On Which Salary Esi Count? - Pdf Download - CiteHR
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Dear Friends, I dont have much knowledge about ESI. I want to know that On which salary, Basic or gross, ESI count? And What % is to contribute?
Dear Devansh,
ESIC is deducted on Gross salary per month. It is paid from both the sides employee as well as employer.
Employee pays 1.75% of his/her gross salary and
Employer pay 4.75% of his/her gross salary.
For ESIC coverage the ceiling is 10,000/- gross salary per month.
Amit Seth.

Exactly.. but gross here will mean basic, DA and all allowances less washing allowance, if any.. correct? Cheers, Bala
Gross means gross. It includes all (including DA, HRA, OTA etc). Please go through the ESI Act and Rules available in ESI web site. S. Krishnamoorthy
Hi Devang, ESI Deducted from the gross salary Employee Contribution - 1.75% Employer contribution - 4.75%
ESI has to be deducted on gross amount.
Employee contribution -1.75% of gross amount
Employer contribution -4.75% of gross amount
You need to submit the ESI challans by 21stof every month in nationalised bank.

ESI: Employees’ State Insurance Act, 1948
Calculations: ESI will be calculated from Gross salary
and other Allowances

Employee: 1.75%
Employer: 4.75%
Coverage: All the employees Drawing wages up to Rs.10, 000/- per month engaged either directly or thru’ contractor.

Hi All, Hope there are different definitions given on ESI wages, the attachment will give you clear idea on components not be included on caclulating esi wages.

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