ESIC Contribution Rate
The employee contributes 0.75% of wages and the employer 3.25% — a total of 4% of wages of covered employees.
Rates at a glance
| Contributor | Rate | Basis | Frequency |
|---|---|---|---|
| Employee | 0.75% of wages | Wages as defined under the ESI Act | Monthly |
| Employer | 3.25% of wages | Wages as defined under the ESI Act | Monthly |
| Total | 4.00% of wages | — | Monthly |
Employees drawing average daily wages up to the notified low-wage threshold are exempt from the employee share; the employer share is still payable.
Wage limit and contribution periods
The wage limit for coverage is ₹21,000 per month (₹25,000 for employees with disability). ESI works on two fixed contribution periods — April to September and October to March. If an employee crosses the wage limit mid-period, contribution continues until the end of that period.
Worked example
| Monthly wages | Employee 0.75% | Employer 3.25% | Total |
|---|---|---|---|
| ₹15,000 | ₹113 | ₹488 | ₹601 |
| ₹21,000 | ₹158 | ₹683 | ₹841 |
Frequently asked questions
- What is the current ESI contribution rate?
- 0.75% of wages from the employee and 3.25% from the employer, totalling 4%.
- What is the ESI wage limit?
- ₹21,000 per month for most employees, and ₹25,000 for employees with disability.
Sources & references
Last Updated: 2026-09-06
Information is based on applicable laws, rules, notifications and government sources and should be verified for the latest amendments.
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