ESI eligibility in plain language

The Employees' State Insurance scheme covers employees whose gross wages are at or below the eligibility limit — ₹21,000 a month at the time of writing (₹25,000 for persons with disability). The employee contributes 0.75% of gross wages and the employer 3.25%.

Contribution periods

ESI works in two six-month contribution periods: April to September and October to March. If an employee was covered at the start of a period, they stay covered until the period ends — even if a raise takes them above the limit part-way through.

Common mistakes

Stopping ESI in the month someone crosses the limit, instead of at the end of the period.
Leaving out overtime or other wages that count towards gross wages.
Missing new joiners whose wages are below the limit.

In PeopleOS

ESI applicability is decided by grade and wages, and a company outside ESI coverage can mark ESI as not provided. The rates are editable, so you can update them without waiting for a release.

Rates and limits change from time to time. Check the latest ESIC notifications before relying on the figures above.

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