ESI CALCULATOR
Coverage depends on gross, not basic.
ESI is one of the few statutory deductions assessed on gross wages rather than basic — which is why a small allowance change can move an employee in or out of coverage.
Enter your details
Fields are pre-filled with typical values — type your own or drag the sliders, and everything recalculates instantly. Nothing is sent to a server.
Gross wages, not basic and not CTC.
Calculated on FY 2025-26 statutory rates. Indicative only — confirm against current notifications before filing.
Total monthly ESI contribution
₹720
Employee share (0.75%)
₹135
Employer share (3.25%)
₹585
Annual contribution
₹8,640
Employee and employer share of the ESI contribution
Full breakdown
Step-by-step calculation
HOW IT WORKS
The formula used
Both contributions are a straight percentage of gross wages, subject to an eligibility limit.
Gross wages ≤ ₹21,000 per monthGross wages × 0.75%Gross wages × 3.25%Gross wages × 4%UNDERSTANDING IT
About the esi calculator
Employee state insurance provides medical and cash benefits to employees earning below a statutory wage threshold. Unlike provident fund, which is computed on basic wages, ESI is assessed on gross wages — which makes the threshold easy to cross unintentionally.
The contribution is asymmetric: the employee pays 0.75% and the employer 3.25%, for a combined 4% of gross wages. For a workforce concentrated near the threshold, this is a meaningful payroll cost.
An important rule catches many employers out. If an employee's wages rise above the limit mid-way through a contribution period, coverage continues to the end of that period rather than stopping immediately.
Worked example
Take monthly gross wages of ₹18,000.
The employee is within the ₹21,000 limit, so ESI applies. The employee contributes ₹135 and the employer ₹585, a total of ₹720 a month. If a ₹4,000 allowance took gross to ₹22,000, the employee would fall outside coverage — but only from the start of the next contribution period.
WHY IT HELPS
What this calculator is good for
Check eligibility instantly
See immediately whether an employee falls inside or outside the wage limit.
Model the employer share
The employer pays more than four times the employee contribution.
Plan allowance changes
Understand how a wage revision affects coverage before making it.
WATCH OUT
Common mistakes
These are the errors that most often produce a wrong number.
Calculating ESI on basic wages rather than gross wages.
Dropping an employee from coverage immediately on crossing the limit, instead of at the end of the contribution period.
Excluding overtime from ESI wages — overtime is generally included.
Applying the standard wage limit to employees with disability, who have a higher threshold.
HR TIPS
Practical guidance
Review before revisions
Check the effect on ESI coverage before approving an allowance change near the threshold.
Track contribution periods
Coverage is held for the full contribution period, so eligibility should not be recomputed monthly.
Reconcile to payroll
The return filed should match what payroll deducted, not a separately maintained register.
QUESTIONS
ESI Calculator — frequently asked
Employees earning gross wages up to ₹21,000 per month are covered. A higher limit applies to employees with disability.
The employee contributes 0.75% of gross wages and the employer 3.25%, a combined 4%.
On gross wages. This differs from provident fund, which is calculated on basic wages plus dearness allowance.
Contribution continues until the end of the running contribution period rather than stopping in the month the limit is crossed.
Results are indicative and computed on FY 2025-26statutory rates using conventional salary-structure assumptions. Your actual figures depend on your employer’s structure, your state and your declarations. Confirm against current notifications before relying on these numbers for filing.
Run this on real payroll, not a calculator
Stop calculating payroll in a spreadsheet. BizzField Payroll runs the whole cycle, applies every statutory rule and files what regulators expect.