Nepal Labour

Migration Report 2020

Government of Nepal
Ministry of Labour, Employment and Social Security
Nepal Labour
Migration Report 2020

Government of Nepal
Ministry of Labour, Employment and Social Security
Nepal Labour
Migration Report 2020

Copyright © 2020

Published by
Government of Nepal
Ministry of Labour, Employment and Social Security
Singha Durbar, Kathmandu
Tel: (+977)-014211378, 4211791, 4211733
Fax: (+977)-014211877
Email: [email protected]
Web: www.moless.gov.np

All rights reserved. No parts of this publication may be reproduced, stored in a retrieval system or transmitted, in any form
or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission.

Designed by: Print Communication Pvt. Ltd.

Tel: (+977)-014241355, 4244148, Kathmandu, Nepal

Printed by: Quality Printer

Tel: (+977)-014228870, Kathmandu, Nepal

ii
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Foreword
Labour migration has remained a salient aspect of Nepal’s socio-economic landscape. The social and
financial remittances and the exposure gained abroad have contributed positively to the Nepali economy.
However, the Government of Nepal is also cognizant of the challenges faced by Nepali youth during the pre-
departure, employment and return phases of migration. In this context, efforts are geared towards making
foreign employment safe, rewarding and dignified while also emphasizing on domestic job creation to
ensure foreign employment is an informed choice for Nepali workers.

As comprehensively presented in the Nepal Migration Report 2020, the Government of Nepal has initiated
multilevel migration related reform efforts at the subnational, national, bilateral, regional and global levels.
These collectively contribute to ensuring the protection of Nepali migrant workers throughout the migration
cycle. In recent years, the fast-changing global migration landscape has put the spotlight on migration
issues, especially with the adoption of the Global Compact for Safe, Orderly and Regular Migration (GCM)
and the migration related indicators in the Sustainable Development Goals (2030). In addition, within Nepal,
federalization has presented immense opportunities to initiate worker-centered reform efforts that ensure
safe labour migration. Recognizing the importance of evidence for policymaking, this Report also presents
a detailed analysis of labour migration from Nepal, with an emphasis on the years 2017/18 and 2018/19.

This Report also delves into the complexities of transnational migration governance. It presents rich
information on various facets of labour migration that will contribute to an evidence-based discourse on
migration issues. It calls for a critical reflection on key issues in migration and more concerted efforts across
different migration related stakeholders, both at the destination country and Nepal. I am confident that the
knowledge base generated from this Report will be critical in informing future efforts in migration governance.
I would like to thank the Steering and Working Committees, the International Labour Organization and
everyone who contributed in the preparation of this well-researched, analytical documented.

Rameshwor Ray Yadav

Minister
Ministry of Labour, Employment and Social Security

iii
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

iv
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Foreword
It is my pleasure to introduce the Nepal Labour Migration Report 2020. Relying on the available
databases maintained by the Government of Nepal and a comprehensive review of the multiple
reform efforts targeting different facets of labour migration, this Report weaves together a
comprehensive and accessible account of labour migration from  Nepal. Similarly, it critically
analyzes the thematic gaps and challenges in relation to labour migration and provides
recommendations to address the challenges and gaps as well.

The Report is a timely contribution to inform the Government’s migration related reform
initiatives, noting its fast-changing context at the national and international levels. It sheds light
on the transnational nature of migration and the regional dynamics of this phenomenon which
necessitates cooperation with both the countries of destination and other labour origin countries,
which Nepal has increasingly prioritized. It also deepens the understanding of the occupational
profile of Nepali migrant workers, highlighting the need to focus on better data management and
pragmatic skills-based partnerships to ensure high returns of migration. Given the multiplicity
of stakeholders engaged in migration governance, it emphasizes on the need to strengthen
horizontal and vertical coordination across concerned agencies to realize the objectives of safe,
rewarding and dignified migration from Nepal.

I would like to thank everyone who provided critical input at various stages of the drafting and
preparation of the Report.

Binod KC
Secretary
Ministry of Labour, Employment and Social Security

v
© ILO N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

vi
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Steering Committee

Secretary, Ministry of Labour, Employment and

Binod K.C. Coordinator
Social Security
Joint Secretary, Ministry of Labour, Employment and
Umesh Dhungana Member Secretary
Social Security
Director General, Department of Foreign
Bhisma Kumar Bhushal Member
Employment

Rajan Prasad Shrestha Executive Director, Foreign Employment Board Member

Richard Howard Country Director, ILO Member

Moti Bahadur Shrees Under Secretary , Ministry of Foreign Affairs Member

Binita Bhattarai Director, Department of Immigration Member

Working Committee

Under Secretary, Ministry of Labour, Employment

Deepak Dhakal Coordinator
and Social Security

Dinbandhu Subedi Under Secretary, Foreign Employment Board Member

Policy Advisor, Ministry of Labour, Employment and

Upasana Khadka Member
Social Security

Basanta Karki National Project Coordinator, ILO Member

Anaraj Tiwari Statistics Officer, Central Bureau of Statistics Member

Computer Engineer, Ministry of Labour, Employment

Raju Shrestha Member
and Social Security
Officer, Ministry of Labour, Employment and Social
Suresh Subedi Member
Security

Jamuna Kafle and Giri Acharya, Section Officers at the Ministry of Labour, Employment and Social Security (MOLESS) provided
invaluable support. Contributions from the following individuals is acknowledged: Neha Choudhary, Prakriti Thami, Jeevan Baniya,
Hom Karki, Dev Chandra Rai, Arjun Chalise, Bind Kumar Sah, Rachana Pandit, Sambhrant Bista, Sarin Upreti, Saroj Pokhrel, Buddha
Singh Kepchhaki, Rammani Duwadi, Ram Prasad Bhattarai and Kiran Kandel.

vii
© Basanta Karki N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

viii
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Contents
FOREWORD

AC R O N YM S XIII

EXECUTIVE SUMMARY XV

C H A P T E R 1: O V E R V I E W 1

C H A P T E R 2: L A B O U R M I G R AT I O N - A S N A P S H OT 9
2.1 Current Trends in Labour Migration 11
2.2 Destination Countries of Nepali Migrant Workers 13
2.3 Origin Provinces and Districts 16
2.4 Mode of Obtaining Labour Approval 22
2.5 Labour Approval Renewal 30
2.6 Age 32
2.7 Skills 33
2.8 Stocks of Migrant Workers 34
2.9 Labour Migration from a Regional Perspective 35
2.10 Return Migration 37

C H A P T E R 3: L A B O U R M I G R AT I O N G O V E R N A N C E I N N E PA L 45
3.1 Institutional Arrangements 47
3.2 Multi-level Labour Migration Governance 50

C H A P T E R 4 : T H E M AT I C TO P I C S 7 7
4.1 Compensation through the Foreign Employment Welfare Fund: A Review 79
4.2 Labour Diplomacy and The Role of Missions in Labour Migration Governance 85
4.3 Remittance 92
4.4 Occupation Profile of Migrant Workers 98

C H A P T E R 5 : WAY F O R WA R D 107

A N N E X 119

R E F E R E N C E S 141

ix
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

TABLES
TABLE 1 : Government of Nepal’s Periodic Plans and Volume of Annual Labour Approvals (2nd Row) 4
TABLE 2: Skills Distribution of Nepali Migrant Workers by Mode of Obtaining Labour Approval 33
TABLE 3: Employment Status of Returnee Workers by Province 41
TABLE 4: Variation in Employment Status Disaggregated by Last Destination 43
TABLE 5: Industries that Returnee Migrant Workers are Currently Engaged In (Nepal) 43
TABLE 6 : Number of Migration Related Service Providers 48
TABLE 7: Coordination Committees as per Foreign Employment Policy, Act and Rules 50
TABLE 8: Major Changes in the Foreign Employment Act 52
TABLE 9: Minimum Referral Wages by Destination Country 56
TABLE 10: Recruitment Costs Prescribed by the Government of Nepal 60
TABLE 11: Foreign Employment Related Responsibilities of Local Governance 63
TABLE 12: Selective MRCs in Operation Across Nepal 64
TABLE 13: BLAs and MOUs Signed by the Government of Nepal 65
TABLE 14: SDG 2030 & Labour Migration 72
TABLE 15: Compensation for Disabilities by Country 82
TABLE 16: Cause of Death by Year 83
TABLE 17: Cause of Death by Country 83
TABLE 18: Labour Counselors and Attaches Appointed by GON 86
TABLE 19: Remittance Transfer Costs 95
TABLE 20: Sale of Foreign Employment Savings Bond 96
TABLE 21: Skills Categorization of Nepali Migrant Workers (2017/18 and 2018/19) 98
TABLE 22: Reclassification of Occupational Categories (2018/19) 100
TABLE 23: Occupation Profile of Migrants by Gender 101
TABLE 24: Occupation Profile of Migrants by Mode of Obtaining Labour Approval 102
TABLE 25: Occupation Profile of Migrants by Destination Country 103
TABLE 26: Top 5 Destination Countries by Major Occupational Category 104

x
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURES
FIGURE 1 : Trend in Obtaining Labour Approvals (left) and Incoming Remittance (right) 3
FIGURE 2: Trend in Obtaining Labour Approvals (Disaggregated by Gender) 12
FIGURE 3: Labour Migration to the Republic of Korea via EPS (Disaggregated by Gender) 12
FIGURE 4: Major Destination Countries for Labour Migration (Overall) 13
FIGURE 5: Major Destination Countries for Labour Migration (Female) 14
FIGURE 6: Country-wise Trends in Labour Migration 15
FIGURE 7: Emerging Destination Countries for Nepali Migrant Workers 16
FIGURE 8: Provincial Profile of Nepali Migrant Workers 17
FIGURE 9: Provincial Profile of Nepali Labour Migrant Workers (by Major Destination Country, 2018/19) 18
FIGURE 10: Origin District of Total Migrant Workers (2017/18) 20
FIGURE 11: Origin District of Total Migrant Workers (2018/19) 21
FIGURE 12: Mode of Obtaining Labour Approval 22
FIGURE 13: Recruitment Process 23
FIGURE 14: Volume of Migrant Workers Mobilized by Recruitment Agencies (2018/19) 24
FIGURE 15: Number of Countries where Recruitment Agencies Mobilized Workers (2018/19) 25
FIGURE 16: Number of Recruitment Agencies Sending Workers by Destination Country (2018/19) 26
FIGURE 17: Trends in Labour Approvals by Mode of Obtaining Labour Approval 27
FIGURE 18: Trends in Obtaining Individual Labour Approvals by Gender 27
FIGURE 19: Major Destination Countries for Individual Labour Approvals (Overall) 28
FIGURE 20: Trends in Regularization of Labour Approvals by Gender 29
FIGURE 21: Major Destination Countries for Regularization (Overall) 29
FIGURE 22: Trends in Labour Approval Renewal by Gender 30
FIGURE 23: Major Destination Countries for Labour Approval Renewals (Overall) 31
FIGURE 24: Major Destination Countries for Labour Approval Renewals (Female) 31
FIGURE 25: Age Distribution of Nepali Migrant Workers by Gender 32
FIGURE 26: Distribution of Major Destination Countries by Age Group (2018/19) 32
FIGURE 27: Distribution of Major Destination Countries by Age Group (2017/18) 33
FIGURE 28: Current Migrant Workers in Malaysia by Nationality (2018) 34
FIGURE 29: Sectors Employing Nepali Workers in Malaysia (2018) 35
FIGURE 30: Trends in Annual Labour Migration from the Region (Country-wise) 36
FIGURE 31: Slowdown of Migrant Worker Outflow to the GCC (In Thousands) 36
FIGURE 32: Returnee Population by Age 38
FIGURE 33: Last Migration Destination of Returnees by Province (Per cent) 39
FIGURE 34: Reason for Return to Nepal by Destination 40
FIGURE 35: Employment Status of Returnee Workers by Last Destination 41
FIGURE 36: Occupation of Returnees in Nepal and at the Destination Country 42
FIGURE 37: Employment Type of Returnee Workers by Last Destination Country 44
FIGURE 38: Individual and Institutional Cases Registered and Resolved 58
FIGURE 39: Cases Registered and Solved by FET 59
FIGURE 40: Renewals of Labour Approvals by Province (2018/19) 61
FIGURE 41: Total Amount Provided as Death or Disability/Sickness Compensation 80
FIGURE 42: Compensation for Injuries by Gender 81
FIGURE 43: Causes of Disability and Compensation Provided 81
FIGURE 44: Number of Deaths by Gender 82
FIGURE 45: Residential Missions of Nepal 85
FIGURE 46: Total Remittance Inflow to Nepal (Billion USD) 92
FIGURE 47: Top Ten Remittance Recipients as % of GDP 92
FIGURE 48: Remittance Receiving Households by Income Percentiles 93
FIGURE 49: Remittance by Destination Country (In Billion USD) 94
FIGURE 50: Word Cloud of Occupations of Nepali Migrant Workers (2018/19) 99 xi
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© Upasana Khadka

xii
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Acronyms
DOFE Department of Foreign Employment
FEB Foreign Employment Board
MOLESS Ministry of Labour, Employment and Social Security
FET Foreign Employment Tribunal
NMRC National Migrant Resource Center
MRC Migrant Resource Center
ESC Employment Service Center
GCC Gulf Cooperation Council
MOU Memorandum of Understand
BLA Bilateral Labour Agreement
CIOP Comprehensive Information and Orientation Program
FEIMS Foreign Employment Information Management System
FESB Foreign Employment Savings Bond
NPR Nepali Rupee
NRB Nepal Rastra Bank
CTEVT Council for Technical Education and Vocational Training
NSTB National Skills Testing Board
GCM Global Compact for Safe, Orderly and Regular Migration
ADD Abu Dhabi Dialogue
CP Colombo Process
GFMD Global Forum for Migration and Development
SAARC South Asia Association for Regional Cooperation
NLFS National Labour Force Survey
FET Foreign Employment Tribunal
ILO International Labour Organization
IOM International Organization for Migration

xiii
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© ILO

xiv
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Executive Summary
The Nepal Labour Migration Report 2020 is the Ministry of Labour, Employment and Social Security’s
(MOLESS) effort to present a comprehensive overview of labour migration from Nepal, with an emphasis on
the years 2017/18 and 2018/19.

As a young population in the midst of a demographic window of opportunity, labour migration has provided
immense employment opportunities to Nepali workers. Remittances are equivalent to over a quarter of the
GDP while returnee workers acquire important experience, skills and technical know-how abroad. However,
the benefits of labour migration are often dampened by malpractices in the recruitment and employment
of migrant workers. Consequently, the Government of Nepal’s efforts have been targeted towards maximiz-
ing the benefits of labour migration while minimizing the potential risks, with an emphasis on domestic
employment creation to ensure Nepali citizens can migrate out of choice and not necessity.

A defining characteristic of Nepal’s labour migration since the early 2000s has been an unprecedented
increase in the volume of workers headed to the Gulf Corporation Council (GCC) countries and Malaysia for
temporary employment. In 1993/94, the number of labour approvals issued by the Department of Foreign
Employment (DOFE) was just 3,605. A decade later, in 2003/2004, it reached 106,660 and in 2013/14, it
peaked at 519,638. Since 2013/14, however, the volume of annual outmigration has been decreasing and
reached 354,098 and 236,208 in 2017/18 and 2018/19 respectively. Labour migration from Nepal is pre-
dominantly male, with more than eighty per cent of the total labour migrant population in 2017/18 and
2018/19 between the ages of 18 and 35. The share of workers taking up low-skilled work is high at 59 per
cent (2018/19) and 64 per cent (2017/18). The volume of financial remittance has significantly increased in
the recent past, from 2.54 billion USD in 2010/11 to 8.79 billion USD in 2018/19.

Given the temporary nature of labour migration with a disproportionate share of employment contract
duration of two years, both repeat and return migration feature prominently in Nepal’s migration profile.
In 2017/18 and 2018/19, 258,598 and 272,616 migrant workers renewed their labour approvals. On the
other hand, as per the Nepal Labour Force Survey 2017/18, an analysis of the profile of recent returnee
migrant workers in Nepal shows that 42.8 per cent are employed, 13.4 per cent are unemployed and 43.8
per cent are out of the labour force. 1 A key priority of the Government is to ensure that both the social and
financial remittances gained abroad are mobilized productively in Nepal and help advance the country’s
development priorities.

Labour migration governance is complex and multidimensional. A robust institutional architecture with
a comprehensive legal and policy framework is in place to better regulate and manage this sector. While
MOLESS has the overall responsibility of guiding labour migration-related policymaking, other key dedicated
government institutions include DOFE for regulatory tasks, the Foreign Employment Board (FEB) for welfare-
related tasks and the Foreign Employment Tribunal (FET) for access to justice. In addition, a large number
of stakeholders from the public and private sectors are engaged in various facets of labour migration

1 This could be due to a returnee worker's intention to remigrate, which is not captured in the National Labour Force Survey 2017/18.

xv
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

governance. The successes and challenges of migration related initiatives lie in stronger horizontal and
vertical coordination among the different stakeholders.

Labour migration governance is multi-level with ongoing initiatives at the subnational, national, bilateral,
regional and global levels. At the local level, the Local Governance Operations Act (LGOA) 2017 has mandated
local governments to carry out foreign employment related activities including data collection, training,
information dissemination, and reintegration of returnee workers. At the national level, recent reform
initiatives include the amendment of the Foreign Employment Act and Rules to increase transparency in
labour migration governance and the development of a comprehensive Foreign Employment Information
Management System (FEIMS). At the bilateral level, the years 2017-19 saw remarkable progress with the
signing or renewal of labour agreements with Jordan, Japan, Malaysia, Mauritius and the UAE that include
strong worker-centric provisions including employer pays principle, equal pay for equal work and no-
cost access to justice, among others. Given the cross-border dynamics of labour migration, collaboration
at regional levels is also important to share good practices and develop a common voice on key issues
concerning migrant workers. Nepal is the current chair of the Colombo Process, and an active member of
the Abu Dhabi Dialogue, both of which are significant regional consultative processes in labour migration
governance. With the adoption of the Global Compact for Safe, Orderly and Regular Migration (GCM) in
December 2018 and the inclusion of migration related indicators in the Sustainable Development Goals,
Nepal has access to global platforms and a common language to elevate the discussion on worker protection
issues from the vantage of a sending country.

In addition, the Report also delves into thematic areas including the (i) overview of the welfare schemes
targeted to migrant workers or their families using the Foreign Employment Welfare Fund (FEWF) in case of
death or injuries, (ii) the role of Diplomatic Missions in labour migration governance, (iii) the occupational
profile of labour migrant workers and (iv) an overview of ongoing efforts on maximizing the productive use
of worker remittance which features prominently in the Nepali economy.

Based on the analyses, the following priorities are identified for the way forward:

Foreign Employment Policy: The Foreign Employment Policy is currently being revised. The changes
need to be strongly grounded on reality and harmonized with other sectoral and national policies. The
role of each tier of government should be further clarified and local and provincial governments should
be included in the Foreign Employment Coordination Committee formed under the Policy. It should
provide avenues for different types of bilateral cooperation in addition to the standard bilateral labour
agreements such as social security agreements, skills partnerships and sector-specific agreements while
considering the heterogeneity across migration corridors in terms of volume, employment sectors,
recruitment modality and maturity. The Policy should be forward-looking and explore the possibilities
of including migrant workers to Nepal’s contributory social security schemes and overseas voting during
general elections in Nepal. A systems approach needs to be taken to assess and assign the roles of
different stakeholders engaged in the foreign employment sectors. Finally, complementarities between
the domestic and foreign employment agenda need to be explored.

FEIMS: The FEIMS needs to be upgraded to include additional details on workers such as education
levels, origin municipality and occupational categorization as per international standards. The utilization
of the FEIMS database to inform policymaking should be emphasized, while foreign employers should
also be added as a potential stakeholder. DOFE should prioritize regular efforts to train the end-users of
FEIMS and obtain user-feedback regularly to inform further upgrades of this system.
xvi
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Data Collection: A nationally representative migration survey needs to be conducted preferably once
in two years to shed light on the various facets of labour migration. To ensure uniformity, comparability
and collation of foreign employment-related data collected at the local levels as mandated by the LGOA,
2017, the standardization of variables and templates needs to be prioritized. The Government of Nepal’s
bilateral efforts should emphasize on obtaining data on the current stocks of migrants abroad regularly,
disaggregated at subnational levels.

Procedural Changes: Integrated service delivery of migration-related services under one roof needs
to be prioritized at each province. The recruitment process of higher-skilled and professional workers,
including the process of obtaining labour approvals individually, needs to be simplified and the
possibility of an online pre-departure orientation certification system for these categories needs to be
considered.

Local Migration Governance: To ensure the proper implementation of the foreign employment-
related mandate of the LGOA, 2017, efforts should focus on capacity building of the local governments,
sharing of good practices, and provision of adequate financial resources. Good practices at the federal
level should be replicated at the local and provincial levels. Exploring the complementarities between the
domestic and foreign employment agenda should be prioritized, including the integration of Migration
Resource Centers and Employment Service Centers and investment on international standard training
centers that meet demands of both local and foreign labour markets. Noting that provincial-level labour
offices will be eventually entrusted with the authority to provide all migration-related services, they
should be equipped with adequate human resources, physical facilities and logistical support.

Labour Diplomacy: A stronger coordination mechanism between MOLESS and MOFA should
be developed to ensure timely response to issues in the labour migration sector. The presence of
labour counselors or attaches at destination countries including in major cities outside the capital,
emerging destination countries and all destination countries with which Nepal concludes bilateral
labour agreements should be prioritized. Alternate mechanisms for demand attestation need to be
explored especially in countries without residential Diplomatic Missions. The possibility of setting up an
emergency fund at Missions that is targeted towards labour migrants, especially the vulnerable ones,
should be considered.

Bilateral Labour Agreement (BLAs) and Memoranda of Understanding (MOU): Regular inter-
ministerial meetings among MOLESS, Ministry of Foreign Affairs (MOFA) and Ministry of Law, Justice and
Parliamentary Affairs (MOLJPA) need to be prioritized to assess the implementation of all existing BLAs/
MOUs. A standard operations manual that covers the full cycle of the MOU/BLA including preparation,
drafting, negotiation and implementation needs to be prepared along with specific responsibilities of
the concerned agency including MOLESS, MOFA and MOLJPA to institutionalize and standardize the
process. Joint Working Group (JWG) meetings should be organized regularly as envisioned in the MOU/
BLA. The Record of Discussions prepared as part of the JWG meetings should include tangible action-
oriented agenda with individual and joint responsibilities assigned to both governments. The JWG should
be further strengthened by expanding the roles and responsibilities of concerned migration-related
stakeholders, especially the Diplomatic Missions, to operationalize the MOU/BLA provisions. MOLESS
could also prioritize developing protocols or programs on specific areas of cooperation such as bilateral
skills partnerships, integrated recruitment systems, potability of social security system and sharing of
labour market information, among others. Strategic communication to ensure that all stakeholders
xvii
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

including recruitment agencies, workers, employers as well as the concerned private sector and civil
society have a common understanding of the provisions of the MOUs needs to be prioritized.

Diversification: To advance Nepal’s diversification policies to new destination countries as well as new
sectors of employment, a more concrete assessment should be conducted which would inform the
identification of potential destination countries or employment sectors for Nepali workers and Nepal’s
positioning and marketing strategy. FEIMS should be mobilized to identify and engage with the larger
employers with strong employment records. More flexible approaches such as revised time limit on
employment contracts for short-term opportunities (seasonal workers, consultancies), employment in
emerging sectors such as seafarers’ sector and innovations in joint partnerships especially in the area of
skills training including public private partnerships and mobilization of Corporate Social Responsibility
funds should be considered.

Remittances (Financial and Social): A coordinated approach between the Nepal Rastra Bank and
migration-related stakeholders, especially the FEB, to market the Foreign Employment Savings Bond
should be conducted, with more attractive incentives for both migrant workers and agents responsible
for selling the bonds. In addition, efforts to promote collective remittance should be explored in priority
sectors such as tourism, hydropower and agriculture by all tiers of Government. The private sector
should be better mobilized to increase the ownership of programs targeted to returnee workers such
as the returnee soft loan program and the recognized prior learning scheme. Returnee workers should
be equipped with business training to help produce viable business plans, and a one-stop center for
returnee migrant workers to access information on available resources and advisory services for potential
entrepreneurs and jobseekers should be prioritized.

Access to Justice: Emphasis should be on a better case management system that is accessible to
all concerned stakeholders including DOFE, FET and the district courts that are in charge of enforcing
the decisions made by FET. Sufficient human and financial resources need to be invested in concerned
agencies, especially FET, to ensure timely response to grievances and their regular follow-up.

Regional and Global Governance: The regional and global platforms should be further leveraged
to raise issues concerning migrant worker rights, to develop a common voice on key issues in migration
governance with other sending countries and to promote exchange of good practices. Projects with
tangible outcomes such as joint skills partnerships and orientation programs should be prioritized. The
preparation of the National Strategy for the Implementation of the GCM by the Government is timely to
identify the most relevant GCM priorities for Nepal and the way forward along with the proper utilization
of available resources such as the start-up fund and connection hub established under the GCM.

xviii
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 1:
Overview

1
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

2
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 1: Overview
Background
International mobility has become a defining characteristic of our times. Over 272 million individuals—
around 3.5 per cent of the global population—are estimated to be living outside their countries of birth.2 It is
estimated that 63.5 per cent of this population move for employment opportunities,3,4 the type of migration
that features most significantly in Nepal’s migration profile. In the last decade since 2008/09, the Department
of Foreign Employment (DOFE) has issued over 4 million labour approvals to Nepali workers (Figure 1).
Labour migration from Nepal is characterized by time-bound employment contracts, concentrated in the
Gulf Cooperation Council (GCC) countries and Malaysia. The subsequent remittances have been equivalent
to over a quarter of the GDP in recent years, with the latest figure of 8.79 billion USD in 2018/19 (Figure 1),5
making it a significant source of foreign exchange earnings.

Figure 1 : Trend in Obtaining Labour Approvals (left) and Incoming Remittance (right)

Total Outflow of Labour Migrants Remittance (Billion USD)

10
600000
9

8
500000
7

Billion (USD)
400000
6

5
300000
4

200000 3

2
100000
1

0 0
2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

Source: Foreign Employment Information Management System (FEIMS) and Nepal Rastra Bank

Labour migration presents both opportunities and challenges. As a young country in the midst of a youth
bulge and an unemployment rate of 11.4 per cent,6 of which a third are in long-term unemployment,7 labour

2 UN DESA (2019)
3 ILO (2018)
4 Note that this estimate is based on the 2017 figures of global migration population by UN DESA which was 258 million.
5 Nepal Rastra Bank
6 Nepal Labour Force Survey (NLFS) 2017/18
7 NLFS 2017/2018; Long-term unemployment is defined as unemployment for a period of 12 months or longer.

3
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

migration has offered employment opportunities to a large volume of Nepali youth. The oil-driven growth
in the GCC economies and labour shortages in East and Southeast Asian countries like Malaysia, Japan and
South Korea have increased employment opportunities for Nepali workers. Furthermore, coupled with
advances in transportation and telecommunications, mobility has become cheaper and more convenient.
The gains of labour migration via financial and social remittances are apparent and reflected in better
educational and health outcomes and living standards in Nepal.8

However, Nepal’s experience has also shown that realizing the economic gains of labour migration can
often be challenging. The malpractices in the transnational recruitment and employment processes and
the costs of labour migration—whether it is financial or social —cannot be overlooked. In particular, the
debt-financed recruitment process coupled with concerns over contract substitution, inadequate worker
protection and human rights violation in segmented labour markets abroad has shaped a more cautious
migration narrative in Nepal in the recent years.

The evolution in the labour migration narrative is reflected well in the Government’s periodic plans (Table
1).9 While the periodic plans began as early as 1956, foreign employment issues were first addressed only
in the Seventh Plan (1985-90). This reflects the increased salience and visibility of foreign employment as a
policy priority that necessitated robust institutions and policies for its management such as the first Foreign
Employment Act 1985. Each of the Seventh to Fifteenth Periodic Plans has included foreign employment
related priorities, with the balance between promoting foreign employment and protecting migrant workers
increasingly shifting towards the latter in recent times.

TABLE 1 : GOVERNMENT OF NEPAL’S PERIODIC PLANS AND VOLUME OF ANNUAL LABOUR APPROVALS
(2ND ROW)

7th PLAN 8th PLAN 9th PLAN 10th PLAN 11th PLAN 12th PLAN 13th PLAN 14th PLAN
1999/2000
1985/86
1986/87
1987/88
1988/89
1989/90
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99

2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
104736
105043
106660
139718
165252
204533
249051
219965
294094
354716
384665
450889
519638
499102
403693
382871
354098
236208
27796
35543
55025
2159
2134
3259
7745
 
 
 
 

Source: National Planning Commission and FEIMS

The earlier periodic plans, especially from the Ninth Plan, viewed foreign employment as a viable alternative
to domestic employment to address high unemployment and poverty issues in Nepal which was as high as
49 per cent.10 In particular, the Ninth Plan (1997-2002) set a long-term objective of increasing the national
income by providing more employment opportunities both within and outside the country. Setting up of

8 A fifth of the poverty reduction between 1995 and 2004 in Nepal is attributed to migration (Lokshin, 2010). Shrestha (2017) finds that migration increases school
enrollment of children, especially of girls.
9 The Government of Nepal's Periodic Plans 1 to 14 and the 15th Plan Approach Paper were reviewed for this Chapter. Accessed at https://www.npc.gov.np/en/cat-
egory/periodic_plans.
10 8th Periodic Plan. Accessed at : https://www.npc.gov.np/images/category/eighth_eng.pdf

4
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

policies and institutions was emphasized to facilitate labour migration that was already taking place as an
alternative livelihood option for many Nepali households. The Tenth Plan (2002-2007) even set a target to
send up to 550,000 youth for foreign employment11—more than double the volume of outmigration in
the period covered by the Ninth Plan when the volume of labour migrant workers was just over 230,000. It
set a training quota for 6000 aspirant migrant workers to reap the maximum benefits of labour migration.
Another notable aspect of the earlier periodic plans was the emphasis on making labour migration accessible
to all including by providing migrant loan assistance to women, Dalit, economically and geographically
disadvantaged groups.12

The recent periodic plans, especially from the Thirteenth Plan, have evolved to prioritize domestic
employment creation and the need to retain and mobilize youth in the country while emphasizing safe,
dignified and productive foreign employment opportunities. The historical achievements in nation-building
with the promulgation of the new constitution and the federal structure of governance have put economic
development at the center. This has presented an opportunity to focus on domestic job creation for Nepali
youth so foreign employment is an informed choice with viable alternatives domestically. In this context,
the current priorities have shifted the focus from the number of overseas opportunities to their quality
to ensure higher returns to migrating via emphasis on bilateral agreements, expanded labour protection,
higher-skilled opportunities and productive utilization of remittances.

The recent policy initiatives of the Government have been crucial in generating unprecedented momentum
for such reforms in labour migration governance. MOLESS is pursuing a multifaceted strategy at the
national and international levels. This entails deepening cooperation with existing destination countries as
evidenced by the recent signing of MOUs with Malaysia, Japan and the UAE and the ongoing discussions
with Qatar, Oman, Saudi Arabia and Kuwait. In addition, the possibilities of diversifying to new and emerging
destination markets that offer decent work opportunities through dialogue and bilateral agreements are
also being explored. Several unilateral efforts have also focused on strengthening migration governance. A
Foreign Employment Information Management System (FEIMS) has been developed that maintains records
of all outgoing regular migrant workers and brings together migration-related stakeholders to one platform.
The Foreign Employment Act 2007 has been amended to include worker-centric provisions including
decentralization of service delivery and mandatory verification of job demand letters at Diplomatic Missions.
Finally, MOLESS is also actively prioritizing domestic employment creation to ensure Nepali citizens can
migrate out of choice and not necessity.

Objectives of the Report

The Nepal Labour Migration Report 2020, the fourth in the series, is the Government of Nepal’s continued
effort to produce a comprehensive evidence base on labour migration governance in Nepal. The specific
objectives of the Report are as follows:
Analyze the trends and patterns of labour migration from Nepal, with an emphasis on the years 2017/18
and 2018/19;
Present a comprehensive picture of the institutional architecture and key policies governing Nepal’s
labour migration, highlighting the Government of Nepal’s initiatives at different levels of governance to
make migration safe, dignified and productive;
11 10th Periodic Plan. Accessed at: https://www.npc.gov.np/images/category/10th_eng.pdf
12 For example, as per one of the strategies in the 10th Periodic Plan: "Loan assistance shall be extended to the low-income groups in order to utilise the foreign
employment opportunities to the best possible extent."

5
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Deep dive into thematic issues of priority in labour migration governance including labour diplomacy,
the occupational profile of migrants, the welfare initiatives targeted to migrant workers and the
productive use of remittances; and
Provide recommendations on the way forward.

Structure of the Report

The Nepal Labour Migration Report 2020 is structured as follows:

Chapter 2 presents a labour migration profile of Nepal, focusing on the years 2017/18 and 2018/19.
It covers current trends and magnitude of labour migration, disaggregated by gender, place of origin,
destination countries and the mode of obtaining labour approvals. Other key variables including age,
skills and the current stock of migrant workers have also been covered. The data analysis portion relies
on FEIMS, the administrative database maintained by the DOFE, that records information on legal labour
migration. This Chapter is limited to migrant workers who received labour approvals, and it leaves out
notable segments of Nepal’s population on the move including those migrating to India for work and
those traveling through irregular channels. It also presents stylized facts on recent returnee migrant
workers based on the Nepal Labour Force Survey 2017/18 that includes a comprehensive module on
returnee migrant workers, including those returning from India.

Chapter 3 describes the elaborate institutional and policy architecture governing labour migration
in Nepal. It details the multilevel governance efforts that are underway at national, bilateral, regional
and global levels. The past two years have been particularly significant in adding important layers to
migration governance. Within Nepal, localization of migration governance and service delivery is being
prioritized in the context of federalization. At the external front, with the adoption of the GCM, Nepal
now has access to a global platform and a common language to elevate the discussion on labour rights
issues from the vantage of a labour sending country. The Chapter also elaborates on the implementation
status and challenges of the recent reform initiatives in migration governance.

Chapter 4 elaborates on four thematic topics in line with the previous reports. The first thematic area is
on labour diplomacy and the role of Nepali Diplomatic Missions in labour migration governance, which
has increasingly become a salient part of Nepal’s foreign policy along with the rise in the volume of
labour migrant workers. The second topic is on the Foreign Employment Welfare Fund schemes targeted
to migrant workers and their families which are managed by the FEB. The third topic is a review of
remittances along with the Government’s efforts on maximizing its productive use. Finally, the fourth
topic sheds light on the occupational characteristics of Nepali workers who migrated in 2018/19, relying
on the FEIMS database.

Chapter 5 identifies priorities and the way forward, drawing on the qualitative and quantitative analyses
in the preceding Chapters. It calls for a long-term vision on Nepal’s migration governance framework,
which is timely with the impending revision of the Foreign Employment Policy 2012. This entails taking
up a systems approach to evaluate the roles and responsibilities of the multiple stakeholders engaged in
labour migration governance with varied interests and priorities. It recognizes the policy reform efforts
taken in the recent past at sub-national, national and international levels and calls for emphasis on their
full-fledged implementation. Finally, against the backdrop of the overarching goal of “Prosperous Nepal,

6
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Happy Nepali”, this Chapter calls for the harmonization of foreign employment policies with sector
policies and development priorities, emphasizing on the complementarities between the domestic and
foreign employment priorities.

This report draws heavily on related reports commissioned by the Government of Nepal on labour
migration including:
Labour Migration for Employment, A Status Report for Nepal: 2013/14; 2014/15; 2015/16-16/17
Taskforce Report on Foreign Employment Reform 2017/18
Taskforce Report on Increasing Formal Remittance to Nepal and Maximizing its Productive Use 2017/18
Taskforce Report on Potential Destination Countries, Mobilization of Migrant Workers by the Government and
Review of Worker Paid Recruitment Costs 2017/18

Primary Sources of Data:

Foreign Employment Information Management System (FEIMS)
Nepal Labour Force Survey 2017/18
Administrative database maintained by the Foreign Employment Board (FEB)

The reference years for the data analysis portion of the report relying on the administrative databases are July 16, 2017
till July 16, 2019 (FY 2017/18 and 2018/19).

7
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© ILO

8
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 2:
Labour Migration
- A Snapshot

9
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

10
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 2: Labour
Migration - A Snapshot
Labour migration has become one of the defining characteristics of Nepal’s socio-economic landscape. The
size and fluctuation in migratory outflows are a result of a combination of economic and non-economic
factors.13 Commonly cited push factors include insufficient access of the working-age population to
productive economic opportunities and cultural factors like the societal pressure to migrate. Pull factors, on
the other hand, include jobs with wage differentials and better amenities, social networks and opportunities
for upward social and career mobility. Furthermore, as posited by the New Economics of Labour Migration,14
labour migration is also a household strategy for families to diversify their income sources to mitigate the
impact of income volatility from agriculture and other informal sectors. As will be further expanded in
this Chapter, labour migration is also shaped by migration-related policy interventions of both the labour
sending and destination countries.

This Chapter attempts to provide a stylized fact on labour migration from Nepal including the magnitude of
new and re-migrating workers, disaggregated by gender, place of origin, destination countries and mode of
obtaining labour approval. Other key variables including the age, skills level and the current stock of migrant
workers have also been covered. It is important to note that a limitation of this Chapter is that the data is
largely driven from the Foreign Employment Information Management System (FEIMS), which is relatively
new and only covers documented migrant workers. A significant number of workers also migrate to India,15
which does not require labour approvals while many migrant workers travel through irregular channels,
both of which are unrecorded. An exception is Section 2.10 on returnee migrant workers which relies on
the Nepal Labour Force Survey (NLFS) 2017/18 and captures information on returnee migrant workers from
India as well.

Current Trends in Labour Migration

2.1 CURRENT TRENDS
Nepali workers can seek employment opportunities in any country across the world, except in those
prohibited by the Government of Nepal. Currently, the Government has approved 110 countries for labour
migration through recruitment agencies.16,17 Since 2008/09, DOFE has issued over 4 million labour approvals.
There was a steady increase in the annual issuance of labour approvals between 2008/09 and 2013/14 during
which it peaked at over 500,000, but the volume has steadily declined since then. In the years 2017/18 and
2018/19, a total of 354,098 and 236,208 labour approvals were issued respectively (Figure 2). In 2017/18
13 For a more detailed review of the economic, demographic, environmental, social and political drivers of migration from Nepal, see IOM (2019b).
14 Stark (1982)
15 For more detail on the 1950 Nepal-India Treaty of Peace and Friendship that allowed free movement of people between the two countries, see Sijapati (2017).
16 Labour approvals are currently not provided to 3 countries including Libya, Iraq and Afghanistan (excluding to the green zone).
17 The modes of recruitment—individually and through recruitment agencies—are detailed in Chapter 2. Individual migrant workers do not rely on recruitment
agencies to arrange their employment abroad.

11
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

and 2018/19, as per the FEIMS records, labour approvals were obtained for a total of 132 and 128 countries
respectively.
Labour migration from Nepal is a predominantly male phenomenon with the share of female migrant work-
ers accounting for a little above 5 per cent in the last decade. The share of female workers was around 8.5 per
cent in 2018/19, owing to a drop in the overall volume of male migrant workers. The domestic work sector,
comprising of a high share of female workers, has been regulated in an effort to reduce vulnerabilities such
as long working hours, physical abuse and economic exploitation, which could be one of the factors behind
the low volume of female outmigration.

FIGURE 2: TREND IN OBTAINING LABOUR APPROVALS (DISAGGREGATED BY GENDER)

Male Female

490517

477690
600000
423122

385226
500000

362766
361707
344300

331679
284038

400000

215630
211371

300000

200000
10056

10416

22958

27767

29121

21412

18467

20105

22419

20578
100000
8594

0
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: DOFE

In addition to the labour approvals issued by DOFE, as detailed above, 58,709 workers have also received
employment in the Republic of Korea as part of the Employment Permit Scheme (EPS) from 2008 to 2018
(Figure 3). The annual quota for EPS workers is set by the Government of the Republic of Korea in the
manufacturing and agricultural sectors, at around 7500-8500 annually in recent years. Female workers
account for around 5 per cent of the total EPS workers, which is comparable to the national average.
FIGURE 3: LABOUR MIGRATION TO THE REPUBLIC OF KOREA VIA EPS (DISAGGREGATED BY GENDER)

Male Female
8107

9000
7501

7424

8000
7000
5937

5587

5460

6000
4863

5000
3846

4000
2733

3000
1917
1847

2000
422

578
395

441

404
406

376

1000
183
137
81

64

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Employment Permit Scheme Section, DOFE.

