ESIC for employers.

For every worker earning up to ₹21,000 a month, the employer pays 3.25% of wages and the worker 0.75%, each rounded up to the next rupee, by the 15th of the next month.

Updated 18 October 2026 from the Gazette, the Ministry of Labour and ESIC. How we check

Employer pays: 3.25%
Worker paysnothing on ₹176 a day or less: 0.75%
Wage limita month, when a period begins: ₹21,000
Due: 15th

Coverage is decided twice a year.

ESIC runs in two contribution periods. A worker within ₹21,000 when one begins stays covered to its end, whatever happens to their wages.

₹19,500

Apr

May

Jun

₹22,000

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

1 April to 30 SeptemberCovered for the whole period: wages were within ₹21,000 when it began.

1 October to 31 MarchNot covered: wages were above ₹21,000 when it began.

Within the limit, coveredAbove it, still covered to the period's endNot covered

One worker's year. Coverage is decided at the start of each contribution period, so a raise does not end it mid-period.

Work it out.

For one worker, a full month.

Wages a month

Worker, 0.75%: ₹135
Employer, 3.25%: ₹585
Paid in each month: ₹720

Each share is rounded up to the next rupee. A worker averaging ₹176 a day or less pays nothing; the employer still pays 3.25%.

The rules.

Who it covers

Establishments: Every establishment with 10 or more persons, other than a seasonal factory, from the date ESIC's benefits are notified for its area. Workers above the limit count towards the 10, and it stays covered if headcount later falls.
Workers: Everyone on wages up to ₹21,000 a month, in force since 1 January 2017; the Ministry of Labour's FAQs of March 2026 confirm it continues under the Code.
Which wages: Wages as the Code defines them (section 2(88)): basic pay, dearness allowance and retaining allowance, plus allowances above half of total pay. ESIC expects this to bring back workers who had been left out.

How much

Employer: 3.25% of wages, rounded up to the next rupee.
Worker: 0.75%, rounded up, deducted from wages. ESIC exempts workers averaging ₹176 a day or less; the employer still pays its own share.
Workers with a disability: No employer's share for up to three years.

When

Registering workers: On or before the day each worker joins, through the ESIC portal with Aadhaar; the insurance number lapses if the declaration is not finished within 30 days.
Payment: Within 15 days of the end of the month the wages are for: by the 15th.
Paid late: Interest of 12% a year, plus damages of up to 5% a year for under two months, 10% for two to four, 15% for four to six and 25% beyond, up to the arrears themselves. These rates come from the 1950 regulations, kept in force until November 2026; draft regulations propose a flat 1% a month.

Contract workers

Covered: A worker employed through a contractor is an employee of the establishment under the Code.
Who is liable: The principal employer must pay both shares for every worker, including those employed through a contractor, and can recover them from the contractor's bills or as a debt.

Questions

What is the ESIC wage limit in 2026?

₹21,000 a month. A worker who joins above it is not covered; one whose wages rise above it during a contribution period stays covered until the period ends, on 30 September or 31 March.

How much is the employer's ESIC contribution?

3.25% of wages, rounded up to the next rupee, plus the worker's 0.75%, which the employer deducts and pays with its own. On ₹18,000 that is ₹585 and ₹135.

Who pays ESIC for contract workers?

The principal employer is responsible for both shares for workers employed through a contractor, and can recover them from the contractor. In practice the contractor pays, and the principal employer checks that it has.

EPF for employers Minimum wages by state

Sources (9)