I got a raise above the limit. Why is ESI still being deducted?

Because coverage runs in fixed contribution periods. Crossing the limit part-way through one keeps you covered, and contributing, until that period ends.

Salary & HRstatutoryIndia only

ESI Calculator

Employees State Insurance contributions from both sides, and whether the wage limit covers you at all. Crossing the limit mid-period does not end coverage immediately, which is the rule people miss.

Also called: esic calculator, esi deduction.

Total monthly contribution

₹720

₹720 a month: ₹135 from you and ₹585 from your employer. Wages are within the limit, so the scheme applies.

Your share

₹135

Employer's share

₹585

Annual total

₹8,640

Total as a share of wages

Coverage

Wages are within the limit, so the scheme applies.

How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Both sides contribute a percentage of gross wages while wages are within the coverage limit. The employer share is over four times the employee share, which is unusual among statutory deductions. Coverage runs in contribution periods: someone who crosses the wage limit part-way through a period continues to contribute until that period ends, so a mid-year raise does not stop deductions at once.

contribution = wages * (employee rate + employer rate), only while wages are within the limit

W: Monthly gross wages (currency)
L: Wage limit for coverage (currency)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

wages within the limit

Monthly gross wages: ₹18,000
Employee contribution rate: 0.75%
Employer contribution rate: 3.25%
Wage limit for coverage: ₹21,000

Total monthly contribution₹720

0.75% and 3.25% of 18,000, worked by hand

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above the limit nothing is due

Monthly gross wages: ₹25,000
Employee contribution rate: 0.75%
Employer contribution rate: 3.25%
Wage limit for coverage: ₹21,000

Total monthly contribution₹0

boundary

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exactly at the limit is still covered

Monthly gross wages: ₹21,000
Employee contribution rate: 0.75%
Employer contribution rate: 3.25%
Wage limit for coverage: ₹21,000

Total monthly contribution₹840

boundary: the limit is inclusive

Open this example

Method and limits

What it assumes

Gross wages as defined by the Act, which excludes some allowances.

What it deliberately does not model

The benefit side, which is medical cover and cash benefits rather than a fund balance, is not valued here.
Contribution-period continuation rules are described but not simulated.

Sources

Employees State Insurance Corporation (primary government)

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

I got a raise above the limit. Why is ESI still being deducted?: Because coverage runs in fixed contribution periods. Crossing the limit part-way through one keeps you covered, and contributing, until that period ends.