KATHMANDU, July 24: Minister for Youth, Labour and Employment Ramji Yadav has announced that the government will introduce more practical policies to reduce the financial burden on Nepali migrant workers, many of whom are forced to take high-interest loans before leaving for foreign employment.
Addressing the Fifth Nepal Forum on Migration and Development, jointly organized by the Ministry of Youth, Labour and Employment and the International Organization for Migration (IOM), Yadav said the government has begun reviewing the “Free Visa, Free Ticket” policy introduced in 2015, acknowledging that it has largely remained ineffective in practice.
He said the proposed amendment to the Foreign Employment Act, 2007 would reward compliance while imposing stricter penalties for violations. Once enacted, the law will also fully digitize the recruitment process to improve transparency, accountability and monitoring.
Reflecting on his first 100 days in office, Yadav said implementation problems with the existing policy had been apparent even before he became minister. He added that a high-level task force has been formed to scientifically review and regulate the system.
The minister said many migrant workers continue to borrow money at exorbitant interest rates, sell land or mortgage family assets, including their spouses’ jewelry, to finance overseas employment.
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Citing a study conducted at Tribhuvan International Airport, he said many workers were reluctant to disclose the actual amount they had paid to recruitment agencies for fear of losing their jobs.
According to the labour ministry, only about 7 percent of Nepali migrant workers currently obtain jobs through ethical, no-fee recruitment. The government’s long-term goal is to shift to a 100 percent employer-pay model, under which employers bear all recruitment costs.
To achieve this, the government plans to curb unhealthy competition among recruitment agencies and promote direct hiring by employers.
Yadav also said Nepal is willing to learn from countries such as the Philippines, which has established a more transparent and fair recruitment system, while strengthening cooperation with stakeholders to improve labor migration governance.
At the event, Helen Fores, chief of Mission at IOM Nepal, said Nepal has demonstrated strong leadership in implementing the Global Compact for Safe, Orderly and Regular Migration by translating its international commitments into national action.
Meanwhile, Jerome Alcantara, Assistant Secretary at the Philippines’ Department of Migrant Workers, said a 2020 survey found that Filipino migrant workers paid recruitment fees equivalent to an average of 1.2 months’ salary. He noted that Philippine law defines ethical recruitment as a legal, fair and transparent process that protects workers’ dignity and human rights.
The ministry also highlighted its newly launched Ujuri.DOFE online platform, which allows migrant workers to lodge complaints through the Department of Foreign Employment.
The conference focused on improving the quality of labor migration, promoting ethical recruitment and identifying future policy priorities.
