{"id":6487,"date":"2024-11-20T09:10:30","date_gmt":"2024-11-20T03:40:30","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=6487"},"modified":"2025-02-13T17:16:58","modified_gmt":"2025-02-13T11:46:58","slug":"esi-calculation","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/","title":{"rendered":"ESI Calculation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e226486b7e2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e226486b7e2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#What-is-Employee-State-Insurance-Scheme-ESI\" >What is Employee State Insurance Scheme (ESI)?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#What-is-the-Full-Form-of-ESI\" >What is the Full Form of ESI?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#How-are-Wages-defined-as-per-the-ESI-Act\" >How are Wages defined as per the ESI Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#ESI-Calculation\" >ESI Calculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#ESI-Calculation-Formula\" >ESI Calculation Formula<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#How-to-Calculate-ESI-with-Example\" >How to Calculate ESI with Example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#Collection-of-ESI-Contribution\" >Collection of ESI Contribution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#What-is-Contribution-Period-and-Benefit-Period\" >What is Contribution Period and Benefit Period?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#ESI-in-case-of-Salary-Increase\" >ESI in case of Salary Increase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#ESI-Return-Filing\" >ESI Return Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#Deadlines-for-Filing-ESI\" >Deadlines for Filing ESI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#Documents-Required-for-ESI-Registration\" >Documents Required for ESI Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#Penalties-for-Non-payment-of-Employee-Contribution\" >Penalties for Non-payment of Employee Contribution\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#Automate-ESI-calculation-filings\" >Automate ESI calculation &amp; filings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-calculation\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-Employee-State-Insurance-Scheme-ESI\"><\/span>What is Employee State Insurance Scheme (ESI)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The ESI or Employees State Insurance Scheme is an insurance cover provided to workers to aid them in uncertain and challenging times. It is a self-financed fund governed by the Employee State Insurance Corporation and comes under the ESI Act, 1948.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This fund is self-financed by employees out of their gross salary, with additional contributions from the employer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As per the ESI Act, all establishments with more than 10 employees are covered under the ESI Act and have to maintain an ESI fund. All factories, shops and establishments are covered under the ESI Act unless otherwise specified by the Act. Also, employees are covered only if their salary is below Rs. 21,000 per month and the organisation is covered under ESI.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/?r=blog_cta_ESI_calculation\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">RazorpayX Payroll<\/span><\/a><span style=\"font-weight: 400;\"> is India&#8217;s only fully automated payroll compliance solution &#8211; calculate &amp; file statutory compliances like ESIC, PF, and PT with just one click.\u00a0<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup?r=blog_cta_ESI_calculation\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Demo RazorpayX Payroll for Free<\/a><\/div>\n<div><\/div>\n<h3><span class=\"ez-toc-section\" id=\"What-is-the-Full-Form-of-ESI\"><\/span>What is the Full Form of ESI?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>ESI stands for<strong> Employees&#8217; State Insurance.<\/strong> It is a health insurance plan offered by the ESIC, or Employees State Insurance Corporation to Indian employees.<\/div>\n<h2><span class=\"ez-toc-section\" id=\"How-are-Wages-defined-as-per-the-ESI-Act\"><\/span><strong>How are Wages defined as per the ESI Act?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to the ESI Act, &#8220;wages&#8221; refer to the total amount received by an employee in exchange for services provided. Wage includes basic salary and allowances.<\/p>\n<p><span style=\"font-weight: 400;\">The <a href=\"https:\/\/razorpay.com\/payroll\/learn\/esi-full-form-registration\/\">ESI<\/a> contribution of both the employer and the employee is calculated on the basis of the employee\u2019s wages. To determine the eligibility and the wages on which ESI contribution should be calculated, some items are included, and some of the components are excluded. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given below is the list of the items that should be included and excluded while doing ESI calculation on salary.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Items Included\u00a0<\/b><\/td>\n<td><b>Items Excluded<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Basic Pay<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Entertainment Allowance<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Dearness Allowance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Leave Encashment<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">City Compensatory Allowance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Compensation for Retrenchment<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">House Rent Allowance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Gratuity<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sales Commission<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Deduction for Health Insurance Premium<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Meal Allowance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Tax Deductions<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Medical Allowance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Annual Bonus<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Special Allowance and Overtime<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Annual Commission<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Newspaper Allowance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Petrol Allowance<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Education Allowance<\/span><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><b>Important Note: Regarding conveyance allowances<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Supreme Court has passed an order recently (dated 8 March 2021) stating that <a href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/\">conveyance allowance<\/a> or travel allowance does not fall under the definition of ESI wages. Hence, employers have to exempt conveyance allowance from ESI contributions and for computing the ceiling limit of Rs. 21,000 per month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is applicable to you only if you are using custom salary structures which include an allowance called &#8220;Conveyance Allowance&#8221;.