12
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

2.2 DESTINATION COUNTRIES OF NEPALI MIGRANT WORKERS

The overall migration scenario above does not reveal the corridor-specific variation in the flows of migrant
workers. The fluctuation in the overall labour migration from Nepal is an outcome of several country-specific
patterns in migration flows. Labour migration from Nepal is heavily concentrated in the GCC and Malaysia.
In 2017/18, the top 5 countries (Malaysia, Qatar, UAE, Saudi Arabia and Kuwait) comprised of over 92 per
cent of the total migrant workers whereas this share was 88 per cent in 2018/19 (Qatar, UAE, Saudi Arabia,
Kuwait and Malaysia) (Figure 4). The high concentration of Nepali workers in a few destination countries
points to the significance of these destination countries for Nepali migrant workers, the lack of diversity in
the destination countries and the vulnerability of the Nepali migrant population to macroeconomic shocks
in the GCC or Malaysia.

FIGURE 4: MAJOR DESTINATION COUNTRIES FOR LABOUR MIGRATION (OVERALL)

Bahrain 1.4% Poland 1.0% Bahrain 2.0% Oman 1.2%

Oman 0.9% Maldives 0.8%
Kuwait 5.0% Malaysia 4.2%
Turkey 0.5% Afghanistan 0.8%
Jordan 0.5% Cyprus 0.7%
Others 3.6% Others 5.7%

Saudi Arabia Kuwait

11.6% 6.8%

UAE Saudi Arabia

17.0% Malaysia 19.5% Qatar
29.4% 31.8%

Qatar UAE
29.1% 26.5%

2017/18 2018/19
Source: DOFE

In terms of the major destination countries in the reference years for female migrant workers, the pattern
differs slightly and shows more variation than for male migrant workers. The top 5 countries (UAE, Qatar,
Malaysia, Kuwait and Jordan) comprised 74 per cent of the total female migrant workers in 2017/18 and
a different mix of countries (UAE, Qatar, Saudi Arabia, Kuwait, Cyprus) comprised 77 per cent of this share
in 2018/19 (Figure 5). There is relatively higher diversity among destination countries for female migrant
workers. However, due to the small share of female migrant workers, the overall migration pattern from
Nepal is primarily driven by the pattern of male migration.

13
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

FIGURE 5: MAJOR DESTINATION COUNTRIES FOR LABOUR MIGRATION (FEMALE)

Saudi Arabia 4.6% Maldives 2.5%

Malta 3.2%
Turkey 2.1%
Maldives 2.4%
Poland 1.9%
Cyprus Jordan Turkey 2.1%
Cyprus Others 8.6% 7.5% 6.7% Bahrain 2.1%
6.3% Kuwait
Jordan 7.7% Others 7.0%
6.7%
Saudi Arabia
Kuwait
7.7%
7.3%

UAE
Malaysia Qatar
29.3%
13.5% 18.0% UAE
35.6%
Qatar
17.2%

2017/18 2018/19
Source: DOFE

A trend analysis of the five key destination countries also shows interesting insights (Figure 6). Following
the growth in oil-driven revenues in the 1970s, the GCC has been an increasingly important destination
for migrant workers from many labour sending countries in the region due to the upsurge of demand for
workers in key sectors such as construction, hospitality and retail. Migrants have accounted for a high share
of the population in the GCC: 88 per cent in UAE, 79 per cent in Qatar, 72 per cent in Kuwait and 45 per cent in
Bahrain.18 Labour migration to the GCC from Nepal intensified in the late 1990s and early 2000s. For example,
records of DOFE show that in 1997/98, 7166 migrant workers left for foreign employment to the GCC. This
volume surged to 34,098 by 1999/2000; 71,141 by 2003/04 and 128,306 in 2005/06.

In 2015/16, the volume of workers headed to the GCC peaked at 336614. However, there has been a slowdown
in the number of Nepali workers headed to the GCC since 2015/16 and reached 280,071 and 229,856 in
2017/18 and 2018/19 which can be attributed to economic and geopolitical factors. The slowdown in
economic activities as a result of the sharp decline in oil prices in 2014, which contributed to 50 to 90 per
cent of the total Government revenue of the GCC countries between 2012-2015, 19 has impacted the overall
demand for foreign workers. Similar to Nepal, other South Asian countries have also witnessed a slowdown
in the volume of workers headed to the GCC, with the total volume of workers from India, Pakistan and
Bangladesh dropping by 15 per cent, 30 per cent and 37 per cent respectively in 2018 compared to 2017.20
In addition to the impact of the economic decline, it is also important to note that the GCC countries have
also been pursuing nationalization policies whereby the hiring of local nationals has been prioritized.21 In
order to reduce the reliance on foreign workers and encourage domestic labour force participation, the
governments of the GCC countries have been using a combination of sanctions and incentives including by
restricting certain sectors to foreign workers, quota-based issuance of work permits depending on firm size
18 IOM (2019)
19 IMF (2016)
20 World Bank (2019)
21 World Bank (2019)

14
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

and sector, and raising the costs of hiring foreign workers.22 The extent to which these nationalization drives
are successfully implemented and the subsequent impact on the recruitment of foreign workers depends on
a range of factors such as wage differentials between GCC nationals and foreign workers, higher preferences
among GCC nationals for public sector jobs and skills mismatch. 23

Labour migration to Malaysia has also been fluctuating in the last decade, peaking at over 200,000 in
2013/14. The decline in the volume of workers to Malaysia in 2018/19 is a result of Nepal’s initiation in May
2018 to reduce the cost burden faced by migrant workers in the recruitment phase.24 This led to the historic
signing of an MOU with Malaysia in October 2018, the first of its kind despite a long history of sending
and receiving workers. However, the deployment of workers to Malaysia as per the MOU resumed only in
September, 2019, owing to a few pending issues regarding the technical aspects of the MOU. Details of the
MOU are included in Chapter 3.

FIGURE 6: COUNTRY-WISE TRENDS IN LABOUR MIGRATION

Kuwait Malaysia Qatar Saudi Arabia UAE Others

2018/19 236208

2017/18 354098

2016/17 382871

2015/16 403693

2014/15 499102

2013/14 519638

2012/13 450889

2011/12 384665

0 100000 200000 300000 400000 500000 600000

Source: DOFE

In addition, other policies adopted by the Government of Nepal have also influenced outmigration from
Nepal. The regulation of the domestic work sector owing to the vulnerabilities in the sector may have
impacted the outflow of Nepali workers, especially of female migrant workers. In addition, with political
stability, due to the renewed focus on the domestic employment agenda in the country along with a wider
public understanding of safer migration alternatives, aspirant migrants may also have become more selective
about the foreign employment opportunities they take up but this requires further research.

While Malaysia and the GCC countries have dominated Nepal’s migration discourse, it is also important
to focus on emerging corridors that are increasingly important for Nepali workers. As will be discussed
in Chapters 3 and 4, the Government has also prioritized expanding Nepali workers’ access to safe and
productive employment opportunities by diversifying potential destination countries and sectors in which
22 Hertog (2014)
23 Hertog (2014)
24 An IOM (2016) survey shows that the average recruitment cost for Malaysia was 1388 USD whereas the average monthly wage was 294 USD.

15
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Nepali workers are hired. Demographic trends including aging populations and declining fertility rates
make a case for many countries, including in East Asia and Europe, to adopt a more flexible foreign worker
admission policy. For example, the population of non-European migrants in Europe increased from 35
million to 38 million between 2015 and 2019.25 On the other hand, Nepal is in the midst of a demographic
window of opportunity that is expected to last till 2047.26 Consequently, MOLESS’s efforts are also geared
towards strengthening bilateral cooperation with non-traditional destination countries that are increasingly
becoming attractive to Nepali workers. Prominent countries where over 1000 workers received labour
approvals in total in 2017/18 and 2018/19 include Poland (4728), Maldives (3763), Jordan (3402), Turkey
(3396), Cyprus (3304), Malta (2317), Japan (1720), Romania (1494) and Macau SAR, China (1368) (Figure 7).

FIGURE 7: EMERGING DESTINATION COUNTRIES FOR NEPALI MIGRANT WORKERS

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Cyprus

Jordan

Maldives

Malta

Poland

Romania

Turkey

2014/15 (Left Dot) 2018/19 (Right Dot)

Source: DOFE

2.3 ORIGIN PROVINCES AND DISTRICTS

It is also interesting to explore the communities from where migrant workers originate. However, in the
context of federalization, there is a limitation in this analysis as detailed in the Box.

Post federalization, there are 77 districts in Nepal instead of 75, with Rukum and Nawalparasi split into two districts each.
Rukum was split into East Rukum and West Rukum while Nawalparasi was split into Nawalparasi (Bardhaghat Susta West)
and Nawalparasi (Bardhaghat Susta East). However, FEIMS has not yet been updated to reflect these changes. For this
analysis, the proportion of the population in these four districts has been used to compute the share of the volume of out-
migrants. FEIMS is currently being upgraded to account for the split of the two districts.

Old New Population Provinces

Nawalparasi (Bardhaghat Susta West) 321058 Province 5
Nawalparasi
Nawalparasi (Bardhaghat Susta East) 310864 Gandaki
Rukum (East) 53018 Province 5
Rukum
Rukum (West) 154272 Karnali
Source: Ministry of Federal Affairs and General Administration (http://mofaga.gov.np/)

25 IOM (2019)
26 NPC (2017)

16
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

In terms of the origin provinces, Provinces 1 and 2 witnessed the highest share of labour migration in
2018/19, comprising over 24 per cent of the migrant workers each (Figure 8). In 2017/18, close to 29 per
cent of migrant workers originated from Province 2 while 24 per cent originated from Province 1. This was
followed by Provinces 5, 3 and Gandaki comprising between 12 to 17 per cent of the total share. Finally,
Karnali and Sudur Paschim comprised around 3 per cent of the total volume of migrant workers in both
years. This pattern is different for female migrant workers with three fourths of the workers hailing from
Provinces 1 and 3 in both 2017/18 and 2018/19.

FIGURE 8: PROVINCIAL PROFILE OF NEPALI MIGRANT WORKERS

GANDAKI
PROVINCE 5
13.8% 16.8%

PROVINCE 3 11.5%
16.7% KARNALI
15.0%
3.2%
12.9% 3.7% SUDUR PASCHIM
INSIDE: 2017/18 2.8% 2.6%
OUTSIDE: 2018/19

23.8%
28.6%
PROVINCE 1
PROVINCE 2 24.4%
24.2%

Source: DOFE

NOTE: Note with caution the share of workers of Provinces 5, Gandaki and Karnali as explained in the preceding section.

Among workers who obtained labour approvals, records of 2018/19 show that Qatar was the most popular
destination country among workers from Provinces 1, 2 and Karnali whereas the UAE was the most popular
destination country among workers from Provinces 3, Gandaki and Sudur Paschim. The share of workers
from Province 5 headed to the two countries was almost the same. Relatively speaking, migration from
Provinces 3 and Gandaki was more diverse, with approximately 80 per cent of the migrant workers headed
to Qatar, UAE, Saudi Arabia, Kuwait and Malaysia. On the other hand, Province 2 was the least diverse with
96.6 per cent workers headed to the aforementioned five destination countries (Figure 9).

17
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

FIGURE 9: PROVINCIAL PROFILE OF NEPALI LABOUR MIGRANT WORKERS (BY MAJOR DESTINATION
COUNTRY, 2018/19)

Malaysia (9999)

PROVINCE 1
(57640)

Qatar (75023)

PROVINCE 2
(57205)

UAE (62776)

PROVINCE 3
(35537)

GANDAKI
(29048) Saudi Arabia (46078)

PROVINCE 5 Kuwait (15995)

(44491)

KARNALI Others (26337)

(6263)
SUDUR PASCHIM
(6024)

Source: DOFE
NOTE: Note with caution the share of workers of Provinces 5, Gandaki and Karnali as explained in the preceding section.

18
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

In terms of districts, the top ten origin districts for migrant workers are Dhanusha, Siraha, Jhapa, Mahottari,
Morang, Sarlahi, Saptari, Sunsari, Rupandehi and Tanahun (2018/19)/Dang (2017/18) ( (Figures 10, 11). These
collectively accounted for around 40 per cent of the total outmigration in both years. It is important to
note that Nawalparasi has been traditionally among the top migrant origin districts, and in the context of
federalization, it has been split to two districts as detailed above. However, there is insufficient information
on the new flows from these two districts as FEIMS has yet to be upgraded to account for this split as
discussed above.

For females, the districts with the highest share of migrant workers are Jhapa, Sindhupalchok, Makawanpur,
Morang, Kathmandu, Kavrepalanchok, Ilam, Nuwakot, Sunsari and Chitwan. These ten districts account for
over 50 per cent of the total female migrant workers. In terms of districts, the geographical distinction is
noticeable. Most of the men in foreign employment were from the South of Terai while most of the women
were from hilly regions, although the South of Jhapa, Morang, Sunsari, and Chitwan districts each had a
large share of female migrant workers as well.

Several factors come into play when considering the origin provinces and districts for foreign employment.
In particular, the low share of workers from districts in Karnali and Sudur Paschim does not paint a full
picture of the labour mobility from these regions because migration from these provinces is concentrated
to India and is unrecorded. The nature of migration to India is also different as it is low-cost, informal and
also includes seasonal work. The self-perpetuating nature of labour migration whereby migrant workers
make decisions on destination choices based on social networks could be one of the factors defining the
persistent characteristics of the provincial and district-wise trends in outmigration. Social networks, among
other factors, can influence the decision to migrate as individuals with migrant workers in their networks
can overcome information, psychological and financial barriers associated with moving. In addition, in case
of labour migration to India, given its proximity to Nepal, the cultural affinity and the relatively lower costs
and paperwork associated with moving, mobility to India including for seasonal work can be preferable for
many workers, particularly from Karnali and Sudur Paschim.
© Basanta Karki

19
20
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000

0
500
1000
1500
2000
2500
3000
0
5000
10000
15000
20000
25000
Taplejung 2666
195 4361 Dhanusa 23607
Kaski 398 56
Kanchanpur 2662
81 4329 Siraha 17985
2117 Panchthar 36
Ramechhap 363
596 Jhapa 14974
Myagdi 2539 4245 2047
166 Bhojpur 306
2430 Mahottari 16490
Kailali 75
117 3066
Sindhupalchok Morang 13824
Surkhet 2413 1398
81 1223
2269 Sindhuli 3953 Sarlahi 12368
Terathum 109 509 397
Dolakha 1691 4338 Saptari 11711
521 Salyan 61
107
Okhaldhunga 1803
232 Sunsari 10565
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Palpa 4171 726

Lalitpur 1287 123
438 Nawalparasi* 9701
1490 Parsa 4212 402
Dailekh 35
79 Rupandehi 8929
Solukhumbu 1009 296
404 Gulmi 4172
1193 107 Dang 7748
Baitadi 348
11
Dhading 3649 Rautahat 7393
1168 121
Jajarkot 24 573
Bhaktapur 707 Gorkha 3757 Kapilvastu 6962
224 340 80
Darchula 744 6539
6 2963 Bara
Nuwakot 295
Male Female

Dadeldhura 728 790

3 Tanahun 6164
510 Kathmandu 2577 237
Doti 1100
4 Chitwan 5623
430 666
Bardiya 3494
FIGURE 10: ORIGIN DISTRICT OF TOTAL MIGRANT WORKERS (2017/18)

Bajura 17
126 Syangja 5858
430 221
Achham
3 Lamjung 3400 4612
423 195 Makawanpur
Kalikot 9 1275
Bajhang 398 Dhankuta 3065 Ilam 4997
2 284 816
Rasuwa 269 Khotang 5193
122 Pyuthan 3130 312
303 71
Jumla Udayapur 4855
4 Rukum* 490
170 3044
Mugu 101 5137
0 Rolpa
54 126
Humla Sankhuwasabha 2954
3 168 Banke 5033
43 156

Source: DOFE; Note: This graph includes 75 districts and does not take into account the division of Rukum and Nawalparasi into two districts each.
Dolpa Parbat
3 2770 Baglung 4991
Manang 26 111 129
6
Arghakhanchi 2813 Kavrepalanchok 3945
Mustang 39 1083
64
16
 0
200
400
600
800
1000
1200
1400
1600
1800
2000
0
2000
4000
6000
8000
10000
12000
14000
16000

0
500
1000
1500
2000
2500
3000
3500

Source: DOFE
Taplejung 1815 Dhanusa 14747
177 Kavrepalanchok 2540 77
1410 886
Dolakha 472 Siraha 12356
1756 Nuwakot 2572 25
Rukum* 83 801 Jhapa 10203
1554 2058
Okhaldhunga 189 Banke 3075
158 Morang 9064
Surkhet 1656 1193
79
Sindhuli 2772 Mahottari 9464
Kailali 1639 450 72
92
1610 Palpa 3005 Sunsari 7030
Parsa 82 95 669
Kanchanpur 1627 Nawalparasi* 6780
58 Dhading 2603 419
1487 472
Terathum 113 Sarlahi 6619
Rautahat 2985 308
Lalitpur 956 86
403 Saptari 5837
641 51
Solukhumbu Panchthar 2678
319 372 Rupandehi 5459
Dailekh 816 310
28 2779
Lamjung Tanahun 5077
Bhaktapur 548 191 268
196
668 1999 Dang 4973
Baitadi Kathmandu 298
10 967
Jajarkot 633 Chitwan 4490
14 Bara 2663 644
403 223
Dadeldhura Syangja 4684
6 185
2533
Male Female

Darchula 393 Bhojpur

228 Kapilvastu 4109
5
79
Rasuwa 232 2298
134 Bardiya Kaski 3715
155
Doti 346 393
FIGURE 11: ORIGIN DISTRICT OF TOTAL MIGRANT WORKERS (2018/19)

9 2160

*Please note that Rukum and Nawalparasi have been split to two districts each which is not captured in the FEIMS
Dhankuta Makawanpur 3017
Achham 310 286 1069
5
2238 Baglung 3678
Kalikot 246 Salyan 123
7 109
Bajhang 233 Sindhupalchok 2381
6 Pyuthan 2265 1346
49
Bajura 205 Ilam 2859
9 2143 754
Jumla 193 Parbat 89
6 Khotang 3316
248
Mugu 138 2132
3 Arghakhanchi 71 Udayapur 3165
355
Mustang 50
31 1694 Gorkha 3196
Ramechhap
Humla 48 483 321
4 Rolpa 3366
1980
Dolpa 33 Sankhuwasabha 194 100
12 Gulmi 3319
Manang 13 1954 137
9 Myagdi 149

21
N E PA L L A BO U R M I G R AT I O N R E PO RT 2020
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

2.4 MODE OF OBTAINING LABOUR APPROVAL

Migrant workers obtain labour approvals either through recruitment agencies or individually. The most
commonly used mode of employment is via recruitment agencies. Individual labour approvals account
for around 10 per cent of the total labour approvals issued (Figure 12). This Section delves into the
various characteristics of labour migration disaggregated by the mode of obtaining labour approvals.The
deployment of workers by the Government, for example, in the case of the Employment Permit System
(Republic of Korea) is not included in the FEIMS database, and hence, excluded here.

FIGURE 12: MODE OF OBTAINING LABOUR APPROVAL

Recruitment Agency Individual

92.45%

91.47%
90.89%
89.87%
100%

88.21%
87.75%

84.95%

90%
68.00%

80%

70%

60%

50%
32.00%

40%

30%
15.05%
12.25%

11.79%
10.13%

20%
9.11%

8.53%
7.55%

10%

0%
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: DOFE

2.4.1 LABOUR MIGRATION THROUGH RECRUITMENT AGENCIES

Labour migration from Nepal is largely driven by the private sector. To facilitate large volumes of outmigration,
recruitment agencies capitalize on their links with foreign employers and other intermediaries to receive
demand quotas for workers from destination countries. In addition, from the perspective of aspirant
migrant workers, navigating the complex recruitment system can be difficult and migrant workers rely on
recruitment agencies to facilitate the search, matching and paperwork associated with the recruitment
process. The recruitment process is complex and entails a series of steps as detailed below (Figure 13). Each
demand letter to hire Nepali workers needs to be verified at the concerned Nepali Diplomatic Mission. This
is followed by a series of steps including receiving a pre-approval from DOFE to advertise and select Nepali
workers, and a final approval to deploy the workers who have fulfilled several mandatory requirements
including submission of valid contract and visa along with proof of completion of medical tests, orientation
training, term life insurance, and proof of contribution to the Welfare Fund.

22
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURE 13: RECRUITMENT PROCESS

THE EMPLOYER RECEIVES THE REQUIRED

APPROVAL FROM THE GOVERNMENT OF
THE DESTINATION COUNTRY TO HIRE 1
FOREIGN WORKERS

THE EMPLOYER OR ITS AUTHORIZED

REPRESENTATIVES SUBMITS THE

2 LABOUR DEMAND LETTER AND RELATED

DOCUMENTS TO THE DIPLOMATIC
MISSION OF NEPAL FOR VERIFICATION
THE NEPALI MISSION EXAMINES THE
EMPLOYER’S LEGAL AND FINANCIAL
STATUS, THE EMPLOYMENT RECORDS TO
VERIFY THE DEMAND LETTER TO HIRE
3
NEPALI WORKERS AND THE TERMS AND
CONDITIONS OF THE DEMAND OFFER

DOFE PROVIDES PRE-APPROVAL FOR

4 THE RECRUITMENT OF WORKERS FROM

NEPAL

THE RECRUITMENT AGENCY PUBLISHES

THE VACANCY ANNOUNCEMENT IN THE
NATIONAL DAILIES
5
THE REQUIRED PROCESS INCLUDING
INTERVIEW, HEALTH EXAMINATION,

6 ORIENTATION, PAYMENT OF INSURANCE

AND WELFARE FUND DUES ARE
COMPLETED

THE VISA OF THE WORKER FOR THE

CONCERNED DESTINATION COUNTRY IS
RECEIVED
7

8 THE FINAL LABOUR APPROVAL IS ISSUED

BY DOFE

DEPARTURE
COUNTRY
TO THE DESTINATION
9

Source: MOLESS

23
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

A brief analysis of the FEIMS database shows that in 2018/19, around 52 per cent of the recruitment agencies
deployed less than 100 workers whereas only 9 per cent of recruitment agencies deployed more than 500
workers (Figure 14). Close to 12 per cent of recruitment agencies deployed between 100 to 149 workers
while 27 per cent of recruitment agencies deployed between 150 to 499 workers.

FIGURE 14: VOLUME OF MIGRANT WORKERS MOBILIZED BY RECRUITMENT AGENCIES (2018/19)

150-199
100-149
8.7% 200-249
12.0%
6.4%
250-299
3.9%
300-399
50-99
5.6%
18.0%

400-499
2.8%

500-999
6.1%
1000-1999
1.9%
2000+
0.6%
0-49

34.0%

Source: DOFE

As will be discussed in Chapter 3 in detail, the Foreign Employment Act and accompanying Rules have been
amended to facilitate mergers among recruitment agencies and to screen out those that are unable to
mobilize over 100 workers annually for two consecutive years. A sizeable number of recruitment agencies is
expected to ease the management of this sector.

In addition to the heterogeneity among recruitment agencies in the number of workers deployed, they also
differ in the number and nature of countries where they send workers. In light of the Government’s priority
to diversify to new destination countries, the links and networks of recruitment agencies abroad is also an
important aspect to consider. In 2018/19, 31 per cent of the recruitment agencies deployed workers to only
one country, followed by 26 per cent and 22 per cent to 2 and 3 countries respectively. Approximately 21 per
cent of the recruitment agencies deployed workers to 4 countries and above in 2018/19 (Figure 15).

24
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURE 15: NUMBER OF COUNTRIES WHERE RECRUITMENT AGENCIES MOBILIZED WORKERS (2018/19)

400

350
Number of Recruitement Agencies

300

250

200

150

100

50

0
1 2 3 4 5+
Number of Countries

Source: DOFE

Similarly, examining the concentration of recruitment agencies by destination country also shows interesting
patterns although this is subject to change annually. The highest share of recruitment agencies i.e. over 700
recruitment agencies sent workers to Qatar in 2018/19 (Figure 16). Similarly, this is followed by a high share
of recruitment agencies—between 300 and 550—that sent workers to UAE, Saudi Arabia and Malaysia. A
third group of recruitment agencies i.e., close to 200 sent workers to Kuwait and Bahrain. It is necessary
to consider the reach of recruitment agencies globally, especially in the newer destination countries and
sectors, as part of the Government’s diversifications strategies. The number of recruitment agencies sending
workers to destination countries like Poland, Cyprus and Turkey, which are fast developing corridors is
increasing. On the other hand, only 3 recruitment agencies deployed workers to Mauritius in 2018/19, with
which the Government of Nepal recently signed an MOU. In addition, the impact of the competition among
recruitment agencies that are over-concentrated in a few countries also merits attention. In particular, when
recruitment agencies compete to acquire worker’s demand quotas which are limited in number, there could
be an upward pressure on recruitment costs and downward pressure on acceptable wages and amenities.
The direct consequences of such unhealthy competition including visa trading are borne by the migrant
worker.

While the Government of Nepal is adopting measures to curb unhealthy competition among Nepali
recruitment agencies as will be discussed in detail in Chapter 3, it is also important to consider the regional
aspects of competition among recruitment agencies. With thousands of recruitment agencies spread across
the region competing for limited job demand in common destination markets, there can be an incentive to
undercut competition which leads to unfavorable outcomes for migrant workers such as incidence of visa
trading, upward pressure on recruitment costs and compromise on the acceptable terms and conditions
of the employment offer. Therefore, a more concentrated approach among labour sending countries using

25
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

platforms such as the Colombo Process is necessary to ensure minimum standards in recruitment and
employment. A positive step in this direction was the inclusion of “Fostering Ethical Recruitment Practices”
as one of the key thematic priority areas in the Kathmandu Declaration adopted on 16 November 2018
by the Colombo Process (CP). This included provisions on sustaining joint efforts towards no recruitment
costs,    strengthening governance to enforce decent work norms and policies  and to consider the CP
Recommended Elements for Interstate Labour Migration Arrangements to guide the bilateral labour
agreements of the CP member states.

FIGURE 16: NUMBER OF RECRUITMENT AGENCIES SENDING WORKERS BY DESTINATION COUNTRY

(2018/19)

Kuwait :
178
Oman:
95
China: Cyprus:
1
Mauritius: 40
Qatar : 3 Russia:
747 3 Sri Lanka:
1
Romania: Saudi Arabia:
14 432
Turkey: Panama: Lebanon:
20 2 1
Jordan:
14 Brunei Czech
Darussalam: Republic:
1 Maldives: Poland: 1
4 66 Afghanistan:
UAE: Malta: Macau 3
497 9 Japan: SAR China:
Portugal: 5
20 9 Hong Kong
SAR China:
1
Israel: Algeria:
Bahrain: 1 3
180

Malaysia:
310

Source: DOFE

2.4.2 INDIVIDUAL LABOUR APPROVALS

While a majority of the workers travel through recruitment agencies, two other modes of recruitment are
also common, albeit in a small share : 1) migrant workers who obtain labour approvals individually and 2)
previously unregistered migrant workers who regularize their status (Figure 17).

26
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURE 17: TRENDS IN LABOUR APPROVALS BY MODE OF OBTAINING LABOUR APPROVAL

Recruitment Agencies New Regularize

448520
443327
500000
395656

366921

354533

323893
400000
260030

208349
300000

200000 61812
40986

40535
38075

25355

20425

21299

18708
100000
16709
17152

11411
10047

8535

8906

9151
0
0

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: DOFE

Individual Labour Approvals: The volume of the workers migrating individually is currently small, at
around 9000 annually (Figure 18). Incidentally, before 2012, the share of workers obtaining employment
individually was higher. However, in 2012, the Government published a Directive related to the Process
of Obtaining and Individual Labour Approval for Foreign Employment, 2012 that regulated the process
of obtaining individual labour approvals. The objective of this Directive was to maximize the protection
of workers obtaining individual labour approvals. Consequently, the share of workers obtaining labour
approvals individually has decreased.

FIGURE 18: TRENDS IN OBTAINING INDIVIDUAL LABOUR APPROVALS BY GENDER

Male Female
35000
30155

30000

25000

20000

15000
10831

10063
9770

9149
8806

7903

7341
7382

7234

7180

10000

5000
1726

1810
1301
1341
898

0
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: DOFE

27
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

The mix of the major destination countries for migrant workers obtaining labour approvals individually is
different and more diverse than for those migrating through recruitment agencies. For example, common
destination markets for migrant workers with individual approvals include Maldives, Seychelles, Malta and
Czech Republic which are less prominent in the context of migrant workers mobilized through recruitment
agencies (Figure 19).

FIGURE 19: MAJOR DESTINATION COUNTRIES FOR INDIVIDUAL LABOUR APPROVALS (OVERALL)

Japan 3.9% Japan 4.4% Seychelles 3.6%

Czech Republic 4.3% Seychelles 3.9% Czech Republic 4.1% Macau SAR, China 2.9%
Malta 5.2% Germany 3.3%
Kuwait 6.2%
Kuwait 3.1%

Malta
UAE
12.6%
8.3%
Others
Others
Qatar 19.2% UAE 20.6
11.7% 9.7%

Qatar
Maldives Poland 12.6% Oman 3.5%
18.4% Maldives
18.7%
19.9%

2017/18 2017/18
Source: DOFE

Current recruitment practices globally are becoming increasingly friendly towards individual application
processes including via online application and interviews. While lower-skilled occupational categories with
bulk demand are lucrative to recruitment agencies, the higher-skilled work is more selective and catered
to individual applicants. Similarly, those who qualify for higher-skilled work are likely able to navigate the
recruitment system independently without the need to rely on intermediaries. In this context, simplifying the
provisions for obtaining individual labour approvals especially for the higher-skilled categories needs to be
considered. This would also incentivize workers who are traveling for higher-skilled work without obtaining
labour approval to do so which would ensure that they are properly recorded with the Government.

Regularization: Labour approvals are also provided to previously unregistered migrant workers who come
to Nepal and return to the same destination country. These can include individuals who travel on different
visas such as student or tourist visas, and obtain employment at the destination country. A total of 21300
and 18708 labour approvals were issued under this category in 2017/18 and 2018/19 respectively (Figure
20). In terms of regularization, it is not surprising that majority of the workers are from the traditional markets
including the GCC and Malaysia (Figure 21).

28
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURE 20: TRENDS IN REGULARIZATION OF LABOUR APPROVALS BY GENDER

Male Female

55285
60000

50000

36672
34866

40000

30000

22699

19916
18249

17265
20000
6527

10000
3863
3209

2656

2176

1443
1384
0
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: DOFE

FIGURE 21: MAJOR DESTINATION COUNTRIES FOR REGULARIZATION (OVERALL)

Malaysia 5.7% Kuwait 2.9% Kuwait 2.0%

Malaysia 3.6 %
Bahrain 1.8 %
Bahrain 1.9%
Afghanistan 7.9 % Japan 2.2 %
Afghanistan 6.0% Japan 1.7% Chaina 1.6 %
Oman 1.4%
Saudi Arabia 3.7% U.S.A 1.7 %
U.S.A 1.4%

Saudi Arabia
7.9% Others Others
8.5% 9.8 %

Qatar
Qatar 26.3%
29.6% UAE
33.0% UAE
39.5%

2017/18 2018/19
Source: DOFE

29
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

2.5 LABOUR APPROVAL RENEWAL

The Government of Nepal grants renewal of labour approvals to workers who want to return to the same
destination country. The data on the renewal of labour approval is available only from 2011/12 but there
has been a steady increase in the volume of workers in this category. Since 2011/2012, over 1.72 million
workers have renewed their labour approvals (Figure 22). The data on renewal is also shaped by individual
preferences and indicates a favorable migration experience given the willingness of a migrant worker to
continue their employment. Renewal may also be preferable to employers given their familiarity with the
worker and the time and cost savings associated with training and processing of paperwork of a new worker.
The renewal of contracts may be reflective of upward mobility of migrant workers as it is likely that workers
renew contracts at higher salaries and/or better positions as renewing an existing contract of employment
allows migrant workers to renegotiate the terms of their employment with higher bargaining power than
while entering into a new contract.

FIGURE 22: TRENDS IN LABOUR APPROVAL RENEWAL BY GENDER

Male Female

261071
300000

248050
246035
224917

250000
195719
172213
160258

200000

150000

100000
13331

11545
13171

10548

50000
9011
4269

4073

0
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: DOFE

The majority of labour approvals renewed were for GCC and Malaysia, which is not surprising given that it
reflects the pattern for new migrant workers. The top five destination countries account for over 90 per cent
of the renewals i.e., Qatar, Saudi Arabia, UAE, Malaysia and Kuwait (Figure 23). A large number of renewals
in these destination countries corresponds to the large number of new labour approvals issued to these
destinations in the preceding years. However, Malaysia has accounted for a relatively smaller share of total
renewals in comparison to the high share of new workers headed to the country. One of the reasons could
be that prior to the MOU signed between the Governments of Nepal and Malaysia in October 2018, the
contract period for Malaysia bound workers was three years as opposed to two years in other countries.
However, further research is needed on the factors contributing to the lower share of labour approval
renewals to Malaysia.

30
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURE 23: MAJOR DESTINATION COUNTRIES FOR LABOUR APPROVAL RENEWALS (OVERALL)

Malaysia
UAE
11.8%
20.9%
Kuwait 3.7%

21.2% 12.8% Bahrain 1.5 %

Japan 1.2 %
3.7% Oman 1.0 %
1.4% Macau, SAR, China 0.4 %
1.0%
INSIDE : 2017/18 1.0% Maldives 0.3%
0.4% Others 1.2%
OUTSIDE : 2018/19 0.3%
1.0%

26.1%
Saudi Arabia 31.1%
26.3%
Qatar
31.6 %

Source: DOFE

The volume of female workers renewing their labour approvals since 2011/12 is 69,462 and the mix of the
major destination countries shows variation compared to the mix of the total renewals. In particular, the UAE
comprises of over 50 per cent of the total renewals for female workers (Figure 24).

FIGURE 24: MAJOR DESTINATION COUNTRIES FOR LABOUR APPROVAL RENEWALS (FEMALE)

Kuwait
Malaysia
6.0%
9.3% Cyprus 5.0%

Israel 3.2 %
Qatar
10.3% 8.6% Saudi Arabia 3.9 %
9.4%
4.4% Bahrain 2.7 %
9.8% 3.7%
3.0%
Oman 1.2%
2.7%
1.5% Maldives 1.8%
INSIDE: 2017/18
1.4%
OUTSIDE: 2018/19 Others 3.5%
2.7%

52.7%

UAE
53.2%

Source: DOFE

31
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

2.6 AGE
Age distribution of the migrant workers using the 2018/19 data shows that the mean age is 29 whereas the
median age is 28 . In 2017/18, the mean age was 28 while the median age was 27.27 In 2017/18, youth (ages
18-24) made up 39 per cent of the total migrants while in 2018/19, they comprised 36 per cent of the total
migrants (Figure 25). The age group over 45 comprises the smallest share of the total volume of outmigrants.
The age group with the highest share of workers among both women and men is 25-35.

FIGURE 25: AGE DISTRIBUTION OF NEPALI MIGRANT WORKERS BY GENDER

18-24 25-35 35-45 45+

72,686
2018 (Male) 92,022
34,756
4,302
7582
2018 (Female) 10,028
2,565
106
122,661
132,300
2017 (Male) 50,102
6,174

8381
2017 (Female) 10,739
2,487
122
0 20000 40000 60000 80000 100000 120000 140000

Source: DOFE

In both years 2018/19 and 2017/18, UAE was the most popular destination country among female youth.
Among male youth, Qatar was the most popular destination country in 2018/19 and Malaysia was the most
popular destination country in 2017/18 (Figures 26, 27).

FIGURE 26: DISTRIBUTION OF MAJOR DESTINATION COUNTRIES BY AGE GROUP (2018/19)

Qatar UAE Saudi Arabia Kuwait Malaysia Others

100
90
80
60.38

70
60
45.21

40.96
36.47

50
36.18
35.29
33.57
28.44

29.41
29.14

29.01

40
26.47

26.43

22.92
22.46

21.97

18.78
18.37
18.71

30
15.09
14.19 
18.09

13.29
12.98
12.15
11.47
12.9

10.38

20
9.86

8.76
8.22

8.02

7.81

8.49
6.57

5.63
4.31

4.56

5.18

4.72
4.51
4.8

1.04

0.94
0.71

0.43
1.05

10
3.7

0
18-24 25-35 35-45 45+ 18-24 25-35 35-45 45+
Male (2018/19) Female (2018/19)

Source: DOFE

27 In 2018/19, the mean age for male is 29 while that for female is 28 and in 2017/18, the mean age for both is 28.

32
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURE 27: DISTRIBUTION OF MAJOR DESTINATION COUNTRIES BY AGE GROUP (2017/18)

100
90 Qatar UAE Saudi Arabia Kuwait Malaysia Others
80
70

55.74
53.44
60
50
38.38

33.09

31.77
40
29.15

29.09

28.66
28.79

28.07
27.17

27.02
26.22

22.51

21.31
30

18.34
16.74

18.07
16.68
16.53

16.39
15.47
15.56

15.59
13.96

13.66
13.32

12.98
11.62
20
9.52

9.18

9.54

9.14

9.22
7.48
6.14

5.92
4.08

4.92
4.26

7.6
2.65
1.69
10

1.64
2.7

5
4

0
0
18-24 25-35 35-45 45+ 18-24 25-35 35-45 45+

Male (2017/18) Female (2017/18)

Source: DOFE

The relatively young population migrating for work has important implications in Nepal from various
perspectives. Outmigration from Nepal is characterized by temporary contracts. In 2018/2019, for example,
the contract period of close to 95 per cent migrant workers was for 2 years, whereas 0.75 per cent was for 1
year and the remaining for 3 years. Even considering a few episodes of repeat migration, migrant workers
eventually return to Nepal during their working age, which points to the need to focus on a robust economic
and social reintegration strategy.

