What are the rates for contribution (deduction) to ESI? Simi Paleri July 26, 2019 10:56 Updated For employees, ESI deduction rate is 1.75% of the ESI Gross salary. For employer, ESI contribution is at the rate of 4.75% of the ESI gross salary. Related articles What is ESI Gross Salary? How to enable ESI eligibility for employees in bulk on greytHR? Enable ESI eligibility What is Employees State Insurance (ESI)? Can we set 2% PF as a special allowance instead of creating the new component under gross?