Learn How to Calculate Indian ESI from Employee Salary

How to Calculate Indian ESI from Employee Salary with Example

Employee's State Insurance Definition:

Employee's State Insurance scheme is a self-financing social security and health insurance scheme for Indian workers. Any labour who earns below Rs 15000 as his or her monthly salary will be covered under the ESI. Both the employer and employee donate for ESI. Employer's contribution is around 4.75% and employee's contribution is 1.75%.

Example 1:

Find out the ESI for the basic salary of Rs 9000?

Step 1:

Enter the salary, For e.g. 9000

Step 2:

Employee contributes 1.75% for ESI. Now compute as shown here, ESI = 9000*(1.75/100) = 158

Step 3:

Employer contributes 4.75% for ESI. Compute as shown here, ESI = 9000*(4.75/100) = 428

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