2.7 SKILLS
Skills development is an important policy priority given its positive impact on labour productivity, poverty
reduction and economic growth. The occupational profile of labour migrants in 2018/19 shows that 59 per
cent of the new workers took up unskilled jobs whereas this share was 64 per cent in 2017/18. Similarly, the
share of workers taking up low-skilled jobs was lower for migrant workers renewing their labour approvals
at 54 per cent in both years (Table 2). While there is a broad consensus that a large share of Nepali workers
is being employed for low-skilled work, the categorization of what constitutes these skills level requires
further scrutiny as will be discussed in detail in Chapter 4.
TABLE 2: SKILLS DISTRIBUTION OF NEPALI MIGRANT WORKERS BY MODE OF OBTAINING LABOUR
APPROVAL
RA New Regularization Renewal
Date Occupation Grand Grand Grand
Female Male Female Male Female Male Female Male Grand Total
Total Total Total
High Skilled 0.0% 0.0% 0.0% 0.2% 0.2% 0.2% 0.7% 0.2% 0.3% 0.1% 0.0% 0.0%
Professional 0.0% 0.2% 0.2% 0.6% 0.7% 0.7% 1.0% 0.5% 0.5% 0.2% 0.1% 0.1%
2018/19

Semi Skilled 8.3% 8.9% 8.9% 16.1% 17.7% 17.4% 19.9% 12.4% 13.0% 12.5% 7.2% 7.4%
Skilled 21.6% 29.6% 28.9% 45.5% 50.0% 49.1% 54.7% 48.8% 49.2% 32.9% 39.0% 38.7%
Low-skilled 70.1% 61.3% 62.0% 37.6% 31.4% 32.6% 23.7% 38.1% 37.0% 54.3% 53.7% 53.7%
Grand Total 17325 191024 208349 1804 7341 9145 1443 17265 18708 11545 261070 272615
High Skilled 0.0% 0.0% 0.0% 0.1% 0.2% 0.2% 0.9% 0.1% 0.2% 0.0% 0.0% 0.0%
Professional 0.1% 0.0% 0.0% 0.5% 0.4% 0.5% 1.9% 0.6% 0.7% 0.5% 0.1% 0.2%
2017/18

Semi Skilled 7.2% 8.4% 8.3% 12.8% 8.8% 9.6% 13.1% 8.8% 9.1% 9.3% 5.9% 6.1%
Skilled 15.6% 26.2% 25.6% 50.7% 55.8% 54.8% 55.6% 50.6% 50.9% 35.6% 39.5% 39.4%
Low-skilled 77.2% 65.3% 66.1% 35.9% 34.7% 35.0% 28.6% 39.9% 39.2% 54.6% 54.4% 54.4%
Grand Total 19299 304442 323741 1726 7180 8906 1384 19915 21299 10547 248046 258593

Source: DOFE

33
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

2.8 STOCKS OF MIGRANT WORKERS

While the above discussion focused on the annual flow of migrant workers, it is also important to pay
attention to the total stock of migrant workers. Flows, alone, paint an incomplete picture of the overall
migration scenario. For example, the growing interest on issues such as social security for migrant workers,
strengthening labour wings of Diplomatic Missions, allowing migrant workers to vote in national elections
or the need to better market the Foreign Employment Savings Bond to migrant workers require a better
understanding of the country-wise stock of migrant workers. This is especially critical in case of covariate
shocks when migrant workers need to be rescued en masse. Without comprehensive data on the current
stock of migrant workers, the estimates on the stocks of migrant workers used in the public discourse can
vary widely. There is a need to gain a comprehensive understanding of both flows and stocks. As per the last
Census conducted in 2011, 7.3 per cent of Nepali was living abroad, a substantial increase from the Census
conducted in 2001 when this volume was just 3.2 per cent.28

Efforts to record the data on returnee migrant workers in coordination with the Department of Immigration
is at its nascent stages. The upcoming National Population Census 2021 presents an immense opportunity to
better understand the volume and characteristics of Nepali migrant workers scattered globally. In addition,
the database maintained by the Governments of destination countries can also be a reliable source of
information on stocks of Nepali workers abroad. For example, the Government of Malaysia has published
the details on the current migrant stock by nationality. As shown below, of the total regular migrant workers
in Malaysia, Nepalis comprise the second highest nationality after Indonesia. There is a total of 382651
migrant workers, of whom 3 per cent are women (Figure 28). Nearly 75 per cent of the workers are involved
in manufacturing followed by 21 per cent in the service sector. Construction and agriculture comprise a very
small portion of workers in Malaysia, totaling to 5 per cent (Figure 29). Gender disaggregation shows that 95
per cent of the female workers are involved in the manufacturing sector.

FIGURE 28: CURRENT MIGRANT WORKERS IN MALAYSIA BY NATIONALITY (2018)

Male Female
442640

370986

500000

400000
267489
262514

300000
111727

200000
88836

56534

37697
16705
11665

18719

16392
11139
12763

100000
4760
8907

4374
6608
4873
2164
561

185

0
Myanmar
Indonesia

Nepal

Bangladesh

India

Pakistan

Philippines

Vietnam

China

Thailand

Others

Source: Ministry of Human Resources, Malaysia

28 Central Bureau of Statistics

34
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURE 29: SECTORS EMPLOYING NEPALI WORKERS IN MALAYSIA (2018)

SERVICES
20.59%

AGRICULTURE
2.85%

CONSTRUCTION
2.38%

PLANTATION
0.78%
DOMESTIC WORK
0.02%

MANUFACTURING
73.39%

Source: Ministry of Human Resources, Malaysia

In addition, in the Gulf, as per records of 2017/18, there are about 400,000 Nepalis in Saudi Arabia, 400,000
in Qatar, 70,000 in Kuwait, 200,000 in the UAE, 20,000 in Oman, and 25,000 in Bahrain.29 Coordinating with
the Governments of the destination country for periodic sharing of such information and systematically
recording it in a centralized database can go a long way in informing evidence-based policymaking.

2.9 LABOUR MIGRATION FROM A REGIONAL PERSPECTIVE

Given the cross-border nature of labour migration, it is also interesting to situate Nepal within major labour
sending countries in the region that share common destination markets with Nepal. Total outflow of
workers from 12 major Asian30 countries including Nepal exceeded 5 million annually between 2012-2017.31
Common labour markets for destination countries translate to opportunities for collective action among
labour sending countries for worker rights and protection, as envisioned in regional forums such as the
Colombo Process and Abu Dhabi Dialogue. A trend analysis (2007-2017) of select labour sending countries
from the region shows a heterogenous migration profile (Figure 30).32 Outmigration from the Philippines,
Pakistan and India has been consistently higher than that from Nepal while Nepal’s has been higher than
that of Vietnam, Lao PDR and Myanmar. Compared to other labour sending countries like Bangladesh, Sri
Lanka and Indonesia, migration from Nepal has been relatively higher in some years and lower in others
which depend on various factors including unilateral and bilateral policies adopted by the labour sending
and destination countries.

29 https://mofa.gov.np/wp-content/uploads/2019/02/Final-_-Mofa-Book.pdf
30 Countries include Nepal, Cambodia, Philippines, Bangladesh, Pakistan, India, Indonesia, Sri Lanka, People Republic of China, Viet Nam, Lao PDR and Myanmar.
31 ADB (2019)
32 The outflows need to be considered in the context of the total population of these countries which are as follows: Philippines: 104 million; India: 1339 million;
Pakistan: 197 million, Sri Lanka: 21.4 million, Bangladesh: 164.7 million and Indonesia: 264 Million (World Bank estimates)

35
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

FIGURE 30: TRENDS IN ANNUAL LABOUR MIGRATION FROM THE REGION (COUNTRY-WISE)

Philippines Bangladesh Pakistan

2000 2000 2000
1800 1800 1800
1600 1600 1600
1400 1400 1400
1200 1200 1200
1000 1000 1000
800 800 800
600 600 600
400 400 400
200 200 200
0 0 0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

India Indonesia Sri Lanka

2000 2000 2000
1800 1800 1800
1600 1600 1600
1400 1400 1400
1200 1200 1200
1000 1000 1000
800 800 800
600 600 600
400 400 400
200 200 200
0 0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Viet Nam Lao PDR Myanmar

2000 2000 2000
1800 1800 1800
1600 1600 1600
1400 1400 1400
1200 1200 1200
1000 1000 1000
800 800 800
600 600 600
400 400 400
200 200 200
0 0 0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: ADB (2019)

The GCC countries are common destination markets for labour sending countries in the region. Consequently,
most of the countries have been impacted by the slowdown in the GCC market. Apart from Bangladesh,33
the other labour sending countries experienced a fall in the flows to the GCC region between 2016 and
2017 (Figure 31). Similar to Nepal, the slowdown in the GCC markets has also made reintegration and
diversification strategies important policy agendas for countries of origin in the region.

FIGURE 31: SLOWDOWN OF MIGRANT WORKER OUTFLOW TO THE GCC (IN THOUSANDS)

Phillipines India Pakistan Sri Lanka Bangladesh Indonesia

1036
943
822 795

572
507 481

304
208 180

20 11
2016 2017

Source: ADB (2019)

33 The increase in the outflows from Bangladesh is due to the lifting of a ban to Saudi Arabia after 6 years. The volume of workers from Bangladesh to Saudi Arabia
increased from 143913 in 2016 to 551308 in 2017. Between 2017 and 2018, however, there was a fall in Saudi Arabia bound workers from over 551308 to 257317.

36
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

The analysis of the regional dynamics in international migration shows that many elements of the foreign
employment process are better addressed collectively as will be discussed extensively in Chapter 3. Similarly,
given the shared challenges and priorities of labour sending countries, platforms like the Colombo Process
can play an immense role in the sharing of good practices. In addition, there is an increase in the outflow of
migrant workers from other regions to the GCC market, especially from Africa. The stock of African migrant
workers in the GCC has increased from 1061917 in 1990 to 3419638 in 2017.34 Traditionally, migration from
Africa has been intra-regional. The mounting population pressure in sub-Saharan Africa, where labour force
is expected to grow by as much as 800 million by 2050, has led to the adoption of promotional migration
policies to reap the youth dividend. Countries, especially in East Africa, have also started promoting their
workforce, and are considering measures to better regulate the corridors.

2.10 RETURN MIGRATION

The reintegration of returnee migrant workers35 has received unprecedented attention in the recent
past. The emphasis has been on the productive use of financial and social remittances—as captured by
experience, skills, exposure, networks and know-how acquired abroad—for local and national development
priorities. Chapter 3 provides detailed information on the Government’s ongoing reintegration programs. To
better inform such efforts, this Section presents some key characteristics of recent returnee migrant workers
including their demographic, employment and earning profile, further disaggregated by the destination
country. This Section has been prepared using the National Labour Force Survey (NLFS) 2017/18.36 For ease
of analysis, the destination countries have been divided into four groups, namely, GCC, Malaysia, India and
other countries. Among the working-age population, 26 per cent of the returnee workers were from India
and Malaysia each, 43 per cent from the GCC countries and about 4 per cent from other countries.

Demographic Profile: There are approximately 756 thousand recent working-age returnee migrant workers
in Nepal.37 Unsurprisingly, females account for a mere 3.8 per cent of this population given that the majority
of outgoing migrants from Nepal are male.38 The average age of male returnees is 33 years (median is 32),
while it is slightly over 30 years for female returnees (median is 28). The 25-34 age group accounts for the
largest proportion across all destination countries, followed by the 35-44 age group (Figure 32).39

34 Atong (2018)
35 In this report, returnee is defined as an individual between 18-64 years of age who reported having travelled and worked abroad for a period of more than 3 months
during the last 5 years in NLFS-III.
36 A note of caution in this section is that the intention to re-migrate has not been captured in the National Labour Force Survey 2017/18. Given that it is common for
migrant workers to re-migrate, this does not provide a complete picture of the returnee profile.
37 There are over 762 thousand returnee labour migrant workers of which approximately 756 are currently of working age.
38 Less than 5 per cent of the returnees from India, Malaysia and the GCC is female, whereas this share is 9.5 per cent among returnees from other countries.
39 These numbers need to be interpreted with caution given that the NLFS 2017/18 excludes information on returnees who returned more than 5 years ago or on the
intention to re-migrate among recent returnees.

37
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

FIGURE 32: RETURNEE POPULATION BY AGE

Overall
2%
10%

26%
18%

44%

18-24 25-34 35-44 45-54 55-64

India Malaysia
0%
16% 7% 5%
24%

20%
23% 23%

51%
31%

GCC Others
1% 0%
9% 12%
19% 5%
30%
5%

46% 64%

18-24 25-34 35-44 45-54 55-64 18-24 25-34 35-44 45-54 55-64

Source: NLFS 2017/18

38
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

In terms of the current residence in Nepal, 60 per cent of the recent returnee population resides in urban
areas. Similarly, 60 per cent of the returnees are based in Provinces 1, 3 and 5 collectively. The GCC countries40
were reported as the most recent migration destination by 43.4 per cent of the returnees. Over 25 per cent of
recent returnees each reported India and Malaysia as their last destination country whereas only 4.4 per cent
reported others as their last destination country. The most recent destination country differs considerably
across the provinces (Figure 33). In Karnali and Sudur Paschim, an overwhelming majority of returnees
reported India as their last destination (73.6 per cent and 90.3 per cent, respectively). Employment to India
is characterized by seasonal labour migration especially during the off-farming season in Nepal. In all other
remaining provinces, GCC constituted the largest destination market for returnees, albeit by varying margins.

FIGURE 33: LAST MIGRATION DESTINATION OF RETURNEES BY PROVINCE (PER CENT)

India Malaysia GCC Other

90.3
100

90

73.6
80
66.2

70
58.4

60
47.6
46.8

50 42.2
38.9

37.9

37
32.8

40

30
17.8

14.2
14.1
12.5

11.1

20
8.6

8.4
8.5

7.4
5.9
5.7

10 3.8
3.1

2.2
1.9

0.1
3

0
Province 1 Province 2 Province 3 Gandaki Province 5 Karnali Sudur Paschim

Source: NLFS 2017/18

Completion of an employment contract (24.1 per cent) was the most popular reason for return followed by
search for better job opportunities (12 per cent) (Figure 34). Unfavorable working conditions and illness,
injury or disability are also common causes for return reported by around 8 per cent returnees each, which
raises concerns about the employment conditions in the destination countries.

40 GCC countries include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

39
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

FIGURE 34: REASON FOR RETURN TO NEPAL BY DESTINATION

OTHER GCC MALAYSIA INDIA

14.3
24.9
Completion of Temporary Work
24.2
23.5

18.3
13.4
To Seek Better Opportunities
9.8
4.8

2.3
Working Conditions 9.9
(low pay, far location, difficult work) 5
10.5

4.1
14.7
Family Reasons 9.7
24.9

5.9
9.2
Removed from Work 13
0
15.5
8.8
Temporary/Seasonal/Project Termination 10.4
6.9

7.1
7.3
Disability, Injury or Sickness 10.7
6.7

6.5
5.3
Resignation 5.1
0.5

5
1.5
Retirement 1.9
6.5

7.8
10
Others 11.7
11.3
0 5 10 15 20 25 30

Source: NLFS 2017/18

Employment Status: A number of factors including internal labour market opportunities, reservation
wages,41 and intention to re-migrate can influence the labour market outcomes of returnee migrant workers.
Of the total returnee migrant workers, 44.2 per cent were employed, 14.3 per cent were unemployed42 and
the remaining 41.5 per cent were not participating in the labour force (Figure 35). Nearly 75 per cent of the
female returnees opted out of the labour force. There is also considerable variation in the employment status
of returnee workers when disaggregated by the last migration destination and by the current province of
residence (Table 3).
41 Reservation wage is the lowest wage rate at which a worker is willing to accept a job.
42 As per the criteria defined in the NLFS 2017/18, here unemployed refers to individuals who are completely without work, currently available to work, and have
taken active steps to find work.

40
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURE 35: EMPLOYMENT STATUS OF RETURNEE WORKERS BY LAST DESTINATION

Unemployed Employed Outside Labour Force

60

50.8
51
50

45.9
44.8
44.2

42.8
41.5

39.6
37.1
40

34.3
30

20

15.7
14.9
14.3

11.9

11.2
10

0
All Destinations India Malaysia GCC Other

Source: NLFS 2017/18

TABLE 3: EMPLOYMENT STATUS OF RETURNEE WORKERS BY PROVINCE

EMPLOYMENT STATUS
PROVINCE
UNEMPLOYED EMPLOYED OUTSIDE LABOUR FORCE TOTAL
Province 1 19.2 45.6 35.2 100
Province 2 21.9 45.1 33 100
Province 3 10.3 56.7 32.9 100
Gandaki 10.3 41 48.7 100
Province 5 12.5 44.9 42.6 100
Karnali 9.2 31.4 59.4 100
Sudur Paschim 15 26.6 58.4 100
Total 14.3 44.2 41.5 100

Source: NLFS 2017/18

While working abroad, over 45.6 per cent of the returnees reported being employed in Elementary
Occupations and this pattern is consistent across all destination country groups (Figure 36). This is followed
by employment in the Sales and Service category and Craft and Related Trades.

On the other hand, in Nepal, the Craft and Related Trades (26.9 per cent) constitutes the largest occupational
category of returnees in Nepal, followed by Elementary Occupations and Services and Sales categories.

However, Managers, Professionals, Technicians and Associate Professionals collectively account for only
3.2 per cent and 1.8 per cent abroad and in Nepal, respectively. The most significant difference is seen in
the Skilled Agricultural, Forestry and Fishery Workers category which accounted for only 1.7 per cent of
employment abroad and 14.3 per cent of employment in Nepal.

41
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

FIGURE 36: OCCUPATION OF RETURNEES IN NEPAL AND AT THE DESTINATION COUNTRY

Nepal Abroad

23.6
9 - Elementary occupations
45.6

8 - Plant and machine operators, 9.4

and assemblers 11.4

26.9
7 - Craft and related trades workers 16.5

6 - Skilled agricultural, forestry and 14.3

fishery workers 1.7

21.4
5 - Service and sales workers
20.7

0.9
4 - Clerical support workers
1.7

3 - Technicians and associate

1.5
professionals 1.5

2 - Professionals 1.3
0.2

0.5
1 - Managers
0.1

0.2
0 - Other occupations
0.5

0 10 20 30 40 50 60

Source: NLFS 2017/18

Only 15.1 per cent of returnees are currently employed in the same occupational category as abroad,
and this share varies considerably by the last destination country. The skills acquired by returnees are not
necessarily being utilized in the internal labour market as the majority of returnees have either opted out of
the labour market (43.8 per cent), are employed in a different occupation than the one they have acquired
international experiences in (27.7 per cent) or are unemployed (13.4 per cent). Over 75 per cent of returnees

42
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

are employed in the informal sector43 and this share varies considerably by the last migration destination
(Table 4). In particular, a high share of returnees from India is employed in the informal sector (86 per cent)
while this share is lower for returnees from other countries (31.2 per cent). An in-depth analysis of the factors
contributing to the employment outcome of returnees is recommended.

TABLE 4: VARIATION IN EMPLOYMENT STATUS DISAGGREGATED BY LAST DESTINATION

DIFFERENT
DESTINATION COUNTRY SAME OCCUPATION UNEMPLOYED OUTSIDE LABOUR FORCE
OCCUPATION
CATEGORIES
% % % %
All Destinations 27.7 15.1 13.4 43.8
India 23.9 10.6 9.6 55.9
Malaysia 34 17.1 14.8 34.1
GCC 26.6 18 15.8 39.6
Other 33.6 9.3 11.2 45.9
Source: NLFS 2017/18

In Nepal, the major three sectors hiring recent returnee migrant workers are Construction (28.4 per cent),
Agricultural, Forestry and Fishing Industries (20 per cent) and Wholesale & Retail Trade, Repair of Motor
Vehicles & Motorcycles (14 per cent) (Table 5). There is variation in the sector of employment by the most
recent destination country as shown in the table. Information on sectors hiring the migrant workers abroad
is not captured in NLFS 2017/18.

TABLE 5: INDUSTRIES THAT RETURNEE MIGRANT WORKERS ARE CURRENTLY ENGAGED IN (NEPAL)
INDIA MALAYSIA GCC OTHER ALL
OCCUPATION
% % % % %
Agriculture, forestry and fishing 28.6 21.7 15.2 13.3 20
Mining and quarrying 1.5 0 2.1 0 1.2
Manufacturing 14 12.4 12.8 11.8 12.9
Electricity, gas, steam and air conditioning supply 0.1 0.2 0.4 0 0.3
Water supply 0 0 0.1 0 0
Construction 30.1 23.3 31.9 18.1 28.4
Wholesale & retail trade, repair of motor vehicles & motorcycles 10.9 13.3 14.7 24.4 13.9
Transportation & storage 6.6 10 10.2 1.6 9
Accommodation & food service activities 5.5 10.2 5.4 0 6.6
Information & communication 0 0.8 0 0 0.3
Financial & insurance activities 0 0.1 0 0 0
Professional, scientific & technical activities 0 0.8 0 0 0.2
Administrative & support services activities 0.6 0 0.5 0 0.4
Public administration & defense; compulsory social security 0.5 0.2 1.3 1.5 0.8
Education 0.3 0.3 2 3.5 1.2
Human health & social work activities 0.5 0.6 0.8 16 1.3
Arts, entertainment & recreation 0 0 0.4 9.9 0.6
Other service activities 1 5.9 2.1 0 2.9
Total 100 100 100 100 100

Source: NLFS 2017/18

43 In line with the criteria used in the NLFS 2017/18, formal sector comprises those employed in government or state-owned enterprises or international organiza-
tions/foreign embassies. Informal sector comprises those employed in enterprises that are neither incorporated nor registered with authorities and those em-
ployed in private households.

43
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Among those who are employed, close to 57 per cent of the workers are engaged as employees, a quarter
as own-account workers, around 7 per cent as employers and the rest as contributing workers. These shares
vary by the last destination country (Figure 37).
FIGURE 37: EMPLOYMENT TYPE OF RETURNEE WORKERS BY LAST DESTINATION COUNTRY

100.0%

10.72
8.7 22.1 8.7

5.3 25.1 8.9

29.5 14.4

8.5 23.9 14.1

90.0%

6.85 25.7
80.0%

70.0%
48.6 7.4

60.0%

50.0%

56.73
60.6

53.5
40.0%
60.5

30.0%

20.0%

10.0%

0.0%
India Malaysia GCC Other  Overall

Employee Employer Own Account Worker Contributing Worker

Source: NLFS 2017/18

44
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 3:
Labour Migration
Governance in Nepal

45
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© Basanta Karki

46
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 3: Labour Migration

Governance in Nepal
3.1 Institutional Arrangements
Labour migration is a complex issue that involves a range of stakeholders from the public and private sectors.
This Section briefly mentions the roles of the stakeholders directly involved in labour migration.

1. GOVERNMENT
The Ministry of Labour, Employment and Social Security (MOLESS) is the apex body of labour migration
governance with the overall responsibility of formulating policies, laws and guidelines in the management
and regulation of labour migration in Nepal. Within MOLESS, the Employment Management Division has
the responsibility of overseeing the labour migration related portfolio of the Ministry. The Department
of Foreign Employment (DOFE) is the key regulatory institution under MOLESS responsible for a range
of management and regulatory activities including the oversight and monitoring of private sector players
involved in the recruitment process, issuance of labour approvals, migrants’ grievance handling and
coordination of their repatriation when needed. The Foreign Employment Board (FEB, formerly known
as Foreign Employment Promotion Board) carries out the welfare-related activities for migrant workers and
their families including compensations for death and injuries as well as management of various activities
aimed at making migration safe and productive including skills development, orientation and returnee
integration programs. Both DOFE and FEB also provide inputs for policy reforms based on lessons from
implementation. The Foreign Employment Tribunal (FET) is a semi-judicial body that provides justice to
the victims of fraudulent migration practices in an easy and fast track manner. The province-based Labour
and Employment Offices under the Labour and Occupational Safety Department renew labour approvals
of migrant workers. The Vocational and Skill Development Training Academy (VSDTA) is responsible
for carrying out skills development initiatives to enhance the employability of Nepali youth in both the
domestic and international labour market.

In addition, there are other stakeholders involved in migration governance. The Ministry of Foreign
Affairs (MOFA) plays an important role in strengthening labour diplomacy, as part of its foreign policy,
with major countries of destination and extends support to migrant workers through its agencies based in
Nepal and the destination countries. The Department of Consular Support (DOCS) provides coordination
and facilitation for search and rescue, repatriation of dead bodies, compensation of death and disability,
grievance handling and handling of insurance-specific issues. The Department of Passport (DOP) issues
passports to Nepali citizens. The Immigration Department keeps records of the exit and arrival of Nepali
migrant workers and regulates departure and arrival activities. The Diplomatic Missions provide support to
migrant workers in the destination country and coordinate between the migrant and the employer as well

47
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

as between migration-related agencies in the destination countries and in Nepal. The Nepal Rastra Bank
(NRB) manages and regulates the remittance industry while keeping records and conducting research on
various aspects of remittances. In addition, the NRB affiliated Public Debt Department overseas the Foreign
Employment Savings Bond scheme.

In the context of decentralization, local and provincial governments also have an increasingly important
role to play in migration governance given their proximity to the migrant workers and their families.

2. REGULATORY AND OVERSIGHT MECHANISM

The Parliamentary Committee on Industry, Commerce, Labour and Consumer Interest is one of the
thematic Committees in the Legislative Parliament, that provides direction and guidance to the Government
on various matters including labour migration-related issues. The National Human Rights Commission
is active in the promotion and protection of human rights of migrant workers both in Nepal and selected
destination countries via advocacy, research and collaboration with human rights institutions of other
countries.

3. PRIVATE SECTOR
Recruitment from Nepal is largely led by the private sector and hence, includes a series of private sector
players throughout the recruitment process (Table 6). Recruitment agencies play an important intermediary
role between the foreign employer and the Nepali workers by facilitating the job search, matching workers
with employers and fulfilling the required documentation process. Orientation centers equip outgoing
migrant workers with necessary information about foreign employment processes, legal provisions, travel
information, support mechanisms and other safety and security measures related to foreign employment
prior to their departure. Medical centers conduct medical tests and furnish health certificates to ensure
that outgoing workers are medically fit. Insurance companies provide mandatory term life insurance for
outgoing migrant workers as per the relevant laws. Banks and financial institutions facilitate the payment
of the migration-related costs and are also involved in various aspects of the migration cycle including
recruitment (insurance), employment (transfer of remittances) and return (soft loans). Skills development
training centers provide a range of job-specific skills training for outgoing migrant workers.

TABLE 6 : NUMBER OF MIGRATION RELATED SERVICE PROVIDERS

INSTITUTIONS NUMBER OF ORGANIZATIONS

Active Recruitment Agencies 854

Branch Offices of Recruitment Agencies 38 branches of 24 Recruitment Agencies

Active Orientation Centers 148

Active Orientation Centers (domestic worker)  23

Medical Centers 226

Insurance Companies 14

Banks 23
Source: DOFE

48
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

4. DEVELOPMENT PARTNERS AND INTERGOVERNMENTAL ORGANIZATIONS

Development partners and intergovernmental organizations are active in the effort to ensure safe,
dignified and productive migration. This includes technical and financial assistance to the Government and
leveraging their regional and global networks to advocate for the rights and welfare of migrant workers. To
build synergies on migration-related activities and to avoid duplication of work, the development partners
have created an umbrella group called the Migration Group of Nepal (formerly known as the Kathmandu
Migration Group).

5. CIVIL SOCIETY
Civil society is active in Nepal’s migration landscape, given the relevance of this topic not just by itself
but also as a cross-cutting issue that touches on all development priorities of Nepal such as skills, finance,
gender, domestic labour market, among others. It is noteworthy that many of the CSOs currently active in
the migration space were initiated by returnee migrant workers themselves. The NGOs have also created a
group called the National Network for Safer Migration (NNSM) for synergistic cooperation. Trade unions
are also active in the migration landscape and are engaged in promoting a rights-based migration policy,
creating a network between trade unions in Nepal and the destination country and reaching out to migrant
workers for informational and rescue services. All major national media outlets in Nepal have reporters with
migration beats to cover migration, and other media outlets also continuously highlight migration-related
issues. As a result, migration has been visible in the public discourse and beyond reporting news and articles,
media has also been an active partner on the dissemination of information on safe migration practices via
public service announcements (PSAs), jingles and video-clips. Diaspora organizations including Non-
Resident Nepali Association (NRNA) as well as other loose migrant worker groups are also engaged in many
important tasks such as fundraising, rescue and repatriation, and voluntary support such as legal assistance
to stranded mgrant workers in close coordination with Nepali Missions.

6. INTER-AGENCY COORDINATION
The overview of the institutional architecture of migration governance demonstrates that a large number
of stakeholders are engaged in various stages of the migration cycle. Given the multiplicity of actors and
their interactions on various elements of the migration process, the success of migration-related initiatives
lies in stronger coordination and collaboration among the organizations. This is particularly challenging
given that the different players represent different interests, priorities and incentives. Vertical and horizontal
coordination is needed among stakeholders for a systems approach towards migration governance,
to ensure reduction in misalignments and that the reach of these networks expands beyond the center,
especially in the context of federalization.

To this end, the Foreign Employment Act and Regulations have provisions for intra- and inter-ministerial
coordination committees (Table 7).

49
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

TABLE 7: COORDINATION COMMITTEES AS PER FOREIGN EMPLOYMENT POLICY, ACT AND RULES

S.N. COMMITTEE AFFILIATED TO COORDINATION LEGAL AND POLICY DOCUMENT

1 Foreign Employment Board Foreign Employment Act, 2064 (Section- 38)

2 Foreign Employment Steering Committee Foreign Employment Act, 2068 (Section-6)

3 Planning Program and Budget Formulation Committee Foreign Employment Regulation (Rule- 29)

4 Expert Committee Foreign Employment Regulation (Rule- 46)

5 High-level Foreign Employment Coordination Committee Foreign Employment Policy, 2068 (Section 10)
Source: Ministry of Labour, Employment and Social Security

Similarly, vertical coordination among all the three tiers of Government is also important especially in the
context of federalization with local governments taking up a more prominent role in migration governance.
For example, the federal Government envisions a National Migrant Resource Center (NMRC) at the FEB to
coordinate with local actors throughout the country including local governments, employment service
centers and migrant resource centers. Such coordination will also allow for better synergies among local,
provincial and national policymakers to ensure that national policies reflect local realities.

3.2 Multi-level Labour Migration Governance

Labour migration governance is complex and multidimensional. In the recent past, multiple layers have been
added to the migration governance structure which presents both opportunities as well as challenges. In
the context of federalization, localization of migration governance and service delivery is being prioritized.
Similarly, with the adoption of the Global Compact for Safe, Orderly and Regular Migration (GCM) in December
2018, Nepal now has access to a global platform and a common language to elevate the discussion on
worker rights and welfare from the vantage of a labour sending country. This Section deals with the multi-
level labour migration governance: at the local, national, bilateral, regional and global levels.
An examination of the common issues in the recruitment, employment and management of workers
emphasizes the need for such a multi-level policy response. In principle, migration can be beneficial for
both the workers and employers. Workers benefit from income and skill gains while employers can fulfill
human resource shortages. However, Nepal’s experience has also shown that the pervasive market and
coordination challenges can suppress the magnitude of the potential gains of foreign employment. This
includes the high recruitment costs, contract substitution, poor working conditions, limited mobility and
access to justice. To ensure that the benefits of migration are maximized while the risks and vulnerabilities
are minimized, the following Section details the multi-level efforts underway that collectively contribute to
make migration safe, dignified and rewarding.

1. NATIONAL LEVEL
Article 51 of the Constitution of Nepal emphasizes on regulating and managing the foreign employment
sector to make it safe, systematic and free from exploitation and to encourage the utilization of capital, skills,
technology and experience gained from foreign employment in productive sectors in Nepal. The Government
of Nepal has developed an extensive policy and legal framework to govern foreign labour migration. The
Foreign Employment Policy 2012, Foreign Employment Act 2007 and the Foreign Employment Rules 2008
are the major policy documents that guide labour migration. Key features of these legal frameworks are
detailed below:
50
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Foreign Employment Policy 2012: The Foreign Employment Policy aims to ensure safe, organized,
dignified and reliable foreign employment to help reduce poverty reduction along with sustainable economic and
social development through economic and non-economic benefits of foreign employment. The policy reflects a
number of provisions enshrined in international conventions44 as well as domestic laws and policies such as
the Interim Constitution of Nepal 2007, the three-year interim plan and the National Human Rights Action
Plan. It sets out 7 broad policy goals including:
To identify and promote employment opportunities in the labour market;
To develop a competitive skilled workforce to maximize the benefits of foreign employment;
To ensure that each step of the foreign employment process is simple, transparent, reliable, organized
and safe;
To address concerns of female migrant workers and ensure their rights throughout the migration cycle;
To ensure good governance in the management of labour migration;
To mobilize local, national and international resources for foreign employment management and
promote collaborative efforts via sectoral partnerships; and
To mobilize remittances for human development and in productive sectors.

Each of the seven policy goals has a set of strategies. Collectively, these are related to different stages of
migration including pre-departure, on the job and return.

To ensure the effective implementation of the Policy, it has set up a high-level Foreign Employment
Coordination Committee and developed a national action plan. The review of the Policy that was supposed
to take place in 2017, 5 years after its launch, has not been conducted yet. A quick review by the high-level
taskforce on foreign employment setup by MOLESS in 2017/18 showed that the implementation of the
Policy has been inadequate. However, an elaborate review has not been conducted yet.

The Foreign Employment Policy is currently being revised to reflect the major contextual changes in labour migration
governance which include:
the decentralized system of governance
the increased automation of service delivery and recordkeeping including with the full-fledged implementation of the
Foreign Employment Information Management System,
the evolving migration governance landscape in existing and new destination countries,
the Government’s evolving view on labour migration and its priorities in migration management including increased
attention to labour diplomacy,
a more developed institutional landscape with the active participation of the private sector, development partners and
civil society, and
the changing global migration governance context such as the endorsement of the Global Compact on Safe, Orderly
and Regular Migration and the inclusion of migration related indicators in the Sustainable Development Goals 2030.

44 Including the Universal Declaration of Human Rights; International Covenant on Civil and Political Rights, 1966; Convention on the Elimination of All Forms of
Discrimination Against Women, 1979; Convention on the Rights of Child, 1989; and ILO Convention 97 – Migration for Employment Convention (Revised), 1949;
and ILO Convention 143 – Migrant Workers (Supplementary Provisions) Convention, 1975,

51
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Foreign Employment Act, 2007: The Foreign Employment Act, 2007 is the apex regulatory document
governing foreign employment in Nepal. The Act aims to make the foreign employment sector safe, managed
and decent and protect the rights and interests of the migrant workers and the foreign employment entrepreneurs
while promoting that business. As the regulatory body, DOFE is the key institution responsible for the
implementation of the Act and Rules.

The major provisions of the Act are detailed below:

QQ establishment of the DOFE for regulation and monitoring activities, the FEB (along with the Foreign
Employment Welfare Fund) for welfare activities and the Foreign Employment Tribunal (FET) for access
to justice;
QQ appointment of labour attaches in countries of destination with 5000 or more workers;
QQ institutional arrangements for various private sector entities such as recruitment agencies and orientation
centers;
QQ provisions for empowering the Government to specify the minimum remuneration for Nepali migrant
workers and the maximum service charge and promotional costs that can be charged by recruitment
agencies;
QQ provisions for mandatory pre-departure orientation, medical test, insurance, Welfare Fund contributions
to be eligible to obtain labour approval;
QQ joint liability of recruitment agencies with employers;
QQ provisions to ensure that those who fail health exams are duly compensated;
QQ provisions on the monitoring and investigation of recruitment agencies with punishment for non-
compliance and reward to the best performers;
QQ the minimum age for foreign employment and clauses on non-discrimination between men and women.

A major achievement of 2018/2019 was the Amendment to the Act to reflect the changing
context of migration landscape including decentralization and key lessons from the last decades
in migration governance. The Amendment addressed immediate requirements and it is expected
that a more comprehensive review will take place in the near future. Major features of the
amendment are highlighted below :

TABLE 8: MAJOR CHANGES IN THE FOREIGN EMPLOYMENT ACT

AREA MAJOR CHANGES
As per the amendment, the security deposit by recruitment agencies has been significantly
increased as follows:
Number of Workers Mobilized Security Deposit
5 million NPR in cash
Upto 3000 workers annually
Increase in the deposit of the 15 million NPR in bank guarantee
Recruitment Agencies 10 million NPR in cash
Between 3000 to 5000 workers annually
30 million NPR in bank guarantee
20 million NPR in cash
More than 5000 workers annually
40 million NPR in bank guarantee

52
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Two or more licensed recruitment agencies can enter into a merger agreement. Procedures
related to the merger will be as prescribed.
Members of the same family cannot be shareholders of more than one foreign employment
Merger of RAs enterprise. If the members of the same family are shareholders of more than one foreign
employment enterprise before the promulgation of this section / provision, they will be
required to merge within 6 months of the promulgation.
After the end of 6 months, the license of those enterprises will not be renewed.
If the RA fails to send 100 workers annually for two consecutive years, licenses will be
Cancelation of License cancelled by DoFE.
The provision to appoint agent by the RA is repealed. Only branch offices may operate.
A system is established for registering complaints related to foreign employment through
the Chief District Officer (CDO). Complaints can also be made online or through the post
Provision regarding Complaint
office. The CDOs are also authorized to conduct primary investigation and reconciliation
between the parties to a dispute related to foreign employment.
Provision regarding renew of labour Migrant workers who are in the destination countries may renew their labour approvals
approvals upto two times from the Diplomatic Missions.
Demand attestation by Diplomatic
Each labour demand needs to be attested by the Diplomatic Mission.
Missions
Source: MOLESS

As detailed above, the Government has prioritized rightsizing of recruitment agencies by increasing the
security deposit and adopting a policy for mergers among recruitment agencies. This is expected to ease the
process of regulating recruitment agencies to screen out the inactive ones. Similarly, the licenses of those
recruitment agencies that are unable to mobilize over 100 workers per annum in two consecutive years will
be canceled.

Demand letter attestation by the Diplomatic Mission has also been made mandatory as per the recently
amended Foreign Employment Act and the related Guideline45 in a move to prevent fraudulent job orders,
minimize contract substitution and ensure transparency. It also facilitates increased communication between
Nepali diplomatic missions and employers, allowing the former to play a more active role in recordkeeping,
screening and monitoring of employers and workers. Similarly, the renewal of labour approvals upto two
times at the Mission has been allowed to ensure migrant worker’s welfare and protection. This ensures
that workers who remain at the destination country beyond their labour approval period have valid labour
approval for continued access to the benefits ensured through the Welfare Fund and insurance. In addition,
it also eases access to the service at the proximity of the worker.

The Amendment has also authorized the Chief District Officer to amicably facilitate individual grievances
in foreign employment. All institutional grievances are forwarded to the DOFE within 7 days for the further
action. This is in line with the Government’s emphasis on ensuring access to justice within a short period
without the victim having to incur the time and costs associated with travel to the capital.

Foreign Employment Rules, 2008: The 5th amendment to the Foreign Employment Rules, 2008 has the
following provisions in line with the amended Act:
1) It has clarified the process of a merger among licensed recruitment agencies.
2) It has specified the process for the renewal of labour approval through the corresponding Diplomatic
Missions.

45 Guideline on the Inquiry of Demand Letter for Foreign Employment, 2018

53
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

3) It includes provisions on forwarding grievances/complaints by the Diplomatic Mission to the DOFE for
further action.
4) A Foreign Employment Business Fund has been established that is funded by 25 per cent of the interest
of the escrow amount deposited at commercial banks by DOFE to be used for capacity development and
welfare functions of licensed recruitment agencies or related research activities.
5) Similarly, welfare benefits can also be claimed at the local level by the migrant worker or his/her nominated
beneficiary, without requiring them to travel to the capital.

In addition to the Foreign Employment Policy, Act and the Rules, a number of guidelines, directives and
manuals have been formulated to operationalize the provisions of these documents.46 The following Section
includes some of the major provisions of the existing guidelines, directives and manuals with an emphasis
on the reform initiatives in the last two years in major aspects of the foreign employment cycle including
recruitment, employment and return.

Pre-Departure Orientation Training: Migrant workers have to undergo a pre-departure orientation

training that acquaints them with the culture, customs, rules and laws applicable to foreign workers and
support services of the destination country. Without adequate orientation, migrant workers can often
find themselves in difficult conditions in the destination country. For example, common cases include
unknowingly committing actions at odds with the laws and culture of the destination country or unfamiliarity
of the migrant workers with the support services available in both Nepal and the destination country. In
2018/19, MOLESS approved a new orientation directive, according to which the orientation curriculum is in
the process of revision. Major aspects of the revision are highlighted below:
QQ Content of the curriculum: The curriculum has been revised to make it more country- or cluster-
specific. Additional features such as financial literacy, health-related and available migration-related
technology (e.g., mobile apps) have been added to the curriculum.
QQ Use of visual aid for enhanced learning: To ensure proper grasp of material within a short period
of time, the use of more visual aid is prioritized.

The orientation is being provided by private orientation training centers. The orientation fee is reimbursed
to the female migrant workers. The use of a biometric system has ensured the attendance of orientation
training by all outgoing migrant workers. This is a marked progress from the previous system that lacked
proper oversight which resulted in low uptake of the orientation training.

In addition to the 3-day orientation discussed above, there is also a mandatory, free 35-day training for
domestic workers that is provided by FEB enlisted orientation centers. The curriculum includes soft skills
such as language training and domestic work-specific training in areas such as cooking, cleaning and other
household activities as per the requirements of the destination country.

