Quick answer
ESIC full form: Employees' State Insurance Corporation — a statutory social-security scheme for Indian employees earning up to ₹21,000/month (gross), providing medical, sickness, maternity and disability benefits.
Contribution: 3.25% employer + 0.75% employee; applicable to establishments with 10+ employees. TMS handles ESIC registration, monthly contributions and filings across all Indian states.
ESIC Calculator
See the ESI deducted from your salary instantly. The full report shows the employer's 3.25% share, the ₹21,000 ceiling rule, and when ESI becomes mandatory.
Statutory rates maintained by the TMS compliance team · Last updated 2026-07-06 · Please re-verify against the official government notification before relying on them.
Your monthly ESI (employee share)
ESI is 4% of wages — most of it is the employer's
You are seeing the 0.75% employee share. The full report reveals the employer's cost, the ceiling rule, and your applicability.
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ESIC Compliance and Contribution, Every Cycle.
Last updated 14 August 2026
Employer registration, monthly contribution filing, IP number and IP card handling, wage-ceiling exception cases, and claims support. TMS runs the ESI cycle on our own infrastructure for 450+ clients so your covered staff get cashless treatment and your books stay clean.
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Cashless Healthcare, Funded by a Split Contribution.
The Employees State Insurance scheme, administered by ESIC, provides medical, sickness, maternity, disablement and dependent benefits to covered employees and their families through a network of ESI hospitals, dispensaries and empanelled private facilities. It is funded by a joint contribution from employer and employee, tied to a statutory wage ceiling.
Employer 3.25%
Employer contributes 3.25% of the employee gross wage each month, subject to the Rs 21,000 wage ceiling.
Employee 0.75%
Employee contributes 0.75% of gross wage. Deducted from salary and remitted with the employer share.
Rs 21,000 wage ceiling
Applies to employees earning up to Rs 21,000 per month gross (Rs 25,000 for employees with disability). Above ceiling, coverage runs to end of the contribution period.
Threshold for ESI applicability is generally 10 employees for factories and notified establishments. Individual states may set lower thresholds down to one employee, so applicability must be checked state by state.
ESI Contribution Deposited by the 15th, Every Month.
ESIC expects contributions deposited through the ESIC portal by the 15th of the month following the wage month, using an active Employer Code and current IP numbers for every covered employee. Miss the deadline and interest at 12 percent per annum plus damages under Regulation 31A start accruing, along with prosecution risk under Section 85 of the ESI Act for wilful default on employee contributions.
“ESI is the compliance filing most likely to hit smaller employers first, because the 10-employee state threshold catches teams that PF misses. We take that risk off your desk from day one.”
The Full ESI Compliance Cycle.
Employer registration and code
ESIC Employer Code allotment for new establishments crossing the state applicability threshold, digital signature enrolment and Sub-Code registration for branch offices.
Monthly contribution filing
Wage-month contribution calculation on gross wage up to Rs 21,000, employer 3.25% plus employee 0.75%, portal upload and challan payment coordination by the 15th.
IP number and IP card
Insurance number generation for new joiners on the ESIC portal, IP card issuance follow-up, biometric enrolment support and Pehchan card renewal.
Wage-ceiling exception handling
Contribution-period continuity when employees cross Rs 21,000 mid-period, exit marking for exempted staff and disability wage-ceiling documentation for the Rs 25,000 slab.
Claims and benefit support
Support for sickness benefit, maternity benefit, disablement pension, funeral expenses and dependant benefit claims through the ESIC portal, with document coordination on your behalf.
Inspections and audits
Annual ESI inspection response, wage-structure audit, reconciliation with Form 24Q and Form 138 salary TDS, and Regulation 32 return preparation.
From Onboarding to Steady State.
Onboarding
Employee list, gross wage structure and existing ESIC code reviewed. TMS becomes the point of contact.
Setup and IP numbers
Digital signature enrolment, IP number generation for the roster, IP card follow-up and exempted-staff marking.
Monthly run
Every wage cycle, contribution is filed and challan paid by the 15th. Joiners, exits, salary revisions and wage-ceiling crossings handled inline.
Steady state
Monthly compliance report, employee claim support, inspection response and annual return preparation with a single programme manager.
Who Falls Under ESI, and When.
ESI applicability is decided by three variables: type of establishment (factory or notified service), state-specific employee threshold, and individual employee gross wage. Most teams get this wrong once and pay for it in back-contributions plus damages.
Factories
All factories under the Factories Act with 10 or more employees are covered by default, wherever ESI is notified.
Notified establishments
Shops, hotels, cinemas, road transport, private educational and medical institutions with 10 or more employees, subject to state notification. Some states apply the threshold at 20.
