Calculate ESI and ESI Calculation Formula

See how this online ESI calculator works - just watch this quickly. In this video, we provided step-by-step guidance that helps you better understand and easily use it to calculate total contribution. So Come and Let’s Take A Look at our Demo Video.

New Rate

Employee (X%) ₹ 0.00
Employer (Y%) ₹ 0.00
Total ₹ 0.00

Old Rate

Employee () ₹ 0.00
Employer () ₹ 0.00
Total ₹ 0.00

The full form of ESI is Employee State Insurance, which represents a self-funded social security and health insurance program designed for workers in India. The administration of this program is overseen by the Employees' State Insurance Corporation (ESIC), an established statutory entity formed by the ESI Act of 1948.

The Employees State Insurance Corporation (ESIC) collects and manages contributions from employers and employees, provides medical care to employees and their families in accidental situations, and disburses cash benefits.

According to the ESI Act, all establishments and factories that have more than 10 employees, and if those employees' gross salary is less than or up to rupees 21000, are eligible for registration in ESIC and must be contributed to the ESI scheme.

ESI contribution is mandatory and payable by both the employer and the employee to the corporation within 15 days from the last day of the calendar month. The ESI contribution is a small percentage of the employer's gross salary and is deducted from the employee's gross salary.

According to the current ESI contribution Rate , the Employee ESI Contribution is 0.75% of gross salary(including basic pay, H.R.A., D.A., T.A., Overtime pay, Annual Bonus, Production Incentive, and other special allowances), and the Employer ESI Contribution is 3.25% of the employee's gross salary.

There are six-month durations between two contribution periods in ESIC, and each contribution period has the same duration as cash benefit periods:

  1. 1st April to 30th September is one of the contribution periods, with a cash benefit period from 1st January of the following year to 30th June.
  2. 1st October to 31st March of the following year is the other contribution period, which has a cash benefit period from 1st July to 31st December.

The ESI Calculation is determined by the employee's gross salary. The formula for computing the total ESI contribution is:

Total Contribution = (Gross Salary * Employee Contribution Rate) + (Gross Salary * Employer Contribution Rate)

For instance, if an employee's gross salary is ₹11,000, the ESI contribution is calculated as follows:

{Total Contribution} = (₹11,000 * 0.75%) + (₹11,000 * 3.25%)
{Total Contribution} = ₹82.50 + ₹357.50
{Total Contribution} = ₹440.00

This method ensures that the employee's and employer's contributions are accounted for in the total ESI contribution.

Our ESI Calculator is an excellent tool that simplifies this calculation formula of ESI contribution. It’s a beneficial initiator to the employees and employer for several reasons:

  1. It ensures accuracy.
  2. It complies with the ESI regulations.
  3. It reduces the potential for manual errors.
  4. It saves your valuable time by quick calculation.
  5. It calculates the payable amount automatically.

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