ESIC Contribution Rates & Slabs (2026)
Employee State Insurance (ESI) is an integrated social security scheme administered by ESIC under the Ministry of Labour and Employment. It provides full medical care and cash compensation for Indian employees earning up to ₹21,000 per month during sickness, maternity, or workplace injury.
ESI contributions are shared between employees (0.75% of gross wages) and employers (3.25%). See how statutory deductions impact your monthly pay slip on our salary breakup calculator and check net monthly take-home pay with our CTC to in-hand calculator. You can also calculate state tax deductions on our professional tax calculator, compute end-of-service benefits on our gratuity calculator, plan your annual tax liability on our income tax calculator, and maintain an independent medical safety cushion on our emergency fund calculator.
| Category | Monthly Wage Ceiling | Contribution Rates |
|---|---|---|
| Standard Employees | ₹21,000 / month | Employee: 0.75% | Employer: 3.25% |
| Persons with Disabilities (PWD) | ₹25,000 / month | Employee: 0.75% | Employer: 3.25% |
| Low Wage Employees (≤₹176/day) | Up to ₹4,576 / month | Employee: 0% (Exempt) | Employer: 3.25% |
ESI Statutory Contribution Rates (2026 Rules)
- Employee Contribution: 0.75% of Gross Monthly Salary.
- Employer Contribution: 3.25% of Gross Monthly Salary. Total Combined ESI Contribution = 4.00%.
- Eligibility Threshold: Applicable to employees earning gross monthly wage up to ₹21,000 (₹25,000 for employees with disabilities).
Medical & Cash Benefits Covered under ESIC Scheme
- Full Medical Care: Free outpatient and hospitalization care for employee and dependent family members at ESIC hospitals.
- Sickness & Maternity Benefit: 70% of wages paid during certified sickness leaves and 100% wages paid for 26 weeks of maternity leave.
ESI Exemption Rule
Employees whose daily average wage is up to ₹176 are exempt from paying employee contribution (0.75%), though employers must still pay 3.25%.