State discretion
State governments can lower the threshold to as few as one employee, or extend ESI to additional sectors. Applicability must be checked state by state, not assumed uniform.
Employee wage ceiling
Only employees earning gross wages up to Rs 21,000 per month are contributory. For employees with disability, the ceiling is Rs 25,000.
Coverage continuity
Once covered, if an employee crosses Rs 21,000 mid-contribution-period, coverage continues to the end of that period. It does not stop the same month.
Contribution period vs benefit period
Two six-month contribution periods (April-September, October-March), each mapped to a benefit period six months later. This is why benefits are not immediate on joining.
In-house ESI Team vs Outsourced to TMS.
ESI is procedurally simple but state-nuanced and time-sensitive. Most companies below 1000 employees find outsourced ESI administration cheaper and lower-risk than an in-house desk. Here is how the two compare.
| Decision | In-house ESI desk | TMS outsourced |
|---|---|---|
| Monthly contribution | Your HR or payroll team | TMS files on the 15th |
| State applicability audit | Manual, per new location | Maintained across 28 states |
| IP card and claims | Employee liaises directly | TMS coordinates on employee behalf |
| ESIC inspection support | You represent yourself | TMS attends, drafts responses |
| Regulation 31A damages risk | Sits with the employer | Prevented by SLA-backed calendar |
| Best for | Very large captive HR operations | Companies of 10 to 5,000 that want the risk off the desk |
Opening a new state or crossing the ESI threshold?
Tell us the state, headcount and gross wage bands. We check applicability, register the ESIC code and start monthly contribution filing from the next cycle.
Two Decades of ESI Filings Across 28 States.
Since 2006
A compliance-first HR firm that has filed ESI for close to two decades, through every wage-ceiling revision and state-threshold change.
SLA-backed 15th filing
Contractual deadline for ESI contribution upload and challan payment on the 15th of every month, with same-day exception handling.
1 SPOC per account
A dedicated ESI programme manager who owns your engagement, member queries and ESIC portal liaison end to end.
Team Management Services (TMS)
TMS is a compliance-first HR firm in India, established in 2006, serving 450+ clients across 100+ cities and 28 states. Our ESI practice runs monthly contribution filings, IP number management, claims support and ESIC inspection response on the TMS payroll and compliance infrastructure. Contact: [email protected], +91 22 4896 7640.
Other Ways TMS Can Help.
ESIC Calculator
Free tool to estimate employer and employee ESI contributions on your wage structure.
PF Services
EPF registration, monthly ECR filing and UAN handling under EPF Scheme 2026.
Statutory Compliance
Full HR labour-law compliance across PF, ESI, PT, LWF, TDS and beyond.
ESI FAQs.
When does my company need to register for ESI?
Register when your establishment first crosses the state applicability threshold. For factories and most notified establishments this is 10 employees, but some states apply the threshold at 20 and a few extend coverage down to one employee. Applicability must be checked state by state.
What are the current ESI contribution rates and wage ceiling?
Employer contributes 3.25% and employee 0.75% of gross monthly wages, up to a wage ceiling of Rs 21,000 per month (Rs 25,000 for employees with disability). Contribution rates have been unchanged since the July 2019 revision.
What is the ESI filing deadline and what happens if we miss it?
Monthly contribution and challan are due by the 15th of the month following the wage month, through the ESIC portal. Miss it and interest at 12 percent per annum plus damages under Regulation 31A start accruing, along with prosecution risk under Section 85 of the ESI Act for wilful default on employee contributions.
What happens when an employee crosses the Rs 21,000 wage ceiling?
ESI coverage does not stop immediately. The employee remains covered and contributory until the end of the current contribution period (either the April-September or October-March half-year). From the next contribution period, they become non-contributory.
Does outsourcing ESI to TMS remove employer liability?
No. The principal employer remains statutorily liable for ESI contributions under the ESI Act. Outsourcing operationally to TMS removes the day-to-day workload and audit risk, but the statutory relationship stays between ESIC and your company. TMS carries the delivery SLA.
Can TMS take over an existing ESI account and clean up legacy defaults?
Yes. We take over the Employer Code, run a legacy audit against the state applicability threshold, reconcile past contributions and start the next monthly cycle from the takeover date. Typical takeover completes inside 30 days.
Book a 30-Minute ESI Compliance Call.
Tell us the state, headcount and gross wage structure. We check applicability, scope the takeover and start monthly contribution filing from the next cycle if you want us to. Prefer to talk? Call +91 22 4896 7640 or WhatsApp +91 91360 24090.
Get a compliance review in 24 hours.
Tell us your states and headcount. Our compliance team will respond with your applicable acts, gaps and a fixed-scope plan within one business day.