Why garment workers flayed govt's move to tighten PF rules

Thousands of garment workers angry with the government over changes to their pension funds clashed with police in the information technology hub of Bengaluru on Tuesday as security forces fired teargas to control the crowds.

Police detained about 100 people after protesters blocked roads and some turned to violence, Bengaluru police commissioner N. S. Megharikh said.

Television footage showed smoke pouring from burnt-out buses and a smashed police vehicle.

Here's why workers took to streets.

• The protests come after the government proposed changes in February to how employees can withdraw savings from the Employee Provident Fund (EPF).
• According to the new norms proposed earlier this year, subscribers are not to be allowed to claim withdrawal of PF after attaining 54 years of age, and would have to wait till 57. The earlier norms allowed contributors or subscribers to claim 90 per cent of their accumulations in their PF account at the age of 54 years, and the final claims to be settled just one year before their retirement.
• Only about 36 million of the country's 1.3 billion people contribute to the EPF.
• Besides, the EPFO had also restricted withdrawal of PF to own contribution of subscribers and interest earned on that, if the claimant has remained unemployed for more than two months. The member would be able to withdraw employer's contribution on maturity.
• As per experts, the earlier clause was relevant because there were establishments where retirement age was 55 years or 56 years. But this will create a problem in private as well as public sector where people opt for voluntary retirement.