All labor should be paid at least minimum wage - compelled or not.
That said there are multiple ways to do this. One is compelled labour the proceeds of which they'll never see, but perhaps work can go to lowering their sentence. Another can be deferred compensation, where they get a fixed stipend once out based on their work while incarcerated.
I can think of a bunch of other ways, but I'm not sure I agree that the compensation should be minimum wage. People fund the government via taxes, but criminals aren't just not paying into the system, they are actively draining it. I'm not sure garnishing wages they'd otherwise earn is in principle unjust anymore that income tax is unjust.
I'd call the difference of prison wage and the minimum wage lost money.