Foreign Employment Information Management System (FEIMS): The FEIMS is an integrated

information management system to effectively and efficiently manage and regulate the labour migration
process that has brought together all migration-related authorities and agencies to the same platform.47

46 These include the 2018 Guideline on Foreign Employment Demand Attestation, the 2018 Guideline on Foreign Worker’s Legal Immunity, 2013 Standard on the
Enlisting Process of the Health Examination, the 2013 Directive on the Procedure on Individual Labor Permits, the 2014 Manual on Registration and Renewal
of Orientation Training Institutions, the 2014 Manual on Extending Objective Assistance to Skill Trained Human Resources, and the 2015 Directive on Sending
Domestic Helpers for Foreign Employment.
47 Department of Foreign Employment, Department of Passport, Department of Immigration, Department of Consular Services, Missions, recruiting agencies, medi-
cal examination institutions, pre-departure orientation training providers, insurance companies, and select banks

54
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

This one-stop portal helps address some key issues in the recruitment, employment and repatriation of
workers including:
QQ Transparency in overall migration management: By bringing all migration-related stakeholders to the
same platform and automating the entire recruitment process, FEIMS has increased transparency,
efficiency and effectiveness of the related services including minimizing potential ill practices. As a
comprehensive database with key details of all regular migrant workers, the FEIMS provides updated
information on Nepali labour migrants. In addition, the Government has also launched a companion
job-search website (foreignjobs.dofe.gov.np) and a mobile app (Baideshik Rojgari) that enables workers
to easily search for authentic job offers and track their application process without being misguided by
intermediaries.
QQ The renewal process of labour approvals for returnee migrant workers has been eased. FEIMS enables
renewals of labour approvals from the Labour and Employment Offices located in the provinces and also
from Nepali Missions abroad which entails cost and time saving for migrant workers.
QQ Facilitates the implementation of support mechanisms to migrant workers. FEIMS allows for online
registration of grievances. Furthermore, Missions have access to information on all regular migrant
workers which eases the process of providing services both individually and en masse during idiosyncratic
as well as covariate shocks respectively. By facilitating coordination efforts of DOFE and the Missions
with authentic points of contact in Nepal (families, recruitment agencies) and the destination country
(employers and intermediaries), FEIMS facilitates coordinated rescue efforts and compensation provision
to stranded migrant workers.
QQ Evidence-based policymaking. By providing timely, easy and real-time disaggregated data, FEIMS
has supported evidence-based policymaking by increasing the capacity to analyze trends, origins and
destinations, skills, grievances, among others. The system is further being upgraded with additional
features and will eventually be integrated with the database of the Immigration Department to record
updated information on departing and returnee migrant workers.

Medical Examination: As part of the recruitment process, workers are required to furnish health
certificates from medical centers enlisted by MOLESS. MOLESS has prioritized the following issues regarding
the medical tests of migrant workers conducted as part of the recruitment process:
QQ First, ensuring proper standards of medical screening is key to ensure that migrant workers who
successfully complete the medical examination in Nepal are not deemed medically unfit abroad after
undergoing the same screening. As per the Act, based on the decision of a Specialized Committee,
the concerned medical institutions are required to provide compensation to medically unfit migrant
workers who return prematurely from the destination country. However, to prevent such cases, MOLESS
is rigorously evaluating the standards of the medical institutions to approve only those who meet the
minimum requirements.
QQ Second, MOLESS has prioritized decentralization and expansion of medical services related to foreign
employment from both Government and private medical institutions, including those based outside
the capital, that meet the minimum standards.

Repatriation of migrant workers in distress including those who are hospitalized for extended periods has
also been prioritized. MOLESS is currently preparing a strategy to repatriate workers in coma including the
modality of repatriation and treatment in coordination with concerned authorities.

55
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Minimum Referral Wages: The Government of Nepal sets the minimum referral wages for Nepali migrant
workers with recommendations from the related Diplomatic Mission, experts and market analysis (Table 9).
The referral wages are calculated based on the costs of living, prevailing wages and the referral wages of
other nationals at the destination country. This is particularly useful in countries without minimum wages
for migrant workers or where the applicable minimum wage is too low. Job demands below the prescribed
referral wages are not attested by Diplomatic Missions which to a large extent screen out low paying job
offers. In 2017/18, the minimum referral wages for Saudi Arabia has been revised.

TABLE 9: MINIMUM REFERRAL WAGES BY DESTINATION COUNTRY

COUNTRY SAMPLE REFERRAL WAGES

Jordan 300 USD (BASIC; FOR DOMESTIC WORKERS)

Saudi Arabia 1000 RIYAL (BASIC) PLUS 300 RIYAL (FOOD)

Qatar 900 RIYAL (BASIC) PLUS 300 RIYAL (FOOD)

Oman 100 OMANI DINAR (BASIC) AND 20 DINAR (FOOD)

UAE 900 DIRHAM (BASIC) PLUS 300 DIRHAM (FOOD)

Bahrain 100 DINAR (BASIC) PLUS 20 DINAR (FOOD)

75 KUWAITI DINAR (BASIC FOR INDOOR WORK) , 85 KUWAITI DINAR (BASIC FOR OUTDOOR WORK), 20
Kuwait
KUWAITI DINAR (FOOD)
South Korea 1 LAKH 80 THOUSAND RUPEES
Source: MOLESS

Domestic Work: The Government has approved a Directive for Sending Domestic Workers for Foreign
Employment (2015) which aims to place strong protection measures for domestic workers. The recruitment
of domestic workers from Nepal is regulated considering the special needs and vulnerabilities of domestic
workers in major destination countries. As per the Directive and instruction of the Parliamentary Committee,
the deployment of Nepali domestic workers is subject to robust labour laws specific to domestic workers in
the destination country and a bilateral labour agreement with the Government of Nepal.

Key Features of the Directive for Sending Domestic Workers for Foreign Employment (2015):
Only registered recruitment agencies separately enlisted at DOFE that meet certain requirements are eligible to
mobilize domestic workers. This includes additional escrow requirements.
Employers and recruitment agencies are held accountable for advancing protection to domestic workers.
Domestic workers can be mobilized only to countries with which Nepal has entered into a bilateral agreement or to
countries with robust labour laws that cover domestic workers.
Domestic workers shall not bear any cost of recruitment.
Compulsory bank accounts are required for domestic workers for transfer of salaries.
The minimum age, minimum salary of domestic workers is specified.
Domestic workers are prohibited from traveling on an individual basis unless there is an attested recognition of the
relationship, the demand letter approved by the Mission and the contract.

56
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

In an effort to ensure the mobility of domestic workers currently in the destination country who are gainfully
employed and safe, the renewals of current domestic workers have been allowed since 2019, provided they
meet the following criteria:
QQ Workers must have left Nepal with labour approvals for domestic work and must return to the same
employer/sponsor
QQ A self-declaration form which is certified by the Nepali Diplomatic Mission of the destination country
QQ Valid visa and the Contract of Employment
QQ Other related documents as per the Foreign Employment Act, Rules and Regulations

Complaints and Grievance Handling: The Complaint Registration and Investigation Section of the
DOFE receive cases against individuals and recruitment agencies from migrant workers or their family
members. The complaints against recruitment agencies can be directly dealt with by the DOFE whereas the
complaints against individuals not resolved by DOFE are forwarded to the Foreign Employment Tribunal
(FET).

As discussed earlier, recognizing the opportunity to increase access to justice with federalization, the
amended FEA has allowed migrant workers to register their complaints against recruitment agencies at the
District Administration Office which are forwarded to DOFE within 7 days. The Chief District Officer has also
been given the mandate to deal with the reconciliation of individual cases.

Records of DOFE show that of the 1109 (2017/18) and 855 (2018/19) individual cases registered, 191 and 209
were settled respectively. Similarly, of the 1020 (2017/18) and 1263 (2018/19) institutional cases registered,
832 and 1072 (including carry-over) were settled respectively (Figure 38).
© Basanta Karki

57
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

FIGURE 38: INDIVIDUAL AND INSTITUTIONAL CASES REGISTERED AND RESOLVED

Number of Complaints Reported and Settled

No. of Complaints No. of reported complaints settled

2500

1906
2000

1577

1468

1452

1263
1500
1245

1072
1109

1060

1020
974

931

1000

832
855
773

687
704

589
350

426
303
500
209
202

191
159
151

94
74

0
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Individual Institutional

Amount Claimed and Settled

Individual Amount Claimed (NPR) Individual Amount Settled (NPR) Institutional Amount Claimed (NPR) Institutional Amount Settled (NPR)
900000000 900000000

800000000 753710073 800000000 768361182

700000000 700000000

600000000 561129000 600000000

500000000 500000000

400000000 400000000

300000000 300000000 296320434

225693000

200000000 152445511 200000000

95933249
100000000 100000000 49549360

0 0
2013/14
2012/13

2015/16

2016/17
2012/13

2014/15
2016/17

2018/19
2017/18

2018/19
2013/14

2014/15

2015/16

2017/18

Individual Institutional

Source: DOFE

Records at the Tribunal show that over the ten years, a total of 2086 cases have been registered out of which
1778 cases have been cleared/settled. The case settlement at the Tribunal has become more efficient as
evidenced by the rising share of cases cleared annually. In addition, 2017/18 and 2018/19, 643 (285 new)

58
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

and 577 (259 new) cases were registered of which 325 and 374 cases were settled. The share of cases settled
has seen an increase from 36 per cent in 2016/17 to 50 per cent and 65 per cent in 2017/18 and 2018/19
respectively. The cases settled by FET are forwarded to the district courts for their enforcement as per the
Foreign Employment Rules (Figure 39). However, there is insufficient information on whether the decisions
made by FET are enforced and the victims are duly compensated which requires further investigation.

FIGURE 39: CASES REGISTERED AND SOLVED BY FET

Total Cases Cases Solved Share Resolved

700 0.7

600 0.6

500 0.5

400 0.4

300 0.3

200 0.2

100 0.1

0 0
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: FET

To ensure that workers have access to different mechanisms to register complaints, a number of additional
channels exist including:
QQ A call center has been established at the MOLESS premises to receive grievance/complaints from
migrant workers and their families so that they can be swiftly addressed. Queries are forwarded from
the call center to the related migration stakeholders including points of contact at the Employment
Management Division of MOLESS, DOFE and FEB.
QQ The recently amended Foreign Employment Rules have also allowed registration of grievances at the
Diplomatic Missions.
QQ The Department of Consular Services under the Ministry of Foreign Affairs also handles complaints
related to the rescue and repatriation of migrant workers abroad.

In 2018/19, targeting migrant workers with pending legal cases who are stranded in the destination country,
the Government has made provisions to provided support of upto NPR 1.5 million.

Monitoring of Recruitment Agencies and other Related Stakeholders: In 2019, MOLESS also issued
a Guideline for the Mobilization of a Rapid Response Team to strengthen the monitoring of recruitment
agencies and other service providers and to ensure the effective control of fraudulent activities. This has
provided DOFE a systematic structure and legal basis to conduct both regular and spontaneous inspections

59
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

of recruitment agencies and take immediate action as necessary. This has helped DOFE ramp up its
monitoring and inspection related activities in a regular and more organized way.

Recruitment Costs: The issue of recruitment costs has taken the center stage in Nepal’s labour migration
discourse. Both unilateral and bilateral efforts have prioritized minimizing the costs and fees borne by
the worker. This has primarily been a policy response to the high recruitment costs set at the discretion
of intermediaries and the consequent vulnerability of migrant workers to forced labour and debt traps.
Unilaterally, the Government imposes a mix of caps on costs that differ by country. In 2015, the Government
announced the Free Visa Free Ticket Policy to significantly reduce the cost burden on migrant workers by
requiring employers to bear the costs of visas and air tickets. As per the policy, a maximum of NPR 10,000 can
be charged to workers in case the Employer does not provide service fees to the recruitment agency for the
services provided (Table 10). In addition, the more recent agreements that Nepal has entered into with key
destination countries champion an employer pays model, an important step towards realizing the global
principles on fair recruitment.

TABLE 10: RECRUITMENT COSTS PRESCRIBED BY THE GOVERNMENT OF NEPAL

COUNTRY COST NOTES

MOUs have provisions on employer
Malaysia, Jordan, Mauritius and UAE 0
bearing all costs and fees
Qatar, Saudi Arabia, Kuwait, Bahrain, Oman, Brunei,
Rupees 10,000
Sweden, Malta
Singapore, Panama Rupees 50,000  
South Korea 970 USD  
Russia Rupees 80,000  
Poland Rupees 80,400  
Portugal Rupees 65,000  
Source: MOLESS

Nepal’s experience has shown that the implementation of the free-visa-free-ticket policy has been
challenging due to multiple factors. It is difficult to monitor the value of transactions between the worker
and the recruitment agency, given that receipts of the transaction are not always maintained and when they
are, the receipts rarely exceed the legally allowable charge of NPR 10,000. Efforts to ramp up the monitoring
of recruitment agencies by DOFE are ongoing. In addition, given the transnational nature of international
migration that requires a consideration of the regional dynamics and ongoing practices related to obtaining
demand from foreign employers, implementing the policy unilaterally can be a challenge. A step in the right
direction is the recent MOUs signed by the Government of Nepal that adopt an employer pays principle
with joint identification of recruitment costs and fees along with the parties responsible for each cost item.
Addressing the challenges faced in the full-fledged implementation of the employer pays recruitment
model is a key priority.

Decentralization of Service Delivery: MOLESS has prioritized the decentralization of foreign employment
services at the provincial level through six of its Labour and Employment Offices48 under the Department

48 Dhangadhi, Surkhet, Butwal, Pokhara, Janakpur and Biratnagar

60
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

of Labour and Occupational Health Safety. The following foreign employment-related services have been
delegated:
QQ Responsibility of pre-approvals up to a certain volume as prescribed by DOFE.
QQ Responsibility to regularly monitor the recruitment agencies and their branch offices to ensure
advertisement of the pre-approved job demand as prescribed in the FEA.
QQ Responsibility of final approvals up to a certain volume as prescribed by DOFE.
QQ Responsibility of processing the applications of individual aspirant migrant workers and providing
labour approvals thereon as delegated by DOFE.
QQ Responsibility of monitoring compliance with foreign employment laws.

At the initial stage of decentralizing foreign employment services, Labour and Employment offices are
currently only authorized to renew labour approvals. The other responsibilities, especially with regards to
new labour approvals, are yet to be delegated. The renewal of labour approvals at the provincial level has
entailed cost and time savings to the migrant worker (Figure 40). The workload of the Labour and Employment
Offices varies significantly by province as shown in the figure with the renewals in Janakpur and Butwal
relatively higher compared to other offices . This variation needs to be factored in while allocating human
and financial resources proportional to the workload to meet the demands for service delivery.

FIGURE 40: RENEWALS OF LABOUR APPROVALS BY PROVINCE (2018/19)

25000
21977

19501

20000
13659

15000
9791

10000

5000
1529
927

Biratnagar Janakpur Pokhara Butwal Surkhet Dhangadhi

Source: DOFE

61
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Returnee Integration: A number of programs targeting returnee migrant workers are ongoing as
detailed below.

QQ Recognized Prior Learning: The FEB in coordination with the National Skills Testing Board (NSTB) helps
returnee migrants certify their skills and experience acquired abroad free of cost. The uptake of this
initiative, however, has been low.

QQ Soft Loans to Returnee Migrant workers: The Government of Nepal has introduced a scheme to
encourage recent returnee migrant entrepreneurs by subsidizing interest rates for loans upto NPR
1 million. It is being facilitated by the FEB in coordination with Nepal Rastra Bank (NRB). Despite the
popularity of this program with over 18000 applications forwarded by FEB to NRB, implementation has
remained challenging. This signifies the need to further review the modality of the scheme, encourage
its ownership by financial institutions, and better equip returnee migrants to prepare bankable business
plans.

QQ Felicitation of Returnee Entrepreneurs: As part of its annual program, MOLESS recognizes and awards
successful returnees who are currently engaged in entrepreneurial activities. This program provides a
platform to showcase good examples of knowledge and skills transfer, job creation and productive
use of remittances. In 2018/19, the awardees had a heterogeneous profile in terms of the country
of destination (Dubai, South Korea and UAE) and the sector of engagement (poultry farming, metal
industry, animal husbandry, garment and vegetable farming).

QQ Returnee targeted programs at the provincial level. Within the province, the Ministry of Social
Development has the overall responsibility of formulating policies and programs related to labour and
employment. An overview of the budget speeches by the provincial governments shows that reference
to migration has been primarily in the context of returnee workers and their mobilization in priority
sectors for the economic development of the provinces such as agriculture and entrepreneurship. That
the potential of returnees to contribute to the development of the provinces has come to the fore is
positive. The operationalization of these policies will be key.

Select Examples of Provincial Budgets

Province 1 has set aside Rs 70 million in agriculture and livestock programs and Rs 20 million under the Chief Minister Youth
Entrepreneurship program that specifically targets returnee migrants.
In Province 3, returnees will have access to agricultural loans at low-interest rates in partnership with the Agricultural
Development Bank.
Province 5 has set aside a grant to establish an Investment Promotion Center to channel remittances to the development
of the Province. Similarly, the Province has allocated Rs 4.35 million for several schemes targeting returnee migrant workers
including skills training, awareness seminars, data collection and investment promotion.

2. LOCAL LEVEL
Changes due to migration, whether it is in the local labour or real estate market, the patterns of consumption
or the demographic structure, are felt the most in the local communities from where the migrant workers
originate. Therefore, local governments need to be mainstreamed into the migration governance processes.

62
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

It is evident that local governments currently differ in terms of their migration context, expertise, financial
needs, prioritization of migration, the maturity of institutions in migration management and political will to
champion this as a policy priority. These collectively impact the mainstreaming of migration governance into
policies, plans and programs at the local level. The Local Governance Operation Act 2017 mandates multiple
roles and responsibilities of local governments concerning foreign employment. These responsibilities can
be broadly categorized into three groups including data collection, information and training, and integration
of returnee migrants (Table 11).

TABLE 11: FOREIGN EMPLOYMENT RELATED RESPONSIBILITIES OF LOCAL GOVERNANCE

DATA INFORMATION AND TRAINING RETURNEE INTEGRATION

Records collection and information
Management and operation of employment Social reunification of returnee
management of domestic and foreign
information centers migrant workers
labourers at the local level
Information and data collection and Use of knowledge, skills and
Financial literacy and skills training for the
management of labour force in foreign entrepreneurship gained during
labour force going in foreign employment
employment and safe migration practices foreign employment
Other activities related to recordkeeping of
   
unemployed population.
Source: LGOA, 2017

The initial stage has entailed preparatory work to lay the foundations to implement the foreign employment-
related functions of the LGOA, 2017. In 2018/19, MOLESS has prioritized the a series of discussion with local
governments to carry out their foreign employment mandate. There are further plans to ramp up such
sensitization efforts, which have influenced local governments to reflect migration-related activities in their
profiles, plans and budgets. Currently, there is variation in the local government’s prioritization of this sector
and technical preparedness to implement the LGOA, 2017 mandate. Orientation programs also help build
a broader dialogue on migration governance at the local level. While the implementation of the foreign
employment related mandate of LGOA, 2017 is at its nascent stage, there are many examples of positive
deviances that are worth highlighting. Seven local governments in Nawalparasi49 and four in Ramechhap50
have pooled their budget to carry out joint foreign employment-related activities such as running MRCs and
implementing community-based outreach programs. Such positive deviances exemplify the possibilities of
collaboration among local governments to run joint programs, share costs and standardize approaches to
support migrant workers and their families. Such good examples need to be showcased on a regular basis.

Discussions with local authorities show that disparities exist across different rural and urban municipalities
in its implementation:

QQ Data: Municipalities have developed “municipality profiles” in the format laid out by the Rural/Urban
Profile Preparation Procedure, 2074 set by the Ministry of Federal Affairs and General Administration.
Many of the profiles also include details on the number of individuals engaged in foreign employment
from the rural and urban municipality and estimates of remittances, among others. In addition, a few
have also started developing their migration profile that includes additional details including the share

49 Ramgram Municipality, Bardaghat Municipality, Sunawal Municipality, Palhinandan Rural Municipality, Sarawal Rural Municipality, Susta Rural Municiplaity and
Pratapur Rural Municipality
50 Manthali Municipality, Doramba Rural Municipality, Gokulganga Rural Municipality and Umakunda Rural Municipality

63
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

of migrant workers who took training, the social costs of migration etc. This disaggregated information,
if standardized, can be immensely useful for policymaking and targeting labour migrant households for
related programs. As part of the Prime Minister’s Employment Program, the data on the unemployed
population is being collected and managed through the Employment Management Information System
(EMIS). As part of this process, information on migrant workers and returnees could also be collected by
ensuring interoperability of the separately existing systems which needs to be further explored.
QQ Information Dissemination: The management and operation of Employment Service Centers (ESC)
is now in the mandate of the local governments. As shown in the Table, Migrant Resource Centers
(MRC) are being implemented in 25 districts and 20 more will be in operation from 2019 as part of the
SAMI project. In addition, multiple organizations are also operating MRCs (Table 12). Given the high
number of MRCs operating in Nepal which is expected to further increase, there is a need to strengthen
coordination across these MRCs to ensure consistency in the messages as well as the quality of services
provided. A national MRC is being envisioned as a centralized coordination unit at the federal level that
will maintain a database of all MRCs and ESCs across Nepal. It will ensure that the quality of the services
is uniform and the information provided is accurate and frequently updated.

Furthermore, domestic and foreign employment are intricately related right from the pre-decision stage
to the return stage. 753 ESCs are currently in operation throughout the country, manned by employment
coordinators. A key priority now is to better assess the interlink between MRCs and ESCs and to explore
the possibility to strengthen coordination and integration between the two.

TABLE 12: SELECTIVE MRCS IN OPERATION ACROSS NEPAL

PROJECT/
S.N. NUMBER OF MRC MRC DISTRICT
ORGANIZATION
1 SAMI (GON and 39 [19 are already in In operation: Jhapa, Morang, Sunsari, Panchthar, Ilam, Bhojpur, Khotang,
Helvetas) operation whereas Udaypur, Saptari, Siraha, Dhanusha, Mahottari, Sarlahi, Rautahat,
20 MRCs will be in Bara, Parsa, Sindhuli. Sindhupalchok. Ramechhap, Dhading, Nuwakot,
operation from Jan, Kavreplanchok, Chitwan, Makwanpur, Nawalparasi, Kaski, Gorkha,
2019] Tanahu, Baglung, Syanja, Dang, Rupandehi, Kapilvastu, Banke , Rolpa .
Gulmi, Salyan, Kailali, Kathmandu (TIA, Department of Passport)
2 Maiti Nepal 6 Jhapa, Kavre, Rupandehi, Makwanpur
3 Pourakhi 4 New Buspark (Kathmandu), Pharping (Kathmandu), Chitwan and Dolakha

4 WOREC 1 Morang
5 ABC Nepal 1 Butwal
6 Samana 1 Sunsari (Dharan)
7 Samriddhi Project MRC-4/Migrant Rautahat, Bara, Bhojpur, Okhaldhunga, Terhathum, Dhankuta
Information Desk-9
Source: Publications of Related Organizations/Based on Available Information

QQ Skills and Financial Literacy Training: Skills training is a priority for employment in both the domestic
and foreign labour markets. While many aspects of skills training including curriculum design and
accreditation are federal issues, local governments are involved in the delivery. Adequate resources
need to be allocated by the local governments to ensure that potential migrant workers have access
to skills training. In the context of skills imparted for foreign employment, it is necessary to ensure that
they are recognized by employers abroad. In municipalities with an underdeveloped supply side of skills
training, the local governments and MRCs/ESCs can also play a referral role to connect aspiring migrants

64
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

with federal or provincial training centers that provide internationally recognized skills training. Projects
like SAMI and Samriddhi, in coordination with the local governments, provide financial literacy training
to the families of migrant workers, who are the recipients of the remittances.
QQ Returnee Integration: There are local governments that have initiated returnee programs on an ad
hoc basis but a more concentrated approach is now needed. Given that the integration of returnee
migrant workers is also under the mandate of the FEB, the FEB could play an important role in providing
a strategic direction and financial resources for the development of systematic processes and targeted
programs by local governments for the reintegration of returnee migrant workers. Identifying ways to
coordinate with local governments to carry out such programs needs to be prioritized noting the LGOA
mandate of local governments on facilitating returnee integration.51

The Safer Migration (SaMi) Project under MOLESS aims to support safer and productive migration for Nepalis. It is being
implemented with support from the Government of Switzerland. The Project activities are being carried out in 156 local
governments in 39 districts across Nepal. Major components of the project include access to information, access to justice,
skills development training, psychosocial counseling and financial literacy in relation to foreign employment. The Migrant
Resource Centre (MRC), set strategically at the District Administration Offices, is the focal point at local levels through which
these services are provided.

3. BILATERAL LEVEL
The Government of Nepal has prioritized negotiating bilateral agreements with destination countries to
advance safe and rewarding migration. The Government of Nepal has concluded labour agreements52 with
9 countries, namely Qatar, UAE, Republic of Korea, Bahrain, Japan, Israel, Jordan, Malaysia and Mauritius. The
first agreement that Nepal entered into was with Qatar in 2005 (Table 13). This was followed by agreements
with Korea, Bahrain and the UAE. However, the period between 2008 to 2015 saw a lull when no agreements
were signed despite a significant outflow of migrant workers. In contrast, 2017 to 2019 saw remarkable
progress in the number of agreements signed or renewed including with Jordan, Japan, Republic of Korea,
Malaysia, Mauritius and the UAE.
TABLE 13: BLAS AND MOUS SIGNED BY THE GOVERNMENT OF NEPAL
YEARS OF
DESTINATION COUNTRY NATURE OF AGREEMENT
AGREEMENT
Japan 2009/2019 JITCO Agreement /Memorandum of Cooperation (MoC) for Specialized Skilled Workers
Mauritius 2019 Memorandum of Understanding (MoU)
Malaysia 2018 Memorandum of understanding (MoU)
Jordan 2017 General Agreement (BLA)
Israel 2015 Joint Pilot Program
Bahrain 2008 Memorandum of understanding
UAE 2007/2019 Memorandum of understanding
Republic of Korea 2007 Memorandum of understanding
Qatar 2005 General Agreement (BLA)

Source: MOLESS

51 A starting point could be the reintegration program that the FEB envisions in coordination with local governments that includes business development training,
seed money for entrepreneurs, and psychosocial counseling in coordination with the private sector.
52 Bilateral Labour Agreements (BLAs) and Memorandum of Understanding (MOU) are used interchangeably.
65
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

The mix of countries with which Nepal has entered into agreements is diverse, reflecting different objectives
and modality of the agreements. BLAs or MOUs also differ in terms of their content, job sectors covered and
involvement of the state and other stakeholders. Some key differences and commonalities among the BLAs
or MOUs are discussed below.
QQ Purpose. Nepal has signed labour agreements with a heterogeneous mix of countries including both
established and new destination markets as shown in Table 14. As a sending country, the primary
objective of these agreements is to extend maximum protection and welfare to migrant workers in
cooperation with the destination country. However, along with protection, there are also promotional
aspects to such agreements, which feature strongly in the agreements with the new destination markets.
In established corridors, migration is self-perpetuating and driven by social networks and private
recruitment agencies. On the other hand, in the case of relatively new corridors, bilateral agreements
can help facilitate the formation of such networks in a managed way by bringing more clarity to the
recruitment and employment processes of both signing countries. The Joint Pilot Program for the
recruitment of caregivers from Nepal to Israel and the MOU with Mauritius that is a relatively new market
for Nepal are a few examples. As Nepal attempts to diversify destination countries, bilateral agreements
can be instrumental in advancing new corridors by helping address issues of information asymmetries
and ease the recruitment and employment process.
QQ State Involvement: MOUs also vary in the degree of state involvement. For example, the labour
agreement with the Republic of Korea is managed by the Governments of both countries. In the case
of the MOC with Japan, a Japan unit has been established under DOFE which is responsible for the
facilitation of the overall recruitment process. In MOUs/BLAs with the GCC and Malaysia, recruitment is
driven by the private sector with the Governments of both countries playing the role of a facilitator and
regulator. Finally, in the case of the MOU with Mauritius, while Nepali recruitment agencies are engaged
in the recruitment process, intermediaries in Mauritius are not involved and employers are required to
directly hire workers through Nepali recruitment agencies.
QQ Employment Sectors: MOUs also vary in the sectors they cover. A majority of the MOUs and BLAs are
open to all sectors whereas a few are designed for specific sectors. For example, the Korea EPS MOU
covers agriculture and manufacturing categories whereas the MOC with Japan covers 14 sectors.53

Regardless of the differences in various aspects of these agreements, the MOUs and BLAs provide a platform
for the countries of destination and Nepal to collaborate on worker protection by involving both sides
throughout the migration cycle including screening, selection, employment and repatriation.

Recent Priorities
The MOUs signed by the Government of Nepal since the agreements with Jordan and Malaysia have
departed extensively from previous models to incorporate strong and comprehensive provisions centered
on worker protection and welfare:
QQ Employer Pays Principle: The Government has strongly prioritized the employer pays model, advancing
to the fair recruitment principles, to ensure that workers do not have to bear any cost and fees associated
with their recruitment process. In particular, this also includes the recruitment fees paid by the employer
to the Nepali recruitment agency facilitating the recruitment.
53 Agriculture, Nursing, Automobile Repair and Maintenance, Food Service Industry, Construction, Manufacture of Food and Beverage, Accommodation Industry,
Machine Parts and Tooling Industries, Fishery And Aquaculture, Industrial Machinery Industry, Electronics and Information, Building Cleaning Management, Ship-
building and Ship Machinery, Aviation Industry

66
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

QQ Standard Employment Contract: The MOU includes a Standard Employment Contract that includes
details on the terms and conditions of the employment. Realizing the vulnerability of the domestic
work, a separate and more comprehensive Standard Employment Contract for Domestic Workers has
also been developed.
QQ Roles and Responsibilities of the Contractual Parties: Attempts have been made to delineate
the individual and joint responsibilities of the Governments of both countries as well as that of the
recruitment agencies. In a few cases such as Malaysia and Mauritius, the responsibilities of the Employer
and the Worker are also elaborated.
QQ Access to Justice: The provisions on dispute settlement using amicable means in the first two weeks
followed by formal arbitration by the concerned judicial authorities is common in all MOUs. However, the
more recent MOUs include provisions allowing workers with a pending court case to legally reside and
work in the country of destination. In addition, the MOUs also include provisions on free legal services
including representation and translation services.
QQ Skills and Orientation: To ensure that the skills and orientation training provided in Nepal are relevant
to the destination country, the MOUs prioritize cooperation on joint skills and orientation programs.
QQ Health Examination: The MOUs prioritize cooperation in setting the medical examination standards
and procedures that meet the criteria of both the Governments of Nepal and the destination country.
Emphasis is also given on ensuring that health examinations be allowed at all eligible medical institutions
approved by the Government of Nepal including the government hospitals.
QQ Equality of Treatment: This provision relates to the fair treatment of the Worker on par with the locals
and other nationals in the destination country in terms of employment including wage and non-wage
benefits, access to justice and freedom of movement.
QQ Change of Employer: Workers are allowed to change employers in certain cases such as the winding-
up of businesses or mistreatment of the worker by the Employer. In other cases, such as the Republic of
Korea, workers can change employers up to 3 times within the same sector.
QQ Special Leaves: In the case of personal emergencies including the death of close family members,
Workers are allowed special leaves to visit Nepal.
QQ Insurance: The Employer is required to bear the costs of health and accidental insurance and medical
fees of the worker.
QQ Possession of Personal Documentation: The MOUs allow the workers to keep their personal
identification documents such as passports at all times.
QQ End of Service Benefits: Workers are entitled to end of service benefits as per the local laws of the
country.
QQ Occupational Health and Safety: Given the nature of the work that the majority of the Nepali workers
are engaged in, such as construction and manufacturing, occupational health and safety measures are
emphasized.
QQ Special Provisions for Female Workers: The MOUs emphasize on safety, security and welfare of the
female workers, with due regard to their special needs.
QQ Return: Upon the completion of the contract period, Workers have the option to return at the cost of the
Employer. In case of the death of a worker, the Employer is responsible for the expeditious repatriation
of the remains of workers along with the timely settlement of salary, insurance, allowances, overtime
and other belongings.
67
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

QQ Joint Working Group (JWG): The MOUs have a provision of establishing a JWG (or Joint Technical
Committee) to ensure the proper implementation and monitoring of the Agreement and to recommend
amendments as needed. In addition, collaboration and cooperation in various areas such as skills and
orientation, labour market information systems, recruitment practices etc are prioritized.

In addition to broad-based normative principles that are important in guiding the MOUs, the Government
is also prioritizing actionable commitments that translate to tangible outcomes in the MOUs/BLA. The
Government has made incredible progress in entering into new and revising existing MOUs/BLAs in the
last two years, and efforts are now focused on ensuring the full-fledged implementation and review of the
MOUs. A few lessons emerge:
QQ To the extent possible, effective implementation of the MOUs relies on how specific and actionable the
provisions of the MOU are, which has been emphasized in the recent MOUs signed by MOLESS.
QQ The operating arm of the MOUs, the JWG, comprising of officials from each side, have the mandate to
ensure its implementation, monitoring and follow up. The JWG meetings lead to tangible outcomes
when there are agreements on specific actions that need to be taken to implement the MOU along with
the delegation of responsibilities to the relevant stakeholders. To this end, the JWG can be instrumental
to jointly determine the implementable aspects of such agreements and the strategy forward as laid out
in the Record of Discussions. It is important that JWG meetings be held regularly and the Government of
Nepal can take a proactive role in initiating such meetings.
QQ JWG meetings, as per MOUs, take place annually or as needed. For the day-to-day operational tasks,
MOLESS has prioritized a more sustained dialogue with the stakeholders of the destination country
through different means of communication. In particular, in addition to the JWG members, identifying
relevant points of contact in both Nepal and the destination countries for the day-to-day operational
tasks has also been prioritized. For example, the Under Secretary of the Employment Management
Division of MOLESS serves as the main point of contact for the day to day operational tasks related to
the UAE and Japan agreements.
QQ Expanding the role of Diplomatic Missions and related stakeholders in the implementation of the MOU
is important. Nepali Diplomatic Missions in the destination country are well placed to operationalize
provisions such as ensuring that stranded workers have access to free legal representation and translation
services and an opportunity to engage in employment legally including with new employers while
thier legal cases are pending. In addition, other stakeholders also need to play a more proactive role.
For example, the provisions on joint training and orientation programs as envisioned in the MOU are
best carried forward by the FEB that is currently engaged in skills related activities for aspiring migrant
workers.
QQ Protocols, as part of bilateral agreements, can be useful instrument and can be used to stress on issues
beyond the scope of the MOUs. For example, the Government of Nepal is in negotiations on domestic
worker protocols as an addendum to the MOU for general workers that provides an avenue to include
additional safety measures to this vulnerable sector. The Government is considering using protocols for
joint partnerships in skills training programs or for additional provisions for sectors such as seasonal
workers or seafarers that require additional protection measures.
QQ Ensuring close coordination and active follow-up is challenging in countries without residential
Diplomatic Missions where the Government of Nepal has signed an MOU. For example, there are no
residential Missions in Mauritius and Jordan and there is no labour wing in the Diplomatic Mission in

68
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Japan. This makes the implementation of the MOUs more challenging. Ensuring the presence of labour
attaches or counselors in all countries with which Nepal has concluded bilateral labour agreements
needs to be prioritized.
QQ The JWG (or Joint Committee) have the mandate to periodically review the implementation of BLAs and
MOUs, which has been challenging to conduct for all MOUs.

4. REGIONAL LEVEL
Given the cross-border dynamics of labour migration, collaboration and partnership at regional levels are
also important. There are at least 17 active regional consultative processes globally.54 Several labour sending
countries like Nepal and destination countries in the region have, particularly in the past two decades, been
involved in regional forums on labour migration. Nepal has expressed its commitments at regional levels
by engaging in significant regional processes on labour migration including the Colombo Process (CP), Abu
Dhabi Dialogue (ADD) and South Asian Association for Regional Cooperation (SAARC).

Colombo Process
With the increase in the population of Asian migrant workers seeking foreign employment, particularly to
the GCC and East Asia, labour sending countries from Asia formed the Colombo Process (CP) in 2003. CP is
an informal and non-binding consultative process for informed, safe and decent contractual overseas labour
migration. While it began with ten major countries in 2003 including Nepal, the membership has now risen to
twelve55 and there are eight other countries with observer status.56 The objectives of the CP include: sharing
experiences and best practices on overseas employment; consulting on issues faced by overseas workers;
proposing practical solutions for the well-being of overseas workers; optimizing development benefits
from organized overseas employment and enhancing dialogue with destination countries, reviewing and
monitoring the implementation of recommendations and identifying further steps of actions.

Nepal is the current Chair of the CP.57 IOM provides technical and administrative support to the CP Chair as the
Secretariat. The Nepal Permanent Representative to the UN in Geneva also has a crucial role in coordinating
and facilitating dialogue among the representatives of the CP member states. The CP consultations
conducted over the years have identified and prioritized various issues concerning labour migration which
were distilled into five Thematic Areas Working Groups (TAWGs) in 2016: skills and qualification recognition
processes; fostering ethical recruitment practices; pre-departure orientation and empowerment; promote
cheaper, faster and safer transfer of remittances; and labour market analysis.

Nepal’s Experience as the CP Chair: The timing of Nepal’s Chairmanship of the CP since March 2017 proved
to be significant because the global narrative on migration was rapidly changing as it coincided with the
stocktaking, negotiation and adoption of the Global Compact for Migration (GCM). The CP-led discussions

54 Almaty Process on Refugee Protection and International Migration; Eastern Partnership Panel on Migration, Mobility and Integrated Border Management; Prague
Process; Arab Regional Consultative Process on Migration and Refugee Affairs (ARCP); African Union Horn of Africa Initiative on Human Trafficking and Smuggling
of Migrants (AU HoAI); Intergovernmental Authority on Development (IGAD) Regional Consultative Process on Migration (MiD-IGAD or IGAD-RCP); Migration Dia-
logue from the Common Market for Eastern and Southern Africa Member States (MIDCOM); Migration Dialogue for Central African States (MIDCAS); Migration Dia-
logue for Southern Africa (MIDSA); Migration Dialogue for West Africa (MIDWA); Coordinated Mekong Ministerial Initiative Against Trafficking (COMMIT); Regional
Consultative Process on Overseas Employment and Contractual Labour for Countries of Origin in Asia (Colombo Process); Pacific Immigration Directors’ Conference
(PIDC); Caribbean Migration Consultations (CMC); Central American Commission of Migration Directors (OCAM); Regional Conference on Migration (RCM or Puebla
Process); South American Conference on Migration (SACM).
55 Bangladesh, China, India, Indonesia, Nepal, Pakistan, the Philippines, Sri Lanka, Thailand, Vietnam, Afghanistan and Cambodia
56 Bahrain, Kuwait, Italy, Malaysia, Qatar, Republic of Korea, Saudi Arabia, and United Arab Emirates.
57 https://www.colomboprocess.org/about-the-colombo-process/message-from-the-chair-in-office. Accessed on 09 June 2019

69
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

on the GCM centered on the priorities of labour sending countries to be included in the GCM. Resultantly,
the Joint CP Recommendations to the GCM were submitted to the Special Representative of the Secretary
General for International Migration, which were reflected in the final GCM document.

In October 2018, Nepal convened a two-day CP Consultation on the GCM under the theme of “Safe, Regular
and Managed Migration: A Win-Win for All”. The consultation concluded with the adoption of the 27-point
Kathmandu Declaration on making labour migration safe, managed and dignified. The declaration reaffirmed
the objectives and agenda laid out in the GCM which ‘recognizes the importance of ensuring that the human
rights and fundamental principles and rights at work of all migrant workers are respected, irrespective of their
legal status, and that the welfare, dignity and well-being of their families, women and children, are promoted
and protected’. Additionally, the Declaration put forth several recommendations, to advance the work of the
CP parallel to the relevant objectives and related actions of the GCM and SDG targets and indicators. In May
2019, as CP Chair, the Government of Nepal convened a two-day CP Consultation on the implementation
strategy of the GCM in Bangkok, Thailand. The discussion centered on creating an ad-hoc group under
Nepal’s chairmanship to formulate a regional strategy on the implementation of the GCM.

Furthermore, various country and regional level initiatives are also being carried out as part of the CP in
partnership with development partners and countries of destination. As such, key ongoing regional projects
include: ‘Mapping of Complaints Mechanism in the CP Member States’; ‘A Study in Implementation of Social
Protection for Migrant Workers in CP Member States’, ‘Labour Market Analysis’; ‘Strengthening Labour
Migration Governance through Regional Cooperation in CP Member States’; and the ‘Pilot Project on Skill
Development, Certification, Upgrading and Recognition’. The learnings from these projects are expected
to inform member countries on good practices in migration governance and to identify opportunities for
collaboration.

Abu Dhabi Dialogue

The Abu Dhabi Dialogue (ADD) is a regional forum of labour sending and receiving countries, for coordination
and cooperation on multiple issues related to governing overseas labour migration in the region. Established
in 2008, the ADD includes 12 CP member countries of origin excluding Cambodia and 7 member states
representing the destination country.58 In addition, the IOM, ILO and UN Women are also part of the ADD as
regular observers. The permanent secretariat of the ADD is hosted by the Ministry of Human Resources and
Emiratization of the UAE, which is also current Chair-in-Office.

