ESI Calculator

Calculate employee and employer ESI contributions instantly. Enter your gross monthly salary to see the split under both the current and older ESI rates, ideal for payroll and salary planning.

₹

New Rate

Employee (0.75%) ₹ 0.00
Employer (3.25%) ₹ 0.00
Total ₹ 0.00

Old Rate

Employee (1.75%) ₹ 0.00
Employer (4.75%) ₹ 0.00
Total ₹ 0.00

What is ESI?

Employees' State Insurance (ESI) is a social security program run by the ESIC that offers medical care and financial benefits to employees and their dependents. It is supported by payments from both employees and employers, which are computed as a proportion of gross monthly earnings.

This ESI Calculator works out both contributions instantly. Enter your gross salary and it shows the employee share, the employer share, and the total; under both the current rates and the older pre-2019 rates for comparison.

How to Use This ESI Calculator

  • Enter your gross monthly salary. Use gross wages, not basic — ESI is calculated on gross.
  • Read the New Rate table. It shows the current contribution: employee 0.75% and employer 3.25%.
  • Compare with the Old Rate table. It shows the pre-July-2019 rates (1.75% and 4.75%) for reference.
  • Note the wage ceiling. ESI applies only up to a gross salary of ₹21,000 per month. Above that, ESI does not apply and the calculator will not compute a contribution.

ESI Contribution Rates Explained

ESI is a shared contribution. Under the rates in force since 1 July 2019:

  • Employee contribution — 0.75% of gross wages, deducted from the employee's salary.
  • Employer contribution — 3.25% of gross wages, paid by the employer on top of salary.
  • Total — 4% of gross wages goes towards ESI coverage.

These replaced the older rates of 1.75% (employee) and 4.75% (employer). For a detailed walkthrough, see our guide to ESI calculation and the ESIC overview.

Who Is Covered by ESI?

Employees in establishments covered by the ESI Act who earn ₹21,000 or less per month are eligible for ESI. Coverage includes medical care, sickness and maternity benefits, and other benefits. As part of their statutory compliance duties, employers must register for ESI and make monthly contributions.

For how ESI compares to private cover, see ESI vs private health insurance.

Plan the Rest of Your Payroll

ESI is one of several statutory deductions. Professional tax is another, see our professional tax glossary entry. To see your complete take-home after all deductions, use the CTC Calculator, and to understand each component of your pay, read our breakdown of salary structure. If you manage payroll for a team, TankhaPay's payroll software calculates ESI, EPF, and tax automatically for every employee while keeping you on top of payroll compliance.

FAQs

01. What is ESI and who is eligible?

ESI (Employees' State Insurance) is a social security scheme that provides medical and cash benefits to employees. It applies to employees earning gross wages of ₹21,000 per month or below in establishments covered by the ESI Act.

Under the current rates, the employee contributes 0.75% of gross wages and the employer contributes 3.25%, for a total of 4% of gross wages. These rates have applied since July 2019, replacing the older 1.75% and 4.75% rates.

The ESI wage ceiling is ₹21,000 per month of gross salary. Employees earning above this limit are generally not covered by ESI, which is why the calculator does not apply ESI above ₹21,000.

ESI is calculated on gross monthly wages, not just basic salary. Gross wages include basic pay plus allowances, but exclude annual bonuses and certain other components defined under the ESI Act.

The old ESI rates were 1.75% for the employee and 4.75% for the employer (6.5% total). From 1 July 2019, these were reduced to 0.75% and 3.25% (4% total). The calculator shows both so you can compare.

Yes. The ESI Calculator is completely free and requires no login. Just enter your gross monthly salary to see the employee, employer, and total ESI contribution instantly.