How to Calculate ESI Contribution Employee and Employer Part

Under the Employee state insurance (ESIC) contribution is calculated on Gross Salary and in ESI whose gross salary is upto 21000 the person will be covered under EISC scheme.

In ESIC also there is two contribution:

1. Employer Contribution
2. Employee Contribution
Here is not like PF as employee and employer contribution are equal in employee provident fund. Under the ESI employee and employer contribution are different.
Contribution under ESI:
1. Employee Contribution = 1.75% of Gross Salary
2. Employer Contribution = 4.75% of Gross Salary
for example:
if an employee gross salary is 10,000/- what would be the employee and employer contribution.
Calculation of ESI :
1. Calculation of Employee contribution in ESI :
Employee Contribution = Gross Salary x 1.75%
                                       = 10000 x 1.75%
                                       = 175
2. Calculation of Employer contribution in ESI :
Employer Contribution = Gross Salary x 4.75%
                                       = 10000 x 4.75%
                                       = 475
In this case total ESI contribution would be
Employee + Employer contribution = 175 + 475 = 650
So I hope this article will help you to understand a bit about ESI Calculation and Employee State Insurance Contribution of Employee and Employer Part.

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