The ADD identifies key themes and pilot projects to be implemented to improve labour migration governance.
For example, the following key thematic concentrations were set in 2018: exchange of information and
knowledge about labour market patterns; remittance transfer and its link with development; migration
policies; capacity and skill enhancement of migrant workers to meet the demands in the countries of
destination, curb irregular migration and ensure social security and welfare schemes for migrant workers; and
designing development framework that addresses the interests of both countries of origin and destination.

Several Member States of the ADD have also taken exemplary initiatives to protect migrant workers in recent
years. Though the issues discussed in ADD are common to both labour sending and receiving countries
across the region, such initiatives are generally of bilateral nature. These include the provision of insurance
schemes by both the labour sending and destination countries to protect workers from non-payment of

58 Bahrain, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia and United Arab Emirates.

70
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

salaries and delivering health coverage and funds to assist migrant workers in distress. Two pilot projects
are particularly notable. The Skills Harmonization Partnership between Governments of India and the UAE
initiated in 2018 aims to enhance a better match between workers’ skills and requirements of employers.
Similarly, the Comprehensive Information and Orientation Programme between the UAE and Sri Lanka;
the UAE and the Philippines; Saudi Arabia and Bangladesh59 promotes joint corridor specific orientation
and information programs. Nepal has yet to benefit from such joint initiatives; however, it is exploring
opportunities to collaborate with employers and destination countries to conduct joint projects mainly in
the areas of skills development and fair recruitment.

South Asian Association for Regional Cooperation

The ‘SAARC Charter’, signed in Dhaka in December 1985, formally instituted the South Asian Association for
Regional Cooperation (SAARC). It comprises eight member states.60 Eighteen SAARC Summits have been
held since 1985, and the most recent Summit was held in Kathmandu in 2014. The Summit culminated in
the adoption of the 36 points ‘Declaration of the 18th SAARC Summit’ or the ‘Kathmandu Declaration’, which
recognizes labour migration as a regional policy priority requiring collective action from all member states
which is a landmark in the history of SAARC.

As reflected in Article 21 of the SAARC Declaration, member states agreed to collaborate and cooperate on
safe, orderly and responsible management of labour migration from South Asia. In addition, under Article 19,
SAARC leaders also called for relevant authorities to take effective measures to prevent trafficking of women
and children and their exploitation. The Government of Nepal prepared a Concept Note and a draft ‘SAARC
Plan of Action for Cooperation on Matters Relating to Migration’ to advance the commitment concerning
migration as enshrined in the Declaration. The Plan of Action revolved around three objectives: setting-
up an institutional mechanism at the regional level that would facilitate collaboration and cooperation
on the management of key labour migration issues at the SAARC level; facilitating the development of a
“SAARC Declaration on Labour Migration”; and identifying priority thematic areas for regional cooperation
and facilitating information exchange and knowledge building on labour migration issues. A consultative
workshop was also held on the Plan of Action in 2016, with the representation from all member states. It
put forth the following recommendations: setting up of a SAARC Technical Committee on Labour Migration
and establishing a SAARC Ministerial Forum dealing with labour migration issues; and that the Secretariat,
in consultation with the Government of Nepal, would prepare a zero draft of ‘SAARC Declaration on Labour
Migration’. The revised draft was prepared prior to the Session of the Programming Committee to be held
before the Nineteenth SAARC Summit. The Nineteenth SAARC Summit, however, is yet to be held and will
need to be prioritized.

5. GLOBAL LEVEL
Migration governance has received unprecedented attention in the global discourse in the recent past. In
particular, the inclusion of migration in the Sustainable Development Goals was considered a remarkable
progress noting that the preceding Millennium Development Goals were silent on migration. Similarly, in
December 2018, countries around the globe have come together to develop and adopt the Global Compact
for Safe, Orderly and Regular Migration (GCM)—a first of its kind. The Government of Nepal has been able to
draw on the various objectives and commitments of the GCM especially during its negotiations on bilateral

59 IOM. ‘Comprehensive Information and Orientation Programme: Brief on Key Developments’. PPT. 30th April 2019.
60 Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka and Afghanistan

71
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

labour agreements with countries of destination that have also adopted the GCM. In addition, Nepal has also
signed several important international conventions and is part of several processes and frameworks related
to labour and migration.61

Sustainable Development Goals 2030

The Sustainable Development Goals (SDGs) are the universal agenda for peace and prosperity of people
across the world set by the United Nations. Unlike the Millennium Development Goals (MDGs) which was
silent on migration-related issues, goals 8 and 10 of the SDGs are specific to the issues of labour migration
and protection of the rights of the workers (Table 14).

TABLE 14: SDG 2030 & LABOUR MIGRATION

GOAL TARGET
Goal 8: Promote sustained, inclusive and 8.8: Protect labour rights and promote safe and secure working environments for
sustainable economic growth, full and all migrant workers, in particular women migrant workers, and those in precarious
productive employment and decent work employment.
for all.
8:5: By 2030, achieve full and productive employment and decent work for all women
and men, including for young people and persons with disabilities, equal pay for work of
equal value.
8.7: Take immediate and effective measures to eradicate forced labour, end modern
slavery and human trafficking and secure the prohibition and elimination of the worst
forms of child labour, including recruitment and use of child soldiers, and by 2025 end
child labour in all its forms.
Goal 10: Reduce inequalities within and 10.7: Facilitate orderly, safe, regular and responsible migration and mobility of people,
among countries. including through the implementation of planned and well-managed migration policies.
10.c: Reduce to less than 3 per cent the transaction costs of migrant remittances and
eliminate remittance corridors with costs higher than 5 per cent.

Aligning with the principles and objectives of the SDGs, the National Planning Commission (NPC) of Nepal
has introduced an official roadmap, ‘Nepal Sustainable Development Goals: Status and Roadmap: 2016-
203062, to achieve the SDGs in Nepal. The Roadmap has elucidated key socio-economic and political issues
and challenges facing the country to achieve the SDGs. It has also highlighted the sectors to be prioritized
to meet the SDGs such as good governance, affordable education, access to health, the pattern of trade and
industrialization, resilient human development, clean energy, etc.63 However, labour and migration issues
have not received as much priority in the roadmaps and subsequent periodic plans and annual budgets.64

Global Forum for Migration and Development

The Global Forum for Migration and Development (GFMD) can be considered the first global initiative in terms
of amalgamating migration and development. It is an informal, non-binding, and voluntary government-led

61 South Asia Initiative to End Violence against Children (SAIEVAC) (2001); the Convention on Preventing and Combating Trafficking of Women and Children for Pros-
titution (2002); the Technical Committee on Women, Youth and Children (2004); Kathmandu Declaration of the 18th summit of South Asian Association of Regional
Cooperation (SAARC) in 2014 and the SAARC Plan of Action on Labour Migration; the Colombo Process (CP); Abu Dhabi Dialogue (ADD); the Asia- European Union
(EU) Dialogue; the Global Forum for Migration and Development (GFMD ); Association of South East Asian Nations (ASEAN) Consensus Document 2017; the High-
Level Dialogue on International Labor Migration; the General Recommendation 26 of the Convention on the Elimination of All Forms of Discrimination against
Women; the Vienna Convention; the UN’s International Convention on the Protection of the Rights of All Migrant Workers and Members of their families (1990);
the Sustainable Development Goals (SDGs); and the Global Compact for Migration (GCM).
62 NPC 2017.
63 NPC 2017
64 Baniya J. 2019.

72
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

forum established to strengthen the linkages between migration and development, enhance the positive
aspects of migration while mitigating its challenges. In addition, the GFMD paved a pathway to internalize
the global phenomena of migration and its implication on development in an intergovernmental framework.

The objectives of the GFMD are listed below:

The GFMD provides an international platform for policy-makers to discuss issues and challenges of governance of mi-
gration and its relation to development. It provides opportunities to different stakeholders including government, non-
governmental organizations and experts at national, bilateral, and international levels to share their insights on practical
and action-oriented outcomes.

The GFMD could help in sharing good practices and experiences to enhance development benefits from international
migration.

The GFMD may help generate efforts to analyze information, policy and institutional gaps to strengthen further policy
consistency at national, regional, and international levels.

The GFMD may help create an atmosphere of partnerships and cooperation among the countries and stakeholders on
the issues of migration and development.

The GFMD has three major support mechanisms: 1) Troika is the highest level mechanism that includes
the past, present, and future chairs and it provides political and strategic inputs; 2) Steering Groups consist
of 30 members of different governments and support the GFMD consultations; 3) Friends of Forum is the
body of all Member States of the UN and observers. In addition, through the Special Representative of the
Secretary General on International Migration and Development (SRSG), the GFMD maintains a direct and
strong relationship with the UN. In addition, there is also participation from other concerned stakeholders
including civil society, media and private sector. The GFMD has convened a number of annual Summit
meetings since its inception in 2007.65

Nepal’s Participation in the GFMD: The Government of Nepal has participated in several GFMD preparatory
meetings, thematic meetings66 and roundtable consultations67 since 2008. In 2018 in Marrakesh, The
GFMD Ad Hoc Working Group on the 2030 Agenda and the Global Compact on Migration put forward
recommendations to the 2018 High-Level Political Forum including diaspora engagement; adopting
regional approaches; expanding direct target beneficiaries beyond migrant workers; embedding capacity
building elements into interventions; and consolidating and sharing data on impacts of interventions on
an ongoing basis, which are relevant to Nepal’s priorities on migration governance. There is, therefore, a
great opportunity for the Government of Nepal to benefit from the GFMD in the effective implementation,
monitoring and review of the issues reflected in the GCM and SDGs.

Global Compact for Safe, Orderly and Regular Migration

The Global Compact for Safe, Orderly and Regular Migration (GCM) is a non-binding global framework
considered to be a milestone in the history of global dialogue and international cooperation on migration.
65 Belgium, Philippines, Greece, Mexico, Switzerland, Mauritius, Sweden, Turkey and Bangladesh
66 Workshops on "Migration, Connectivity and Business" on 29 March 2016 in Bangkok, Thailand; "Migration for Harmonious Societies" on 18 May 2016 in Geneva,
Switzerland; and on "Migration for Peace, Stability and Growth" on 19 July 2016 in New York, United States
67 "Principles, institutions and processes for safe, orderly and regular migration"; “Moving beyond emergencies - Creating development solutions to the mutual
benefit of host and origin communities and displaced persons", "Fostering the development impact of returning migrant workers".

73
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

It was adopted on 19 December 2018 at the UN General Assembly, with 152 votes in favour. It focuses on
acquiring the overall benefits of migration while also addressing the risks and challenges faced by individuals
and communities. It aims at forging a common understanding and identifying objectives among member
states on shared responsibilities to enhance safe, regular and orderly migration that works for all.68 The GCM
consists of 23 objectives and a series of action items under each objective. The Compact recognizes the
multiple forms of challenges, risks, vulnerabilities and abuses migrant workers face at various stages of the
migration cycle and reaffirms that they are entitled to human rights and workers’ rights. Similarly, it also
acknowledges that problems and challenges cannot be addressed by a single state or any single agency
as migration has transnational and multi-sector dimensions. Recognizing that there is a need for strong
local, national, bilateral and international cooperation for improving labour migration governance, the GCM
emphasizes the need for a ‘whole-of-government and whole-of-society’ approach.

Objectives of the GCM

1. Collect and utilize accurate and disaggregated data as a basis for evidence-based policies
2. Minimize the adverse drivers and structural factors that compel people to leave their country of origin
3. Provide accurate and timely information at all stages of migration
4. Ensure that all migrant workers have proof of legal identity and adequate documentation
5. Enhance the availability and flexibility of pathways for regular migration
6. Facilitate fair and ethical recruitment and safeguard conditions that ensure decent work
7. Address and reduce vulnerabilities in migration
8. Save lives and establish coordinated international efforts on missing migrant workers
9. Strengthen the transnational response to smuggling of migrant workers
10. Prevent, combat and eradicate trafficking in persons in the context of international migration
11. Manage borders in an integrated, secure and coordinated manner
12. Strengthen certainty and predictability in migration procedures for appropriate screening, assessment and referral
13. Use migration detention only as a measure of last resort and work towards alternatives
14. Enhance consular protection, assistance and cooperation throughout the migration cycle
15. Provide access to basic services for migrant workers
16. Empower migrant workers and societies to realize full inclusion and social cohesion
17. Eliminate all forms of discrimination and promote evidence-based public discourse to shape perceptions of migration
18. Invest in skills development and facilitate mutual recognition of skills, qualifications and competences
19. Create conditions for migrant workers and diasporas to fully contribute to sustainable development in all countries
20. Promote faster, safer and cheaper transfer of remittances and foster financial inclusion of migrant workers
21. Cooperate in facilitating safe and dignified return and readmission, as well as sustainable reintegration
22. Establish mechanisms for the portability of social security entitlements and earned benefits
23. Strengthen international cooperation and global partnerships for safe, orderly and regular migration

68 Many UN member states made political commitments for Safe, Orderly and Regular Migration through the Summit for Refugees and Migrant workers on the 19th
of September 2016 and the New York Declaration for Refugees and Migrant workers on 3rd October 2016. Initially, there were 193 UN Member States committed to
negotiating on the GCM, and the Global Compact on Refugees (GCR). The commitment was re-stated in the meeting of the heads of states and governments and
high representatives in Morocco on 10-11 December 2016 while the stock-taking took place in the period between November 2017 – January 2018.

74
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Nepal’s involvement in the GCM: Nepal has been part of the GCM since its very inception with the
declaration in 2016. It has been holding country level and regional consultations and has provided inputs
to various drafts of the GCM. MOLESS has held 4 different multi-stakeholder consultations in Kathmandu to
discuss the template and themes, to receive feedback for the stocktaking on GCM and to provide input to
the Zero Draft of the Compact. MOLESS has held wide consultations with relevant stakeholders including
Ministries, private sector and representatives of the civil society and migrant communities to develop its
position paper on the GCM. These consultations initially focused on the identified six broader themes such
as human rights, governance, development and diaspora, smuggling and trafficking, and irregular migration
and labour mobility. The subsequent consultations after the release of the Zero Draft and the Zero Draft Plus
on GCM focused on providing inputs in the terminologies, definitions and the overall content of the drafts,
with special consideration of the context of Nepal and Nepali migrant workers.

As Chair of Colombo Process, Nepal also held multi-stakeholder consultations between August 2017 to
January 2018, and inputs for the Zero Draft of the GCM were shared in the stocktaking phases held in Mexico.
Nepal’s Missions in Geneva and to UN New York were also involved in the 6 rounds of intergovernmental
negotiations that began in February 2018. Initial rounds of negotiations prioritized stocktaking, input
collection and definitional clarities in the Zero Draft for GCM. The latter negotiations were focused on the
content of the GCM drafts and provided an opportunity for the delegates of Nepal to actively present
their positions and also to build alliances with the groups that share the same interests. One such example
was forging an alliance of like-minded groups consisting of the 25 countries that would try to agree on
common positions on some issues. Through the rounds of negotiations, the final GCM was prepared which
was later adopted by a total of 164 member states from the intergovernmental Conference on the GCM
held at Marrakesh, Morocco during 10-11 December 2018. The document, the first-ever negotiated global
framework on a common approach to international migration in all its dimensions, was officially endorsed
during the 73rd session of UN General Assembly with 152 votes in favour, 12 abstentions and five votes
against. An additional 24 Member States were not present to take part in the vote.

During the Plenary Session of the Intergovernmental Conference of the GCM in Marrakesh, the leadership of
MOLESS acknowledged that the adoption of the GCM is a key milestone in the governance of international
migration and emphasized that its success will lie in its implementation. In this regard, MOLESS is now in
the process of developing a national strategy for GCM implementation. Given that many of the priorities of
Nepal as reflected in its foreign employment policy, as well as ongoing work, align with the GCM, MOLESS
will prioritize the GCM objectives that are relevant and in sync with domestic priorities as the next step.

75
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© ILO

76
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 4:
Thematic Topics

77
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© ILO

78
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 4: Thematic Topics

4.1 Compensation through the Foreign Employment Welfare Fund: A
Review
Despite the benefits of labour migration as detailed in the preceding Chapters, the movement across borders
does not always lead to a favorable outcome for Nepali migrant workers. The media is replete with stories of
workers who lose their lives abroad or sustain injuries or sickness given the adverse and complex working
and living conditions they are exposed to. As discussed in Chapter 3, the Government of Nepal’s efforts
in migration governance primarily aim to minimize the risks that workers are exposed to. In the event of
such occurrences, a Foreign Employment Welfare Fund (FEWF) has been established as per the FEA 2007 to
assist migrant workers or their family members. The Fund is financed by contributions from multiple sources
including:
QQ Individual contribution by outgoing migrant workers which amounts to NPR 1500 for contracts of
employment of two years and NPR 2500 if it is for three years or over;
QQ Interest accrued from the security deposit of recruitment agencies;
QQ Part of the fees accrued from the issuance and renewal of the license of recruitment agencies and
training institutions;
QQ Funds received from foreign employment related businesses; and
QQ Grants and assistance from Nepali and foreign individuals or organizations.

In addition to a wide range of activities to make labour migration safe and productive such as skills
development and orientation training targeted to migrant workers, the FEWF has been primarily utilized to
provide compensation to the families of deceased migrant workers and to workers who sustain injuries or
suffer from grave illness. The eligibility period to avail of these benefits is the duration of the labour approval
or within a year of return to Nepal. The compensation amount is provided to those who fulfill the criteria set
forth in the Foreign Employment Rules as follows:
QQ Survivors’ benefit: Financial assistance of 700,000 NPR (6,156 USD) is available to the immediate family
members of deceased migrant workers.
QQ Employment injury benefit: Financial assistance of up to 700,000 NPR (6,156 USD) (depending on
seriousness) is available to migrant workers who are seriously injured or disabled.

Those ineligible for the benefits mentioned above receive NPR 25000 (220 USD). Considering the difficulties
associated with traveling to the capital to access the compensation scheme, the Government has made
provisions for eligible beneficiaries to apply for the compensation at the local level and receive benefits from
the FEB directly in their personal bank accounts.

In addition to the contribution to the FEWF, workers are also required to purchase term life insurance of
at least NPR 1 million (8795 USD) through insurance companies enlisted with DOFE. This covers workers

79
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

‘against the death or physical injury occurring from whatsoever reasons, and must remain valid during the term
of foreign employment’ (FEA, s26(1)).

FIGURE 41: TOTAL AMOUNT PROVIDED AS DEATH OR DISABILITY/SICKNESS COMPENSATION

Death Sickness

600

500

400
Millions

300

200

100

0
2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19
Source: FEB

Since 2008, over NPR 2.25 billion (19.8 million USD) has been disbursed as compensation for disability or
death. Close to 90 per cent of this amount has been distributed to families of 7467 deceased migrant workers.
Similarly, another 1513 migrant workers who sustained injuries or suffered from sickness also availed of this
compensation. The number of beneficiaries has been increasing every year, which could be driven by both
the large stock of migrant workers and the increased awareness among migrant workers and their families
about the compensation schemes.69

Disability Compensation
The compensation is granted to injured or sick migrant workers with valid labour approvals or recent
returnees within a year of their return. An Expert Committee70 decides the compensation amount to be
provided which can be upto a maximum of NPR 0.7 million (6156 USD) depending on the severity of the
injury or illness. Of the 1513 beneficiaries who benefited from this scheme in the last decade, 1466 were male
and 47 were female. In 2017/18 and 2018/19, 360 and 335 workers sought disability assistance respectively,
which is a marked increase from the 206 beneficiaries in 2016/2017 (Figure 42).

69 The number of deceased and injured individuals, however, may be underrepresented given that it only reflects the beneficiaries of the compensation from FEB.
70 Comprising of representatives from MOLESS, FEB, Ministry of Health, Nepal Medical Council, Nepal Health Professional Federation, Trade Union and CSOs.

80
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

FIGURE 42: COMPENSATION FOR INJURIES BY GENDER

400 Male Female

355
350

323
300

250

200
200

180
150

111
108
89
100
54

50
29

12
7
4

5
6
2

5
9

2
8

0
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: FEB

As shown in Figure 43, the most commonly reported causes of disability in the past 2 years were workplace
accidents, diseases and traffic accidents. Among the beneficiaries, the highest share of workers received
upto NPR 0.1 million (Figure 43).

FIGURE 43: CAUSES OF DISABILITY AND COMPENSATION PROVIDED

2017/18 2018/19 2017/18 2018/19

250 200
177

180
201

200 160

140
152

150

150 120
101

100
100

81
79
79

100 80
74
72

60
46

50 40
32
24

20
13

0 0
Disease Traffic Accident Workplace Accident Others Upto 1 lakh 1 lakh to 2 lakhs 2 lakhs to 5 lakhs 5 lakhs to 7 lakhs

Source: FEB

Most of the disabilities reported were from Malaysia followed by Saudi Arabia, Qatar and the UAE (Table 15).
This is not surprising given the volume of workers in these countries.

81
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

TABLE 15: COMPENSATION FOR DISABILITIES BY COUNTRY

COUNTRY 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 TOTAL
MALAYSIA 3 4 15 27 38 47 106 67 66 109 81 563
SAUDI ARABIA 3 1 6 16 20 30 30 18 49 89 78 340
QATAR 1 2 2 3 15 18 30 12 49 70 81 283
UAE 1 1 5 6 10 13 9 12 22 62 59 200
KUWAIT 0 0 1 2 7 6 4 3 8 14 10 55
BAHRAIN 0 1 0 0 2 1 2 1 1 4 3 15
REPUBLIC OF
0 0 0 0 1 0 0 3 3 7 6 20
KOREA
AFGHANISTAN 0 0 0 0 0 0 0 0 5 0 0 5
OMAN 0 1 0 1 0 0 2 0 0 1 5 10
LEBANON 0 1 0 1 0 0 0 0 0 0 0 2
MACAU, CHINA 0 0 0 0 0 0 0 0 2 2 0 4
CYPRUS 0 0 0 0 0 0 0 0 1 0 2 3
ALGERIA 0 0 0 0 0 0 0 0 0 1 1 2
ISRAEL 0 0 0 0 0 0 0 0 0 1 0 1
ROMANIA 0 0 0 0 0 0 0 0 0 0 1 1
SEYCHELLES 0 0 0 0 0 0 0 0 0 0 1 1
CHINA 0 0 0 0 0 0 0 0 0 0 1 1
TURKEY 0 0 0 0 0 0 0 0 0 0 1 1
JORDAN 0 0 0 0 0 0 0 0 0 0 5 5
TOTAL 8 11 29 56 93 115 183 116 206 360 335  
Source: FEB

Compensation to the Families of Deceased Migrant Workers

Since 2008/09, families of 7,467 deceased migrant workers received compensation from the FEB. Families
of 822 and 753 migrant workers availed of the compensation in 2017/18 and 2018/19 respectively (Figure
44). In addition, FEWF also covers the costs associated with delivering the remains of the deceased from the
Kathmandu-based airport to their homes. This provides some financial and logistic support to the mourning
family members. In addition to the benefits from FEWF, the families of the deceased migrant workers are also
entitled to insurance payment of a minimum of NPR 1 million.

FIGURE 44: NUMBER OF DEATHS BY GENDER

Male Female

1200
1000

1000
864

801
789

737

730
716

800
632
541

600
399

400

200
87

19

24
24
14

23
18
11

21
8
3

0
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: FEB

82
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Natural death is the most common reported cause of death. This is followed by cardiac arrests and traffic
accidents (Table 16). Suicide also features as one of the major causes of death. A high share of deaths is not
attributed to any specific cause, which has remained an issue of grave concern to the Government of Nepal.

TABLE 16: CAUSE OF DEATH BY YEAR

CAUSE OF DEATH
Total
FISCAL YEAR NATURAL TRAFFIC WORKPLACE
CARDIAC ARREST HEART ATTACK SUICIDE OTHER CAUSES
CAUSES ACCIDENT ACCIDENT M F
2008/09 26 2 24 8 9 6 15 87 3
2009/10 106 10 118 67 25 44 48 399 19
2010/11 100 48 118 60 62 61 100 541 8
2011/12 134 37 102 101 66 41 165 632 14
2012/13 116 32 106 104 81 27 261 716 11
2013/14 190 79 138 112 96 79 194 864 24
2014/15 268 90 247 121 113 113 54 1000 6
2015/16 148 94 246 103 109 81 32 789 24
2016/17 64 64 252 122 89 61 103 737 18
2017/18 72 114 126 127 132 67 184 801 21
2018/19 86 33 136 115 111 62 210 730 23
Total 1310 603 1613 1040 893 642 1366 7296 171

Source: FEB

TABLE 17: CAUSE OF DEATH BY COUNTRY

CAUSE OF DEATH
COUNTRY CARDIAC HEART NATURAL TRAFFIC WORKPLACE OTHER
SUICIDE
ARREST ATTACK CAUSE ACCIDENT ACCIDENT CAUSES

MALAYSIA 330 169 231 118 240 184 184

SAUDI ARABIA 105 59 579 465 102 140 140
QATAR 489 79 114 88 87 119 119
UAE 136 53 90 67 74 29 29
KUWAIT 7 64 14 30 21 5 5
OMAN 4 2 15 9 9 3 3
BAHRAIN 12 3 33 13 6 7 7

Source: FEB

A country-wise analysis of the causes of death in the GCC and Malaysia shows that a maximum number of
deaths have occurred due to natural causes and traffic accidents in Saudi Arabia and cardiac arrest in Qatar
(Table 18). Without information on the stock of migrants, however, meaningful comparisons cannot be
made on the mortality rate by destination country, sector of employment or legal status of migrant workers.

In many instances, it has been a challenge to repatriate the bodies of deceased migrant workers. As a result
of coordination between the FEB and the Diplomatic Missions, in 2018/19 and 2017/18, the remains of 82
and 135 migrant workers respectively were repatriated from the destination countries.

In addition, the FEWF is also used to provide scholarships to the children of deceased migrant workers for
education upto higher secondary level. In 2018/19, for example, 1433 students were provided scholarships
(691 female and 742 male) to ensure that the loss of the breadwinner of the family does not lead to school
83
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

drop-out among children. Similarly, in 2017/18, 1338 students were provided scholarships, although the
gender-disaggregated data is not available.

As succinctly summarized by (Moyce, 2018), migrant workers face a myriad of issues both in terms of exposure
to adverse health conditions as well as access to healthcare. They suggest that migrant workers are exposed
to a higher rate of adverse occupational exposures that lead to poor health outcomes and higher risks of
injuries and fatalities. The sources include (i) environmental exposures including temperature, pesticides
and chemicals (ii) working conditions including physical conditions, workplace demands and lack of safety
standards, workplace abuse, trafficking and forced labour. Language and cultural barriers, inequitable access
to health care and documentation status also lead to health disparities.

In addition to the aforementioned issues, problems specific to Nepali migrant workers also include higher
exposure to road related accidents due to lack of awareness, experience and information, lack of hydration
and proper nutrition and temperature variability. The incidence of suicide among migrant workers also
requires further investigation.

While the compensation schemes help bring relief to cope with the shocks, the Government’s priority is
to emphasize policies and programs that prevent such incidences of death and injuries in the first place.
In this regard, the migration and health agenda has received more visibility. Ongoing preventive efforts to
minimize such cases include country-specific orientation programs and rigorous medical examinations in
Nepal before departure and health camps conducted by the concerned Missions at the destination country.
The Government has also prioritized proper skills training of migrant workers prior to their departure, and
has included strong provisions on regular monitoring and inspection of the workplace in the recent BLAs/
MOUs.

While extreme cases such as death and grave injuries are covered by the welfare and insurance schemes
discussed above, issues concerning the overall health of returnee migrant workers which deteriorate during
their employment phase also merit attention from both the Governments of Nepal and the concerned
destination country. The health of returnee migrant workers should feature more prominently in the ongoing
efforts to reduce the social costs of migration and to facilitate returnee reintegration. In particular, providing
incentives to migrant workers to undergo timely health examinations both at the destination country
and upon their return needs be prioritized to ensure early detection of health risks while broadening the
understanding of common health issues faced by migrant workers that can inform policymaking. Similarly,
there is a need to explore the possibilities of including migrant workers to the contributory social security
system71 , noting their ability to contribute during their productive years, for social protection when they are
in need.

71 The Government of Nepal launched a contributory-based Social Security Scheme in November 2018.

84
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

4.2 Labour Diplomacy and The Role of Missions in Labour Migration

Governance
With the increase in the number of labour migrant workers, labour diplomacy has become a prominent
feature of Nepal’s foreign policy. Considering the number of Nepali migrant workers and concerns over their
employment and well-being, many diplomatic endeavors by the Government of Nepal have focused on
advancing labour rights and rewarding employment opportunities for Nepali workers. High-level visits and
meetings have presented important opportunities to raise issues concerning the employment and protection
of migrant workers. For example, the International Labour Conference in Geneva and the endorsement of
the Global Compact for Safe, Orderly and Regular Migration in Marrakesh provided important opportunities
to hold sideline meetings with the leadership of current and potential destination countries. In addition,
there has been an unprecedented attention on concluding bilateral labour agreements with major
destination countries as was discussed in Chapter 3. This Chapter specifically focuses on the role of Nepali
Diplomatic Missions (hereinafter Missions) in the destination countries in relation to labour issues. As the
only extension of the Government present at the destination country in the proximity of migrant workers
and with easy access to Government counterparts and employers of the destination country, Missions can
play an important role in strengthening labour diplomacy between Nepal and the destination countries.

MISSIONS: A SNAPSHOT
Nepal has diplomatic ties with 168 countries. However, it has 39 residential Missions in 30 countries including
major labour destination countries such as Qatar, United Arab Emirates, Saudi Arabia, Oman, Kuwait, Bahrain,
Malaysia, South Korea and Israel (Figure 45).72 Essential services are also being provided by these Missions
to Nepali nationals residing in an additional 11273 countries to which they are concurrently accredited. For
example, the Egypt-based Mission is accredited to 13 countries in Africa and West Asia whereas the Kuwait-
based Mission is accredited to Iraq. In addition, Honorary Consuls have also been appointed in multiple
countries. Similarly, in geographically large countries, diplomatic presence is also established in other major
cities, such as the Consulate General of Nepal in Jeddah of Saudi Arabia, that works under the direction of
the Mission and facilitates the welfare, rescue and repatriation of workers.

FIGURE 45: RESIDENTIAL MISSIONS OF NEPAL

Source: https://mofa.gov.np/Nepali-mission-with-concurrent-accreditation/?fbclid=IwAR1m5saxA3QTOrC_Cff-8h7CEPQ2fTGi79KnIsSebpMhRNBJLHplx_Bv-0I

72 MOFA (2019)
73 https://mofa.gov.np/nepalese-mission-with-concurrent-accreditation/

85
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Missions are responsible for overseeing labour related issues and serve as the main focal point for migrant
workers in the destination country. Major destination countries are equipped with labour wings that comprise
of labour counselors and/or labour attaches (Table 18). The Foreign Employment Act (2007) has provisions
for appointing labour attaches in countries of destination where five thousand or more Nepali migrant
workers are employed. Likewise, the Foreign Employment Rules (2008) provisions for the appointment of
female labour attachés in countries where one thousand or more Nepali women are employed.

TABLE 18: LABOUR COUNSELORS AND ATTACHES APPOINTED BY GON

COUNTRIES LABOUR ATTACHES LABOUR COUNSELORS

Malaysia, United Arab Emirates, Qatar Yes Yes

Oman, Bahrain, Kuwait and Saudi Arabia (Jeddah) Yes No

South Korea, Saudi Arabia (Riyadh) No Yes

Source: DOFE

Appointment of Labor Attaché:

(1) The Government of Nepal shall appoint at least Gazetted officer as the Labor Attaché for a country where five thousand
or more workers have been sent for foreign employment.
(2) The functions, duties and powers of the Labor Attaché shall be as follows:-
• To give information to the Government of Nepal about the condition of labor and employment, factual information
about immigration of the country where Nepali workers are working and steps taken by that country for the protection
of labor and international human rights and interests of workers,
• If there arises any dispute between a worker, employer institution or licensee, to assist in the resolution of such dispute,
• To make necessary arrangements for bringing back to Nepal any worker who has been helpless in the course of
foreign employment,
• If any work corresponding to the skills of the Nepali worker is available in the concerned country, to provide information
thereon to the Government of Nepal,
• To take initiation in sending back the dead body of any worker, who has been a victim of natural calamity or who has
died due to any cause, to Nepal with the assistance of the concerned country or employer institution,
• To make efforts to make a bilateral agreement at the governmental level for the supply of workers from Nepal,
• To provide necessary consultancy to workers, and discourage them to do any work other than that set forth in the
agreement,
• To supervise any activity that may affect the workers, and
• To perform such other functions as prescribed by the Government of Nepal from time to time.
(3) If both diplomatic mission and Labor Attaché are in any foreign country, the Labor Attaché shall have the obligation to
perform the functions and duties set forth in Sub-section (1).

Source: FEA, 2007

In addition to the core diplomatic staff in Missions, local staff is also hired on a contractual basis to help
make the Missions’ service delivery more effective and efficient. This includes appointment in positions
such as office secretary, public relations officer/assistant, lawyers, interpreter, drivers and security officers. In
2018/19, MOLESS has further facilitated Missions of major destination countries including UAE, Saudi Arabia,

86
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Kuwait, Oman, Malaysia and South Korea74 to hire local staff with sound knowledge of laws, local context
and language to assist in labour migration related issues.

ROLE OF MISSIONS IN MIGRATION GOVERNANCE

In Nepal’s experience, the role of Missions in major destination countries is multifaceted and important
throughout the migration cycle. Their proximity to migrant workers, employers and governments of
destination countries gives them a strategic advantage to extend effective support to migrant workers.
This includes information dissemination, market exploration, service delivery and welfare, monitoring and
coordination roles as discussed below. The Boxes within each category include a few illustrative examples of
good practices adopted by Missions, as reported by the staff of Mission in the respective countries:

Information Dissemination
As the sole Government entity in destination countries entrusted with the responsibility of protecting migrant
workers, the role of Missions in the dissemination of information is crucial. Important topics to cover through
awareness and sensitization programs include rights and responsibilities of migrant workers, common
health and safety issues, activities prohibited in the destination country, available support mechanisms
and changes in policies in the destination country or Nepal that impact migrant workers. Missions publish
informative reading materials, conduct labour awareness campaigns, health camps, engage through social
media and even broadcast awareness programs through radio and TV channels in the destination country.

Mobile App (Oman): Given the geography of Oman spread over 300 thousand km2, the Nepali Mission in Muscat could be
physically inaccessible to migrant workers who are working thousands of kilometers away in areas like Salalah. These regions
are also hosting a large number of domestic workers, a highly vulnerable sector. In an effort to provide services to Nepali
citizens and coordinate various efforts like information sharing and rescue, the Mission launched a mobile app called “Nepali
in Oman” in 2018. It includes information on Omani labour rules and regulations, available support for migrant workers and
frequently asked questions. This has enabled quick and regular communication between the Mission and Nepali workers.

Facebook Live News (Malaysia): With close to 400,000 workers in Malaysia, it is an attractive destination country for Nepali
workers. In an attempt to ensure the dissemination of relevant information, the Nepali Mission in Malaysia conducts a Facebook
live program every Friday. This program covers information on Malaysian laws, culture, health and safety matters that are
relevant to migrant workers, services provided by the Mission and Q&A with workers. This has increased communication
between the Mission and workers. Many episodes have been viewed over hundreds of thousands of times.

Awareness Camps (Saudi Arabia): To ensure easy access to health-related information, noting the high incidence of death
and injuries, the office of the Consulate General (CG) in Jeddah of Saudi Arabia has identified vulnerable labour camps
with a high incidence of casualties and deaths. In coordination with Saudi Arabia based Nepali health professionals, the CG
has coordinated health camps to ensure that preventable deaths and sicknesses are avoided via early detection of health
problems and access to correct information.

74 the position has now been transferred to Germany

87
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Service Delivery and Welfare Role

Missions provide essential services to migrant workers including passport renewal services, issuance of
travel documents, visa related and other consular services. Recently, the Missions have also been entrusted
with the responsibility of renewing labour approvals of migrant workers.

In addition, for migrant workers in distress, Missions are the most important formal support system
available at the destination country. Generally, the first step for the Mission staff is to contact the respective
representatives75 of the concerned employer to amicably solve the problem faced by the worker. If needed,
the Mission also contacts the concerned recruitment agencies in Nepal through DOFE. Such interactions
enable the Missions to solve the issue amicably. However, in more serious cases when amicable settlements
are not reached, Missions also ensure migrant workers’ access to justice by providing legal support including
representation and translation services.

Missions also regularly visit detention centers, jails and hospitals to assess the conditions of workers in
distress, hear their grievances and to the extent possible, to expedite their legal cases and early repatriation
to Nepal. Missions also often use diplomacy to reduce the punishment of imprisoned Nepali workers or to
rescue those who are given death sentences. Another function of Missions is to facilitate the repatriation of
the remains of deceased workers which requires coordination and administrative paperwork that depend
on the nature of the death, the country in consideration and legal status of migrant workers prior to their
death.

Department of Consular Services (Nepal): In an effort to make service delivery quick, responsive, transparent and effective,
the Department has established an online system. As a result, migrant workers or their families do not have to come to
Kathmandu to file complaints or requests to avail the services of the Department for search and rescue of workers in distress,
repatriation of dead bodies or compensation for disabled or deceased migrant workers. This has helped increase transparency
and service delivery to victims and made provision of compensation for the dead and injured much easier.

Token System (UAE): In an attempt to provide timely service to migrant workers, the Mission based in the UAE has started a
token system to ensure that those who seek services do not have to return without receiving the Mission’s support. With over
200 service seekers daily, this token system has facilitated an easy and transparent service delivery.

Community Mobilization (Saudi Arabia): Saudi Arabia is geographically large and spread over 2.15 million km2 which
makes it difficult for the Riyadh-based Mission to provide consular services to Nepali migrant workers who are dispersed
across the country. Mobility constraints pose a challenge to migrant workers to avail of the services provided by the Mission.
Therefore, the Government of Nepal established a Consulate General office in Jeddah, the commercial capital and a major
city in the western part of Saudi Arabia, to be more accessible to migrant workers. However, the absence of representatives
of Missions in major areas with high migrant populations like Dammam, Khobar and Al-Qassim was still felt. In response,
the Mission appointed a local staff in Dammam to provide services related to rescue, dispute settlement and jail visits. The
Mission has also appointed 11 volunteers trusted by the migrant community with a strong understanding of the context and
the required language, negotiation and advocacy skills to support the Nepali migrants in those areas. Getting around human
and financial constraints by mobilizing committed Nepali volunteers has provided some relief to the Mission and migrant
workers.

75 Public Relations Officers, managers (mudir) or sponsors (kafil)

88
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Monitoring Role
Missions are one of the first points of contact for employers based in the destination countries or their
representatives employing Nepali workers. Employers are required to verify all the job demands at the
Missions prior to further processing in order to ensure the authenticity of job demands and to minimize
cases of contract substitution. In addition, direct communication between the employer and Mission also
presents opportunities for cooperation to mutually solve issues faced by migrant workers.

Missions, in coordination with DOFE, also keep track of the reputed employers and blacklist those that
violate contractual obligations or mistreat workers. Similarly, the Mission facilitates reimbursement of the
compensation amount from insurance or the outstanding wages of migrant workers. In cases of contract
violation or other fraudulent activities, the Mission also recommends the concerned authorities in Nepal to
take legal actions against the recruitment agencies, based on the provision of joint liability of the recruitment
agencies and foreign employers as per the FEA, 2007.

Compensation from Employers (Nepal, Pakistan, Turkey): In September 2019, DOFE, in coordination with the Pakistan-
based Mission accredited to Turkey, was able to retrieve compensation to 160 returnee migrants from Turkey who had to
return prematurely to Nepal before the completion of their contracts of employment.

Promotional Role and Diaspora Mobilization

Missions are well-placed to explore labour market opportunities in destination countries which entails
identifying potential projects, sectors and employers with opportunities suitable for Nepali workers. Missions
are also best placed to interact with current migrants regularly to better understand their situation, mobilize
them to volunteer their time to help fellow Nepalis and organize cultural events to build a strong sense of
community which can help minimize the psychological burden of separation from one’s community.

