Budget 2026: Staffing Industry Proposes 3 Fixes to Formalise 85% Informal Workforce
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News18•19-01-2026, 12:05
Budget 2026: Staffing Industry Proposes 3 Fixes to Formalise 85% Informal Workforce
- •India's labour market has 85% informal workers lacking basic protections like provident fund and health insurance.
- •The Indian Staffing Federation (ISF) proposes three key reforms for Budget 2026 to formalise jobs and boost productivity.
- •ISF recommends reducing GST on staffing services from 18% to 5% to make formal hiring more affordable for businesses.
- •Changes to Section 80JJAA are sought to introduce women-specific incentives and inflation-linked thresholds for tax deductions on new hires.
- •ISF also suggests allowing CSR funds for building worker hostels in industrial hubs to improve retention and stability, especially for migrant and women workers.
Why It Matters: Staffing industry urges Budget 2026 reforms to formalise India's 85% informal workforce, boosting growth and revenue.
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