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ESI-Calculation\"><\/span><strong>ESI Calculation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The ESIC act, 1948, has fixed the percentage contribution of the employer at 3.25% of the wages and that of the employee at 0.75% of the wages.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ESI-Calculation-Formula\"><\/span><strong>ESI Calculation Formula<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">ESI is calculated on total earnings every month (excluding any employer contribution to PF\/ESI, if included in the employee&#8217;s CTC).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The wages are calculated by adding the basic pay and the Allowances (<a href=\"https:\/\/razorpay.com\/payroll\/learn\/dearness-allowance\/\">DA<\/a> + <a href=\"https:\/\/razorpay.com\/payroll\/learn\/hra-calculation\/\">HRA<\/a> + Medical + City Compensatory Allowance, etc.).\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-Calculate-ESI-with-Example\"><\/span><strong>How to Calculate ESI with Example<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s say the calculated wages of Mr X as per the ESI Act, 1948 is INR 20,000. Then the contributions will be calculated using the ESI calculation formula as below.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Particulars<\/b><\/td>\n<td><b>Calculation<\/b><\/td>\n<td><b>Amount<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Employer\u2019s Contribution (@3.25%)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20,000*3.25%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">650<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Employee\u2019s Contribution (@0.75%)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20,000*0.75%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">150<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Total Contribution<\/b><\/td>\n<td><span style=\"font-weight: 400;\">\u2014<\/span><\/td>\n<td><b>800<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">After calculating the contributions and deduction of Rs. 150 from Mr X\u2019s wages, <strong>the employer is responsible for depositing the total contribution, i.e., Rs. 800, to the corporation within the stipulated time.\u00a0<\/strong><\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Collection-of-ESI-Contribution\"><\/span><strong>Collection of ESI Contribution<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The employer is required to pay his contribution as well as deduct the employee\u2019s contribution of their salary every month. This amount of contribution (employer\u2019s contribution + employee\u2019s contribution) needs to be deposited with the corporation within 15 days of the last day of the month in which it was deducted. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">SBI and some other banks have been authorised by ESIC (Employees&#8217; State Insurance Corporation of India) to collect payments on its behalf.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What-is-Contribution-Period-and-Benefit-Period\"><\/span><strong>What is Contribution Period and Benefit Period?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The ESI scheme divides the calendar year into two contribution periods of 6 months each. These contribution periods have a corresponding benefit period in the following year. In other words, for the contribution made during the first 6 months, the employee receives its benefits during the next 6 months (benefit period).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This provision benefits those employees whose salary increases above the threshold limit of Rs. 21,000 during the contribution period.\u00a0<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Contribution Period\u00a0<\/b><\/td>\n<td><b>Benefit Period<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1st April to 30th September<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1st January to 30th June<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1st October to 31st March<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1st July to 31st December<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ESI-in-case-of-Salary-Increase\"><\/span>ESI in case of Salary Increase<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s say that the salary of Mr X was Rs. 18,000 in May 2021. It increased to Rs. 23,000 from June 2021. In this case, the ESI contribution of both the employer and the employee is calculated on 18,000 for April to May and on 23,000 from June to September.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This benefits the employees as they receive more contributions. But, after September, when the contribution period gets over, the employee becomes disqualified from the ESIC act. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the employee receives the benefit during the corresponding benefit period, i.e., 1st January to 30th June.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ESI-Return-Filing\"><\/span><strong>ESI Return Filing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The establishments registered under the ESIC Act, 1948 are required to file ESI returns. The employers can download Form 1 from <\/span><a href=\"https:\/\/www.esic.in\/ESICInsurance1\/ESICInsurancePortal\/PortalLogin.aspx\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">ESIC\u2019s official website<\/span><\/a><span style=\"font-weight: 400;\"> in PDF format, fill it and submit it online.