Migrant Workers Community Groups (Worldwide): Nepali Migrant Worker Groups in destination countries are generally
formed on the basis of religion, caste, geography, district, art, media interests etc. While the objectives of these groups are
different based on the principles guiding their formation, all groups have a common objective of helping fellow Nepalis.
The numbers of these diaspora groups are astounding: there are about 70 in UAE, 110 in Qatar, 30 in Oman, 100 in Malaysia,
70 in Saudi Arabia and over 50 in Kuwait and Bahrain. There are also similar groups in Egypt, Israel, Iraq and Lebanon. A
key responsibility undertaken by each group is to help fellow workers in distress in coordination with the Mission. Major
tasks include accompanying the stranded migrant workers to the Missions, facilitating their access to justice by helping with
paperwork and fundraising for repatriation and other support.

Coordination Role
Government agencies in Nepal, especially MOLESS, MOFA, FEB and DOFE, are in close contact with Missions
on various aspects of the migration management process. Coordination with the governments of destination
countries allows Missions to better understand the local labour market and represent the concerns of
migrant workers. In particular, Missions are crucial in advancing efforts to shape labour agreements with
the destination countries. This includes initiating dialogue, arranging bilateral meetings, drafting inputs
for the agreement reflecting the ongoing needs, participating in negotiations and ensuring its effective
implementation.
89
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Coordination with Stakeholders from the Destination Country (Qatar): On a daily basis, a few dozen migrant workers
register their complaints and grievances at the Mission in Qatar. Given the challenges in managing the volume of workers
and to ensure faster service delivery, the Embassy has established relationships with relevant Qatari Authorities. The Mission
staff coordinates with the concerned focal person appointed in each relevant Qatari agency such as the Labour Department,
Search and Investigation Center, and Ministry of Home to communicate and seek solutions on a regular basis.

Coordination of Labour Wings with Nepal-based Agencies (All): Labour attaches send periodic progress reports to MOFA
and MOLESS. These reports include details on the assistance provided to the migrant workers as well as on common labour
issues in the destination country including challenges in service delivery and reforms in the domestic laws. Such reporting
can be further strengthened and utilized constructively for policymaking.

CHALLENGES SEEN IN SERVICE DELIVERY

It is evident that Missions have a broad mandate including management of labour issues, and responsibilities
are on the rise with the ongoing reforms in labour migration governance. Expanding beyond the traditional
diplomatic roles to address a complex transnational issue like labour migration without commensurate
increase in resources has been a challenge as highlighted below:
QQ Human and financial resource support at Missions to fulfill their mandate is inadequate in major
destination countries. The recent labour migration governance reforms have further increased the
workload of Missions with additional mandates such as demand attestation and renewal of labour
approvals. As an example, in 2018/19, 624 demand letters for 30888 workers were approved while 793
individual demands were attested by the Mission in Kuwait. Prior to demand attestation, the Mission
officials have to inquire about the employer which ideally entails site visits. To the extent possible,
Mission officials are also required to make field visits to engage with migrant workers, resolve issues,
organize awareness campaigns and health camps, facilitate the repatriation of workers en masse during
amnesty periods, among others.
Similarly, the worker’s access to Missions also merits consideration. While Missions are mostly based in the
capital, workers are dispersed throughout the country. In some areas, this concern has been alleviated
by appointing volunteer staff in major cities. This signifies the need to provide adequate human and
financial resources to ensure service delivery beyond the capital, especially in the geographically larger
major destination countries with a high population of Nepali workers.
QQ FEIMS is yet to be operational at Missions. To a large extent, FEIMS has provided an avenue for better
coordination and service delivery. However, FEIMS is yet to be fully implemented in many of the major
destination countries, which is a much-needed requirement to effectively execute demand verification
and the recent reform measures such as renewal of labour approvals from the Missions.
QQ The absence of Missions in emerging labour market destination countries is felt. Access to services
to be provided by Missions has become difficult in destination countries without residential Missions.
For example, despite the benefits of the mandatory demand attestation process, it imposes additional
administrative responsibilities to both the employers and the Mission. With the diversification of
destination countries, reform efforts need to focus on reducing administrative barriers either by increasing
the presence of the Mission or their representative or by simplifying the process through online systems.
For example, the Mission in Germany is accredited to multiple countries like Poland, Romania, Czech
Republic and Malta that have become attractive destination countries for Nepali workers. In addition

90
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

to the challenges felt in timely demand attestation, conducting other labour market related activities
such as exploring potential sectors and extending support to stranded migrant workers also becomes
challenging in such situations.
QQ Bilateral agreements with the key destination countries need to be prioritized. Given that labour
agreements can serve as an important basis for the Missions to pursue various initiatives to advance
workers’ rights and protection including access to justice, bilateral agreements with major destination
countries such as Saudi Arabia and Kuwait need to be concluded in the near future.
QQ Extending support by Missions to domestic workers or undocumented workers who are at a
higher risk of exploitation is a challenge. Domestic workers are generally outside the scope of the
general labour law, although many countries have started adopting laws specific to domestic workers.
The private and scattered nature of the workplace i.e., at the domicile of the employer, makes it difficult to
monitor or intervene. Similar vulnerabilities are also seen in other sectors such as agriculture and fisheries.
Furthermore, undocumented workers lack legal recognition, which makes extending support to them
more challenging. Other vulnerable workers include those who migrate without labour approvals such
as those migrating on visit visas and through irregular channels, which makes them ineligible for the
Government of Nepal’s welfare schemes in case they find themselves in difficult situations. Equipping
Missions with resources to provide support to such vulnerable migrant populations is necessary. For
migrant workers ineligible for welfare support given their labour approval status or in situations that
require emergency intervention, the Government needs to explore additional funding avenues as well
as emergency support services such as temporary shelter.
QQ Current legal provisions in the destination countries have increasingly become worker friendly
but remain underutilized. Workers are often inadequately informed about navigating the system to
utilize existing provisions protecting their rights. The fear of retribution and job loss, in the face of loans
and family expectations back home, are other reasons behind limited utilization of formal mechanisms.
In this regard, Missions can play an important role to ensure that migrant workers make use of the
existing institutional and legal support available at the destination countries. However, it can often be
time consuming to get justice through formal mechanisms that can put the workers with pending court
cases in a limbo. In response, the latest BLAs/MOUs have focused on ensuring that workers have access
to temporary permits to work when their court cases are ongoing. This will ensure that they are not
compelled to return to Nepal due to lack of a means to support themselves. The availability of sufficient
resources at the Missions would further facilitate the effective implementation of such provisions of
bilateral labour agreements to ensure migrant workers benefit from the available support mechanisms.
QQ The selection process and capacity development of labour attaches and counselors needs to
be revisited. The selection process of labour counselors and attaches and subsequent orientation
should address the human resource needs of the Mission and equip them with a strong grasp of labour
migration issues as well as other soft skills such as language, inter-personal relationships, empathy
and communication skills. In addition, the transition between the incumbent and incoming labour
counselor/attaché needs to be managed through an effective succession plan including an overlap for a
short duration at the concerned destination country to ensure the transfer of knowledge, networks and
know-how in a new environment with context specific laws and practices.

91
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

4.3 Remittance
Remittances are the direct and most visible result of foreign employment which have become an integral
part of the Nepali economy. The volume of remittances significantly increased in the recent past, from 2.54
billion USD in 2010/11 to 8.79 billion USD in 2018/19. Despite the reduction in the outflow of migrant workers
since 2014/15, remittance inflows have continued to rise, which could be due to several factors such as the
large stock of migrant workers abroad, currency depreciation against the US dollar and the more stringent
monitoring efforts to control informal cross-border financial transfers (Figure 46). In 2017/18, Nepal was
the fifth highest remittance recipient country after Tonga, Kyrgyz Republic, Tajikistan and Haiti, in terms of
equivalence to GDP (Figure 47). However, this does not capture the informal transfers, which is considered
to be significant as well. Remittance is the main source of foreign exchange earnings in Nepal. The volume of
remittance was 68.5 per cent of the total foreign currency accumulation in fiscal year 2017/18.

FIGURE 46: TOTAL REMITTANCE INFLOW TO NEPAL (BILLION USD)

6
Billion USD

0
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Source: Nepal Rastra Bank

FIGURE 47: TOP TEN REMITTANCE RECIPIENTS AS % OF GDP

40%

35%

30%

25%

20%

15%

10%

5%

0%
Tonga Kyrgyz Tajikistan Haiti Nepal West Bank
El Salvador Honduras Comoros Samoa
Republic and Gaza

Source: World Bank (2019)

92
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

As per the Nepal Living Standards Survey (NLSS) 2011, every two in three families in the Terai region and
every one in two families in the Hilly and Mountain regions receive remittances. Remittance receiving
households account for 55.8 per cent of the total households in Nepal. As captured in the three rounds of
NLSS survey, remittances have also contributed to the large poverty reduction in Nepal from 42 per cent in
1995/96 to 25 per cent in 2010/11. Over the three rounds of NLSS surveys, the share of households receiving
remittances has increased significantly and is prominent in all consumption groups, showing its significance
in the Nepali economy (Figure 48).

FIGURE 48: REMITTANCE RECEIVING HOUSEHOLDS BY CONSUMPTION PERCENTILE

100%
NLSS 1995/96

50%

0%

100%
NLSS 2003/04

50%

0%

100%
NLSS 2010/11

50%

Ramitances Receiving Households

0%
3 7 11 15 19 23 27 31 35 39 43 47 51 55 59 63 67 71 75 79 83 87 91 95 99

Consumption Percentiles
Source : World Bank (2016)

A country-wise disaggregated analysis of the remittances received between 2014/15 and 2017/18 shows
that remittance received from GCC countries and Malaysia accounts for more than half of the total remittance
inflows (Figure 49). According to Nepal Rastra Bank, about 14% of the total remittance inflows was received
from Saudi Arabia, about 12 % each from Qatar and Malaysia, and about 11 per cent from the UAE (2017/18).
The highest transfer, however, is from the USA, which accounts for close to 20 per cent of the remittance
inflows, although the profile of migrant workers to the USA is different and comprises pre-dominantly of
students, permanent residents, and high skilled professionals. It is also necessary to consider that in many
instances, remittance inflows from the USA might have been re-routed from another third country through
US-based remittance companies, which is currently being reviewed by the Nepal Rastra Bank.

93
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

FIGURE 49: REMITTANCE BY DESTINATION COUNTRY (IN BILLION USD)

USA India Saudi Arabia UAE Malaysia Qatar Japan South Korea Bahrain Kuwait Others

1.6

1.49

1.47
1.4

Billion USD
1.2

1.2

1.07

1.04

1.02
1.01

1.01
0.99

0.98
1
1

0.88
0.87
0.9
0.86
0.9
0.85
0.76

0.8
0.8

0.68
0.7
0.63

0.62
0.57

0.57
0.52
0.6
0.5

0.45

0.42
0.38

0.37

0.33
0.4

0.22
0.19
0.15

0.15
0.13

0.12
0.09
0.08

0.2
0.08

0.05
0.02

0.02

0
2014/15 2015/16 2016/17 2017/18

Source: Nepal Rastra Bank

POLICIES AND ACTS GOVERNING REMITTANCE

The Constitution of Nepal emphasizes promoting the utilization of capital, skills, technology and experience
gained from foreign employment in productive sectors in Nepal. In addition, remittances have featured
significantly in key policy documents as detailed below:
Foreign Employment Policy, 2012 emphasizes the use of remittances in productive sectors,
specifically in entrepreneurship development to create employment opportunities within the country.
To this end, a number of policies and programs are envisioned including financial literacy training to
prospective migrants as well as families of migrant workers to utilize formal banking channels and
to encourage investment in productive sectors through special schemes. In addition, the policy also
prioritizes study and research on the productive use of remittances.
Nepal Rastra Bank Remittance Regulation, 2010 makes it mandatory for all remittance companies
to get their licenses from Nepal Rastra Bank prior to beginning their transactions. The minimum paid-
up capital to obtain a license is NPR 50 million for principal companies and 10 million for those working
as agents of principal companies. Inward remittances should be in foreign currency and be collected
through banking channels.
Financial Sector Development Strategy (2016/17-2020/21) prioritizes strengthening and
stabilizing the financial sector in Nepal through the establishment of an effective payment system,
enhancement of financial literacy, financial deepening and through conversion of all informal financial
transactions to formal transactions. This allows remittances to be collected through formal means and
to reduce transaction costs as well.  The Financial Sector Development Strategy also recognizes that
loans disbursed by financial institutions have been focused on consumption and real estate market
instead of on productive investments which needs to be addressed.

94
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

The 15th Periodic Development Plan Approach Paper: The Approach Paper recognizes
remittances as an important means of capital formation, employment creation and increased
productivity which collectively benefit the economy. It recognizes that remittances have significantly
contributed in reducing poverty and has positively impacted the economic and social development of
migrant communities. It emphasizes the maximum utilization of remittances in productive sectors and
employment creation and on increasing the use of formal channels for remittance transfers. The 15th
plan has emphasized financial literacy and entrepreneurship development training to the remittance
receiving households. It has also emphasized on partnerships with financial institutions to promote
investment of remittance in productive sectors and to reduce the remittance transaction fees.
Budget Speech 2019/20: The budget speech prioritized encouraging migrant workers to utilize
formal channels for the transfer of remittances and to invest in productive sectors.

MEANS OF REMITTANCE TRANSFER

Formal Means: Migrant workers transfer money formally either through remittance companies or banks.
With the increase in the volume of remittance inflows, there has been an increase in the number of banks
and remittance companies operational in Nepal and in major destination countries to facilitate the formal
transfer of remittances. For example, the Nepal Rastra Bank has licensed over 51 remittance companies for
the transaction of remittances. Remittance companies also have presence/partnerships in major destination
countries such as Malaysia, Saudi Arabia, UAE, Qatar and South Korea. Their widespread presence across
Nepal has dramatically eased the process of receiving transfers formally. Some of the financial institutions
also provide financial products tailored to remittance recipients, including saving deposits, health and life
insurance and housing loans.

Records from 2017/18 show that of the total remittance received, around 60 per cent was received through
remittance companies whereas 40 per cent was received through banks. The distribution of remittance
transfers through banks or remittance companies varies by country. For instance, in 2017/18, the share of
remittance inflows through banking channels was around 48 per cent from Saudi Arabia, 63 per cent from
United Arab Emirates, 28 per cent from Malaysia and 33 per cent from Qatar.

Remittance transfer costs are relatively lower in Nepal compared to the South Asian and global averages
which are above 5 per cent (Table 19). However, the target to limit remittance transfer cost to 3 per cent as
set in the GCM and SDG has yet to be achieved in most corridors.

TABLE 19: REMITTANCE TRANSFER COSTS

2019 Q3 (Total Cost %) 500 USD 200 USD
Malaysia 2.5 3.36
Oman 3.8 5.69
Qatar 2.87 4.32
Saudi Arabia 3.04 4.6
UK 4.7 6.79
USA 3.95 5.39
Source: World Bank (Remittance Prices Worldwide)

Informal Means: Data on the volume of remittance received in Nepal through informal channels is not
available but is expected to be significant. Informal remittance transfers are tied to the informal trade

95
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

market, fraudulent invoicing of imports and smuggling. From the perspective of migrant workers, informal
channels can be cheaper, quicker, and the service is made available at the doorsteps of both the receiver
and the sender. In addition, in many instances, the exchange rate received is also relatively higher than
what is received formally.76 Easy access to banks and financial institutions is also important to ensure the
use of formal channels of transfer as has been seen in the case of South Korea and Japan. The volume of
formal remittance received from these two nations has increased rapidly after easy-access formal channels
of transfer were developed.

ONGOING INITIATIVES
The reform initiatives taken by the Government of Nepal to encourage remittance transfer through formal
channel while encouraging its productive use are discussed below:
QQ Economic Act, 2017 has a provision to grant 25 percent discount in registration tax while purchasing land if there is
sufficient supportive document to justify that the remittance was received through formal banking system.
QQ FY 2019/20 budget speech includes a mandatory provision to open bank account prior to going for foreign
employment.
QQ Banking, financial institutions and remittance companies have to mandatorily make payments of over NPR 2
million through a bank account or cheque.
QQ Microfinance companies, upon receiving approval from the Nepal Rastra Bank, are authorized to engage in
remittance transactions.
QQ Foreign Employment Savings Bonds (FESB): The Nepal Rastra Bank issues FESB, sold through certified banks and
financial institutions. For example, for the sale of FESB 2081, 10 banks and remittance companies have deployed
33 agents in major destination countries for the sale of FESB, including in the United Arab Emirates, South Korea,
Saudi Arabia, Qatar, Malaysia, Kuwait, Israel and India. FESB is a notable effort to increase the inflow of remittances
through formal channels and to mobilize it for national development priorities. However, the uptake of the FESB
has not been satisfactory so far. Since the inception of this scheme, Rs 1108.79 crore has been offered in total of
which only 58.68 crore has been sold (Table 20).
TABLE 20: SALE OF FOREIGN EMPLOYMENT SAVINGS BOND
Year Name Date Issued Duration Amount Offered (Crore) Amount Sold (Crore) Interest Per cent Time
FY 2009/10   FESB 2072 3/32/2067 3/31/2072 100 0.4 9.75 0.4 5 years
FY 2010/11 FESB 2073 3/12/2068 3/12/2073 500 0.34 10.5 0.07 5 years
FY 2011/12 FESB 2074 3/28/2069 3/28/2074 100 0.87 10 0.87 5 years
FY 2012/13 FESB 2075 3/30/2070 3/30/2075 100 4.29 10.5 4.29 5 years
FESB 2075 A 9/28/2070 9/28/2075 25 2.64 9 10.56 5 years
FY 2013/14
FESB 2075 B 12/30/2070 12/30/2075 25 5 9 20 5 years
FY 2014/15 FESB 2077 3/24/2072 3/24/2077 25 5 9 20 5 years
FESB 2077 A 12/29/2072 12/29/2077 25 8.21 9 32.83 5 years
FY 2015/16 FESB 2078 1/29/2073 1/29/2078 25 8 9 32.83 5 years
FESB 2078 A 3/29/2073 3/29/2078 33.79 11.24 9 33.27 5 years
FESB 2078 B 11/23/2073 11/23/2078 50 4.23 10 8.45 5 years
FY 2016/17 FESB 2078 C 12/30/2073 12/30/2078 25 0.74 10 8.45 5 years
FESB 2079 1/29/2074 1/29/2079 25 0.24 10 0.97 5 years
FESB 2079 B 9/5/2074 9/5/2079 50 2.82 10 5.65 5 years
FY 2017/18 FESB 2079 C 11/28/2074 11/28/2079 25 0.89 10 3.58 5 years
FESB 2080 3/27/2075 3/27/2080 25 0.4 10 1.6 5 years
Total 1108.79 58.68
Source: Nepal Rastra Bank

76 These are based on qualitative findings of the Taskforce Study on Remittances 2017/18.

96
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

QQ Indo-Nepal Remittance Scheme: The Central Bank of India has been operating the Indo-Nepal Remittance
Scheme since 2009 targeting Nepalis living in India to facilitate cheap and easy transfer of remittances. This scheme
allows workers to send a maximum of NPR 50 thousand in one transaction through the banking system up to 12
times a year, even if the worker does not have a bank account. The banks associated with this scheme transfer
money to Dedicated Accounting Unit of State Bank of India through the National Electronic Fund Transfer, and the
money is delivered through the Nepal SBI Bank and Prabhu Money Transfer to recipients in Nepal. The workers and
their families with SBI bank accounts are not required to pay any service charge while sending remittance whereas
those without bank accounts need to pay NPR 50 service charge for transfers of up to NPR 5 thousand and NPR 75
for transactions from NPR 6 thousand to 50 thousand.

QQ Remit Hydro: Remit Hydro is a subsidiary of the Hydro Electricity Investment and Development Company Limited
(HIDCL) that aims to promote collective remittances for hydropower projects. Recently, Remit Hydro has been
issued survey licenses for two run-off-the-river mid-sized hydropower projects in Taplejung, eastern Nepal, valued
at a total of NPR 19 Million. It is expected that 24 per cent of the shares would be set aside for migrant workers.

QQ Financial Literacy: With an intention to increase the inflow of remittances through formal channels and mobilize
it for productive investment, financial literacy has been prioritized by different stakeholders including banking
and financial institutions (BFI), civil society, cooperatives, and government-led initiatives such as Safer Migration
(SAMI) project. Financial literacy has also been added to the revised curriculum of the mandatory pre-departure
orientation training to ensure that departing migrants get started on financial planning from the beginning of the
migration cycle.

QQ Soft Loans to Returnee Migrant workers: The Government of Nepal has introduced a scheme to encourage recent
returnee migrant entrepreneurs by subsidizing interest rates for loans up to NPR 1 million. It is being facilitated by
the FEB in coordination with Nepal Rastra Bank. Despite the popularity of this program with over 18000 applicants,
implementation has remained challenging. This signifies the need to further review the modality of the scheme,
encourage ownership by financial institutions, and better equip returnees to prepare bankable business plans.

In addition, it is also important to situate the topic of remittance within the broader context of Nepal’s financial
development priorities. Financial deepening is a priority of the Government. In the context of federalization,
banks have been required to establish presence in all 753 local units. As of June 2019, 725 local units out of
the 753 have access to banking services. In addition, entrepreneurship development is also a priority. As per
the Subsidized Loan Procedure 2018, in addition to the returnee loan program discussed above, there are six
different soft loan schemes available for budding entrepreneurs, which can be complementary sources of
support to recipients of migrant households to the remittance to start businesses. Loan amount under these
soft loan programs ranges from NPR 0.3 million to NPR 10 million at 2 to 6 per cent subsidized interest rates.

As discussed above, there is recognition that remittance inflows are a key aspect of Nepal’s economy, and
the Government’s priorities can be broadly categorized along two lines including increasing the share of
remittances transferred through formal channels and encouraging its productive use. The Government is
also cognizant of the linkage of remittances with recruitment costs and wages received by migrant workers.
In this context, the Government has prioritized equal pay for equal work and skilling initiatives to ensure
that migrant workers maximize their earnings abroad and is also actively advocating for employer pays
model to ensure that a significant portion of the remittances is not spent on repaying loans associated with
recruitment costs.

97
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

4.4 Occupational Profile of Migrant Workers

Skills development is an important policy priority of the Government of Nepal to ensure that Nepali workers
make the most out of their migration experience in terms of their earnings and upward mobility potential. For
example, the minimum referral wages set by Nepal for the UAE is 800 AED (low skilled category), 1000 AED
(semi-skilled category), 1200 AED (skilled category) and 5000 AED (highly skilled category).77 Furthermore,
proper skills training can also minimize the incidence of occupational injuries and other work-related risks.
As per DOFE’s records, the occupational profile of labour migrant workers in 2018/19 shows that 59 per cent
of the new workers took up low skilled jobs whereas this share was 64 per cent in 2017/18. Similarly, the
share of workers taking up low skilled jobs was lower for migrant workers renewing their labour approvals
at 54 per cent in both years. While there is a broad consensus that Nepali workers are getting recruited in
lower skilled occupations, the categorization of what constitutes these skills levels requires further scrutiny.

TABLE 21: SKILLS CATEGORIZATION OF NEPALI MIGRANT WORKERS (2017/18 AND 2018/19)
RA New Regularization Renewal
Date Occupation Grand Grand Grand Grand
Female Male Female Male Female Male Female Male
Total Total Total Total
High Skilled 0.0% 0.0% 0.0% 0.2% 0.2% 0.2% 0.7% 0.2% 0.3% 0.1% 0.0% 0.0%
Professional 0.0% 0.2% 0.2% 0.6% 0.7% 0.7% 1.0% 0.5% 0.5% 0.2% 0.1% 0.1%
2018/19

Semi Skilled 8.3% 8.9% 8.9% 16.1% 17.7% 17.4% 19.9% 12.4% 13.0% 12.5% 7.2% 7.4%
Skilled 21.6% 29.6% 28.9% 45.5% 50.0% 49.1% 54.7% 48.8% 49.2% 32.9% 39.0% 38.7%
Low Skilled 70.1% 61.3% 62.0% 37.6% 31.4% 32.6% 23.7% 38.1% 37.0% 54.3% 53.7% 53.7%
Grand Total 17325 191024 208349 1804 7341 9145 1443 17265 18708 11545 261070 272615
High Skilled 0.0% 0.0% 0.0% 0.1% 0.2% 0.2% 0.9% 0.1% 0.2% 0.0% 0.0% 0.0%
Professional 0.1% 0.0% 0.0% 0.5% 0.4% 0.5% 1.9% 0.6% 0.7% 0.5% 0.1% 0.2%
2017/18

Semi Skilled 7.2% 8.4% 8.3% 12.8% 8.8% 9.6% 13.1% 8.8% 9.1% 9.3% 5.9% 6.1%
Skilled 15.6% 26.2% 25.6% 50.7% 55.8% 54.8% 55.6% 50.6% 50.9% 35.6% 39.5% 39.4%
Low Skilled 77.2% 65.3% 66.1% 35.9% 34.7% 35.0% 28.6% 39.9% 39.2% 54.6% 54.4% 54.4%
Grand Total 19299 304442 323741 1726 7180 8906 1384 19915 21299 10547 248046 258593
Source: DOFE

A more granular occupation level analysis can be more useful in drawing meaningful lessons for policymaking.
However, as highlighted in the previous Report (MOLESS, 2018d), the information on the occupation of
migrant workers collected in FEIMS must not be unequivocally related to the discussion on skills. The
occupation profile of migrant workers may not reflect their skills given that workers may often see temporary
labour migration as a purely economic decision driven by the relatively higher income and amenities offered
abroad. In this context, there can be a considerable degree of vertical and horizontal mismatch with workers
taking up jobs abroad that do not necessarily match their skills or educational background. In addition,
FEIMS captures the occupation description that is mentioned in the demand letter of the migrant worker,
which may not represent the actual occupations that migrant workers are engaged in once they reach the
destination country given the prevalence of issues such as contract substitution.

77 This is the basic salary and excludes the mandatory allowance for food (300 AED) and accomodation (500 AED) for all categories except the highly skilled. For
highly skilled category, the allowance is as discussed between the Employer and UAE.

98
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Despite these limitations, this Chapter attempts to shed light on the occupational profile of migrant workers
in destination countries relying on the data from 2018/19. The occupational data collected in FEIMS does
not adhere to any standard classification of skills. Therefore, the 2018/19 data has been reclassified to
broader sectors in an attempt to contribute to a more nuanced discussion on the occupations occupied by
migrant workers from Nepal. It is important to clarify that the manual data entry in FEIMS has made
this particular variable noisy and hence, the categorization maybe susceptible to inaccuracies due
to imperfect correspondence with the standard categories. Given that the FEIMS is still a relatively new
and evolving system and its data use is still at its nascent stage, triangulation of the data from other related
sources is also recommended to ensure it paints a true picture of the occupational profile of Nepali migrant
workers.

A text analysis of the occupations as captured by the FEIMS in 2018/19 provides interesting insights into the
concentration of workers in certain occupations (Figure 50). Labour, cleaner, general worker and security are
the more common occupational categories. In addition, this analysis also points to the shortcomings in the
current classification in terms of consistency and accuracy of the occupational categories that are manually
entered. This signifies the need for a systematic standardization of the occupation category in FEIMS to
ensure that the data entered is consistent, accurate and easy to interpret. DOFE has initiated the exercise of
standardizing the occupation variable.

FIGURE 50: WORD CLOUD OF OCCUPATIONS OF NEPALI MIGRANT WORKERS (2018/19)

Source : FEIMS

99
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

In this section, the occupation variable is reclassified into major occupational groups as detailed below (Table
22). The results discussed are suggestive and provide a general overview of the occupational characteristics
of migrant workers. However, given the nature of the original data and their imperfect correspondence
with the standard occupational categories, considerable caution must be exercised when interpreting the
findings. 

TABLE 22: RECLASSIFICATION OF OCCUPATIONAL CATEGORIES (2018/19)

Reclassification of Occupational Categories (2018/19)

Agriculture

Aviation and Cruise Workers

Construction
(Carpenter, Mason, Painter, Scaffolding, Steel Fixture, Others)

Driver/Machine Operator

Electrical and Mechanical Technician

(A/C Technician, Automotive, Electrician, Plumbing/Pipe Fitter, Welder, Others)
Elementary Occupations
(Cleaning and Laundry, Packaging/Loading/Shipping/Delivery, Unspecified Labour, Specified Labour)

Manufacturing

Office/Administrative/Associate Professionals

Others

Professionals and Managers

Service & Sales

(Baker/Dessert Maker, Barista/Coffee Maker, Beauty & Fitness, Caregiver/Au Pair/Nursing Aide, Housekeeping, Se-
curity, Tailor, Waiter/Waitress, Retail, Others)

Supervisor and Foreman

Based on the classification above, the analysis shows that majority of the workers are hired in elementary
occupations, in particular the labour categories that are specified (i.e., labour categories linked to specific
sectors such as agriculture, carpentry, foreman, electrician) or unspecified (i.e. labour categories not linked
to any specific sectors such as general labourers, general workers, helpers), cleaners, packaging and loading.
Female workers are concentrated in a few occupations such as cleaning and laundry, hospitality and
caregiving (Table 23). Male workers are recruited in relatively more diverse occupations including labour,
security, cleaning and laundry, hospitality, driving and construction. The share of workers recruited in
professional and managerial positions is low for both genders.

100
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

TABLE 23: OCCUPATION PROFILE OF MIGRANTS BY GENDER

Row Labels Female Male Grand Total
Agriculture, Fishery , Poultry, Animal and Gardener 0.0% 0.3% 0.2%
Agriculture, Fishery , Poultry, Animal and Gardener 0.0% 0.3% 0.2%
Aviation and Cruise 0.9% 0.5% 0.5%
Aviation and Cruise 0.9% 0.5% 0.5%
Construction 0.0% 10.2% 9.3%
Carpenter 0.0% 2.6% 2.3%
Const.Others 0.0% 0.5% 0.4%
Mason 0.0% 3.9% 3.5%
Painter 0.0% 1.1% 1.0%
Scaffolding 0.0% 0.9% 0.8%
Steel Fixture 0.0% 1.3% 1.2%
Driver/Machine Operator 1.3% 7.6% 7.1%
Driver 0.0% 6.1% 5.6%
Machine Operator 1.3% 1.5% 1.5%
Electrical and Mechanical Technician 0.0% 5.3% 4.9%
A/C Technician 0.0% 0.1% 0.1%
Automotive 0.0% 0.1% 0.1%
Electrician 0.0% 1.5% 1.4%
Electro/Mechanical Others 0.0% 2.1% 1.9%
Plumbing/Pipe Fitter 0.0% 0.9% 0.8%
Welder 0.0% 0.6% 0.5%
Elementary Occupations 53.0% 55.0% 54.8%
Cleaning and Laundry 48.3% 11.2% 14.4%
Labour (Specified) 1.3% 5.7% 5.3%
Labour (Unspecified) 2.6% 35.9% 33.0%
Packaging, Loading, Shipping and Delivery 0.8% 2.2% 2.1%
Manufacturing 3.5% 2.0% 2.1%
Manufacturing 3.5% 2.0% 2.1%
Office/Administrative/Associate Professionals 3.1% 1.2% 1.3%
Office/Administrative/Associate Professionals 3.1% 1.2% 1.3%
Others 0.4% 0.4% 0.4%
Others 0.4% 0.4% 0.4%
Professionals and Managers 0.8% 0.5% 0.5%
Managers 0.2% 0.2% 0.2%
Professionals 0.6% 0.3% 0.3%
Service & Sales 36.3% 16.2% 18.0%
Baker/Dessert Maker 0.1% 0.2% 0.2%
Barista/Coffee Maker 0.1% 0.3% 0.3%
Beauty & Fitness 3.7% 0.2% 0.5%
Caregiver/ Au Pair/Nursing Aide 12.0% 0.0% 1.1%
Cook/Chef 0.6% 2.0% 1.9%
Hospitality-Others 2.7% 1.7% 1.8%
Housekeeping 1.9% 0.3% 0.4%
Retail 5.6% 1.9% 2.3%
Security 2.3% 6.9% 6.5%
Tailor 0.7% 0.3% 0.4%
Waiter/Waitress 6.5% 2.3% 2.7%
Supervisor and Foreman 0.6% 0.9% 0.9%
Foreman 0.0% 0.4% 0.3%
Supervisor 0.6% 0.5% 0.5%
Source: DOFE

The mode of obtaining labour approvals – whether it is via recruitment agencies or individual channels–
also influences the occupational profile of migrant workers. A relatively higher share of workers mobilized
through recruitment agencies are employed in elementary occupations compared to the share of workers
obtaining labour approvals individually or through regularization. A possible explanation could be that
recruitment agencies obtain bulk demand for workers in elementary occupational categories whereas
migrant workers opting for the two other two channels independently are more selective and have more

101
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

say in their occupational choice (Table 24). The share of workers employed in retail and hotel services is
relatively higher for workers obtaining individual labour approvals.

TABLE 24: OCCUPATION PROFILE OF MIGRANTS BY MODE OF OBTAINING LABOUR APPROVAL

Row Labels Regularization New RA
Agriculture, Fishery , Poultry, Animal and Gardener 0.2% 0.1% 0.2%
Agriculture, Fishery , Poultry, Animal and Gardener 0.2% 0.1% 0.2%
Aviation and Cruise 1.2% 2.0% 0.4%
Aviation and Cruise 1.2% 2.0% 0.4%
Construction 4.9% 4.4% 9.9%
Carpenter 1.2% 0.9% 2.5%
Const.Others 0.4% 0.7% 0.4%
Mason 1.7% 1.9% 3.8%
Painter 0.8% 0.5% 1.0%
Scaffolding 0.2% 0.0% 0.9%
Steel Fixture 0.5% 0.4% 1.3%
Driver/Machine Operator 5.7% 5.3% 7.3%
Driver 4.2% 1.8% 5.9%
Machine Operator 1.5% 3.5% 1.4%
Electrical and Mechanical Technician 4.2% 3.2% 5.0%
A/C Technician 0.1% 0.1% 0.1%
Automotive 0.1% 0.1% 0.1%
Electrician 1.2% 0.9% 1.5%
Electro/Mechanical Others 2.0% 1.5% 1.9%
Plumbing/Pipe Fitter 0.3% 0.3% 0.9%
Welder 0.4% 0.3% 0.6%
Elementary Occupations 27.9% 32.1% 58.2%
Cleaning and Laundry 6.5% 13.1% 15.2%
Labour (Specified) 2.0% 6.4% 5.6%
Labour (Unspecified) 17.1% 11.0% 35.3%
Packaging, Loading, Shipping and Delivery 2.3% 1.6% 2.1%
Manufacturing 2.3% 0.3% 2.2%
Manufacturing 2.3% 0.3% 2.2%
Office/Administrative/Associate Professionals 5.7% 5.2% 0.8%
Office/Administrative/Associate Professionals 5.7% 5.2% 0.8%
Others 1.3% 1.8% 0.3%
Others 1.3% 1.8% 0.3%
Professionals and Managers 3.1% 4.2% 0.1%
Managers 1.3% 1.4% 0.0%
Professionals 1.8% 2.8% 0.1%
Service & Sales 40.8% 39.1% 15.0%
Baker/Dessert Maker 0.3% 0.3% 0.1%
Barista/Coffee Maker 0.7% 0.2% 0.2%
Beauty & Fitness 1.2% 2.5% 0.4%
Caregiver/ Au Pair/Nursing Aide 0.5% 1.1% 1.1%
Cook/Chef 7.5% 9.9% 1.1%
Hospitality-Others 3.0% 3.9% 1.6%
Housekeeping 0.8% 2.5% 0.3%
Retail 8.4% 3.6% 1.6%
Security 12.4% 7.6% 5.9%
Tailor 0.9% 0.7% 0.3%
Waiter/Waitress 4.9% 6.9% 2.3%
Supervisor and Foreman 2.7% 2.3% 0.6%
Foreman 0.5% 0.5% 0.3%
Supervisor 2.2% 1.8% 0.3%
Source: DOFE

102
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

A country specific analysis is also informative. Elementary positions are the most prominent among Nepali
workers in all major GCC destination countries as captured by the high share of specified and unspecified
labour categories. In the UAE, cleaning is the most prominent (Table 25). In Qatar, after the labour category,
driving, cleaning and construction are common occupational categories. In Malaysia, the manufacturing
and machine operator and security categories are prominent.
TABLE 25: OCCUPATION PROFILE OF MIGRANTS BY DESTINATION COUNTRY
Kuwait Malaysia Qatar Saudi Arabia UAE Others
Agriculture, Gardener, Food Processing etc 0.00% 0.00% 0.00% 0.30% 0.30% 0.80%
Agriculture, Gardener, Food Processing etc 0.00% 0.00% 0.00% 0.30% 0.30% 0.80%
Aviation and Cruise 0.40% 0.10% 0.40% 0.00% 0.80% 1.20%
Aviation and Cruise 0.40% 0.10% 0.40% 0.00% 0.80% 1.20%
Construction 11.90% 0.20% 14.80% 4.90% 8.90% 4.00%
Carpenter 2.60% 0.00% 3.90% 0.80% 2.60% 0.50%
Others 0.90% 0.20% 0.50% 0.70% 0.20% 0.20%
Mason 0.30% 0.00% 6.90% 1.20% 3.60% 0.90%
Painter 0.70% 0.00% 1.90% 1.00% 0.60% 0.10%
Scaffolding 5.40% 0.00% 0.00% 0.50% 0.30% 2.20%
Steel Fixture 2.00% 0.00% 1.50% 0.70% 1.60% 0.20%
Driver/Machine Operator 6.50% 8.90% 8.30% 12.80% 2.40% 4.30%
Driver 4.00% 0.00% 7.90% 10.90% 1.70% 2.10%
Machine Operator 2.50% 8.90% 0.30% 1.90% 0.80% 2.10%
Electrical and Mechanical Technician 5.80% 0.10% 8.00% 4.30% 3.20% 2.10%
A/C Technician 0.00% 0.00% 0.10% 0.10% 0.10% 0.00%
Automotive 0.00% 0.00% 0.00% 0.20% 0.10% 0.00%
Electrician 0.80% 0.00% 2.60% 1.00% 1.10% 0.40%
Others 2.80% 0.10% 3.00% 1.30% 1.40% 1.20%
Plumbing/Pipe Fitter 0.50% 0.00% 1.80% 0.80% 0.20% 0.20%
Welder 1.60% 0.00% 0.40% 1.10% 0.20% 0.30%
Elementary Occupations 52.40% 24.00% 56.80% 66.70% 58.70% 31.90%
Cleaning and Laundry 8.30% 5.90% 7.30% 6.90% 32.20% 12.40%
Labour (Specified) 10.50% 6.40% 2.70% 7.70% 4.50% 6.80%
Labour (Unspecified) 31.60% 10.70% 46.60% 48.80% 18.90% 9.20%
Packaging, Loading, Shipping and Delivery 2.00% 1.00% 0.30% 3.20% 3.00% 3.50%
Manufacturing 0.50% 34.90% 0.00% 0.90% 0.40% 3.10%
Manufacturing 0.50% 34.90% 0.00% 0.90% 0.40% 3.10%
Office/Administrative/Associate Professionals 0.60% 0.10% 1.60% 0.20% 2.20% 1.50%
Office/Administrative/Associate Professionals 0.60% 0.10% 1.60% 0.20% 2.20% 1.50%
Others 0.90% 0.20% 0.20% 0.60% 0.30% 1.10%
Others 0.90% 0.20% 0.20% 0.60% 0.30% 1.10%
Professionals and Managers 0.10% 0.10% 0.30% 0.10% 0.20% 3.00%
Managers 0.00% 0.10% 0.10% 0.00% 0.10% 1.00%
Professionals 0.10% 0.10% 0.20% 0.10% 0.10% 2.00%
Service & Sales 20.50% 31.20% 7.90% 9.00% 22.30% 45.60%
Baker/Dessert Maker 0.30% 0.00% 0.10% 0.20% 0.10% 0.30%
Barista/Coffee Maker 0.10% 0.00% 0.00% 0.90% 0.20% 0.10%
Beauty & Fitness 1.70% 0.00% 0.20% 0.10% 0.80% 1.20%
Caregiver/ Au Pair/Nursing Aide 0.00% 0.00% 0.00% 0.00% 0.00% 9.50%
Cook/Chef 2.80% 1.80% 0.90% 0.80% 1.70% 6.80%
Others 2.60% 0.60% 0.50% 3.60% 1.60% 3.00%
Housekeeping 0.10% 0.10% 0.00% 0.00% 0.10% 3.10%
Retail 3.50% 3.00% 1.30% 0.30% 4.60% 1.90%
Security 3.10% 25.80% 3.10% 0.00% 9.80% 14.30%
Tailor 0.20% 0.00% 0.30% 0.20% 0.40% 1.10%
Waiter/Waitress 6.10% 0.10% 1.40% 2.90% 3.10% 4.10%
Supervisor and Foreman 0.30% 0.10% 1.80% 0.10% 0.30% 1.30%
Foreman 0.10% 0.00% 0.90% 0.10% 0.00% 0.10%
Supervisor 0.20% 0.10% 0.90% 0.10% 0.30% 1.20%
Source: DOFE

