Changes in PF withdrawal rules lead to protests by garment workers
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The change allows partial withdrawal of upto 75%, while the remaining amount will remain in the PF account, a move that has been opposed by the workers. | Photo Credit: File photo
Garment workers of Karnataka have become restive over changes brought to Provident Fund (PF) withdrawal, which came into effect from July 1, 2026. The change allows partial withdrawal of upto 75%, while the remaining amount will remain in the PF account, a move that has been opposed by the workers. Protests in several places have erupted already.
On Wednesday, protesting garment workers from three garment companies in Peenya, including president of Garment and Textile Workers Union R. Prathibha, were taken into preventive custody after police resorted to mild lathicharge to stop them from obstructing traffic. A senior police official said that the Peenya police have registered multiple FIRs against over 60 workers under sections of Bharatiya Nyaya Sanhita for “obstruction of duty of the police personnel, rioting, unlawful assembly, wrongful restraint, and damaging public property.”
Garment workers protested in Maddur, Shikaripura, Haveri, Tumakuru, and Tiptur, besides Peenya and Bommasandra in Bengaluru recently. Meanwhile, with the protest threatening to grow bigger, Labour Minister Santhosh Lad has convened a meeting with all stakeholders on Thursday.
As per the rules, to withdraw the remaining 25% of PF, workers will be forced to remain unemployed for a mandatory period of 12 months, which is a change from the past where the workers were allowed to withdraw 100% of their PF accumulation within two months after leaving employment, GATWU general secretary K.R. Jayaram said.
“If workers secure employment within 12 months, the 25% will continue to be in the account. Even for 75% withdrawal, workers have to provide reasons for the need that may include education, marriage, or housing. Workers, in many case, utilise this fund to seek housing space on lease as rents in Bengaluru is prohibitive, since workers receive meagre salary,” he argued.
As workers were affected by the new changes, GATWU held meetings with provident fund officials to whom a memorandum signed by about 5,000 garment workers has been handed over.
Another major issue flagged by GATWU pertains to the change in the pension fund, which has riled the workers. “Earlier, workers could access fund in the Employees’ Pension Scheme fund immediately even though their employment was less than 10 years. The full EPS accumulation was given within two months. However, workers will have to wait for 36 months before they can access this fund now,” Mr. Jayaram said.
All India Central Council of Trade Unions State secretary Maitreyi K. said: “No action should be taken against garment workers. We believe that the specific issue with garment workers is low wages with no savings and extreme dependence on PF. The minimum wages should be increased and brought on a par with other workers.”
The All India Trade Union Congress (AICTU) also condemned the police action against the workers. “Garment workers have seen their wages erode substantially, as minimum wage revision has been hanging fire for nearly a decade now. The State government should immediately revise wages and not succumb to industry pressure.”
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