Understanding Minimum Wage Deductions and Legal Implications - CiteHR

Minimum Wage and Deductions Clarification

My question is, does the minimum wage include all deductions, or should the take-home salary (after all statutory deductions) of a worker be equal to or more than the minimum wage? I am confused on this as the MW Act 1948 section 12 (1) says:

"Where in respect of any scheduled employment a notification under section 5 is in force, the employer shall pay to every employee engaged in a scheduled employment under him wages at a rate not less than the minimum wages fixed by such notification for that class of employees in that employment without any deductions except as may be authorized...."

And as per the Asiad Case, the workers can't be paid less than the minimum wage as it would amount to bonded labor. Please clear this doubt.

Thanks in advance.

Regards,
Harpreet Singh
HR Professional

From India, Delhi
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Hello Harpreet, Employer can made all statutory deductuion from Minimum wages like EPF, ESI and LWF. Regards, Shaikh Abedeen
From India, Bhubaneswar
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