Free tool
ESI Calculator
Employee State Insurance is a self-financing social-security scheme for Indian workers. Plug in salary and employee count to see contributions and applicability.
Wage ceiling: ₹21,000 / month
Minimum 10 for ESI applicability
- Employee (0.75%)
- ₹ 135 / mo
- Employer (3.25%)
- ₹ 585 / mo
- Total monthly (4%)
- ₹ 720
- Total annual
- ₹ 8,640
Next due: 15 June 2026. Late payment attracts interest at 12% per annum.
A worked example, end to end
Scenario
A factory worker with monthly gross wages of ₹18,000. Establishment has 25 employees.
Computation
- Wage check. ₹18,000 ≤ ₹21,000 ceiling, employee covered.
- Establishment check. 25 ≥ 10, ESI applies.
- Employee share. 0.75% × ₹18,000 = ₹135 per month.
- Employer share. 3.25% × ₹18,000 = ₹585 per month.
- Total monthly ESI. ₹135 + ₹585 = ₹720.
- Annual. ₹720 × 12 = ₹8,640 across the contribution year.
- Due date. 15th of the following month. ₹720 deposited via ESIC portal for March wages by 15 April.
Free download
ESI compliance checklist (PDF).
What to do every month and every 6 months under ESI: contribution period schedules, benefit period mapping, registration steps, IP card issuance, and dispensary linking for the employee. Avoids the most common ESI defaults.
How ESI is calculated
ESI is governed by the Employees' State Insurance Act 1948. It covers medical, sickness, maternity and disability benefits for workers earning up to a wage ceiling, funded by joint contributions.
Employee contribution = 0.75% of gross wages
Employer contribution = 3.25% of gross wages
Total = 4% of gross wages
Applicability
- Employees with gross wages up to ₹21,000 per month (₹25,000 for persons with disabilities).
- Establishments with 10 or more employees (20 in some state notifications).
- Wages include basic, DA, HRA, overtime, and most allowances. Statutory bonus and PF contributions are excluded.
ESI FAQ
Common questions.
Who is covered under ESI?
Employees in covered establishments with gross monthly wages up to ₹21,000. The ceiling is ₹25,000 for persons with disabilities. Once an employee enters the scheme, they remain covered for the rest of the contribution period even if wages cross the ceiling mid-period.
What counts as "wages" for ESI?
Basic, dearness allowance, house rent allowance, conveyance, overtime, incentives and any other regular allowances. Statutory bonus, PF and gratuity are not wages for ESI. The cash value of food or shelter provided by the employer is included.
When are ESI dues payable?
By the 15th of the month following the wage month. For example, March wage contributions are due by 15 April. Late payment attracts simple interest at 12% per annum, plus damages of up to 25% of the delayed amount under Section 85B.
What benefits does ESI provide?
Medical (full cover for the worker and dependents), sickness benefit (70% of wages for up to 91 days), maternity benefit (26 weeks of paid leave), disability benefit, dependant benefit on death due to injury, funeral expenses, and rehabilitation benefits.
What if my establishment has fewer than 10 employees?
ESI is not mandatory for establishments below the threshold (10 employees in most states, 20 in some). Voluntary registration is available. Once the count reaches 10, registration is required within 15 days.
How does ESI differ from PF?
ESI is medical and welfare-focused (sickness, maternity, accident, dependant benefits). PF is retirement-focused (corpus + pension). Rates and ceilings are independent: ESI ceiling ₹21,000 at 0.75/3.25%; PF ceiling ₹15,000 at 12/12%. An employee earning ₹18,000 is in both schemes.
What are contribution and benefit periods?
Contribution period: April-September (paid May-October), October-March (paid November-April). Benefit period follows after 6 months: January-June for the first contribution period, July-December for the second. Sickness benefit eligibility depends on contributions in the prior contribution period.
Are managers and supervisors covered?
Only if their gross wages are ≤ ₹21,000. Most managers earn more than the ceiling and are out of ESI from day one. They become covered only if their wages fall back below the ceiling at the next contribution period start.
Is ESI applicable to apprentices and trainees?
Yes, if their gross wages are ≤ ₹21,000 and the establishment is covered. The exception is apprentices under the Apprentices Act 1961, who are excluded from ESI entirely. Trainees on a stipend exceeding ₹21,000 are also out.
How does the employer register for ESI?
Online via the ESIC portal (esic.gov.in). Submit Form 01, attach establishment proof and the list of employees with wage details. ESIC issues a 17-digit code number. Registration must be done within 15 days of crossing the 10-employee threshold.
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Payroll and statutory dues, in one place.
OneFinOps tracks ESI, PF and other statutory dues alongside your monthly payroll run. The calculator is a snapshot; the platform stays current with every wage change.