103
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

The geographical distribution of migrant workers by occupation shows that in 2018/19, the UAE and Qatar
were recipient of the highest number of workers in most key categories. A caveat is that the volume of
outmigrants to Malaysia, a key destination country for Nepali workers, was low in 2018/19 as detailed in
Chapter 2, so this pattern would look different in a typical year for a few occupational categories. In 2018/19,
while the UAE received the highest share of Nepali security guards, cleaners, sales and waiters, Qatar was
host to the highest share of drivers, plumbers and carpenters (Table 26). Malaysia was the recipient of the
highest share of workers in the manufacturing and machine operator categories in 2018/19. The major host
countries for workers in the caregiver category that is predominantly female are non-traditional destination
countries such as Cyprus, Jordan and Turkey.
TABLE 26: TOP 5 DESTINATION COUNTRIES BY MAJOR OCCUPATIONAL CATEGORY
Cleaning and Laundry 34087 Security 15294 Driver 13222 Waiter/Waitress 6400
UAE 20242 UAE 6129 Qatar 5957 UAE 1915
Qatar 5466 Malaysia 2580 Saudi Arabia 5003 Saudi Arabia 1358
Saudi Arabia 3188 Qatar 2315 UAE 1061 Qatar 1044
Kuwait 1332 Afghanistan 1596 Kuwait 644 Kuwait 983
Oman 951 Bahrain 689 Bahrain 270 Malta 236
Others 2908 Others 1985 Others 287 Others 864
Mason 8313 Retail 5319 Carpenter 5520 Manufacturing 5056
Qatar 5206 UAE 2859 Qatar 2939 Malaysia 3487
UAE 2282 Qatar 971 UAE 1660 Jordan 618
Saudi Arabia 539 Kuwait 560 Kuwait 423 Saudi Arabia 435
Maldives 57 Malaysia 296 Saudi Arabia 369 UAE 220
Kuwait 48 Oman 294 Oman 23 Poland 89
Others 181 Others 339 Others 106 Others 207
Packaging, Loading,
4955 Cook/Chef 4531 Machine Operator 3459 Electrician 3341
Shipping and Delivery
UAE 1910 UAE 1054 Malaysia 894 Qatar 1939
Saudi Arabia 1485 Qatar 696 Saudi Arabia 888 UAE 689
Poland 456 Kuwait 441 UAE 476 Saudi Arabia 474
Kuwait 326 Saudi Arabia 375 Kuwait 399 Kuwait 134
Qatar 204 Oman 328 Czech Republic 257 Oman 20
Others 574 Others 1637 Others 545 Others 85
Office/Administrative/ Caregiver/ Au Pair/
3141 Steel Fixture 2813 2529 Painter 2332
Associate Professionals Nursing Aide
UAE 1351 Qatar 1137 Cyprus 1508 Qatar 1408
Qatar 1173 UAE 979 Jordan 571 Saudi Arabia 447
Saudi Arabia 109 Kuwait 323 Turkey 232 UAE 351
Kuwait 102 Saudi Arabia 320 Israel 57 Kuwait 106
Bahrain 79 Oman 28 Germany 46 Oman 6
Others 327 Others 26 Others 115 Others 14
Plumbing/Pipe Fitter 1984 Scaffolding 1909 Beauty & Fitness 1286 Welder 1277
Qatar 1385 Kuwait 865 UAE 516 Saudi Arabia 487
Saudi Arabia 348 Bahrain 477 Kuwait 267 Qatar 282
UAE 129 Saudi Arabia 239 Qatar 135 Kuwait 263
Kuwait 80 UAE 203 Bahrain 130 UAE 154
Maldives 17 Oman 55 Turkey 77 Poland 29
Others 25 Others 70 Others 161 Others 62
Supervisor 1264 Aviation and Cruise 1175 Housekeeping 970 Tailor 854
Qatar 658 UAE 497 Turkey 287 Qatar 231
UAE 196 Qatar 301 Malta 271 UAE 221
Bahrain 37 Turkey 107 UAE 81 Jordan 132
Kuwait 36 Kuwait 57 Romania 74 Russia 88
Saudi Arabia 35 China 31 Singapore 42 Saudi Arabia 83
Others 302 Others 182 Others 215 Others 99
Foreman 765 Professionals 762 Barista/Coffee Maker 601 Agriculture 559
Qatar 695 Japan 227 Saudi Arabia 396 UAE 180
Saudi Arabia 30 Qatar 115 UAE 119 Saudi Arabia 136
Kuwait 11 USA 103 Qatar 36 Turkey 95
Bahrain 6 Maldives 82 Oman 26 Poland 74
Czech Republic 4 UAE 44 Kuwait 14 Qatar 22
Others 19 Others 191 Others 10 Others 52
Managers 460 Baker/Dessert Maker 380 Automotive 192 A/C Technician 165
Qatar 104 Qatar 86 UAE 86 Qatar 77
UAE 77 Saudi Arabia 81 Saudi Arabia 83 UAE 51
PAPUA NEW GUINEA 52 UAE 72 Qatar 7 Saudi Arabia 26
New Zealand 46 Oman 56 Bahrain 5 Malta 5
Japan 30 Kuwait 55 Kuwait 3 Kuwait 3
Others 151 Others 30 Others 8 Others 3
Source: DOFE

104
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

The Government of Nepal has strongly prioritized skills development of migrant workers. For example, the FEB
intends to provide skills training free of cost to over 15000 aspirant migrant workers in 13 trades in 2019/20
in coordination with the Council for Technical Education and Vocational Training (CTEVT) and National
Skills Testing Board (NSTB). Developing a demand-driven skills agenda is a challenge due to information
asymmetry and coordination challenges and more so in a cross-border context. Major challenges in Nepal’s
experience have been ensuring that the credentials and certification of Nepal are recognized by foreign
employers so workers are duly compensated.

In this context, engaging the employers and their associations as well as governments of the destination
country can help in the design of targeted skills training programs. The FEIMS database can be an important
resource to identify the larger employers of Nepali workers that Nepali stakeholders can engage with.
For example, the Responsible Business Alliance (RBA) has developed a Code of Conduct to set “social,
environmental and ethical industry standards” in supply chains that are based on international norms and
standards on human and labour rights. Identifying and engaging with companies associated with RBA can
help advance ethical recruitment practices and joint skills training programs. Similarly, it is also important to
better assess the dynamics of the international labour market while designing training programs targeted
to aspirant workers including:

QQ The nationalization policies in the GCC provide a better understanding of the occupations and sectors in
which the hiring of foreign workers is expected to grow, shrink or remain unchanged.

QQ The elementary jobs that represent a high share of migrant workers as seen above may also be the most
vulnerable to automation which makes it a priority to move away from routine mechanical skills.

QQ With demographic shifts and worker shortages, opportunities in different sectors are opening up in
ageing societies around the world, as seen in the case of Japan with which Nepal recently signed a
Memorandum of Cooperation.

In Nepal’s experience, the involvement of Jordanian employers in the training provided in the garment sector
to aspiring Nepali migrant workers is seen to be an effective model. In addition, companies from Singapore,
Malaysia and Japan have increasingly expressed interest to operate skills training centers in Nepal under
joint partnership models so workers are equipped with skills that meet their requirements. Similarly, training
courses that are recognized internationally such as those certified by City and Guilds are also provided in
Nepal.

Building on these experiences, the Government of Nepal’s priority is to further expand partnerships with
the players of the destination country for practical, results-oriented joint skills development programs. The
bilateral labour agreements that Nepal has entered into include provisions on joint skills training initiatives.
Similarly, the GCM emphasizes global skills partnerships.78 Seizing these platforms to further strengthen
Nepal’s skilling initiatives to prepare a competitive workforce for both the domestic and international
labour markets is a priority. In this regard, a systems approach that considers the wide range of stakeholders
including the related Government stakeholders, employers, recruitment agencies, industry associations,
development partners, civil society and migrant workers will be necessary.

78 See Clemens (2015) for more detailed information on global skills partnerships.

105
© Upasana Khadka N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

106
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 5:

Way Forward

107
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© Upasana Khadka

108
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Chapter 5: Way Forward

As discussed in the preceding Chapters, labour migration governance is complex and multidimensional. The
Government of Nepal has set up an elaborate migration governance system with relevant policies, acts and
programs in place that cover all stages of the migration cycle. The recent policy initiatives of the Government
have been crucial in generating unprecedented momentum for migration governance reforms. The priority
ahead will be to ensure the effective implementation of these reform initiatives. The following areas of
improvement highlight some of the key priorities to realize the Government’s reform objectives based on
findings from this Report:

Way Forward
1. EVIDENCE-BASED POLICYMAKING
A. FOREIGN EMPLOYMENT POLICY
 The Foreign Employment Policy 2012 is currently being revised. The following aspects should be
adequately reflected in the revised Policy:
QQ The Policy should be strongly grounded on reality to guide a clear and time-consistent stance and
direction on labour migration. The review of the Periodic Plans has shown varying priorities across
and within policy documents, which signifies the need for more clarity and better coherence on the
views and priorities on foreign employment along with a clear picture of Nepal’s direction on labour
migration. The Policy should be better harmonized with sectoral policies (including agriculture,
industrial, foreign investment, skills, employment, education and health policies) and other broader
national policies such as the Periodic Plans. It should also reflect the spirit of global commitments
such as the GCM and SDGs.
QQ In the context of a federalized system of governance, the Policy needs to guide the roles and
responsibilities of each tier of Government in migration governance along with strong vertical
coordination mechanisms. The high-level Foreign Employment Coordination Committee established
under the Foreign Employment Policy should be expanded to include representatives from the local
and provincial governments and be empowered to make actionable policy-level decisions.
QQ The Policy should address the heterogeneity across migration corridors in terms of the volume of
migrants, sectors of employment, the modality of recruitment, and corridor maturity.
QQ The Policy should provide avenues for different types of bilateral cooperation in addition to MOUs
and BLAs such as government to government agreements, sector-specific agreements, skills
partnerships and social security agreements.
QQ The Policy should be forward-looking with provisions to include migrant workers to Nepal’s
contributory social security scheme and overseas voting during general elections in Nepal.
QQ Complementarities between the domestic and foreign employment agenda need to be explored.

109
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

A high-level coordination committee including relevant stakeholders of domestic as well as foreign

employment can be set up to identify areas of complementarities and collaboration.
QQ Considering the multiplicity of government and non-government stakeholders involved in
migration governance, there is a need to take a systems approach to assess and assign the roles
and responsibilities of the different stakeholders to achieve the goals envisioned by the Policy. This
should be reflected in the Workplan of the Policy as well as in the annual workplan and budget of
MOLESS.

B. FOREIGN EMPLOYMENT INFORMATION MANAGEMENT SYSTEM (FEIMS)

 The FEIMS can be upgraded to address the following:
QQ Standardization of the occupation adn skills category in line with international classifications and
practice;
QQ FEIMS should be updated to incorporate municipality-based information of migrant workers, the
split in the two districts (Rukum and Nawalparasi) as well as additional data such as the educational
background of migrant workers; and
QQ The FEIMS should enable Employers to access the system which would improve recordkeeping and
ease the process of verification of job demand.
 The Government’s effort in building a robust database to track regular migrant workers is exemplary
and can serve as a good example globally. However, more effort is needed to realize the potential of
the database to inform policymaking including trend analysis, identification of emerging destination
markets and mobilization of the largest employers to advance the Government’s policy priorities. In this
regard, a stronger research-oriented coordination is needed among concerned agencies.
 The integration of FEIMS with the information management system of the destination country should
be prioritized as part of the Government’s bilateral efforts to ensure better joint monitoring of the
recruitment, employment and repatriation process. This exercise could be first tested in partnership
with the Government of one of the destination countries with which Nepal has concluded a bilateral
labour agreement.
 A dedicated team of technical experts at DOFE is necessary for the uninterrupted system management
and regular up-gradation of FEIMS. This is also important in the context of the expanding use of FEIMS
by different government and non-government stakeholders.
 FEIMS should be made user-friendly for all stakeholders, especially the migrant workers. In addition, the
customized reporting functionalities of the FEIMS needs to be upgraded and made more user-friendly.
The coordination between DOFE and Diplomatic Missions needs to be strengthened for the proper
utilization of FEIMS, along with periodic training sessions to familiarize staff of Diplomatic Missions with
its functionalities.
 With the increased focus on making all services related to the recruitment process available online,
periodic beneficiary feedback surveys need to be conducted to better understand the challenges in
using the new and evolving system.

110
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

C. OTHER DATA SOURCES SHOULD ALSO BE PRIORITIZED

 Migration to India needs to be better understood including volume, employment characteristics,
remittance behavior, common vulnerabilities faced by migrant workers by facilitating recordkeeping of
India bound migrant workers at the local level.
 A better coordination mechanism needs to be set up between NPC, MOLESS and CBS for data-related
efforts.79 A representative survey on labour migration that is conducted at least once in two years could
greatly inform MOLESS’s policymaking. The current nationally representative surveys are not conducted
regularly enough and exclude key variables of interest important for migration-related policymaking.80
This effort could be led in collaboration with the CBS and local governments.
 Local governments have the mandate to create databases that also include individuals in foreign
employment. Efforts are also underway to create profiles that are focused either exclusively on migration
or as part of the broader profile of the municipality. In this regard, a three-tier institutional mechanism
needs to be set up to develop a common framework and variables related to labour migration that would
help bring uniformity and consistency in the information collected. This would allow comparisons across
local governments as well as to collate the local level data to build provincial and national migration
profiles.
 Information on the stock of migrant workers in the destination country by their place of concentration
could be collected as part of the Government’s bilateral efforts. This information could be periodically
updated and made accessible to key migration stakeholders including FEB and Diplomatic Missions.
 The Government should work towards maintaining reliable data on cases and victims of human
trafficking as well as those of traffickers disguised under the facade of labour migration. MOLESS should
coordinate with MoHA, MOFA and MoWCSS to identify different types of trafficking and take necessary
actions to curb such practices.
 FEIMS should also be eventually linked to the national ID database that is currently being developed by
the MOHA.
 Evidence-based policymaking should be prioritized by mobilizing technical experts for demand-based
research including researchers from universities, research centers, and the Nepali diaspora.81

2. PROCEDURAL CHANGES
 The Government can consider adopting an integrated service delivery mechanism to provide all labour
migration-related services including creating individual profiles of migrant workers or FEIMS, opening
bank accounts, depositing insurance fees and contributing to the Welfare Fund, under one roof. In the
interim, the Government should make available the necessary resources to guide migrant workers to
setup their FEIMS profiles and complete the due processes within its premises at the Kathmandu- and
province-based offices.

79 For example, targeting the upcoming Census in 2021, MOLESS can coordinate with CBS to include relevant labour and migration related indicators. In addition,
this coordination could also help set the baseline and track progress on migration related indicators of the 15th Periodic Plan and SDG 2030, among others.
80 The last NLSS was conducted in 2010/11. While the last LFS was conducted in 2017/18, it has several limitations including lack of information on consumption and
remittance patterns, recruitment costs etc that are of importance for migration related policymaking.
81 Examples of high priority research topics on migration to inform Nepal's policymaking efforts include the impact of nationalization policies in destination coun-
tries, especially the GCC, on the demand for Nepali workers; foreign employment opportunity exploration to inform Nepal’s diversifications strategy; the relevance
of skills training obtained in Nepal to increase the returns to employment in the destination country; social remittance in Nepal and its impact at the individual,
community and national levels; what the “future of work” means for the future of job opportunities for Nepali migrant workers.

111
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

 The possibility of simplifying the recruitment process for higher-skilled and professional categories
needs to be considered as they are better informed and well-equipped to navigate the recruitment
system on their own. An online pre-departure orientation system can be introduced for these categories.

3. MIGRATION IN A FEDERAL CONTEXT

 Sustained efforts to provide orientation and capacity building of local governments to carry out foreign
employment-related functions including those mandated by LGOA need to be prioritized. Provincial and
federal governments could coordinate regular forums to showcase good practices and share learnings
in migration governance at the local level.
 Local governments require adequate financial resources to carry out their foreign employment related
mandate. A proper mapping of available budget to carry out migration-related activities is a priority
which in addition to their own budget could also include the Welfare Fund, provincial budget and
external assistance.
 Good practices at the federal level such as Felicitation of Returnee Entrepreneurs, Employment
Conference and International Migrants Day celebration can be replicated at the local and provincial
levels.
 It is important to assess the interlink between MRCs and Employment Service Centers and to explore
the possibility of integration and/or stronger coordination between the two so that migrant workers can
make an informed choice considering both domestic and foreign employment opportunities.
 At each provincial level, training centers that meet international standards could be set up mobilizing
support from major destination countries, the private sector and development partners. The possibility
of mobilizing foreign employers or service providers to provide short-term training via different forms
of partnerships with these training centers can also be considered.
 Dedicated provincial level labour migration offices equipped with required human resources, physical
facilities and logistic support should be established in Provinces 1, 2, 5 and Gandaki where the volume of
labour migration is relatively higher. These offices will be gradually entrusted with the authority to carry
out all the migration-related services beyond just renewals of labour approval.
 MOLESS should prioritize partnership with local governments to conduct awareness and empowerment
campaigns against illegal recruitment, trafficking, forced labour, high recruitment costs and fraudulent
activities to promote safe, productive and dignified migration.
 Local governments are well placed to address the social costs of migration. It is necessary to mobilize
schools, MRCs, ESCs, female volunteer health workers and social mobilizers to support families left
behind, especially children and ageing parents experiencing care drain as well as migrant returnees in
need of support. This would ensure early identification and timely interventions to at-risk individuals.82
 Migration stakeholders engaged in training, orientation, health-related services and recruitment
agencies should be encouraged to establish their presence at the local level. In the meantime, the
monitoring role of the provincial offices and the local governments should also be expanded.

82 Referrals to existing local programs run by related user groups, village level children protection committees and ward citizen forums or design of new programs
targeting families of migrant workers should be prioritized.

112
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

4. LABOUR DIPLOMACY AND THE ROLE OF MISSIONS

 A coordination mechanism under the leadership of the Secretaries of MOLESS and MOFA should be
set up. This would ensure timely response to address issues faced by migrant workers in destination
countries that calls for close coordination across Ministries in Nepal including MOLESS, MOFA, MOH,
MOWCSC and MOHP. Formulation of a Manual for worker protection in destination countries specifying
and detailing the roles and responsibilities of each agency should be prioritized.
 Missions need to be equipped with adequate resources. In major cities of destination countries that
host a high volume of migrant workers, the possibility of setting up separate consulate offices should
be considered. These offices would be responsible for the overall migration-related activities and would
work under the one country team approach.
 The presence of labour counselors and attaches is necessary in key destination countries. For example, in
Japan, following the SSW agreement, a point of contact that oversees both labour issues and marketing
and coordination with employers is required. Similarly, the absence of labour attaches is also increasingly
felt in countries like Jordan, Poland, Portugal and Turkey that do not have residential diplomatic missions.
In all countries with which Nepal has concluded bilateral agreements, labour attaches and/or counselors
should be appointed to ensure its smooth implementation.
 The use of FEIMS by all diplomatic missions needs to be encouraged.
 Standard operating procedures for migration-related services in Nepali Missions such as support to
migrants in distress including those in jails, detention centers, shelters and hospitals, and settlement of
labour disputes abroad should be prioritized.
 The possibility of setting up an emergency fund targeted towards labour migrants, especially vulnerable
ones, at Missions should be considered.
 Alternate mechanisms for demand attestation should be considered in existing and emerging destination
countries. This includes possibilities of online attestation where concerned employers can submit all
required information and documents or authorizing Consulate Generals and Honorary Consuls to attest
demands.
 The selection and training of labour attaches and counselors should be revisited. The selection process
should be merit-based and include both a written examination and presentation to test the grasp of
the candidate on pertinent issues in labour migration and diplomacy. The induction training curriculum
should be revised to reflect new developments in labour migration governance, especially the operation
of the FEIMS and the provisions in the bilateral labour agreements. A two-week overlap between the
incoming and outgoing labour attaché or counselor at the destination country should be ensured for a
smooth transition.

5. BILATERAL LABOUR AGREEMENTS

 Regular inter-agency meetings representing MOLESS, MOFA and MOLJPA should be conducted to assess
the overall implementation of the bilateral agreements, the timeliness of Joint Committee meetings for
all BLAs/MOUs and the identification of potential destination countries for bilateral labour cooperation,
among others. A manual that covers the full cycle of the MOU/BLA including the required preparations,
drafting, negotiations and implementation needs to be prepared along with specific responsibilities of

113
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

the concerned agency to institutionalize and standardize the process. 83

 In addition to MOU provisions that are operational, MOLESS could also prioritize developing actionable
protocols on specific areas of cooperation such as skills partnership, integrated recruitment systems,
potability of social security system and sharing of labour market information, among others.
 Joint Working Group (JWG) meetings should be organized on a regular basis as envisioned in the MOU.
The Record of Discussions prepared as part of the JWG meetings should include tangible action-oriented
agenda with individual and joint responsibilities assigned to both parties.
 JWG should be further strengthened by expanding the roles and responsibilities of the concerned
stakeholders, especially the concerned Mission, to operationalize priorities identified during the JWG
meetings as well as the overall MOU provisions.
 Strategic communication to ensure that all stakeholders including recruitment agencies, workers,
employers as well as the concerned private sector and civil society have a common understanding of
the provisions of the MOUs needs to be prioritized. In addition, a procedure should be developed to take
inputs for bilateral agreements from stakeholders during the drafting stage of the agreements.

6. DIVERSIFICATION
 To advance Nepal’s diversification strategy to expand to new destination countries, employment sectors
and skills levels, the following should be considered:
QQ A list of criteria that covers demography and skills shortage, foreign worker admission policies,
labour laws, presence of other foreign workers and cultural aspects
QQ Positioning Nepal’s strengths in diverse sectors, especially the ones with the growing demand that
are comparatively safe and rewarding in which Nepali workers are underrepresented.
QQ Utilizing FEIMS to identify and engage with the large employers with good track record in placements,
worker safety, terms of employment etc. In addition, engagement with industry associations at the
destination country should be strongly prioritized.
 The time limit on employment contracts to be eligible for labour approvals needs to be reviewed. For
rewarding employment opportunities, seasonal and short-term approvals need to be considered on
a country-wise basis. A guideline containing operation modality and minimum criteria in the terms of
employment for shorter-term engagements needs to be developed.
 A specific guideline addressing the peculiar issues in the seafarers’ sector should be developed in order
to ease the bottlenecks associated with the pre-approval and final approval of the workers in the sector.
 Innovations in financing joint training partnerships can be explored to increase the relevance and
returns of skills training for aspirant migrant workers by promoting mutual recognition and certification
of the attained skills:
QQ Partnerships with the development partners, in particular the bilateral donors representing the
concerned destination country like Japan, South Korea and Germany.
QQ Channeling Corporate Social Responsibility funds, especially in coordination with the large private
sector players benefiting from the foreign employment industry including remittance companies,
banks, foreign-based employers, airlines etc.
83 A checklist of all the steps that need to be implemented including setting up related preparation team, reviewing the labour market condition of the destination
country, templates of information to be acquired from the diplomatic mission to inform the drafting of the MOU/BLA, model BLA etc.

114
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

QQ Public-Private Partnerships between the Government and training providers and skills assessors,
especially those with international skills recognition.
QQ To sustain the skilling efforts targeted to aspiring migrant workers, a separate funding mechanism
can be established that comprises of a set portion of the Welfare Fund, the Government’s budget
and the aforementioned sources including funds from development partners and private sector.
 Noting the limited reach and network of Nepali recruitment agencies, the fund set aside by the revised
Foreign Employment Rules for their capacity building can be channeled towards familiarization trips
or joint marketing missions and training on key topics like marketing strategies, ethical recruitment
practices etc.
 Safe and productive employment opportunities for female migrant workers need to be identified in
sectors such as healthcare, garment, sales and hospitality. It is necessary to conduct an assessment
of potential destination countries regarding legal instruments in place that cover the domestic work
sector with which Nepal can enter into bilateral labour agreements to ensure the maximum protection
of domestic workers.

7. ORIENTATION
 Pre-decision orientation seminars should also be scaled up and provided at a large scale in partnership
with local governments through MRCs and ESCs.
 It is necessary to assess the effectiveness of various aspects of the orientation classes (delivery method,
duration, curriculum) via rigorous evaluation methods like Randomized Controlled Trials to identify
areas for further improvement.
 Information provided in the orientation classes along with necessary updates should also be made
available online through websites, social media and mobile applications.
 Partnership with the destination country on pre-departure and post-arrival orientation should be
prioritized. In this regard, the ADD’s Comprehensive Information and Orientation Program (CIOP) can
serve as a good example.

8. HEALTH
 Noting the long-term implications of working in sectors with high occupational risks, an exploratory
study to identify avenues for financing the overall health check-up of returnee migrant workers within a
specified period of return should be conducted and the learnings are used to devise a sustainable plan
of action.
 Past initiatives to identify the causes of deaths among migrant workers have not produced tangible
results. This shortcoming could potentially be overcome via joint investigations in coordination with
the Government of the concerned destination country. In case of deaths abroad, it is also important to
conduct mandatory post-mortem of the dead body to identify the cause of death.
 Prior to departure, all migrant workers are required to undergo medical tests. Depending on the findings
of the common health issues faced by migrants at the destination country, additional medical tests can
be made mandatory.

115
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

9. FINANCIAL AND SOCIAL REMITTANCE

 A comprehensive study on the reintegration challenges faced by returnee migrant workers is necessary
to understand the drivers of the labour market outcomes of returnees to inform reintegration related
policies and programs.
 Coordination between the Public Debt Department of the Nepal Rastra Bank and migration-related
stakeholders such as DOFE and FEB is needed to effectively market the Foreign Employment Savings
Bond. To attract migrant workers to the FESB, a purposive appeal can be made by linking FESB to specific
national priority projects. Finally, the commission for agents involved in encouraging migrant workers to
buy the FESB and the returns to FESB should be made more attractive.
 While remit-hydro is an example of a large-scale effort to promote collective remittances that has yet
to operationalize, similar efforts should be explored by all tiers of Government in priority sectors, such
tourism, agriculture and hydropower.
 MOLESS’s felicitation program to select enterprising returnee workers could be conducted at a larger
scale, covering returnees from all provinces to recognize their contributions towards employment
generation, transfer of knowledge and technology, and to set an example among current migrant
workers and returnees. In the same spirit, business plan competitions can also be held targeting
enterprising returnee migrant workers.
 Noting the low uptake of the skills certification program conducted by FEB targeting returnee workers,
a wider information dissemination strategy should be adopted and coordination with the private sector
should be promoted so that there is a visible link between the skills recognition scheme and employment
prospects in the country.
 Returnee workers should be equipped with business training to help them produce viable business
plans as lessons from the launch of the soft loan program has shown that most business plans were not
accepted by financial institutions. Stronger coordination with financial institutions is needed to ensure
ownership of the scheme, timely evaluation of the business plan submissions and continuous feedback
on improving the operationalization of the program. Returnees should also be provided adequate
information on other soft loan programs run by the Government. To facilitate this, a one-stop center
that provides information and advisory services to potential entrepreneurs and jobseekers should be
prioritized. Such information should also be made available online by the FEB.

10. ACCESS TO JUSTICE

 Information on the different mechanisms to register complaints related to foreign employment and the
available services need to be widely disseminated both to workers as well as their families.
 In cases where the verdict is made in favor of workers and the decision is forwarded to the district court
for further action, there is an insufficient follow-up to ensure that the decision is enforced and the victim
is duly compensated, which needs to be addressed. An MIS system for case management that is also
linked to the district courts could potentially improve recordkeeping and monitoring of cases related to
foreign employment.
 Sufficient resources need to be provided to ensure that the concerned agencies are properly equipped
to cater to the needs of victims in a timely manner.

116
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

11. REGIONAL AND GLOBAL GOVERNANCE

 The CP platform should be further leveraged to develop a common voice on key issues in migration
governance such as recruitment costs and minimum wages to strengthen collective bargaining. The
research studies commissioned by the CP TAWGs should inform pilot projects that can help address
common thematic areas of concern. As Chair of the CP, the Government of Nepal can actively seek
ways to make the CP strategically effective in terms of engaging with employers and governments of
destination countries through avenues such as ADD and GCM.
 Representatives of Nepal’s Diplomatic Mission in major destination countries should regularly interact
with consular officials and labour attachés of other CP member countries to share good practices and to
identify avenues for cooperation and collective bargaining.
 The preparation of the National Strategy for the Implementation of the GCM is timely to identify the
most relevant GCM priorities for Nepal and the way forward. Capitalizing on the commitments made
in the GCM for enhanced capacity building support to developing countries, MOLESS should seek to
mobilize technical and financial support through the UN system. In this regard, the following can be
prioritized to achieve tangible outcomes:
QQ The Government should prioritize the utilization of the connection hub and the start-up fund to be
established under the GCM that facilitates demand-driven, tailor-made and integrated solutions.

QQ Given that most major destination countries of Nepali workers have adopted the GCM, the
Government of Nepal should continue to draw on the various GCM commitments and objectives
while negotiating agreements and raising issues concerning the protection of Nepalis migrant
workers.

117
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© ILO

118
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Annex

119
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© ILO

120
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

ANNEX A:

TABLE I : RECENT RETURNEE WORKER POPULATION BY PROVINCE

Province Population %
Province 1 140478 18.6
Province 2 101833 13.5
Province 3 151046 20
Gandaki 89173 11.8
Province 5 143228 18.9
Karnali 63335 8.4
Sudurpashchim 67034 8.9
Total 756126 100

Source: National Labour Force Survey (2017/2018)

TABLE II : CURRENT EMPLOYMENT STATUS BY SEX

Male Female Total Total
Employment Status
No. % No. % No. %
Unemployed 105476 14.5 2411 8.4 107887 14.3
Employed 329424 45.3 4842 16.8 334266 44.2
Outside labour force 292480 40.2 21493 74.8 313972 41.5
Total 727379 100 28746 100 756126 100

Source: National Labour Force Survey (2017/2018)

TABLE III : PERCENTAGE OF POPULATION BY EMPLOYMENT STATUS, SEX AND LAST DESTINATION

India Malaysia GCC Other

Employment Status Male Female Total Male Female Total Male Female Total Male Female Total

% % % % % % % % % % % %

Unemployed 12.1 5 11.9 14.6 25 14.9 16.1 2.7 15.7 12.4 0 11.2

Employed 37.6 26.7 37.1 52.4 4.7 50.8 45.6 19.7 44.8 46.4 8.5 42.8

Outside labour force 50.3 68.3 51 33 70.3 34.3 38.3 77.6 39.6 41.1 91.5 45.9

Source: National Labour Force Survey (2017/2018)

121
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

TABLE IV : RETURNEE POPULATION BY OCCUPATIONAL CATEGORY AT DESTINATION COUNTRY

India Malaysia GCC Others
Occupation: Abroad
No. % No. % No. % No. %
1 - Managers 0 0 0 0 511 0.2 0 0
2 - Professionals 0 0 0 0 244 0.1 1503 4.5
3 - Technicians and associate professionals 4680 2.3 2251 1.2 2815 0.9 1167 3.5
4 - Clerical support workers 389 0.2 4142 2.1 6273 1.9 2340 7
5 - Service and sales workers 48296 24.2 34337 17.6 63705 19.4 10092 30.1
6 - Skilled agricultural, forestry and fishery workers 5347 2.7 2752 1.4 3826 1.2 990 3
7 - Craft and related trades workers 19943 10 32095 16.5 71669 21.8 1871 5.6
8 - Plant and machine operators, and assemblers 4228 2.1 36948 19 40712 12.4 4430 13.2
9 - Elementary occupations 114193 57.2 82106 42.1 137231 41.8 10867 32.4
10 - Other occupations 2598 1.3 284 0.1 1024 0.3 268 0.8
Total 199673 100 194915 100 328009 100 33529 100

Source: National Labour Force Survey (2017/2018)

TABLE V : RETURNEE POPULATION BY OCCUPATION CATEGORY IN NEPAL

India Malaysia GCC Others
Occupation- Nepal
No. % No. % No. % No. %
1 - Managers 0 0 91 0.1 630 0.4 792 5.5
2 - Professionals 210 0.3 275 0.3 1689 1.2 2269 15.8
3 - Technicians and associate professionals 215 0.3 2139 2.2 2148 1.5 436 3
4 - Clerical support workers 123 0.2 538 0.5 226 0.2 2077 14.5
5 - Service and sales workers 13053 17.6 24739 25 30062 20.5 3783 26.3
6 - Skilled agricultural, forestry and fishery workers 12143 16.4 17076 17.3 16750 11.4 1904 13.3
7 - Craft and related trades workers 19698 26.6 21791 22 46133 31.4 2440 17
8 - Plant and machine operators, and assemblers 2671 3.6 10834 11 17588 12 229 1.6
9 - Elementary occupations 25640 34.6 21454 21.7 31633 21.5 217 1.5
10 - Other occupations 351 0.5 0 0 0 0 221 1.5
Total 74105 100 98936 100 146858 100 14367 100

Source: National Labour Force Survey (2017/2018)

TABLE VI : SECTOR OF EMPLOYMENT IN NEPAL BY LAST DESTINATION

Formal Informal Total Formal Informal
 
No. No. No. % %
India 10353 63752 74105 14 86
Malaysia 20400 78536 98936 20.6 79.4
GCC 36789 110069 146858 25.1 74.9
Other 9883 4485 14367 68.8 31.2
Total 77425 256841 334266 23.2 76.8

Source: National Labour Force Survey (2017/2018)

122
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

TABLE VII : SECTOR OF EMPLOYMENT IN NEPAL BY PROVINCE

No. %
Finalized Province
Formal Informal Total Formal Informal
Province 1 14372 49726 64098 22.4 77.6
Province 2 6491 39418 45908 14.1 85.9
Province 3 21255 64441 85696 24.8 75.2
Gandaki 11050 25501 36551 30.2 69.8
Province 5 15549 48766 64314 24.2 75.8
Karnali 6869 13018 19887 34.5 65.5
Sudurpashchim 1840 15972 17812 10.3 89.7
Total 77425 256841 334266 23.2 76.8

Source: National Labour Force Survey (2017/2018)

TABLE VIII : REASON FOR RETURNING BY LAST DESTINATION

M10.Cause of India Malaysia GCC Other Total India Malaysia GCC Other Total
leaving work No. No. No. No. No. % % % % %
Removed from work 0 23090 26010 1441 50540 0 13 9.2 5.9 10
Temporary work
4519 43057 70480 3532 121587 23.5 24.2 24.9 14.3 24.1
finished
Retired 1248 3299 4182 1219 9949 6.5 1.9 1.5 5 2
Disabled/Injured/
1280 19051 20768 1741 42840 6.7 10.7 7.3 7.1 8.5
Sick
Study 0 0 0 2042 2042 0 0 0 8.3 0.4
Pregnant/Family
2890 6118 14026 1805 24839 15 3.4 5 7.3 4.9
responsibility
Resignation 88 8995 14938 1590 25612 0.5 5.1 5.3 6.5 5.1
Family obstacle 2757 8437 13499 448 25140 14.4 4.7 4.8 1.8 5
Search for better job 915 17426 37870 4504 60715 4.8 9.8 13.4 18.3 12
Unmatch work 2024 8956 27902 567 39449 10.5 5 9.9 2.3 7.8
Temporary/
Seasonal/Project 1317 18499 24916 3817 48548 6.9 10.4 8.8 15.5 9.6
terminated
Others 2167 20739 28134 1914 52955 11.3 11.7 10 7.8 10.5
Total 19206 177665 282726 24619 504215 100 100 100 100 100

Source: DOFE

123
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

ANNEX B:
TABLE IX : LABOUR APPROVAL RECORD FOR FISCAL YEAR 2074.75 (2017.07.16 TO 2018.07.16)
Recruiting Agency New Entry Regularized Entry Re-Entry Total With Re-Entry Total Without Re-Entry
Country
M F T M F T M F T M F T M F T M F T
Afghanistan 133 0 133 34 0 34 1274 1 1275 0 0 0 1441 1 1442 1441 1 1442

Africa 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 0

Algeria 804 0 804 1 0 1 3 0 3 2 0 2 810 0 810 808 0 808

Angola 0 0 0 0 0 0 4 0 4 19 3 22 23 3 26 4 0 4
Antigua &
0 0 0 2 1 3 0 0 0 0 0 0 2 1 3 2 1 3
Barbuda
Australia 0 0 0 71 5 76 48 2 50 10 0 10 129 7 136 119 7 126

Austria 0 0 0 2 11 13 0 0 0 0 0 0 2 11 13 2 11 13

Azerbaijan 0 0 0 0 4 4 0 0 0 4 2 6 4 6 10 0 4 4

Bahamas 0 0 0 0 0 0 2 0 2 1 0 1 3 0 3 2 0 2

Bahrain 4099 264 4363 62 37 99 369 31 400 3302 290 3592 7832 622 8454 4530 332 4862

Bangladesh 0 0 0 2 0 2 2 0 2 0 0 0 4 0 4 4 0 4

Barbados 0 0 0 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1

Belgium 0 0 0 2 3 5 0 0 0 0 0 0 2 3 5 2 3 5

Bermuda 0 0 0 3 0 3 5 0 5 13 0 13 21 0 21 8 0 8

Brazil 0 0 0 0 0 0 2 0 2 0 0 0 2 0 2 2 0 2
British Virgin
0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 1
Islands
Brunei
0 0 0 122 3 125 17 2 19 246 3 249 385 8 393 139 5 144
Darussalam
Burkina Faso 0 0 0 0 0 0 2 0 2 1 0 1 3 0 3 2 0 2

Burma 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 0

Cambodia 0 0 0 0 0 0 15 4 19 9 1 10 24 5 29 15 4 19

Cameroon 0 0 0 0 0 0 5 0 5 0 0 0 5 0 5 5 0 5

Canada 0 0 0 66 22 88 27 15 42 20 6 26 113 43 156 93 37 130

Cayman 0 0 0 64 28 92 16 0 16 15 1 16 95 29 124 80 28 108

Chile 0 0 0 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1

China 0 0 0 87 6 93 166 10 176 59 3 62 312 19 331 253 16 269

Combodia 0 0 0 0 0 0 1 0 1 11 3 14 12 3 15 1 0 1

Comoros 0 0 0 6 0 6 5 0 5 0 0 0 11 0 11 11 0 11

Congo 0 0 0 1 0 1 13 0 13 15 0 15 29 0 29 14 0 14

Cook Islands 0 0 0 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1

Croatia 0 0 0 3 0 3 0 2 2 2 0 2 5 2 7 3 2 5

Cuba 0 0 0 0 0 0 2 0 2 0 0 0 2 0 2 2 0 2

Cyprus 144 1407 1551 2 0 2 9 12 21 24 468 492 179 1887 2066 155 1419 1574

Czech Republic 87 41 128 332 47 379 2 0 2 23 2 25 444 90 534 421 88 509

Denmark 0 0 0 3 18 21 3 3 6 1 0 1 7 21 28 6 21 27

Djibouti 0 0 0 2 0 2 2 0 2 6 0 6 10 0 10 4 0 4

124
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Recruiting Agency New Entry Regularized Entry Re-Entry Total With Re-Entry Total Without Re-Entry
Country
M F T M F T M F T M F T M F T M F T
Dominican 0 0 0 1 0 1 1 0 1 0 0 0 2 0 2 2 0 2
Republic
Egypt 0 0 0 22 0 22 10 5 15 4 2 6 36 7 43 32 5 37

