Esi limit as per new labour code

Premnath R (Querist) 21 October 2026 This query is : Resolved
Sir

As per the new Labour Code how is the limit on ESI calculated.Is ESI applicable to employees whose Basic plus DA equals Rs 21000 or more.
Is it calculated on the same basis as PF ie Basic plus DA
Our Company`s Salary structure includes Basic, DA, HRA and Conveyance allowance.
If an employees Basic plus DA comes to Rs 21000 or more Should we deduct ESI
Thanks in advance

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Quick Summary

The new Labour Code maintains the ESI wage ceiling at £21,000 per month for general employees and £25,000 for those with disabilities. ESI contributions are mandatory if an employee's gross monthly wages fall within these limits, provided the company is covered by the ESI Act. This applies regardless of how the salary is structured, including basic pay, DA, HRA, and allowances.

kavksatyanarayana (Expert) 21 October 2026
Under the new Labour Code 2025, the statutory ESI wage ceiling remains ₹21,000 per month for general employees, and disability ceiling is Rs.25,000/- per month. ESI must be deducted if the employee's gross monthly wages are Rs. 21,000 or less (or ₹25,000 or less for persons with disabilities), provided the establishment is covered under the ESI Act.

Dr. J C Vashista (Expert) 23 October 2026
I concur with the opinion and advise of learned expert Mr. Kavksatyanarayana, ceiling for general employees drawing salary of Rs. 21,000/- and Rs. 25,000/- for disabled persons is revised for ESI contribution.

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