๐Ÿ‡ฎ๐Ÿ‡ณ India

ESI Calculator India โ€” FY 2025-26

Calculate your Employee State Insurance contributions for employee (0.75%) and employer (3.25%), check if you are covered under ESI based on the โ‚น21,000 wage ceiling and establishment size, and estimate the value of ESI benefits including medical care, sickness benefit, maternity benefit, and disablement cover. Updated for FY 2025-26.

โ‚น
Basic + DA + HRA + city compensatory allowance
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How to Use This Calculator

ESI Contribution tab

Enter your monthly gross wages (basic + DA + HRA + city compensatory allowance). The calculator instantly shows the employee deduction (0.75%), employer contribution (3.25%), total ESI (4%), and annual amounts. See the take-home impact and total employer cost per employee.

Am I Covered? tab

Enter your monthly salary, number of employees in your establishment, and state. The calculator checks your eligibility against the โ‚น21,000 wage ceiling (โ‚น25,000 for PwD) and the minimum employee count requirement for your state. If covered, it shows your contribution amounts.

Benefits Value tab

Enter your monthly wages and years of expected ESI contribution. The calculator estimates the total value of ESI benefits you receive — medical care, sickness benefit, maternity benefit, disablement cover, dependant's benefit, and funeral expenses — compared to your contribution cost.

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The Formula

ESI contribution is calculated as a fixed percentage of gross monthly wages:

Employee Contribution:
Employee ESI = Monthly Gross Wages × 0.75%

Employer Contribution:
Employer ESI = Monthly Gross Wages × 3.25%

Total ESI:
Total = Monthly Gross Wages × 4%

Wages include:
Basic Pay + Dearness Allowance + HRA + City Compensatory Allowance

Wages exclude:
Overtime wages, conveyance allowance (for duty), annual bonus, gratuity

The employer deducts the employee's 0.75% share from wages and adds their 3.25% share, depositing the combined 4% to ESIC by the 15th of the following month. ESI is calculated on the actual wages earned in a month, not on the wage ceiling.

Example

Priya — 26-year-old accounts executive, โ‚น18,000 monthly wages

Priya works at a manufacturing firm in Bangalore with 50 employees. Her monthly gross wages (basic + DA + HRA) total โ‚น18,000. She wants to know her ESI deduction and what benefits she gets.

Step 1: Monthly ESI contribution

Monthly gross wagesโ‚น18,000
Employee ESI (0.75%)โ‚น135
Employer ESI (3.25%)โ‚น585
Total ESI per monthโ‚น720

Step 2: Annual contribution

Priya's annual deductionโ‚น1,620
Employer's annual contributionโ‚น7,020
Total annual ESIโ‚น8,640

Step 3: Benefits value

Medical care (family coverage)โ‚น15,000/year (estimated)
Sickness benefit (if needed)Up to โ‚น44,100 (91 days at 70%)
Maternity benefit (if applicable)Up to โ‚น1,26,000 (26 weeks at 100%)

Priya pays just โ‚น135/month (less than a cup of coffee a day) and gets comprehensive medical coverage for herself and her family, plus income protection during sickness and maternity. The employer bears the larger share at โ‚น585/month.

FAQ

ESI (Employee State Insurance) is a social security and health insurance scheme for Indian workers, managed by ESIC (Employee's State Insurance Corporation) under the Ministry of Labour & Employment. It applies to employees earning up to โ‚น21,000/month (โ‚น25,000 for persons with disability) working in establishments with 10 or more employees (20+ in some states like Maharashtra and Chandigarh). Wages for eligibility include basic pay, dearness allowance, HRA, and city compensatory allowance. The scheme covers the employee and their dependants (spouse, children, dependent parents).
For FY 2025-26, the ESI contribution rates remain: Employee: 0.75% and Employer: 3.25% of gross wages, totalling 4%. These rates were significantly reduced from 1.75% (employee) and 4.75% (employer) effective 1 July 2019 by the Government of India to ease the compliance burden. The reduction means employees now pay nearly โ‚น1 less per โ‚น100 of wages compared to the old rates. Contributions must be deposited by the 15th of the following month via the ESIC portal.
ESI provides six types of benefits: (1) Medical benefit — free outpatient and inpatient treatment at ESIC hospitals, dispensaries, and empanelled private hospitals for the insured person and dependants. (2) Sickness benefit — 70% of wages for up to 91 days in two consecutive benefit periods (80% for extended sickness like TB, cancer). (3) Maternity benefit — 100% of wages for 26 weeks (12 weeks for miscarriage). (4) Disablement benefit — 90% of wages for temporary disablement from day 1; life pension for permanent disablement. (5) Dependant's benefit — 90% of wages as monthly pension to dependants on death due to employment injury. (6) Funeral expenses — โ‚น15,000 lump sum.
The current ESI wage ceiling is โ‚น21,000 per month, last revised in January 2017 (from โ‚น15,000). For persons with disability (PwD), the ceiling is โ‚น25,000/month. Once an employee is covered under ESI, benefits continue for the complete contribution period (6 months) and the corresponding benefit period, even if their salary exceeds the ceiling mid-period. There have been discussions about raising the ceiling to โ‚น25,000 or โ‚น30,000 for all employees, but no official notification has been issued as of March 2026.
ESI follows two 6-month cycles. Contribution periods: April to September and October to March. Benefit periods: January to June (for contributions in April-September of the previous year) and July to December (for contributions in October-March). To qualify for sickness benefit, an employee must have contributed for at least 78 days in the relevant contribution period. For maternity benefit, the minimum is 70 days of contribution in the two preceding contribution periods. Newly covered employees get medical benefits from day 1 of insurable employment.

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