Employees' State Insurance is a self-financing social security and health insurance scheme for Indian workers. For all employees earning Rs. 15000 or less per month as wages, the employer contributes 4.75 % and employee contributes 1.75 %, i.e., total share 6.5 %. ESIC is calculated on gross salary (excluding washing allowance). Employees drawing gross salary above Rs. 15000 will not be applicable under ESIC.

Example 1:

Find out the ESI for the basic salary of Rs 9000?

Step 1:

Enter the salary, For e.g. 9000

Step 2:

Employee contributes 1.75% for ESI. Now compute as shown here, ESI = 9000*(1.75/100) = 158

Step 3:

Employer contributes 4.75% for ESI. Compute as shown here, ESI = 9000*(4.75/100) = 428

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