Eritrea 0 0 0 1 0 1 1 0 1 0 0 0 2 0 2 2 0 2

Estonia 0 0 0 3 1 4 4 0 4 0 0 0 7 1 8 7 1 8

Fiji 0 0 0 2 0 2 5 0 5 0 0 0 7 0 7 7 0 7

Finland 0 0 0 16 5 21 8 1 9 23 2 25 47 8 55 24 6 30

France 0 0 0 1 0 1 21 0 21 3 0 3 25 0 25 22 0 22

Gabon 0 0 0 0 0 0 3 0 3 0 0 0 3 0 3 3 0 3

Georgia 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 0

Germany 0 0 0 41 249 290 37 5 42 2 4 6 80 258 338 78 254 332

Ghana 0 0 0 0 0 0 1 0 1 5 0 5 6 0 6 1 0 1

Greece 0 0 0 1 0 1 4 0 4 0 0 0 5 0 5 5 0 5

Guinea 0 0 0 1 0 1 2 0 2 3 0 3 6 0 6 3 0 3

Hong Kong 144 21 165 0 0 0 5 5 10 10 6 16 159 32 191 149 26 175

Hungary 0 0 0 1 0 1 0 0 0 1 0 1 2 0 2 1 0 1

Iceland 0 0 0 5 2 7 0 0 0 4 0 4 9 2 11 5 2 7

Indonesia 0 0 0 1 0 1 4 0 4 8 0 8 13 0 13 5 0 5

Iran 0 0 0 0 0 0 3 0 3 0 0 0 3 0 3 3 0 3

Ireland 0 0 0 2 3 5 4 0 4 1 0 1 7 3 10 6 3 9

Israel 11 36 47 0 0 0 24 47 71 181 388 569 216 471 687 35 83 118

Italy 0 0 0 5 0 5 23 5 28 3 1 4 31 6 37 28 5 33

Ivory Coast 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 1

Jamaica 0 0 0 0 0 0 0 0 0 2 0 2 2 0 2 0 0 0

Japan 39 9 48 340 10 350 337 26 363 2667 48 2715 3383 93 3476 716 45 761

Jordan 423 1501 1924 13 0 13 7 0 7 102 58 160 545 1559 2104 443 1501 1944

Kazakhastan 0 0 0 0 0 0 6 0 6 3 0 3 9 0 9 6 0 6

Kenya 0 0 0 1 0 1 8 0 8 16 0 16 25 0 25 9 0 9

Kosovo 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 0

Kuwait 15151 1510 16661 214 63 277 564 53 617 8686 908 9594 24615 2534 27149 15929 1626 17555

Lao PDR 0 0 0 0 0 0 8 0 8 1 0 1 9 0 9 8 0 8

Latvia 0 0 0 2 0 2 2 0 2 3 0 3 7 0 7 4 0 4

Lebanon 6 0 6 5 0 5 7 4 11 36 47 83 54 51 105 18 4 22

Lithuania 0 0 0 17 0 17 0 0 0 4 0 4 21 0 21 17 0 17

Luxembourg 0 0 0 3 3 6 0 0 0 6 0 6 9 3 12 3 3 6
Macau, Sar,
252 6 258 200 6 206 150 15 165 1046 26 1072 1648 53 1701 602 27 629
China
Madagascar 0 0 0 3 0 3 2 0 2 5 0 5 10 0 10 5 0 5

Malawi 0 0 0 0 0 0 1 0 1 2 0 2 3 0 3 1 0 1

Malaysia 99983 2996 102979 18 1 19 1171 40 1211 32106 996 33102 133278 4033 137311 101172 3037 104209

125
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Recruiting Agency New Entry Regularized Entry Re-Entry Total With Re-Entry Total Without Re-Entry
Country
M F T M F T M F T M F T M F T M F T
Maldives 24 15 39 1118 525 1643 93 14 107 516 145 661 1751 699 2450 1235 554 1789

Mali 0 0 0 0 0 0 8 0 8 5 0 5 13 0 13 8 0 8

Malta 49 80 129 320 146 466 3 2 5 2 0 2 374 228 602 372 228 600

Mauritania 0 0 0 0 0 0 1 0 1 2 0 2 3 0 3 1 0 1

Mauritius 210 0 210 9 0 9 0 0 0 12 0 12 231 0 231 219 0 219

Mexico 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 1

Mongolia 0 0 0 1 0 1 0 0 0 3 0 3 4 0 4 1 0 1

Morocco 0 0 0 0 0 0 17 3 20 2 0 2 19 3 22 17 3 20

Mozambique 0 0 0 5 0 5 3 0 3 12 0 12 20 0 20 8 0 8

Myanmmar 0 0 0 0 0 0 3 0 3 2 0 2 5 0 5 3 0 3

Namibia 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 0

Netherland 0 0 0 10 1 11 7 4 11 3 0 3 20 5 25 17 5 22

New Zealand 0 0 0 39 3 42 204 55 259 33 1 34 276 59 335 243 58 301

Nigeria 0 0 0 7 0 7 13 0 13 23 0 23 43 0 43 20 0 20

Norway 0 0 0 19 2 21 2 0 2 22 2 24 43 4 47 21 2 23

Oman 2203 329 2532 210 20 230 279 18 297 2494 160 2654 5186 527 5713 2692 367 3059

Pakistan 0 0 0 0 1 1 1 0 1 5 0 5 6 1 7 1 1 2

Palau 0 0 0 0 0 0 2 6 8 1 0 1 3 6 9 2 6 8

Panama 73 0 73 1 0 1 4 0 4 0 0 0 78 0 78 78 0 78
Papua New
0 0 0 24 2 26 4 0 4 22 1 23 50 3 53 28 2 30
Guinea
Phillippines 0 0 0 0 0 0 7 0 7 1 0 1 8 0 8 7 0 7

Poland 1688 242 1930 1485 177 1662 24 5 29 23 2 25 3220 426 3646 3197 424 3621

Portugal 17 0 17 0 1 1 5 1 6 1 0 1 23 2 25 22 2 24

Puerto Rico 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 1

Qatar 92137 3688 95825 964 74 1038 6214 102 6316 79334 1029 80363 178649 4893 183542 99315 3864 103179
Republic Of
0 0 0 1 0 1 1 0 1 8 0 8 10 0 10 2 0 2
Congo
Republic Of
0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 0
Macedonia
Republic Of
0 0 0 25 5 30 1 0 1 3 0 3 29 5 34 26 5 31
Seychelles
Romania 268 42 310 5 1 6 0 0 0 5 12 17 278 55 333 273 43 316

Russia 80 0 80 1 0 1 17 0 17 55 0 55 153 0 153 98 0 98

Rwanda 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 1

Saipan 0 0 0 0 0 0 1 0 1 1 0 1 2 0 2 1 0 1

Saudi Arabia 38259 1018 39277 0 0 0 1679 6 1685 67135 317 67452 107073 1341 108414 39938 1024 40962

Senegal 0 0 0 1 0 1 0 0 0 5 0 5 6 0 6 1 0 1

Seychelles 3 0 3 303 44 347 43 5 48 210 6 216 559 55 614 349 49 398

Sierra Leone 0 0 0 2 0 2 4 0 4 0 0 0 6 0 6 6 0 6

Singapore 0 0 0 20 4 24 97 6 103 2 0 2 119 10 129 117 10 127

Slovenia 0 0 0 3 0 3 2 1 3 0 0 0 5 1 6 5 1 6

126
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Recruiting Agency New Entry Regularized Entry Re-Entry Total With Re-Entry Total Without Re-Entry
Country
M F T M F T M F T M F T M F T M F T
Somalia 0 0 0 4 0 4 13 0 13 18 0 18 35 0 35 17 0 17

South Africa 0 0 0 20 1 21 6 0 6 4 0 4 30 1 31 26 1 27

South Korea 0 0 0 48 0 48 28 0 28 81 0 81 157 0 157 76 0 76

South Sudan 0 0 0 1 0 1 9 0 9 0 0 0 10 0 10 10 0 10

Spain 0 0 0 1 2 3 34 4 38 0 1 1 35 7 42 35 6 41

Sri Lanka 155 0 155 78 0 78 47 4 51 3 2 5 283 6 289 280 4 284

Sudan 0 0 0 2 0 2 2 0 2 12 0 12 16 0 16 4 0 4

Suriname 0 0 0 0 0 0 1 0 1   0 0 1 0 1 1 0 1

Sweden 0 0 0 6 3 9 0 2 2 2 2 4 8 7 15 6 5 11

Switzerland 0 0 0 4 2 6 0 0 0 2 0 2 6 2 8 4 2 6

Tajikistan 0 0 0 1 0 1 5 0 5 0 0 0 6 0 6 6 0 6

Tanzania 0 0 0 0 0 0 22 0 22 20 1 21 42 1 43 22 0 22

Thailand 0 0 0 9 1 10 19 2 21 20 0 20 48 3 51 28 3 31

Trinidad 0 0 0 1 0 1 0 0 0 1 0 1 2 0 2 1 0 1

Turkemenistan 0 0 0 0 0 0 0 0 0 2 0 2 2 0 2 0 0 0

Turkey 1313 446 1759 30 22 52 2 2 4 9 21 30 1354 491 1845 1345 470 1815
Turks And
0 0 0 8 0 8 2 0 2 8 0 8 18 0 18 10 0 10
Caicos Island
UAE 46813 5657 52470 584 156 740 6283 751 7034 49135 5562 54697 102815 12126 114941 53680 6564 60244

Uganda 0 0 0 0 0 0 16 0 16 17 0 17 33 0 33 16 0 16
United
0 0 0 1 1 2 33 30 63 7 4 11 41 35 76 34 31 65
Kingdom
Uruguay 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 0

USA 0 0 0 9 3 12 219 71 290 35 11 46 263 85 348 228 74 302

Vanuatu 0 0 0 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1

Vietnam 0 0 0 10 0 10 11 0 11 4 0 4 25 0 25 21 0 21

West-Indies 0 0 0 1 0 1 0 0 0 3 0 3 4 0 4 1 0 1

Zambia 0 0 0 0 0 0 3 2 5 8 0 8 11 2 13 3 2 5

Source: DOFE

127
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

TABLE X : LABOUR APPROVAL RECORD FOR FISCAL YEAR 2074.75 (2017.07.16 TO 2018.07.16)
Recruiting Agency Individual-New Individual-Regularization Individual-Renew Total Without Renew Total With Renew
Country
M F T M F T M F T M F T M F T M F T

Afghanistan 357 0 357 0 0 0 1467 6 1473 0 0 0 1824 6 1830 1824 6 1830

Algeria 39 0 39 0 0 0 2 0 2 1 0 1 41 0 41 42 0 42

Angola 0 0 0 0 0 0 6 0 6 6 1 7 6 0 6 12 1 13
Antigua &
0 0 0 2 0 2 1 0 1 0 0 0 3 0 3 3 0 3
Barbuda
Australia 0 0 0 65 2 67 29 9 38 34 0 34 94 11 105 128 11 139

Austria 0 0 0 2 8 10 1 0 1 0 0 0 3 8 11 3 8 11

Azerbaijan 0 0 0 0 0 0 0 3 3 3 4 7 0 3 3 3 7 10

Bahrain 3827 356 4183 70 52 122 301 27 328 3729 312 4041 4198 435 4633 7927 747 8674

Bangladesh 0 0 0 1 0 1 1 0 1 0 0 0 2 0 2 2 0 2

Barbados 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 1

Belgium 0 0 0 2 0 2 1 0 1 0 0 0 3 0 3 3 0 3

Bermuda 0 0 0 3 0 3 2 0 2 23 1 24 5 0 5 28 1 29

Brazil 0 0 0 2 0 2 3 0 3 0 1 1 5 0 5 5 1 6
British Virgin
0 0 0 2 0 2 0 0 0 1 0 1 2 0 2 3 0 3
Islands
Brunei
3 0 3 129 2 131 7 2 9 408 5 413 139 4 143 547 9 556
Darussalam
Burkina Faso 0 0 0 2 0 2 1 0 1 0 0 0 3 0 3 3 0 3

Burundi 0 0 0 15 0 15 0 0 0 0 0 0 15 0 15 15 0 15

Cambodia 0 0 0 0 0 0 14 2 16 10 3 13 14 2 16 24 5 29

Cameroon 0 0 0 1 0 1 1 1 2 1 0 1 2 1 3 3 1 4

Canada 0 0 0 67 11 78 15 7 22 7 9 16 82 18 100 89 27 116

Cayman 0 0 0 28 11 39 25 3 28 34 9 43 53 14 67 87 23 110

Chile 0 0 0 0 0 0 2 1 3 0 1 1 2 1 3 2 2 4

China 0 49 49 90 13 103 281 15 296 78 4 82 371 77 448 449 81 530

Colombia 0 0 0 5 0 5 0 0 0 0 0 0 5 0 5 5 0 5

Combodia 0 0 0 0 0 0 3 4 7 7 2 9 3 4 7 10 6 16

Comoros 0 0 0 8 1 9 1 0 1 2 0 2 9 1 10 11 1 12

Congo 0 0 0 7 0 7 8 0 8 18 0 18 15 0 15 33 0 33

Cook Islands 0 0 0 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1

Croatia 0 0 0 4 0 4 2 1 3 1 0 1 6 1 7 7 1 8

Cuba 0 0 0 0 0 0 3 0 3 0 0 0 3 0 3 3 0 3

Cyprus 174 1533 1707 12 0 12 8 3 11 34 576 610 194 1536 1730 228 2112 2340

Czech Republic 13 11 24 345 30 375 1 0 1 42 9 51 359 41 400 401 50 451

Denmark 0 0 0 1 2 3 4 2 6 0 0 0 5 4 9 5 4 9

Djibouti 0 0 0 2 0 2 0 0 0 6 0 6 2 0 2 8 0 8
Dominican
0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 0 1 1
Republic
East Timor 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 1

Egypt 0 0 0 16 0 16 8 3 11 5 3 8 24 3 27 29 6 35

128
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Recruiting Agency Individual-New Individual-Regularization Individual-Renew Total Without Renew Total With Renew
Country
M F T M F T M F T M F T M F T M F T

Eritrea 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 1

Estonia 0 0 0 32 0 32 6 0 6 1 0 1 38 0 38 39 0 39

Ethiopia 0 0 0 1 0 1 3 0 3 0 0 0 4 0 4 4 0 4

Fiji 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1

Finland 0 0 0 21 0 21 5 0 5 20 2 22 26 0 26 46 2 48

France 0 0 0 2 0 2 13 1 14 2 0 2 15 1 16 17 1 18

Gabon 0 0 0 1 0 1 2 0 2 5 0 5 3 0 3 8 0 8

Germany 0 0 0 22 45 67 10 5 15 2 9 11 32 50 82 34 59 93

Ghana 0 0 0 3 0 3 9 0 9 6 0 6 12 0 12 18 0 18

Greece 0 0 0 3 0 3 14 0 14 0 0 0 17 0 17 17 0 17

Guinea 0 0 0 3 0 3 3 0 3 0 0 0 6 0 6 6 0 6
Hong Kong
76 7 83 0 0 0 4 1 5 7 12 19 80 8 88 87 20 107
Sar,China
Hungary 0 0 0 12 0 12 4 0 4 1 0 1 16 0 16 17 0 17

Iceland 0 0 0 5 3 8 0 0 0 3 0 3 5 3 8 8 3 11

Indonesia 0 0 0 0 0 0 1 0 1 4 0 4 1 0 1 5 0 5

Iran 0 0 0 19 0 19 0 0 0 0 0 0 19 0 19 19 0 19

Ireland 0 0 0 13 1 14 7 0 7 0 0 0 20 1 21 20 1 21

Israel 5 1 6 0 0 0 9 43 52 157 367 524 14 44 58 171 411 582

Italy 0 0 0 0 0 0 26 5 31 1 0 1 26 5 31 27 5 32

Jamaica 0 0 0 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1

Japan 138 12 150 364 35 399 368 42 410 3252 53 3305 870 89 959 4122 142 4264

Jordan 78 1372 1450 0 0 0 7 1 8 79 113 192 85 1373 1458 164 1486 1650

Kazakhastan 0 0 0 5 0 5 3 0 3 10 0 10 8 0 8 18 0 18

Kenya 0 0 0 1 0 1 13 1 14 14 1 15 14 1 15 28 2 30

Kuwait 13615 1444 15059 476 90 566 326 44 370 9312 689 10001 14417 1578 15995 23729 2267 25996

Laos 0 0 0 1 0 1 4 0 4 3 0 3 5 0 5 8 0 8

Latvia 0 0 0 5 0 5 2 0 2 3 0 3 7 0 7 10 0 10

Lebanon 1 0 1 3 0 3 6 1 7 20 0 20 10 1 11 30 1 31

Lithuania 0 0 0 6 0 6 0 0 0 4 0 4 6 0 6 10 0 10

Luxembourg 0 0 0 2 1 3 2 0 2 1 0 1 4 1 5 5 1 6
Macau
325 17 342 258 11 269 116 12 128 1123 38 1161 699 40 739 1822 78 1900
Sar,China
Madagascar 0 0 0 0 0 0 0 0 0 5 0 5 0 0 0 5 0 5

Malawi 0 0 0 0 0 0 3 1 4 3 0 3 3 1 4 6 1 7

Malaysia 9121 140 9261 57 0 57 650 31 681 31069 1078 32147 9828 171 9999 40897 1249 42146

Maldives 43 0 43 1350 467 1817 91 23 114 624 206 830 1484 490 1974 2108 696 2804

Mali 0 0 0 0 0 0 5 0 5 11 0 11 5 0 5 16 0 16

Malta 292 255 547 753 397 1150 15 5 20 18 14 32 1060 657 1717 1078 671 1749

Mauritius 27 0 27 60 0 60 3 0 3 7 0 7 90 0 90 97 0 97

129
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Recruiting Agency Individual-New Individual-Regularization Individual-Renew Total Without Renew Total With Renew
Country
M F T M F T M F T M F T M F T M F T

Mexico 0 0 0 7 0 7 2 1 3 0 0 0 9 1 10 9 1 10

Mongolia 0 0 0 0 0 0 1 0 1 2 0 2 1 0 1 3 0 3

Morocco 0 0 0 0 0 0 3 2 5 3 0 3 3 2 5 6 2 8

Mozambique 0 0 0 2 9 11 5 3 8 8 0 8 7 12 19 15 12 27

Myanmmar 0 0 0 0 0 0 2 0 2 1 0 1 2 0 2 3 0 3

Netherland 0 0 0 14 2 16 8 3 11 1 0 1 22 5 27 23 5 28

New Zealand 0 0 0 31 6 37 144 70 214 73 9 82 175 76 251 248 85 333

Nigeria 0 0 0 13 1 14 14 1 15 19 0 19 27 2 29 46 2 48

Norway 0 0 0 11 0 11 3 0 3 21 1 22 14 0 14 35 1 36

Oman 1877 252 2129 271 51 322 253 18 271 2571 144 2715 2401 321 2722 4972 465 5437

Pakistan 0 0 0 0 0 0 0 0 0 1 3 4 0 0 0 1 3 4

Palau 0 0 0 8 0 8 4 2 6 1 0 1 12 2 14 13 2 15

Panama 50 0 50 6 0 6 1 0 1 0 0 0 57 0 57 57 0 57
Papua New
0 0 0 67 2 69 3 1 4 35 1 36 70 3 73 105 4 109
Guinea
Phillippines 0 0 0 0 0 0 3 0 3 1 0 1 3 0 3 4 0 4

Poland 949 125 1074 27 1 28 5 1 6 79 8 87 981 127 1108 1060 135 1195

Portugal 387 0 387 65 7 72 1 1 2 0 0 0 453 8 461 453 8 461

Qatar 65413 3543 68955 1050 99 1149 4859 60 4919 85006 1185 86191 71322 3702 75024 156328 4887 161215
Republic Of
0 0 0 2 0 2 8 0 8 4 0 4 10 0 10 14 0 14
Congo
Republic Of
Equatorial 0 0 0 0 0 0 0 0 0 2 0 2 0 0 0 2 0 2
Guinea
Republic Of
0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 1
Macedonia
Republic Of
0 0 0 6 2 8 1 0 1 2 0 2 7 2 9 9 2 11
Seychelles
Republique
0 0 0 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1
Togolaise
Romania 972 20 992 110 74 184 2 0 2 36 25 61 1084 94 1178 1120 119 1239

Russia 85 0 85 23 0 23 52 1 53 85 1 86 160 1 161 245 2 247

Rwanda 0 0 0 0 0 0 7 0 7 2 0 2 7 0 7 9 0 9

Saipan 0 0 0 1 0 1 1 0 1 1 0 1 2 0 2 3 0 3

Samoa 0 0 0 0 1 1 0 0 0 0 0 0 0 1 1 0 1 1

Saudi Arabia 43801 1585 45386 0 0 0 692 2 694 71378 446 71824 44493 1587 46080 115871 2033 117904

Senegal 0 0 0 2 0 2 0 0 0 5 0 5 2 0 2 7 0 7

Seychelles 0 0 0 299 30 329 31 5 36 296 18 314 330 35 365 626 53 679

Sierra Leone 0 0 0 0 0 0 2 0 2 3 0 3 2 0 2 5 0 5

Singapore 0 0 0 2 0 2 194 10 204 1 0 1 196 10 206 197 10 207

Slovenia 0 0 0 4 0 4 0 0 0 0 0 0 4 0 4 4 0 4

Somalia 0 0 0 4 0 4 9 0 9 15 0 15 13 0 13 28 0 28

South Africa 0 0 0 4 0 4 12 1 13 5 0 5 16 1 17 21 1 22

South Korea 0 0 0 56 0 56 27 1 28 82 0 82 83 1 84 165 1 166

130
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

Recruiting Agency Individual-New Individual-Regularization Individual-Renew Total Without Renew Total With Renew
Country
M F T M F T M F T M F T M F T M F T

South Sudan 0 0 0 0 0 0 2 0 2 6 0 6 2 0 2 8 0 8

Spain 0 0 0 8 1 9 32 11 43 0 0 0 40 12 52 40 12 52

Sri Lanka 86 0 86 60 1 61 61 24 85 3 1 4 207 25 232 210 26 236

Sudan 0 0 0 0 0 0 0 0 0 2 0 2 0 0 0 2 0 2

Sweden 0 0 0 14 2 16 4 1 5 4 1 5 18 3 21 22 4 26

Tajikistan 0 0 0 0 0 0 1 0 1 3 0 3 1 0 1 4 0 4

Tanzania 0 0 0 0 0 0 9 0 9 22 0 22 9 0 9 31 0 31

Thailand 0 0 0 11 0 11 16 3 19 26 0 26 27 3 30 53 3 56

Trinidad 0 0 0 1 0 1 0 0 0 3 0 3 1 0 1 4 0 4

Turkey 995 376 1371 140 61 201 8 1 9 14 37 51 1143 438 1581 1157 475 1632

Turkmenistan 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1
Turks And
0 0 0 2 0 2 2 0 2 8 0 8 4 0 4 12 0 12
Caicos Island
UAE 48278 6227 54505 613 275 888 6553 830 7383 50939 6140 57079 55444 7332 62776 106383 13472 119855

Uganda 0 0 0 0 0 0 10 0 10 21 0 21 10 0 10 31 0 31

Ukraine 0 0 0 8 0 8 0 0 0 0 0 0 8 0 8 8 0 8
United
0 0 0 18 0 18 24 18 42 2 1 3 42 18 60 44 19 63
Kingdom
USA 0 0 0 14 3 17 248 66 314 38 2 40 262 69 331 300 71 371

Uzbekistan 0 0 0 0 0 0 4 0 4 0 0 0 4 0 4 4 0 4

Vanuatu 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1

Vietnam 0 0 0 4 0 4 7 0 7 2 0 2 11 0 11 13 0 13

Zambia 0 0 0 1 0 1 3 0 3 20 0 20 4 0 4 24 0 24

Source: DOFE

131
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

TABLE XI : LABOUR APPROVAL VIA RECRUITING AGENCY (2017/2018)

District Men Women Total
Acham 405 3 408
Argakhanchi 2454 45 2499
Baglung 4222 91 4313
Baitadi 1129 8 1137
Bajhang 381 2 383
Bajura 414 17 431
Banke 4753 136 4889
Bara 6062 270 6332
Bardiya 3289 104 3393
Bhaktapur 521 182 703
Bhojpur 4048 287 4335
Chitwan 4683 525 5208
Dadeldhuda 693 2 695
Dailekh 1412 30 1442
Dang 7342 306 7648
Darchula 697 6 703
Dhading 3257 495 3752
Dhankuta 2862 254 3116
Dhanusha 22486 47 22533
Dolakha 1504 464 1968
Dolpa 42 3 45
Doti 474 4 478
Gorkha 3194 277 3471
Gulmi 3263 76 3339
Humla 52 3 55
Ilam 4776 768 5544
Jajarkot 1147 23 1170
Jhapa 13691 1820 15511
Jumla 297 2 299
Kailali 2270 103 2373
Kalikot 407 7 414
Kanchanpur 2447 72 2519
Kapilvastu 6312 58 6370
Kaski 3561 285 3846
Kathmandu 1894 800 2694
Kavrepalanchowk 3499 967 4466
Khotang 4927 293 5220
Lalitpur 1011 338 1349
Lamjung 2949 150 3099
Mahottari 15703 60 15763

132
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

District Men Women Total

Makwanpur 4223 1183 5406
Manang 30 4 34
Morang 12837 1056 13893
Mugu 168 0 168
Mustang 22 15 37
Myagdi 2264 131 2395
Nawalparasi 8600 303 8903
Nuwakot 2663 706 3369
Okhaldhunga 1650 213 1863
Palpa 3621 92 3713
Panchthar 4130 334 4464
Parbat 2342 85 2427
Parsa 3936 67 4003
Pyuthan 2962 64 3026
Ramechap 1868 531 2399
Rasuwa 227 113 340
Rautahat 7034 108 7142
Rolpa 4992 120 5112
Rukum 2942 99 3041
Rupandehi 7676 202 7878
Salyan 4238 108 4346
Sankhuwasabha 2811 152 2963
Saptari 11164 51 11215
Sarlahi 11885 355 12240
Sindhuli 3763 475 4238
Sindhupalchowk 2772 1245 4017
Siraha 17140 31 17171
Solukhumbu 894 361 1255
Sunsari 9612 622 10234
Surkhet 2302 66 2368
Syangja 4688 139 4827
Tanahu 5345 165 5510
Taplejung 2543 178 2721
Tehrathum 2110 98 2208
Udaypur 4585 453 5038

Source: DOFE

133
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

TABLE XII : LABOUR APPROVAL VIA INDIVIDUAL MODE OF RECRUITMENT (NEW, RENEW & REGULARIZATION)
(2017/2018)
District Men Women Total
Acham 198 2 200
Argakhanchi 3548 64 3612
Baglung 5892 102 5994
Baitadi 538 4 542
Bajhang 128 1 129
Bajura 117 0 117
Banke 2909 108 3017
Bara 4452 123 4575
Bardiya 2314 109 2423
Bhaktapur 999 152 1151
Bhojpur 2511 133 2644
Chitwan 7724 523 8247
Dadeldhuda 319 7 326
Dailekh 714 13 727
Dang 4449 165 4614
Darchula 306 3 309
Dhading 3761 292 4053
Dhankuta 2482 117 2599
Dhanusha 17188 54 17242
Dolakha 1709 290 1999
Dolpa 11 3 14
Doti 270 2 272
Gorkha 4774 237 5011
Gulmi 6326 133 6459
Humla 15 2 17
Ilam 2882 289 3171
Jajarkot 263 3 266
Jhapa 13308 1267 14575
Jumla 77 3 80
Kailali 1501 71 1572
Kalikot 115 3 118
Kanchanpur 1730 39 1769
Kapilvastu 6770 81 6851
Kaski 6682 344 7026
Kathmandu 3895 1199 5094
Kavrepalanchowk 3466 535 4001
Khotang 3560 120 3680
Lalitpur 1549 370 1919
Lamjung 4141 140 4281

134
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

District Men Women Total

Mahottari 11614 40 11654
Makwanpur 3721 537 4258
Manang 15 9 24
Morang 11198 799 11997
Mugu 25 0 25
Mustang 40 4 44
Myagdi 2665 90 2755
Nawalparasi 10691 349 11040
Nuwakot 2900 439 3339
Okhaldhunga 1602 108 1710
Palpa 5316 144 5460
Panchthar 2705 125 2830
Parbat 3567 80 3647
Parsa 2632 62 2694
Pyuthan 1937 27 1964
Ramechap 2193 295 2488
Rasuwa 260 64 324
Rautahat 3714 50 3764
Rolpa 2843 45 2888
Rukum 1228 24 1252
Rupandehi 10400 384 10784
Salyan 1591 31 1622
Sankhuwasabha 1832 81 1913
Saptari 7069 40 7109
Sarlahi 6234 174 6408
Sindhuli 2518 185 2703
Sindhupalchowk 2470 824 3294
Siraha 12820 20 12840
Solukhumbu 903 168 1071
Sunsari 9072 524 9596
Surkhet 1270 61 1331
Syangja 9213 210 9423
Tanahu 8735 232 8967
Taplejung 1467 75 1542
Tehrathum 1636 54 1690
Udaypur 3464 199 3663

Source: DOFE

135
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

TABLE XIII : LABOUR APPROVAL VIA RECRUITING AGENCY (2018/2019)

District Men Women Total
Achham 4 270 274
Arghakhanchi 43 1759 1802
Baglung 76 2999 3075
Baitadi 9 600 609
Bajhang 6 211 217
Bajura 9 197 206
Banke 136 2874 3010
Bara 196 2275 2471
Bardiya 138 2117 2255
Bhaktapur 143 393 536
Bhojpur 204 2356 2560
Chitwan 495 3695 4190
Dadeldhura 5 364 369
Dailekh 26 746 772
Dang 260 4659 4919
Darchula 4 357 361
Dhading 395 2209 2604
Dhankuta 259 1958 2217
Dhanusha 65 13658 13723
Dolakha 426 1234 1660
Dolpa 9 28 37
Doti 9 313 322
Gorkha 261 2677 2938
Gulmi 75 2304 2379
Humla 3 39 42
Ilam 699 2689 3388
Jajarkot 10 616 626
Jhapa 1786 9142 10928
Jumla 6 185 191
Kailali 75 1480 1555
Kalikot 5 238 243
Kanchanpur 43 1430 1473
Kapilvastu 51 3596 3647
Kaski 265 2973 3238
Kathmandu 682 1377 2059
Kavrepalanchok 770 2169 2939
Khotang 224 3054 3278
Lalitpur 319 693 1012
Lamjung 155 2355 2510
Mahottari 65 8738 8803

136
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

District Men Women Total

Makawanpur 982 2683 3665
Manang 7 8 15
Morang 1027 8200 9227
Mugu 3 137 140
Mustang 14 20 34
Myagdi 101 1714 1815
Nawalparasi 315 5921 6236
Nuwakot 726 2210 2936
Okhaldhunga 164 1419 1583
Palpa 68 2524 2592
Panchthar 344 2482 2826
Parbat 63 1781 1844
Parsa 68 1364 1432
Pyuthan 41 2069 2110
Ramechhap 432 1439 1871
Rasuwa 118 193 311
Rautahat 80 2716 2796
Rolpa 91 3211 3302
Rukum 78 1683 1761
Rupandehi 180 4403 4583
Salyan 105 2135 2240
Sankhuwasabha 176 1852 2028
Saptari 37 5315 5352
Sarlahi 275 6170 6445
Sindhuli 410 2544 2954
Sindhupalchok 1193 2075 3268
Siraha 20 11536 11556
Solukhumbu 281 553 834
Sunsari 542 6150 6692
Surkhet 68 1551 1619
Syangja 120 3620 3740
Tanahun 189 4366 4555
Taplejung 161 1682 1843
Tehrathum 101 1348 1449
Udayapur 334 2923 3257
Source: DOFE

137
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

TABLE XIV : LABOUR APPROVAL VIA INDIVIDUAL MODE OF RECRUITMENT (NEW, RENEW &
REGULARIZATION) (2018/2019)
District Men Women Total
Achham 1 228 229
Arghakhanchi 62 3314 3376
Baglung 90 5565 5655
Baitadi 2 614 616
Bajhang 0 131 131
Bajura 4 130 134
Banke 106 2868 2974
Bara 136 4021 4157
Bardiya 87 2360 2447
Bhaktapur 148 925 1073
Bhojpur 116 2608 2724
Chitwan 491 6908 7399
Dadeldhura 5 399 404
Dailekh 12 727 739
Dang 187 4454 4641
Darchula 4 359 363
Dhading 326 3329 3655
Dhankuta 140 2380 2520
Dhanusha 39 18488 18527
Dolakha 335 1515 1850
Dolpa 6 14 20
Doti 4 265 269
Gorkha 216 4324 4540
Gulmi 142 5808 5950
Humla 2 16 18
Ilam 354 2857 3211
Jajarkot 6 343 349
Jhapa 1233 13021 14254
Jumla 2 82 84
Kailali 67 1593 1660
Kalikot 2 137 139
Kanchanpur 48 1816 1864
Kapilvastu 86 6274 6360
Kaski 332 6028 6360
Kathmandu 1036 3259 4295
Kavrepalanchok 581 3088 3669
Khotang 129 3578 3707
Lalitpur 323 1421 1744
Lamjung 126 3899 4025

138
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

District Men Women Total

Mahottari 38 12344 12382
Makawanpur 535 3347 3882
Manang 6 14 20
Morang 764 11298 12062
Mugu 2 38 40
Mustang 28 52 80
Myagdi 102 2439 2541
Nawalparasi 329 9804 10133
Nuwakot 462 2725 3187
Okhaldhunga 118 1594 1712
Palpa 104 5136 5240
Panchthar 151 2794 2945
Parbat 77 3318 3395
Parsa 55 2507 2562
Pyuthan 25 1956 1981
Ramechhap 306 1986 2292
Rasuwa 57 240 297
Rautahat 64 3665 3729
Rolpa 48 2990 3038
Rukum 23 1270 1293
Rupandehi 324 9158 9482
Salyan 39 1643 1682
Sankhuwasabha 94 1886 1980
Saptari 32 7389 7421
Sarlahi 159 6772 6931
Sindhuli 222 2559 2781
Sindhupalchok 777 2268 3045
Siraha 22 13840 13862
Solukhumbu 180 749 929
Sunsari 507 8823 9330
Surkhet 28 1367 1395
Syangja 190 8559 8749
Tanahun 181 8181 8362
Taplejung 72 1530 1602
Tehrathum 61 1586 1647
Udayapur 187 3439 3626
Source: DOFE

139
 N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0
© ILO

140
 N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

References
Asian Development Bank Institute (ADB), Organisation for Economic Co-operation and Development (OECD), and
International Labour Organization (ILO). 2019. Building Partnerships for Effectively Managing Labor Migration
Lessons from Asian Countries.
Atong, K., E. Mayah, and A. Odigie. 2018. Africa Labour Migration to the GCC States: The case of Ghana, Kenya, Nigeria
and Uganda. African Regional Organisation of the International Trade Union Confederation.
Central Bureau of Statistics. 2012. National Population and Housing Census 2011. Government of Nepal: National
Planning Commission Secretariat.
Central Bureau of Statistics. 2014. National Population and Housing Census: Housing Characteristics, Dead and
Absentee Population 2011. Government of Nepal: National Planning Commission Secretariat: p. 71. http://cbs.gov.
np/wp-content/uploads/2014/03/Household_Tables.pdf [accessed May 1, 2014].
Central Bureau of Statistics. 2011. Nepal Living Standards Survey 2010/11: Statistical Report: Volume 1. Kathmandu:
Government of Nepal.
Clemens, M. A. 2015. “Global Skill Partnerships: A proposal for technical training in a mobile world”. IZA Journal of
Labor Policy, 4(1), 2.
Hertog, Steffen. 2014. ‘Arab Gulf States: An Assessment of Nationalization Policies’. Geneva: Gulf Labour Markets and
Migration.
ILO. 2018. ILO Global Estimates on International Migrant Workers: Results and Methodology. Geneva: International
Labour Organization.
IOM. 2019a. World Migration Report 2020 (M. McAuliffe and B. Khadria, eds.). IOM, Geneva. Available at https://www.
iom.int/wmr/
IOM. 2019b. Migration in Nepal: A Country Profile 2019. IOM, Nepal. Available at https://nepal.iom.int/
IOM. 2017. World Migration Report 2018 (M. McAuliffe and M. Ruhs, eds.). IOM, Geneva. Available at www.iom.int/
wmr/world-migration-report-2018
International Monetary Fund (IMF). 2016. Diversifying government revenue in the GCC: Next Steps. Available at:
https://www.imf.org/external/np/pp/eng/2016/102616.pdf
Lokshin, Michael, and Elena Glinskaya. 2009. “The Effect of Male Migration on Employment Patterns of Women in
Nepal.” World Bank Economic Review 23 (3) 481–507.
Ministry of Finance (MoF). Economic Survey: FY 2013/14. Kathmandu: Ministry of Finance, 2014. Ministry of Foreign
Affairs (MoFA). ‘Nepalese Missions Abroad’, Accessed August 11, 2014. http:// www.mofa.gov.np/en/mission_
consuls/index/1.
Ministry of Finance. 2016. Economic Survey 2015/16, Ministry of Finance, Government of Nepal, Kathmandu, Nepal
Ministry of Labour, Employment and Social Security (MOLESS). 2018a. Taskforce Report on Foreign Employment
Reform 2017/18, Government of Nepal, Kathmandu.
Ministry of Labour, Employment and Social Security (MOLESS). 2018b. Taskforce Report on Increasing Formal
Remittance to Nepal and Maximizing its Productive Use 2017/18, Government of Nepal, Kathmandu.

141
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Ministry of Labour, Employment and Social Security (MOLESS). 2018c. Taskforce on Potential Destination Countries,
Mobilization of Migrant Workers by the Government and Review of Worker Paid Recruitment Costs, Government
of Nepal, Kathmandu.
Ministry of Labour, Employment and Social Security (MOLESS). 2018d. Labour Migration for Employment: A Status
Report for Nepal: 2015/2016-2016/2017, Government of Nepal, Kathmandu.
National Planning Commission (NPC). 2015. Sustainable Development Goals for Nepal 2016-30, National Report,
Government of Nepal, Kathmandu.
Moyce SC and Schenker M. Migrant workers and their occupational health and safety. Annu 43 Rev Public Health
2018; 39: 351-365. DOI: 10.1146/annurev-publhealth-040617-013714.
National Planning Commission. 1985. The Seventh Periodic Plan (1985-1990). Kathmandu: His Majesty’s Government.
National Planning Commission. 1992. The Eighth Periodic Plan (1992-1997). Kathmandu: His Majesty’s Government.
National Commission. 1997. The Ninth Periodic Plan (1997-2002). Kathmandu: His Majesty’s Government.
National Planning Commission. 2002. The Tenth Periodic Plan (2002-2007). Kathmandu: His Majesty’s Government.
National Planning Commission. 2008. The Eleventh Periodic Plan (2007/08-2009/10). Kathmandu: Government of
Nepal
National Planning Commission. 2010. The Twelfth Periodic Plan (2010/11-2012/13). Kathmandu: Government of
Nepal
National Planning Commission. 2012. The Thirteenth Periodic Plan (2012/13-2015/16). Kathmandu: Government of
Nepal
National Planning Commission. 2016. The Fourteenth Periodic Plan (2016/17-2018/19). Kathmandu: Government of
Nepal

National Planning Commission. 2019. The Fifteenth Periodic Plan Approach Paper (2019/20-2021/22). Kathmandu:
Government of Nepal

Shrestha, Maheshwor. 2017. The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market
Outcomes in Nepal. Policy Research Working Paper 8232, World Bank, Washington, DC.

Sijapati, Bandita and Amrita Limbu. 2017. Governing Labour Migration in Nepal: An Analysis of Existing Policies and
Institutional Mechanisms. Kathmandu: Center for the Study of Labour and Mobility (CESLAM).

Stark, O. and D. Levhari 1982 On Migration and Risk in LDCs. Economic Development and Cultural Change 31(1):191–
196

United Nations, Department of Economic and Social Affairs, Population Division. 2019. International Migrant Stock
2019.

World Bank Group. 2016.  Moving Up the Ladder : Poverty Reduction and Social Mobility in Nepal. World Bank,
Kathmandu. World Bank.

World Bank. 2019. Migration and Development Brief 31. April. Washington, DC: World Bank.

142
N E PA L L A BO U R M I G R AT I O N R E PO RT 2020

143
N EPAL LABOUR MI G R AT I O N R E PO RT 2 0 2 0

Government of Nepal
Ministry of Labour, Employment and Social Security
Kathmandu, Nepal

144