Nepal Labour Migration Report 2020

1 Government of NepalMinistry of Labour , Employment and Social SecurityNepal Labour Migration Report 2020 Government of NepalMinistry of Labour , Employment and Social SecurityNepal Labour Migration Report 2020iiNepal Labour Migration Report 2020 Copyright 2020 Published byGovernment of NepalMinistry of Labour , Employment and Social SecuritySingha Durbar, Kathmandu Tel: (+977)-014211378, 4211791, 4211733 Fax: (+977)-014211877 Email: 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 by: Print Communication Pvt.

2 Ltd. Tel: (+977)-014241355, 4244148, Kathmandu, NepalPrinted by: Quality Printer Tel: (+977)-014228870, Kathmandu, NepalNEPAL Labour Migration Report 2020iiiLabour 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.

3 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 .

4 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.

5 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 YadavMinisterMinistry of Labour , Employment and Social Security ForewordNEPAL Labour Migration Report 2020ivNEPAL Labour Migration Report 2020vIt 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 .

6 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 .

7 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 KCSecretary Ministry of Labour , Employment and Social SecurityForewordNEPAL Labour Migration Report 2020vi ILONEPAL Labour Migration Report 2020viiSteering Committee Binod , Ministry of Labour , Employment and Social Security CoordinatorUmesh DhunganaJoint Secretary, Ministry of Labour , Employment and Social Security Member Secretary Bhisma Kumar Bhushal Director General, Department of Foreign EmploymentMemberRajan Prasad ShresthaExecutive Director, Foreign Employment BoardMemberRichard Howard Country Director, ILOM emberMoti Bahadur Shrees Under Secretary , Ministry of Foreign Affairs MemberBinita Bhattarai Director.

8 Department of ImmigrationMemberWorking Committee Deepak Dhakal Under Secretary, Ministry of Labour , Employment and Social Security CoordinatorDinbandhu Subedi Under Secretary, Foreign Employment BoardMemberUpasana KhadkaPolicy Advisor, Ministry of Labour , Employment and Social Security MemberBasanta KarkiNational Project Coordinator, ILOM emberAnaraj Tiwari Statistics Officer, Central Bureau of Statistics MemberRaju ShresthaComputer Engineer, Ministry of Labour , Employment and Social SecurityMemberSuresh Subedi Officer, Ministry of Labour , Employment and Social Security MemberJamuna Kafle and Giri Acharya, Section Officers at the Ministry of Labour , Employment and Social Security (MOLESS) provided invaluable support.

9 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 Labour Migration Report 2020viii Basanta KarkiNEPAL Labour Migration Report 2020ixFOREWORD ACRONYMS XIIIEXECUTIVE SUMMARY XVCHAPTER 1: OVERVIEW 1 CHAPTER 2: Labour Migration - A SNAPSHOT Current Trends in Labour Migration Destination Countries of Nepali Migrant Workers Origin Provinces and Districts Mode of Obtaining Labour Approval Labour Approval Renewal Age Skills Stocks of Migrant Workers Labour Migration from a Regional Perspective Return Migration 37 CHAPTER 3: Labour Migration GOVERNANCE IN Nepal Institutional Arrangements Multi-level Labour Migration Governance 50 CHAPTER 4: THEMATIC TOPICS Compensation through the Foreign Employment Welfare Fund.

10 A Review Labour Diplomacy and The Role of Missions in Labour Migration Governance remittance Occupation Profile of Migrant Workers 98 CHAPTER 5: WAY FORWARD 107 ANNEX 119 REFERENCES 141 ContentsNEPAL Labour Migration Report 2020xTABLE 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.