Posted on 07th Aug 2018 | 1535 views

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ESIC calculation

ESI calculation is the calculation of employee state insurance, ESI scheme it is a contributory fund facilitates Indian employees to take benefit of self-financing and healthcare insurance fund it is contributed by both the company and the employee. It is a need-based insurance to preserve the interest of the employees in uncertain events. It is organized by Employees’ State Insurance Corporation which is a self- financing social security and labour welfare organization. It regulates ESI scheme as per the rules provided in the Indian ESI Act of 1948. Eligibility for the ESI employee salary must be above 21000 rs. ESI deductions are calculated on employee’s gross salary, gross salary total salary earned by the employee before deductions. ESI scheme has two contribution periods each of six months duration: first starting from 1st April to 30th September and second is from 1st October to 31st March of the year following. The percentage of contribution by the employer is 4.75% of the payable to the individual employee. The employees' contribution is at the rate of 1.75% Employees wage, Employee’s who are getting Rs.15, 000/- gross per month are not covered under ESIC act. The employer needs 20 eligible employees to get registered in ESIC. the salary limit for eligibility is increased from 15000 RS to 21000 RS WET from 1st January 2017.

ESIC calculation

ESI calculation on salary:

ESI calculation on salary is that the employee’s donation is 1.75% of gross salary and Employer’s donation is 4.75% of gross salary payable to each employee.

ESI calculation formula is

ESI=Gross salary*(1.75/100) in case of an employee

ESI=Gross salary*(4.75/100) in case of an employer


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

Enter the salary, for e.g. 9000

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

Employer contributes 4.75% for ESI. Compute as shown here, ESI = 9000*(4.75/100) = 4

ESI calculation formula

Employee contributes 1.75% for ESI. ESI = gross pay*(1.75/100) = xxxx

Employer contributes 4.75% for ESI. ESI = gross pay given to employee *(4.75/100) = xxxx


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