How do you calculate ESI?

Let’s take an example, if the employee Gross salary is Rs.12,000 per month. The rate of contribution based on Gross salary payable to employee is explained in the below table.

If the contribution is in decimals, then it is rounded off to the next higher rupee.

Example Gross salary

Percentage of Gross pay

Contribution

Employee deduction

Rs.15,000

0.75%

Rs.12,000 * 0.75% = Rs.90

Employer’s contribution

3.25%

Rs.12,000 * 3.25% = Rs.390

Total contribution from the employee

Rs.480

	Example Gross salary	Percentage of Gross pay	Contribution
Employee deduction	Rs.15,000	0.75%	Rs.12,000 * 0.75% = Rs.90
Employer’s contribution		3.25%	Rs.12,000 * 3.25% = Rs.390
Total contribution from the employee			Rs.480