ESI Calculator India 2026
Compute your Employees' State Insurance (ESIC) contributions. Employee pays 0.75% and employer pays 3.25% of gross monthly salary. Applicable if gross salary ≤ ₹21,000/month.
Enter your gross monthly salary
Monthly ESI breakdown
| Component | Rate | Monthly (₹) | Annual (₹) |
|---|---|---|---|
| Gross salary (base) | — | ₹18,000 | ₹2,16,000 |
| Employee contribution | 0.75% | ₹135.00 | ₹1,620.00 |
| Employer contribution | 3.25% | ₹585.00 | ₹7,020.00 |
| Total ESI fund | 4.00% | ₹720.00 | ₹8,640.00 |
Quick facts
- ESI applies if gross salary ≤ ₹21,000/month (₹25,000 for Persons with Disability)
- Contribution period: April–September and October–March (semi-annual wage check)
- Employee pays 0.75%, employer pays 3.25% — total 4% of gross salary
- ESIC contribution is deducted on all salary components — not just basic (unlike EPF)
- Once enrolled, coverage continues for 2 more periods after salary crosses ₹21,000
- ESI number is portable across jobs — same ESIC IP number throughout your career
Watch-outs
- •ESI is on GROSS salary (not basic) — so allowances, HRA, transport all count toward the 4%
- •If salary crosses ₹21k mid-period, you stay in ESI until that 6-month window ends
- •In-patient treatment at ESIC hospitals can have quality gaps — private hospitals require ESIC referral
- •Your dependants (spouse, children, parents) are covered automatically — no separate enrollment needed
- •Contractor-deployed employees: the principal employer is liable for ESI — not the contractor alone
ESI FAQ
What is the ESI contribution rate in 2026?
Employee: 0.75% of gross salary. Employer: 3.25% of gross salary. Total: 4% of gross salary. These rates were last revised in July 2019 (reduced from 1.75% + 4.75% = 6.5% to the current 4%). No further revision as of May 2026.
Is ESI calculated on basic or gross salary?
Gross salary — this is an important distinction from EPF, which is on basic + DA. All salary components (basic, HRA, special allowance, transport allowance, overtime, etc.) are included in the 'wages' for ESI calculation. Only a few exclusions apply: annual bonus (lump-sum), retrenchment compensation, gratuity, encashment of leave.
What happens to my ESI if my salary increases above ₹21,000?
ESI contribution periods run April–September and October–March. If your salary crosses ₹21,000 during a contribution period, you continue contributing until that period ends. Then from the next period, you exit ESI. However, the coverage period is extended — you keep ESI medical benefits for 2 more contribution periods even after exit. After that, you're excluded and typically moved to Group Medical Insurance.
What benefits does ESI provide?
Comprehensive social security: (1) Medical care for you and all dependants at ESIC hospitals/dispensaries nationwide, (2) Sickness cash benefit at 70% of wages for up to 91 days/year, (3) Maternity benefit at 100% wages for 26 weeks, (4) Disablement benefit: 90% wages for temporary/permanent disability from work accidents, (5) Dependent benefit: 90% wages to family if employee dies due to work injury, (6) Unemployment cash allowance for up to 24 months on involuntary job loss.
Can I use private hospitals with ESIC coverage?
ESIC primarily provides care through its own hospitals and dispensaries. Private hospitals are covered only via formal ESIC empanelment — you need a referral from an ESIC dispensary or hospital for most cases. Emergency treatment at any hospital is covered and you can claim reimbursement afterward. Quality varies significantly by location — ESIC hospitals in metro areas are generally better staffed.
Is the ESI contribution tax-deductible?
Yes. The employee's ESI contribution (0.75% of gross) is deductible under Section 36(1)(va) of the Income Tax Act — same treatment as EPF employee contribution. The deduction reduces your gross total income. No separate Section 80 deduction needed — it is automatically treated as a salary deduction.
Is ESI applicable to part-time employees?
Yes, if they work for wages and are employed in a covered establishment (20+ employees). Part-time workers earning ≤ ₹21,000/month in wages are covered. Apprentices, trainees, and independent contractors may be excluded depending on how they are classified in payroll.