# ESI Contribution Calculator FY 2026-27 | Aalekh > Calculate ESI contributions for FY 2026-27 at 0.75% and 3.25%, test the ₹21,000 ceiling and the ₹25,000 disability ceiling, and find your contribution period. Canonical URL: https://www.aalekh.ai/calculators/esi [All calculators](/calculators) For businessesRates reviewed September 2026 # ESI Contribution Calculator under the Code on Social Security An ESI contribution calculator works out what an employee and the employer pay each month into the Employees' State Insurance scheme, which now runs under Chapter IV of the Code on Social Security, 2020. The Code repealed the Employees' State Insurance Act, 1948 when it came into force on 21 November 2025, and the rules and regulations made under the old Act are saved for a year to the extent they are not inconsistent with it. The numbers carried over. The employee contributes 0.75% of wages and the employer 3.25%, the rates in force since 1 July 2019, and coverage stops at wages of ₹21,000 a month, or ₹25,000 for a person with disability, the ceiling in force since 1 January 2017. The scheme applies to establishments with ten or more persons in the districts where it has been implemented, and the Ministry of Labour and Employment has confirmed that the ₹21,000 ceiling continues to apply under the Code. The base is what moved. The Code's definition of wages, being basic pay, dearness allowance and retaining allowance with excluded allowances above half of total remuneration added back, applies to ESI from 21 November 2025. An employee with gross pay of ₹32,000 and basic of ₹14,000 has statutory wages of ₹16,000 and is inside the ceiling, although gross pay of ₹32,000 would have put the same employee outside the old Act. Coverage is tested by contribution period rather than by month. The two periods run from 1 April to 30 September and from 1 October to 31 March, and an employee whose wages cross the ceiling after a period has begun stays covered, and keeps contributing on the higher wages, until that period ends. Contributions in each period earn benefits in a corresponding benefit period that starts three months after it closes. ## ESI Contribution Calculator Gross monthly remuneration Everything paid for the month: basic, DA, HRA, conveyance, special allowance and the rest. ₹ Basic plus DA (monthly) Basic pay, dearness allowance and retaining allowance. If it is under half of gross, the shortfall is added back as wages. ₹ Employee is a person with disability The wage ceiling is ₹25,000 rather than ₹21,000. YesNo Employees in the establishment Count everyone, including those paid above the ceiling. Ten or more brings the establishment in. employees Wage month April to September is one contribution period and October to March the other. April 2026May 2026June 2026July 2026August 2026September 2026October 2026November 2026December 2026January 2027February 2027March 2027 Wages were within the ceiling when the contribution period began An employee whose wages cross the ceiling after the period begins stays covered until it ends. YesNo Total ESI contribution, monthly ₹640 ₹120 from the employee and ₹520 from the employer on ₹16,000 of wages Statutory wages (monthly)₹14,000 of basic and DA plus ₹2,000 added back so that wages are at least half of ₹32,000 ₹16,000 Wage ceiling applicableGeneral ceiling, in force since 1 January 2017 ₹21,000 Establishment coverage25 employees, threshold of 10 Covered Employee coverage₹16,000 is within the ₹21,000 ceiling Covered Employee contribution at 0.75%0.75% of ₹16,000, rounded up to the next rupee ₹120 Employer contribution at 3.25%3.25% of ₹16,000, rounded up to the next rupee ₹520 Total monthly contributionDeposited by the employer, who recovers only the employee share from wages ₹640 Annual contribution₹640 x 12 months at the same wages ₹7,680 Contribution periodApril 2026 falls in the first period of FY 2026-27 1 April 2026 to 30 September 2026 Corresponding benefit period 1 January 2027 to 30 June 2027 - Basic and DA are less than half of gross, so ₹2,000 is added back under section 2(88) of the Code on Social Security. Before 21 November 2025 the test ran on gross pay of ₹32,000. - Rates of 0.75% and 3.25% have applied since 1 July 2019 and the ₹21,000 ceiling since 1 January 2017. Both carried into the Code on Social Security, 2020 from 21 November 2025, and the Ministry of Labour and Employment has confirmed the ceiling continues. ## The formula Employee contribution = Wages x 0.75%; Employer contribution = Wages x 3.25%; Total = Wages x 4%, each rounded up to the next rupee, payable while wages are within the ceiling Wages Basic pay, dearness allowance and retaining allowance under section 2(88) of the Code on Social Security, with any excluded allowances above 50% of total remuneration added back. Wage ceiling ₹21,000 a month for coverage, and ₹25,000 a month for a person with disability. Employees above the ceiling are still counted when testing whether the establishment has ten or more persons. Contribution period Six months, 1 April to 30 September or 1 October to 31 March. Coverage is fixed at the start of the period and runs to its end even if wages cross the ceiling in between. Benefit period The six months in which contributions earn benefits: 1 January to 30 June for the April to September period, and 1 July to 31 December for the October to March period. Rounding Each share is rounded up to the next higher rupee under rule 51 of the ESI (Central) Rules, 1950, which the Code saves. The rates and the ceiling are the ones carried into the Code on Social Security. A revision of the ceiling has been under discussion for some time and none had been notified when this page was reviewed. ## How to calculate it 1. 1 ### Check the establishment Chapter IV applies to an establishment with ten or more persons, other than a seasonal factory, in the areas where the scheme is implemented. Count every employee, including those whose wages are above the ceiling, because the Code says they are taken into account for coverage. 2. 2 ### Fix the statutory wages Take basic pay, dearness allowance and retaining allowance. If the other components of the package exceed half of total remuneration, add the excess back. Since 21 November 2025 this figure, not gross pay, is tested against the ceiling and carries the contribution. 3. 3 ### Test the ceiling Wages up to ₹21,000 a month are covered, and up to ₹25,000 for a person with disability. Wages above the ceiling at the start of a contribution period mean no coverage and no contribution for that period. 