Understanding ESI Deductions: How Do I Calculate the Employee State Insurance Percentage in My Salary?

To calculate the Employee State Insurance (ESI) percentage in a salary, you can follow these steps:

1. Determine the applicable ESI rate: The ESI contribution rate is currently set at 1.75% of the employee's gross salary, while the employer contributes 4.75%.

2. Calculate the ESI deduction: To calculate the ESI deduction from an employee's salary, multiply the gross salary by 1.75%.

3. Calculate the employer's ESI contribution: To calculate the employer's ESI contribution, multiply the gross salary by 4.75%.

By following these steps, you can accurately calculate the ESI percentage in a salary.

Employee: 1.75% of Gross
Employer: 4.75% of Gross.

Note: Gross should be less than or equal to Rs. 21,000.

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