Minimum Wages in Kanpur: Can We Pay Skilled Workers Less Until PF and ESIC Apply?

Hi Team,

Can you please confirm what salary we need to pay to skilled employees under the Minimum Wages Act for the Kanpur location?

As per the online information, it's ₹10,628 gross, but we currently do not fall under PF and ESIC deductions. So, can we pay them ₹7,500 - ₹8,000 in hand until we come under PF and ESIC deductions?

Latest Minimum Wages for Shops & Establishments in Uttar Pradesh

Effective from Date: 1st Apr, 2020
Updated As On: 6th Apr, 2020

Class of Employment
Basic Per Month | VDA Per Month | Total Per Day | Total Per Month
Unskilled: 5750.00 | 2875.00 | 331.73 | 8625.00
Semi-skilled: 6325.00 | 3162.50 | 364.90 | 9487.50
Skilled: 7085.00 | 3542.50 | 408.75 | 10627.50

Also, see the attached circular to check if it helps you (I am not familiar with the Hindi version). Regarding contributions to EPF/ESIC, if your labor strength is 10 or 20, you should have registered with the authorities. However, if your labor strength is not 10, then it's a different issue. Depending on the applicability to your firm, you have to deal with the matter accordingly.

Payment of minimum wages is mandatory whether EPF/ESI is applicable to your firm. Hence, you should not restrict the minimum wage on this aspect. Please examine all the relevant factors.