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.