Understanding Minimum Wage: Does It Include PF and ESI Deductions in Delhi?

Hi Rakhee,

Please let me know whether we include ESI and PF in the minimum wage rate applicable in a region. For example, in Delhi, for unskilled workers, the minimum wage rate is Rs 3633. Does this Rs 3633 include PF and ESI deductions?

Please help, this is urgent.

Regards,
Rakhee

A particular minimum rate of wage quoted is gross and before deduction of ESI, EPF, etc. Therefore, if the minimum wages of unskilled workers are Rs 3633, then it is gross, and you can deduct ESI and EPF at the prescribed rates (1.75% and 12%, respectively) from it and pay the net to the worker.

Regards, Madhu.T.K