ESI / ESIC
ESI Calculation Guide: ESIC Rates, Eligibility & Benefits (2025)
The Employees’ State Insurance (ESI) scheme provides health insurance and social security to workers earning ₹21,000/month or less. The deduction is small — 0.75% of gross — but the benefits cover the whole family.
What is ESI / ESIC?
ESI is governed by the Employees’ State Insurance Act, 1948 and administered by ESIC. It provides medical, sickness, maternity, disablement, and dependent benefits to eligible employees and their families.
ESI Eligibility Criteria
- Establishments with 10 or more employees (some states: 20+)
- Employees with monthly gross salary of ₹21,000 or less
- For employees with disabilities: threshold is ₹25,000/month
Coverage Continues Mid-PeriodIf salary rises above ₹21,000 mid-year, ESI continues until the end of the current contribution period (April–September or October–March), then ceases.
ESI Contribution Rates (FY 2025–26)
| Contributor | Rate on Gross | Example (₹18,000 gross) |
|---|---|---|
| Employee | 0.75% | Free |
| Employer | 3.25% | Free |
| Total | 4.00% | Free |
ESI Calculation Formula
Employee ESI = 0.75% × Gross Earned Salary (only if Gross ≤ ₹21,000)
Quick Reference Table
| Monthly Gross | ESI Applicable? | Employee ESI (0.75%) |
|---|---|---|
| ₹10,000 | Yes | ₹75 |
| ₹15,000 | Yes | ₹113 |
| ₹18,000 | Yes | ₹135 |
| ₹21,000 | Yes (boundary) | ₹158 |
| ₹21,001 | No | ₹0 |
ESI Benefits
- Medical benefit: Full medical care for employee and dependents from Day 1
- Sickness benefit: 70% of daily wages for up to 91 days/year on certified illness
- Maternity benefit: Full wages for 26 weeks (matching statutory maternity leave)
- Disablement benefit: 90% of daily wages for permanent total disability
- Dependent benefit: 90% of wages paid to dependents on work-related death
- Unemployment allowance: 50% of wages for up to 2 years on involuntary retrenchment
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⇓ Create Free Payslip →Frequently Asked Questions
Employee ESI rate is 0.75% of gross monthly wages, deducted only if gross is ₹21,000 per month or less.
ESI is calculated on gross wages — basic plus all allowances. The 0.75% applies to the total gross earned in that month.
ESI stops from the start of the next contribution period (every 6 months). You will typically be enrolled in the employer’s group health insurance instead.
No. Only the employee’s 0.75% deduction appears. The employer’s 3.25% is an additional cost borne by the company.
Sickness and maternity benefits may continue for a period based on contribution weeks. Check your eligibility on the ESIC member portal.