Last Updated on November 14, 2026 by Abhijit Divekar
Quick answer: Use this ESIC calculator to check cover and contributions in seconds. Since 21 November 2025, ESIC works on wages as the Code on Social Security defines them: Basic + DA, plus any allowances above half of total pay. If those wages are ₹21,000 a month or less (₹25,000 for persons with disability), the employee pays 0.75% and the employer pays 3.25%. For example, on Basic + DA of ₹18,000 and allowances of ₹8,000, ESIC wages are ₹18,000, so the employee pays ₹135 and the employer pays ₹585.
Include retaining allowance, if any.
HRA, conveyance, overtime, commission and similar pay.
| Per employee, per month | Amount |
|---|---|
| ESIC wages (after the 50% rule) | – |
| Is ESIC applicable? | – |
| Employee share (0.75%) | – |
| Employer share (3.25%) | – |
| Total ESIC to deposit | – |
| Employer cost for a year | – |
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ESIC Calculator for your whole team (Excel)
Type each employee’s monthly wages and the sheet works out who is covered, the employee and employer shares, and the monthly and yearly totals. Up to 50 employees. It downloads straight away.
How the ESIC calculator works
The ESIC calculator first works out ESIC wages. Under the Code on Social Security, wages mean Basic + DA (and retaining allowance). HRA, conveyance, overtime and similar allowances stay out. However, if those allowances add up to more than half of total pay, the excess counts as wages. ESIC confirmed this change in its circulars of December 2025, replacing the old practice of using gross pay.
Next, the calculator checks the ₹21,000 limit against those wages. So an employee on ₹26,000 gross with ₹18,000 Basic + DA is now covered. If ESIC applies, you deduct 0.75% of ESIC wages from the employee’s pay and add 3.25% as the employer. In addition, the calculator rounds each share up to the next rupee, as the rules require.
Worked examples
| Basic + DA, other allowances | ESIC wages | Employee 0.75% | Employer 3.25% |
|---|---|---|---|
| ₹10,000 + ₹5,000 | ₹10,000 | ₹75 | ₹325 |
| ₹18,000 + ₹8,000 (gross ₹26,000) | ₹18,000 | ₹135 | ₹585 |
| ₹8,000 + ₹16,000 (allowances above half) | ₹12,000 | ₹90 | ₹390 |
| ₹21,000 + ₹9,000 (at the limit) | ₹21,000 | ₹158 | ₹683 |
| ₹25,000 + ₹10,000 | ₹25,000 | Not covered | Not covered |
Why this matters: take two employees who both earn ₹22,000 gross. A has ₹12,000 Basic + DA and ₹10,000 of allowances, so ESIC wages are ₹12,000. B has ₹8,000 Basic + DA and ₹14,000 of allowances; allowances are above half of pay, so ₹3,000 is added back and ESIC wages are ₹11,000. Both are covered, even though their gross pay is above ₹21,000. Payroll that only checks gross pay would miss them.
ESIC rules employers should know
- Who must register: establishments with 10 or more employees. In a hazardous occupation notified by the Centre, even one employee brings ESIC in. First register on the ESIC portal, then add each eligible employee from the day they join.
- Wage limit: ₹21,000 a month of ESIC wages, or ₹25,000 for persons with disability.
- Rates: 0.75% employee and 3.25% employer, in force since 1 July 2019. Each share is rounded up to the next rupee.
- Employees with disability: under the Social Security (Central) Rules, 2026, the Centre bears the employer share for up to 3 years. Check the claim process with your ESIC branch office.
- Low earners: ESIC’s website still says employees with an average daily wage of ₹176 or less pay no employee share. The new 2026 Rules do not repeat this, so confirm with ESIC before relying on it.
- Due date: pay each month’s contribution within 15 days of the month end, so by the 15th of the next month.
- PF is separate: PF uses the same wages, up to ₹25,000. For that, use the PF calculator.
ESIC calculator: questions employers ask
What is the ESIC wage limit in 2026?
₹21,000 a month, tested on ESIC wages (Basic + DA, plus any allowances above half of pay), not on gross pay. For persons with disability the limit is ₹25,000 a month.
What are the ESIC contribution rates?
0.75% of wages from the employee and 3.25% from the employer, a total of 4%. These rates apply from 1 July 2019.
Is ESIC calculated on gross salary or Basic?
Since 21 November 2025, on wages as the Code on Social Security defines them: Basic + DA and retaining allowance. HRA, conveyance and overtime are left out unless all such allowances exceed half of total pay; then the excess counts too.
Does an employee on ₹26,000 gross get ESIC now?
Yes, if their Basic + DA is ₹21,000 or less and allowances are not more than half of pay. For example, Basic + DA of ₹18,000 with ₹8,000 of allowances gives ESIC wages of ₹18,000, so ESIC applies.
When is ESIC payment due?
Within 15 days of the end of the month, so by the 15th of the next month. For example, October wages are due by 15 November.
Related guides
- ESIC wage ceiling 2026: employer guide
- PF and ESIC registration guide for employers
- PF calculator 2026
- Salary to CTC calculator
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Talk to us about payrollSources: Employees’ State Insurance Corporation (esic.gov.in), the Code on Social Security, 2020 and the Social Security (Central) Rules, 2026 (Ministry of Labour and Employment). A guide for employers, not legal advice. Estimates only. Last checked 14 November 2026.