Is contribution to provident fund by employees included/excluded in national income?

No,

It is not included in the national income because such contribution is made by the employees from the compensation of employees only. So, it is not separately included in the estimation of national income.

Explanation:-

The contribution to the provident fund by employees is already included in the compensation of employees.

If it is added again in national income, it will lead to double counting.

Let’s understand with an example:-

Compensation of employees = Wages and salaries + Employer’s contribution to provident fund

employee’s contribution to the provident fund is already part of wages and salaries.

Thus, if it is counted separately it will lead to double counting.