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.