4. 4 ### Compute the contributions The employee's share is 0.75% of wages and the employer's share is 3.25%, each rounded up to the next rupee. The employer deposits both shares and can recover only the employee's share from wages, never its own. 5. 5 ### Place the wage month in its contribution period April to September is one period and October to March the other. An employee whose wages cross the ceiling after the period begins stays covered until it ends, contributing on the actual higher wages, and drops out from the next period. ## ESI contribution parameters, FY 2026-27 ESI contribution parameters, FY 2026-27 Item Position Applies to Establishments with ten or more persons, in the districts where the scheme is implemented Wage ceiling ₹21,000 a month, in force since 1 January 2017 Wage ceiling, person with disability ₹25,000 a month Employee contribution 0.75% of wages, since 1 July 2019 Employer contribution 3.25% of wages, since 1 July 2019 Total contribution 4% of wages Contribution periods 1 April to 30 September, and 1 October to 31 March Benefit periods 1 January to 30 June, and 1 July to 31 December Wages crossing the ceiling mid-period Covered, and contributing on the higher wages, until the period ends ## Worked example Gross monthly remuneration ₹32,000 Basic plus DA ₹14,000 Person with disability No Employees in the establishment 25 Wage month April 2026 Within the ceiling when the period began Yes - Half of total remuneration = ₹16,000, which exceeds basic and DA of ₹14,000, so ₹2,000 of allowances is added back and statutory wages are ₹16,000 - ₹16,000 is within the ₹21,000 ceiling and the establishment has 25 employees, so the employee is covered - Employee contribution = 0.75% of ₹16,000 = ₹120 a month - Employer contribution = 3.25% of ₹16,000 = ₹520 a month - Total = ₹640 a month, or ₹7,680 across twelve months at the same wages Employee contribution = ₹120 and employer contribution = ₹520, a total of ₹640 a month or ₹7,680 a year, for the contribution period 1 April 2026 to 30 September 2026. ## Frequently asked questions What is the ESI contribution rate for FY 2026-27? The employee pays 0.75% of wages and the employer pays 3.25%, a total of 4%. The Government reduced the rates from 1.75% and 4.75% with effect from 1 July 2019 and they have not changed since, including on the transition to the Code on Social Security, 2020 on 21 November 2025. Each share is rounded up to the next rupee, and the employer deposits both shares but may recover only the employee's share from wages. What is the ESI wage limit in 2026? ₹21,000 a month, and ₹25,000 a month for a person with disability. The ₹21,000 ceiling has applied since 1 January 2017, when it was raised from ₹15,000, and the Ministry of Labour and Employment has confirmed that it continues to apply under the Code on Social Security. A higher ceiling has been under discussion for some time, but no revision had been notified when this page was reviewed. What happens if my salary crosses ₹21,000 during a contribution period? You stay covered until that contribution period ends. The two periods run from 1 April to 30 September and from 1 October to 31 March, and an employee whose wages cross the ceiling after a period has begun continues as an insured person, with contributions on the actual higher wages, until the period closes. Coverage and deductions stop from the start of the next period, and neither you nor the employer can opt out midway. Did the Labour Codes change ESI? The Employees' State Insurance Act, 1948 was repealed and ESI moved into Chapter IV of the Code on Social Security, 2020 from 21 November 2025, with the existing rules and regulations saved for a year to the extent they are consistent with the Code. The rates, the ceilings and the contribution periods carried over. What changed is the definition of wages: basic, DA and retaining allowance, with excluded allowances above 50% of total remuneration added back, now decides coverage and carries the contribution. Which establishments must register for ESI? Every establishment with ten or more persons, other than a seasonal factory, in an area where the scheme has been implemented, and any establishment carrying on a notified hazardous or life threatening occupation even with a single employee. The Code specifies that employees whose wages exceed the ceiling are still counted for this purpose, so an office with twelve staff of whom only three are within ₹21,000 is covered and must register and contribute for those three. Are ESI contributions computed on gross salary? Not since 21 November 2025. The Ministry of Labour and Employment has stated that the definition of wages in section 2(88) of the Code on Social Security applies to ESI from that date, so contributions run on basic pay, dearness allowance and retaining allowance, plus any excluded allowances that exceed half of total remuneration. A ₹32,000 package with ₹14,000 of basic and DA gives statutory wages of ₹16,000, and the contribution is 4% of ₹16,000 rather than of ₹32,000. What is the difference between a contribution period and a benefit period? The contribution period is the six months in which contributions are paid: 1 April to 30 September or 1 October to 31 March. The corresponding benefit period is the six months in which those contributions earn sickness, maternity and other cash benefits, starting three months after the contribution period closes, so 1 January to 30 June for the April to September period and 1 July to 31 December for the October to March period. ## Sources Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it. - [PIB: ESI coverage, the ₹21,000 and ₹25,000 wage ceilings and the ten employee threshold, Lok Sabha reply of 28 July 2025](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2149347®=48&lang=2) - [PIB: Government reduces the rate of ESI contribution from 6.5% to 4% from 1 July 2019](https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1574520®=48&lang=2) - [Ministry of Labour and Employment: additional FAQs on the Labour Codes, ESI coverage under the Code on Social Security](https://www.labour.gov.in/static/uploads/2026/03/a4ccf4c6d97c4f1f36a6d83f8c64213d.pdf) - [India Code: the Code on Social Security, 2020](https://www.indiacode.nic.in/bitstream/123456789/16823/1/aA2020-36.pdf) ## Stop re-keying these figures Aalekh runs this calculation on your actual client data, pulls the underlying ledgers straight from Tally, and carries the result through to the financial statements and the return. 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