ESI rules in brief
- Applies to establishments with 10 or more employees (20 in some states)
- Covers employees earning gross wages up to ₹21,000 a month (₹25,000 for persons with disability)
- Employee pays 0.75%, employer 3.25% of gross wages; employees earning up to ₹176 a day pay nothing
- Contributions are due by the 15th of the following month
If wages rise above the limit mid-way, contributions continue until the end of the contribution period (April–September or October–March).
Need PF and ESI registration and monthly returns? Talk to our payroll compliance team.
Frequently Asked Questions
What are the current ESI rates?
0.75% of gross wages for the employee and 3.25% for the employer, 4% in total.
Which employers must register for ESI?
Non-seasonal factories and notified establishments with 10 or more employees in areas where the scheme applies.
What is the ESI wage limit?
₹21,000 a month gross, or ₹25,000 for employees with a disability.
What is the penalty for late ESI payment?
Interest of 12% a year for each day of delay, plus possible damages.
This calculator gives an estimate based on the rules shown above. Rates and limits change through budgets and notifications – confirm with a professional before you file or pay.