Is It Right to Deduct EPF When Employee's Salary Falls Below Minimum Wage?

Hi, I would like to know if an employee's salary (10k per month) is not meeting the minimum wage requirement of at least 14k (approximately per month), should we deduct the EPF from their salary? Our calculation states that the basic salary is 40% of the gross or CTC (4000*12%). Should we proceed with EPF deduction for this employee?

If your establishment is covered by the PF Act, you need to deduct PF in all those cases where an employee draws wages of ₹15,000 or less per month. The PF deduction has nothing to do with minimum wages. However, an employer is required to pay wages not less than the minimum wages prescribed by the government for each category of workmen.

B. Saikumar
HR & Labour Relations Adviser
Navi Mumbai