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Deadlines-for-Filing-ESI\"><\/span><strong>Deadlines for Filing ESI<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The deadline for filing ESI returns for both the periods is as follows &#8211;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For the contribution period of 1st April to 30th September &#8211; 12th November<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For the contribution period of 1st October to 31st March &#8211; 12th May<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Documents-Required-for-ESI-Registration\"><\/span><strong>Documents Required for ESI Registration<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To ensure compliance under the ESIC Act, 1948 and ensure that employees avail its benefits, every establishment covered under the Act has to register with ESI in Salary. Following is the list of documents that are required to get registered under ESI.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Address proof of the business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/razorpay.com\/learn\/company-permanent-account-number-pan-card\/\"><span style=\"font-weight: 400;\">Business PAN Card<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Details about shareholders, partners and directors.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business licences<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employee details and the details of their salary structure.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bank account details<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Memorandum of Association, Article of Association, the partnership deed or other business deeds.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Penalties-for-Non-payment-of-Employee-Contribution\"><\/span><strong>Penalties for Non-payment of Employee Contribution\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The employer is responsible for depositing the employee as well as the employer\u2019s contribution with ESI in salary.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the employee\u2019s contribution is deducted from their salary but not paid by the employer is considered a punishable offence under the ESI act.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any non-payment, late payment or false payment can attract a penalty of Rs. 5000 and up to 2 years in prison.\u00a0<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Automate-ESI-calculation-filings\"><\/span><span style=\"font-weight: 400;\">Automate ESI calculation &amp; filings<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/?r=blog_cta_ESI_calculation\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">RazorpayX Payroll<\/span><\/a><span style=\"font-weight: 400;\"> automates the calculation &amp; filing of statutory compliances like ESIC, PF, PT and more. It is an all-in-one HR &amp; payroll software that helps a company manage their employees and compliances in just 3 clicks.<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup?r=blog_cta_ESI_calculation\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Automate ESI calculation &amp; filing<\/a><\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u00a0And, here are a few other benefits of RazorpayX Payroll:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customised offer letters for onboarding employees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatic CTC calculation and payroll calculation while taking into account the statutory deductions like TDS, PF, ESI etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax calculation and filing for your company on respective govt. portals\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Group health insurance for teams as small as 2!<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Flexi Benefit Plan and integrations with other leading software<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attendance and leave management system<\/span><\/li>\n<\/ul>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup?r=blog_cta_ESI_calculation\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Try it for free!<\/a><\/div>\n<p>&nbsp;<\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/zo-world-reduces-its-payroll-time-with-razorpayx-payroll\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">[Read how Zo World Reduced Its Payroll &amp; Reimbursement Timelines by 75% with RazorpayX Payroll]<\/a><\/strong><\/p>\n<h5>Read more:<\/h5>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/\">Payroll Software<\/a><\/strong><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/what-is-payroll\/\">What is Payroll<\/a><\/strong><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/learn\/payroll-process\/\">Payroll Process<\/a><\/strong><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/learn\/payroll-management-system-software\/\">Payroll Management<\/a><\/strong><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/learn\/hris-human-resource-information-system\/\">HRIS<\/a><\/strong><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/leave-attendance-management\/\">Leave Attendance Management<\/a><\/strong><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/attendance-management-system\/\">Attendance Management System<\/a><\/strong><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/payroll\/hr-software\/\">HR Software<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><span style=\"font-weight: 400;\">FAQs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<p>ESI calculation is done on the basis of the wages paid to the employee. Learn how to calculate ESI with an example in this blog post.<\/p>\n","protected":false},"author":151156494,"featured_media":14625,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3404],"tags":[3740],"class_list":{"0":"post-6487","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll","8":"tag-esi-calculation"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156494"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=6487"}],"version-history":[{"count":11,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6487\/revisions"}],"predecessor-version":[{"id":15808,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6487\/revisions\/15808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/14625"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=6487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=6487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=6487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}