with disability). This calculator auto-detects whether ESI applies and shows both employee and employer contributions at the current rates.

Inputs

Disability status
ESI applicable
₹720/ month
Total of employee + employer contribution
Employee (0.75%)₹135
Employer (3.25%)₹585

Total per month₹720
Total per year₹8,640

How ESI works

The Employees' State Insurance Act, 1948 provides medical care, sickness benefits, maternity benefits, and disability/dependents' benefits to lower-wage employees. It's administered by ESIC.

Coverage threshold

  • Gross monthly wage ≤ ₹21,000 → ESI mandatory
  • Gross monthly wage ≤ ₹25,000 for persons with disability → ESI mandatory
  • Gross above the threshold → ESI not deducted (employees can use private insurance)

Current rates (since 1 July 2019)

  • Employee: 0.75% of gross
  • Employer: 3.25% of gross
  • Total: 4% of gross

The Government may exempt certain industries or geographies from ESI coverage if alternative health insurance is in place — check ESIC notifications for your region.

Frequently asked questions

What counts as 'gross wage' for ESI?▾

All cash payments earned in the wage period: basic, DA, HRA, conveyance, special allowance, overtime, attendance bonus. Excludes: employer PF/ESI contributions, gratuity, retrenchment compensation, encashment of unused leave on retirement, payments at the time of discharge.

What happens when an employee crosses ₹21,000 mid-year?▾

ESI continues till the end of the contribution period (April-September or October-March) in which the wage crossed. After that period, the employee is no longer ESI-covered.

Are part-time and contract workers covered?▾

Yes, if they earn ≤ ₹21,000/month and the establishment is registered under ESIC. This includes apprentices (other than those under the Apprentices Act) and probationers.

What benefits do employees get?▾

Free outpatient treatment at ESIC dispensaries and tie-up hospitals; sickness benefit (70% of wages for up to 91 days); maternity benefit (full wages for 26 weeks); disability benefit; dependent's benefit (death due to employment injury).