Budget 2026: ISF Proposes Tax and Policy Changes for Formal Employment Push

• The Indian Staffing Federation (ISF) has submitted Budget 2026 recommendations to boost formal employment and worker security.
• ISF proposes reducing GST on staffing services from 18% to 5%, treating them as "merit services" to lower formal hiring costs.
• Revisions to Section 80JJAA of the Income Tax Act are suggested, including a women-specific incentive slab and inflation-indexed salary thresholds.
• ISF advocates for clearer CSR rules to allow funding for worker hostels and support facilities in industrial clusters.
• The proposals aim to enhance workers' access to provident funds, health insurance, maternity benefits, and pension coverage.

Why It Matters: ISF's Budget 2026 proposals focus on tax and policy changes to formalize India's workforce, enhancing worker benefits.