Labour appointment as Trainee - Rs. 7500 /- is much below the min wages for unskilled

I want to appoint few ITI pass outs. But my concern is, as directed by my seniors, all such candidates will be called as"Trainee".
Now we will pay Rs 7500/- as monthly fixed amount, without PF or ESIC deduction. Rs. 7500 /- is much below the min wages for unskilled.
Is this legally acceptable, if not, which Act, Rule, section is being contradicted. Please help me with the data, so that I can convince my senior as raise their pay to at least min wages.
Thanks

Dear Sandeep,
The prospective 'trainees ' are already holders of ITI trade certificates. It is a proof that they have already undergone apprenticeship training under the Apprentices Act. The absence of the essential information pertaining to the length of the training, the consequential employment opportunity in your organization as regular employees and the provision for engagement of trainees in your standing orders coupled with the specific orders of your management to appoint them with the designation as trainees below the statutory minimum wages indicates to me that it is only a tactical arrangement to circumvent the concerned labor laws. If at all any institutional training is absolutely required, the nature of job should be so critical to retrain and orient the already skilled persons for a definite period involving extra efforts and cost. Even in such a situation the appointment can be regular with a stipulation to certain compulsory minimum post-training service or refund of the entire cost of training. Therefore, with reference to the above specific details described, my opinion is that your management cannot escape compliance with the provisions of the laws relating to Minimum Wages, ESI and EPF.

Thank you Mr. Umakanthan.
That is exactly what I am feeling is going wrong
1. Org do not have standing order
2. Org is planning to take them as trainee at Rs 7500,( not under apprentice) for six month, make them work and understand if they can work, and then decide. No pf or esic. May extent to one year
3. They will be working as other workers.
This is just to save some money.
Should I allow the management to do so,
Please help

You may appoint fresh ITI candidates as Apprentice Trainee under the provision of Apprenticeship Act. Even Graduate and Diploma Engineers under BOPT (Board of practical training). You have to pay consolidated amount per month as prescribed under the act without PF and ESI and you have to grant leave as per eligibility.
However, it is suggested that please arrange to obtain "Accident" or "Mediclaim" insurance policy if those trainees placed at factory or any such place where accident may happen at any time.
Nobody will ask you to take provision for such worst situation but if occurred, nobody will help you to tide over the situation.

I have heard about NEEM,National,employment enhancement mission of govt,under the AICTE.
Where in employers can hire candidates as NEEM trainees.
Where they are paid a stipulated monthly Stifund and covered under medical insurance.If any body who can explain Neem in better way would be helpful.