Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Check likely ESI coverage and calculate employee and employer contributions with daily-wage exemption and contribution-period continuity.
Check coverage and calculate monthly ESI
Monthly contribution result
Enter employee and establishment facts.
Employee contribution
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Employer contribution
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Component
Amount
Total ESI contribution
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Indicative employee take-home deduction
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How This Is Calculated
Employees earning up to the ESI wage ceiling in a covered establishment are eligible for ESI, with both employee and employer contributing a percentage of wages. Employees earning below a low daily-wage threshold are exempt from the employee-side contribution (though the employer still contributes), while employees who were already ESI members before crossing the wage ceiling can continue coverage for the remainder of that contribution period.
Frequently Asked Questions
What is the ESI wage ceiling for coverage?
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Employees earning up to the notified wage ceiling are covered under ESI. This ceiling is set by the government and periodically revised — check the current figure, as it directly determines eligibility.
Do all covered employees pay the employee-side ESI contribution?
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No. Employees earning below a low daily-wage threshold are exempt from the employee contribution, though the employer still contributes on their behalf — this protects the lowest earners from a wage deduction while keeping them covered.
What happens if my wage crosses the ESI ceiling mid-year?
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An employee who was already covered and crosses the wage ceiling during a contribution period typically continues to be covered for the remainder of that period, rather than losing coverage immediately mid-period.
Scope: Computes ESI (Employees' State Insurance) contribution and checks coverage applicability, based on employee wages and the establishment's ESI-covered status.
Calculation logic
Coverage: mandatory for employees earning wages up to the currently prescribed ESI wage ceiling (₹21,000/month, or ₹25,000/month for persons with disability, per current notification), employed in an establishment covered under the ESI Act (factories and specified establishments with 10 or more employees, threshold varies by state for some establishment categories).
Employee contribution = currently prescribed percentage of wages (0.75% per current rate) deducted from the employee's wages.
Employer contribution = currently prescribed percentage of wages (3.25% per current rate), paid by the employer in addition to the employee's contribution — total ESI contribution is the sum of both.
Inputs and assumptions
Wage ceiling and contribution rates follow the current ESI Act/Scheme provisions and notifications — both the ceiling and the contribution rates have been revised over time (contribution rates were reduced from a higher combined rate to the current 4% total in a past rate revision).
'Wages' for this computation follows the ESI Act's own wage definition (which includes most cash payments but excludes certain specific items like employer PF contribution and gratuity) — the calculator applies this definition rather than gross CTC.
Exclusions and edge cases
An employee whose wages exceed the ceiling at the time of initial coverage determination, but who was already covered when wages were below the ceiling, continues to be covered for the remainder of that contribution period (a mid-period continuity rule) — the calculator applies the ceiling check based on wages at the start of the relevant contribution period.
State-specific establishment-coverage thresholds (10 vs 20 employees, depending on establishment category and state) should be separately verified for the specific establishment type and state.