Topics In Demand
Notification
New

No notification found.

What is ESI and How to Calculate it?
What is ESI and How to Calculate it?

March 26, 2020

5

0

What is ESI?

Most of the people don’t know what is ESI, It is referred to as Employees State Insurance, is a social security scheme aimed at providing healthcare benefits to the employees and immediate family. Under this self-financing health insurance scheme, funds are primarily built out of contribution from employers and employees.

Now the question comes: how to calculate ESI?

ESI fund, maintained by ESIC, is applicable to employees earning ?21,000 or less per month to provide the cash and medical benefits to them and their families. This fund is a contributory fund in which both the employer and employee contribute 3.25% and 0.75% respectively.

Let’s say if your salary is 10,000 rupees per month.

  • Employers Contribution: 3.25% of 10,000 – Rs 325
  • Employees Contribution: 0.75% of 10,000 – Rs 75.

Hope you find it helpful.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Amit Kumar is an experienced tech enthusiast, digital marketer and blogger who is well known for his ability to predict market trends. Check out his blog at Digital Drona

© Copyright nasscom. All Rights Reserved.