When ESI is deducted from Salary?
If your organization is registered under ESIC and your monthly gross salary is less than 21000/month, then you are eligible for the ESIC contribution. Employee side contribution (0.75% of Gross Salary) will be deducted from your earned Salary for the month.
The rates of the ESI contribution are calculated on the wages paid. Currently, the employee side contribution is 0.75% of wages paid/payable, and the employer contribution is 3.25% of wages paid/payable.