Employee benefits
How is ESIC deducted from salary?
ESIC is deducted at 0.75% of your gross monthly wages, not your basic pay alone, if you earn up to ₹21,000 a month at an establishment covered by ESI. Your employer pays a further 3.25%. If your average daily wage is ₹176 or less, nothing is deducted from you, though your employer still pays its share.
In short
- Employee share: 0.75% of gross wages.
- Employer share: 3.25%, on top.
- Applies up to ₹21,000 a month (₹25,000 for persons with disabilities).
- ₹176 a day or less: no employee deduction.
Is ESIC calculated on basic or gross salary?
On gross wages. ESI contributions are worked out on the wages paid for the month, not on basic pay alone. That is why ESIC deductions change when allowances or overtime change your monthly pay.
How much is deducted?
| Who | Rate |
|---|---|
| Employee, deducted from salary | 0.75% of gross wages |
| Employer, paid on top | 3.25% of gross wages |
Contributions are due within 15 days of the end of the month.
What if my salary goes above ₹21,000?
Your ESI cover generally continues until the end of that contribution period, then ends. After that, you are outside ESI, and your employer’s group health insurance usually becomes your main cover. Our ESIC page explains how the two fit together.
Frequently asked questions
Is ESIC deducted from basic or gross salary?
From gross wages, at 0.75% for the employee.
How much ESIC does the employer pay?
3.25% of gross wages, on top of the employee's 0.75%.
Is ESIC deducted if salary is above ₹21,000?
No, once the contribution period in which you crossed the ceiling ends.
What happens when you talk to us
A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.
20 minutes with a Growth Advisor. No obligation.
A note on this page. Everything here is general information, not legal or financial advice, and nothing is an offer. Rates are as published by ESIC at the review date; check esic.gov.in before relying on them. For advice about your situation, talk to us.