In SumoPayroll, Employee State Insurance (ESI) contributions are calculated based on the employee’s Basic Pay + ESI Applicable Allowances .
Employee Contribution
0.75% of (Basic Pay + ESI Applicable Allowances)
Employer Contribution
3.25% of (Basic Pay + ESI Applicable Allowances)
ESI Wage Limit
If the Gross Pay exceeds ₹21,000, ESI is calculated on ₹21,000 only, not on the full gross amount.