Check whether the employee’s gross monthly salary is within the ESI wage limit
Use the ESI wage ceiling applicable in your country or jurisdiction
Calculate ESI only on the employee’s ESI-covered wages
Apply the employee contribution rate to the covered wages
Apply the employer contribution rate to the covered wages
Add both contributions to get the total ESI amount
Deduct the employee contribution from the salary
Record the employer contribution as an employer expense
If salary exceeds the ESI wage limit, ESI is not applicable
If salary is within the limit, use the current statutory ESI rates for calculation