Free tool
ESI calculator
Employees earning up to ₹21,000 a month in gross wages (₹25,000 for persons with disability) are covered by ESI. The employee pays 0.75% of gross wages and the employer 3.25%, so on ₹18,000 that is ₹135 and ₹585 a month.
Employee ESI, per month
₹135
Covered by ESI
Employee (0.75%)₹135
Employer (3.25%)₹585
Total to ESIC₹720
Wage limit₹21,000
Estimates for general information, using rules checked 22 October 2026. Not tax or legal advice. Nothing you enter leaves your browser.
Who is eligible for ESI?
Employees whose gross wages are ₹21,000 a month or less, or ₹25,000 for persons with disability, in an establishment the ESI Act covers. That means non-seasonal factories with 10 or more people and, in the states that have extended the Act, shops, hotels, restaurants, cinemas and similar establishments with 10 or more employees. The limit has applied since 1 January 2017.
Unlike PF, the ESI limit did not change in 2026. The PF calculator covers the new ₹25,000 PF ceiling.
How is ESI calculated?
Take an employee with gross wages of ₹18,000 a month.
| Part | Rate | Per month |
|---|---|---|
| Employee ESI, deducted from pay | 0.75% | ₹135 |
| Employer ESI, on top of pay | 3.25% | ₹585 |
| Total to ESIC | 4% | ₹720 |
Contributions are worked out on the wages actually paid in the month and rounded up to the rupee.
What if pay goes above ₹21,000?
ESI runs in two contribution periods: 1 April to 30 September and 1 October to 31 March. If wages go above the limit after a period has started, the employee stays covered until that period ends, and contributions are paid on the full wages. From the next period, they are out of ESI.
Who pays no employee share?
Employees with an average daily wage of up to ₹176. They keep full ESI cover, and the employer still pays its 3.25%.
When is ESI due?
Within 15 days of the end of the month the contributions are for, so October’s are due by 15 November. See the rules for PF, ESI, professional tax and TDS together in the payroll compliance guide.
Run ESI for the whole team
Peoplo.ai works out ESI for every employee in each payroll run, along with PF, professional tax and TDS. Before you approve the run, the payroll anomaly check flags pay that looks wrong, so you can check it before anyone is paid.
How it is worked out
If gross wages are at or below the limit (₹21,000, or ₹25,000 for persons with disability), the employee pays 0.75% and the employer 3.25% of gross wages, each rounded up to the rupee. Above the limit, no ESI is due, unless pay rose during the current contribution period.
The calculator does not check the ₹176 daily wage exemption or whether your establishment is covered.
Sources · checked 22 October 2026
Questions
Frequently asked questions
Short answers, worked out with the same rules as the calculator above.
What is the ESI salary limit in 2026?
₹21,000 a month in gross wages, or ₹25,000 for persons with disability. The limit has applied since 1 January 2017; the PF ceiling rose in 2026, but the ESI ceiling did not.
Is ESI calculated on basic or gross salary?
On gross wages: everything paid for the month, such as basic, DA, HRA and other allowances, but not overtime for deciding coverage. Under the labour codes, if allowances left out of wages are more than half of pay, the excess counts as wages too.
How much ESI is deducted from a salary of ₹21,000?
0.75% of ₹21,000, which is ₹158 a month. The employer pays 3.25% on top, ₹683, so ₹841 goes to ESIC.
What happens when salary goes above ₹21,000 during the year?
ESI works in two contribution periods, April to September and October to March. If wages go above the ceiling after a period has started, the employee stays covered, and contributions are paid on full wages, until that period ends.
Who is exempt from paying the employee share of ESI?
Employees whose average daily wage is up to ₹176. They are still covered, and the employer still pays its 3.25%.
When must ESI contributions be paid?
Within 15 days after the end of the month they are due for. October’s contributions, for example, are due by 15 November.