WebSoftOSHow it works
The employee contributes 0.75% and the employer 3.25% of wages. The wage limit for coverage is ₹21,000 a month, or ₹25,000 for persons with disability. An employee whose wage crosses the limit during the period is a common source of errors.
Coverage thresholds by establishment size and state notifications vary, so check the current applicability for your business.
Example
On wages of ₹20,000, the employee’s 0.75% is ₹150 and the employer’s 3.25% is ₹650.
Frequently asked questions
What is the ESI wage limit?
₹21,000 a month, and ₹25,000 for persons with disability.