Central government's new PF policy targets workers' savings: Anger erupts across the state
The new Provident Fund (PF) withdrawal rules introduced by the central government have caused intense discontent in the state's labor sector, especially in the garment industry. This 'anti-worker' policy of the central government, which imposes long-term restrictions on poor workers from using their hard-earned savings for their own times of need, is strangling the working class. A decade ago, in 2016, when similar flawed rules were introduced, millions of workers across Bengaluru took to the streets in protest. Now, this new policy, which seems to echo those same dark days, is a salt in the wound for the working class.
- Advertisement -The central government has tightened the rules for PF withdrawal under the 'EPF Scheme 2026,' introduced on June 29, 2026. Under the previous rules, workers were eligible to receive their full PF amount two months after leaving their job. However, under the new rule, PF and EPS (pension) a waiting period of 12 to 36 months has been imposed to receive the money. Additionally, when withdrawing funds for house construction or emergency needs, only 75% of the total amount is currently allowed, The central government has imposed a restrictive condition that a minimum of 25% of the total amount must be compulsorily maintained in the account.
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Earlier, on September 22, thousands of women workers in Tumkur, led by the Joint Struggle Committee of Garment Workers and the CITU, staged a massive protest by walking off the job. Slogans against the central government rang out during the march from Gubbi Gate to the District Collector's office. "Our earnings, our savings. Why should we have to wait to get that money in our own time of need?" protested workers Radhika, Asha, S. Netravati, and Sharmin Unnisa, sharply questioning the central government's arbitrary actions.
Labor organizations have expressed intense outrage, stating that this new policy has completely upended the economic security of workers. Garments and Textile Workers Union (GATWU) president Pratibha R. met with the regional PF commissioner in Bengaluru and questioned the inhumanity of these rules. Similarly, members of the Karnataka Independent Garments Workers Union (KIGWU) are raising awareness about these flawed rules both inside and outside factories. Labor leaders have made it clear that they cannot accept the flimsy excuse given by the central government that 'this restriction is for your own good.'
CITU District President Syed Mujib and Secretary N.K. Subramaniam has strongly condemned the central government's anti-worker stance. The central government, which has replaced the 1952 Provident Fund Act with the new 'Social Security Code', His direct accusation is that the central government is, in reality, stripping away the little security that working people had. Imposing such anti-people laws on the working class, which is struggling without even a minimum wage amidst rising prices, is a testament to the government's insensitivity.
Workers in the garment industry receive the lowest minimum wages. Most of them are women who are responsible for supporting their entire families. This PF money is their only support in emergencies like children's education, rent, childbirth, or illness. In this context, preventing them from freely accessing their own savings is a direct attack on their right to life. These rules are a conspiracy to push the working class into further financial hardship, and they contain no interest for the workers.
An official petition was submitted to the Central PF Commissioner on September 28, demanding the immediate withdrawal of these new rules that have become a burden for workers. A key demand is to reinstate the previous system, allowing workers to receive their entire PF amount without any conditions when needed. If the Central Government does not immediately correct its anti-worker stance, The working class has issued a clear warning that if the central government does not immediately correct its anti-worker stance, it will face a massive, fierce nationwide struggle on the lines of the 2016 model.
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