Is ESI Contribution taxable in the hands of employee?

Does ESI contribution by both employer and employee forms part of Gross Salary income of the employee for the purpose of Income tax calculation?
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Quick Summary
This discussion clarifies the taxability of ESI contributions for employees. It confirms that only the portion of ESI contributed by the employee is considered part of their gross salary for income tax purposes. Employer contributions to ESI are not taxable in the hands of the employee.

ESI contribution by employee forms part of gross salary but employer contribution is not.
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Only the employee contribution of ESI deducted by the employer forms part of the gross salary of the employee .

 

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