ESI Act 1948 · Wage ceiling ₹21,000 · 4% contribution

ESI Eligibility Checker

Check if your establishment must register with ESIC, whether an employee is covered, and the exact monthly contribution — live, in one screen.

Category
Payroll & Salary
Takes about
1 min
Updated
Sep 2026
  • Free — no sign-up
  • Instant, on-screen results
  • Built by our CA · CS team
  • Rules cited on the page
Use the tool
The tool

Fill in the details — the answer on the right updates as you go.

Full breakdown below ↓
🏢 Establishment
Number of employees Total persons employed
#
State registration threshold
Under the ESI Act, coverage is mandatory for factories & establishments with 10 or more employees in most states. A few states (e.g. Maharashtra & Chandigarh for shops) apply a 20-employee threshold. Pick your state's rule above.
💰 Employee wage
Monthly gross wage Basic + DA + allowances
₹
Employee with disability?
An employee is covered when gross wages are at or below the ceiling — ₹21,000/month generally, and ₹25,000/month for employees with disability. Once covered in a contribution period, coverage continues to its end even if wages later rise.

Contribution breakdown

Monthly · 4% of gross
ComponentAmount
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Disclaimer: Indicative check based on ESI Act, 1948 and current ESIC rates. State thresholds, applicability and wage definitions can vary — confirm your establishment's position with a professional before registering.

ESI at a glance

The Employees' State Insurance (ESI) scheme is a social-security scheme run by the ESIC under the ESI Act, 1948. It provides medical, cash and other benefits to workers earning up to the wage ceiling and their dependants, funded by a small monthly contribution from both employee and employer.

₹21,000
Monthly wage ceiling for coverage (₹25,000 for disability)
10+
Employees for mandatory registration in most states
4%
Total contribution — 0.75% employee + 3.25% employer
2
Contribution periods a year (Apr–Sep, Oct–Mar)

Who is covered and who must register

There are two separate tests. First, whether the establishment must register with ESIC. Second, whether a particular employee is covered so contributions are payable on their wages.

Employee coverage test
Gross wage ≤ ₹21,000/monthCovered
Disability & wage ≤ ₹25,000/monthCovered
Gross wage above ceilingNot covered
Wage rises mid-periodCovered till period end
Employer registration test
10+ employees (most states)Register
20+ employees (a few states)Register
At least one earns ≤ ₹21,000Required
Registration deadline15 days
The establishment must apply for ESI registration within 15 days of the Act becoming applicable. Once registered, it stays registered even if employee count later falls.

How the contribution is split

ESI is a percentage of the employee's gross monthly wages. The employer deducts the employee's share from salary, adds its own share, and deposits the total (4% of gross) with ESIC by the 15th of the following month.

Contribution rates
Employee share0.75%
Employer share3.25%
Total on gross wages4.00%
Employees earning ≤ ₹176/dayExempt from own share
Example — ₹18,000 gross
Employee (0.75%)₹135
Employer (3.25%)₹585
Total monthly₹720
Employer annual (12 mo)₹7,020
Employees whose average daily wage is up to ₹176 pay no employee share; the employer still contributes 3.25%.

How ESI works

STEP 01

Register

An establishment crossing the threshold registers on the ESIC portal within 15 days and gets a 17-digit employer code.

STEP 02

Enrol employees

Each covered employee is enrolled and issued an ESI (Pehchan) card, gaining access to ESIC dispensaries and hospitals.

STEP 03

Deduct & deposit

Every month the employer deducts 0.75%, adds 3.25%, and deposits the 4% total by the 15th of the next month.

STEP 04

Claim benefits

The insured person and dependants draw medical, sickness, maternity and other cash benefits based on contributions.

ESI benefits

In return for the contribution, insured employees and their families receive a wide range of benefits with no cap on medical expenditure.

Medical benefit

Full medical care for the insured person and dependants from day one of employment — with no ceiling on treatment cost at ESIC hospitals and dispensaries.

Sickness benefit

Cash at 70% of wages for up to 91 days of certified sickness in a year, plus extended benefit for specified long-term illnesses.

Maternity benefit

Paid leave at full average wages for up to 26 weeks of confinement, extendable for medical complications and miscarriage.

Disablement benefit

Monthly payments for temporary or permanent disablement caused by employment injury, at up to 90% of wages.

Dependants' benefit

A monthly pension to dependants if death results from an employment injury or occupational disease.

Other benefits

Funeral expenses, unemployment allowance (RGSKY), vocational rehabilitation and confinement expenses where care is unavailable.

Key terms explained

Wage ceiling

The maximum monthly gross wage for coverage — ₹21,000 generally, and ₹25,000 for employees with disability. Employees earning above this are not covered under ESI.

10-employee threshold

Registration is mandatory once an establishment employs 10 or more persons in most states (20 in a few). It applies to factories, shops, hotels, cinemas and more.

Contribution periods

ESI runs two 6-month contribution periods — April–September and October–March — with matching benefit periods. Coverage that begins in a period lasts to its end.

ESIC

The Employees' State Insurance Corporation administers the scheme, collects contributions and runs the network of hospitals and dispensaries that deliver benefits.

Questions people ask

Short answers on ESI Eligibility Checker. Tap a question to open it.

01Which establishments are covered by ESI?

Non-seasonal factories employing 10 or more persons, and establishments notified by the state — shops, hotels, restaurants, cinemas, road transport, newspapers, educational and medical institutions — generally at a threshold of 10 or 20 employees depending on the state.

02Which employees are covered?

Employees drawing gross wages up to ₹21,000 a month (₹25,000 for employees with disability), including contract and casual workers engaged on the premises or in connection with the establishment's work.

03What benefits does ESI give?

Full medical care for the insured person and dependants, sickness benefit as cash during certified illness, maternity benefit, disablement benefit, dependants' benefit on death from employment injury, and funeral expenses.

04Does ESI apply if my area has no ESI hospital?

ESI coverage is notified area-wise. If your establishment is outside an implemented area, ESI does not apply, though many states have progressively notified new areas — verify the current position for your pin code.

05Can an employee be covered by both ESI and a private health policy?

Yes, but ESI is statutory and cannot be waived for a covered employee. Many employers keep a group policy on top for employees above the wage ceiling.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.