Ceiling ₹21,000 a month
ESI Calculator: ESIC Contribution and Salary Limit 2026: This free ESI calculator works out the ESI deduction from salary (0.75%) and the employer's ESIC contribution (3.25%), checks the ₹21,000 ESI salary limit (₹25,000 for persons with disability), and applies the contribution-period rule. It calculates ESI wages under the new labour code wage definition (Basic + DA, at least 50% of pay) or on gross wages, so you can match your ESIC challan.
ESI Calculation Formula
Example: ESI wages ₹18,000. Employee ESI = 18,000 × 0.75% = ₹135; employer ESI = 18,000 × 3.25% = ₹585; total ₹720 a month. Contributions are rounded up to the next rupee: on ₹15,500, employee ESI of ₹116.25 becomes ₹117.
ESI Rates and Limits 2026-27
| Item | Rule |
|---|---|
| Employee contribution | 0.75% of ESI wages (since 1 July 2019) |
| Employer contribution | 3.25% of ESI wages |
| Wage limit for coverage | ₹21,000 a month; ₹25,000 for persons with disability (unchanged in 2026) |
| Low-wage exemption | No employee share if the average daily wage is ₹176 or less; the employer still pays 3.25% |
| Contribution periods | 1 April – 30 September and 1 October – 31 March |
| Payment due date | 15th of the following month |
| Half-yearly returns | 11 November (April–September) and 11 May (October–March) |
The PF wage ceiling rose to ₹25,000 on 17 September 2026, but the ESI limit did not change. ESIC is examining a higher limit, but nothing has been notified.
ESI Wages Under the New Labour Codes
The Code on Social Security, 2020 came into force on 21 November 2025 with a single definition of wages: basic pay, dearness allowance and retaining allowance. HRA, conveyance, overtime, bonus and similar items are left out, but if the left-out items are more than half of total pay, the excess is added back.
In December 2025, ESIC regional offices advised employers to use this definition for monthly ESI contributions. A later ESIC circular of 18 December 2025 said that advice was for awareness and that compliance depends on the notified rules. As a result, some payrolls now use labour code wages while many still use gross wages, as under the old ESI Act. The calculator does both:
- Labour code wages: Basic + DA, but not less than 50% of total pay (gross + overtime).
- Gross wages: all regular monthly pay including HRA and allowances; overtime is added for the deduction but ignored for the ₹21,000 test.
Example: gross ₹28,000 with Basic + DA ₹10,000. On labour code wages, ESI wages are ₹14,000 (50% of ₹28,000), within ₹21,000, so ESI applies: ₹105 from the employee and ₹455 from the employer. On gross wages of ₹28,000, the employee is above the limit and not covered. Check your ESIC challan to see which base your employer uses. The same 50% rule applies to PF; see the PF calculator.
Contribution Periods: When ESI Continues Above ₹21,000
Coverage is decided at the start of each contribution period (1 April and 1 October), or on joining. If your wages rise above ₹21,000 during a period, for example after an increment in July, ESI continues on your actual wages until the period ends on 30 September or 31 March. Coverage is checked again at the start of the next period. The Central Government restated this rule under the Code on Social Security by notification S.O. 2351(E) dated 8 May 2026.
In the calculator, choose "Yes, was covered" to apply this rule when your wages are now above the limit.
ESI Benefits for Employees
| Benefit | What you get |
|---|---|
| Medical benefit | Full medical care for you and your family from the first day of insurable employment |
| Sickness benefit | 70% of wages for up to 91 days a year (after 78 days of contribution in a 6-month period) |
| Extended sickness benefit | 80% of wages for up to 2 years for 34 long-term diseases |
| Maternity benefit | Full wages for 26 weeks, extendable by 1 month on medical advice |
| Disablement benefit | 90% of wages for employment injury, temporary or permanent |
| Dependants' benefit | 90% of wages to dependants if death is due to employment injury |
| Funeral expenses | ₹15,000 |
| Unemployment (ABVKY) | 50% of wages for up to 90 days, once in a lifetime |
Source: ESIC benefits. ESI-covered employees get these instead of buying separate health cover through the employer.
Employer ESI Compliance
- Deduct the employee's 0.75% from salary every month and add the employer's 3.25%.
- Pay online on the ESIC portal by the 15th of the following month. Late payment attracts interest and damages.
- Register new employees from the day they join, so medical cover starts at once.
- File half-yearly returns by 11 November and 11 May.
Other monthly deductions: professional tax calculator, labour welfare fund calculator, and the salary breakup calculator for full take-home pay. More tools are on the calculators page.
How to Use This ESI Calculator
- Enter your monthly gross salary, without overtime and bonus.
- Enter Basic + DA, or leave it blank to use 50% of gross.
- Add overtime paid this month, if any.
- Choose labour code wages or gross wages, matching your ESIC challan.
- Choose "Yes" for disability if it applies (limit ₹25,000), and "Yes, was covered" if you were covered at the start of this contribution period.
- Read ESI wages, coverage, employee and employer ESI, total ESI and salary after ESI.
Frequently Asked Questions
How is ESI calculated on salary?
Employee ESI is 0.75% and employer ESI is 3.25% of ESI wages, if wages are ₹21,000 a month or less. On ₹18,000, the employee pays ₹135 and the employer ₹585.
What is the ESI salary limit in 2026?
₹21,000 a month, or ₹25,000 for persons with disability. It did not change when the PF ceiling rose to ₹25,000 on 17 September 2026.
What is the ESI contribution rate?
4% of ESI wages: 0.75% from the employee and 3.25% from the employer, in force since 1 July 2019.
Is ESI calculated on gross salary or basic salary?
Traditionally on gross wages, including HRA and allowances. Under the Code on Social Security, wages are Basic + DA, but not less than 50% of total pay. ESIC has said the change depends on notified rules, so check which base your ESIC challan uses.
Is ESI deducted on overtime?
Under the old ESI practice, yes: ESI is deducted on overtime paid, but overtime is ignored for the ₹21,000 limit. Under the labour code definition, overtime is not part of wages but counts in total pay for the 50% rule.
What happens if my salary goes above ₹21,000 mid-year?
ESI continues on your actual wages until the end of the contribution period (30 September or 31 March). From the next period you are no longer covered.
Who is exempt from paying the employee ESI share?
Employees whose average daily wage is ₹176 or less. The employer still pays its 3.25%.
What is the due date for ESI payment?
The 15th of the following month. Contributions for October 2026 are due by 15 November 2026.
How is ESI rounded?
The ESIC portal rounds each contribution up to the next whole rupee. On ₹15,500 wages, the employee share of ₹116.25 becomes ₹117.
What benefits do I get under ESI?
Free medical care for you and your family, 70% of wages in sickness for up to 91 days, full wages for 26 weeks of maternity, 90% of wages for employment injury, and unemployment allowance of 50% of wages for up to 90 days.