Nepal brings India-bound migrant workers under labour migration policy for first time, Experts warn of tough implementation challenges

KATHMANDU: In a landmark move, the Government of Nepal has, for the first time, brought hundreds of thousands of Nepalis working in India within the scope of its national labour migration policy.

The “National Labour Migration Policy 2082,” unveiled by the Ministry of Labour, Employment and Social Security, expands the legal definition of foreign employment to include Nepalis going to India — a group historically excluded from state regulation and welfare schemes. The policy aims to ensure social security coverage and protection of rights for these workers, many of whom are from Nepal’s most economically vulnerable households.

Under the new provision, Nepalis travelling to India for employment will be registered in the Foreign Employment Board’s welfare fund through their local government. Before departure, workers must register at their local Employment Service Centre, where details will be entered into a central database. This will automatically link them to the Board’s system. Workers will contribute a symbolic fee — expected to range between NPR 200 and NPR 500 — to the welfare fund, with the possibility of local governments covering the fee in some cases.

A ministry official said the working procedure will set out how workers’ data will be collected, funds deposited, and benefits disbursed. “Once they pay the fee, they will be eligible for the welfare services provided by the Board,” the official said, adding that the contribution is lower than for other countries due to the seasonal nature of employment in India.

The ministry has already prepared the working procedure and is preparing amendments to the Foreign Employment Act and regulations to facilitate the change.

Policy Seen as a Historic Step
Experts say formally recognising India-bound workers under labour migration policy is a historic achievement.

Prakash Madai, deputy executive director of NIDS Nepal, noted that in some regions, up to 70% of households have at least one member who has worked in India during their lifetime. “This is a 200-year-old migration history that the state had never formally acknowledged. Including it in policy for the first time is a major success,” he said.

Labour migration expert Rameshwar Nepal stressed that these workers are typically from the poorest segments of society. “Those who cannot afford the NPR 125,000–150,000 cost of going to Gulf countries or Malaysia go to India. No policy had included them before. This was urgently needed,” he said.

Implementation Hurdles Ahead
Despite its merits, experts warn of major implementation challenges, starting with Nepal and India’s open border.

“There is no labour approval system at airports like with other destinations. People move freely across multiple border points. It’s not practical to stop them at the border for registration,” said labour expert Dr. Jeevan Baniya. He believes achieving full registration coverage will be extremely difficult.

Since labour permits are not required for India, mandatory contributions to the welfare fund will be hard to enforce. “The main challenge is figuring out how to make them contribute. If services are given without contribution, that’s possible. But if it’s contribution-based, building an effective system will be tough,” Baniya explained.

Public awareness will also be critical. “If workers think registration offers no tangible benefits, they won’t come forward,” said Nepal. Failure to implement could risk public disappointment and erode trust in the state.

Madai pointed out that seasonal migration patterns — working six months in India and returning for farming and festivals — require tailored welfare plans. “Different schemes may be needed for those staying at least six months versus those staying longer,” he suggested.

Next Steps and Potential Benefits
Experts agree that local governments will be key to the policy’s success. Employment Service Centres at the municipal level must drive registration and awareness.

Baniya cited the Philippines’ dual fund model as an example: “One fund is for contributors, while another emergency fund covers any citizen in crisis, even if not in the records. Nepal could think along similar lines.”

Once implemented, registered workers could access benefits such as life and accident insurance, health treatment support, and scholarships for their children. Linking the system to the Social Security Fund could eventually pave the way for pensions.

Ministry officials said groundwork is already underway, with the registration process to be rolled out via local Employment Service Centres. Amendments to relevant laws will follow.

It is estimated that 800,000–1 million Nepalis work in India, although no official data exists. The new policy could finally enable the government to collect accurate statistics while extending social protection to one of the country’s most neglected labour groups.

Still, experts caution that strong political will, efficient bureaucracy, and collaboration with civil society will be essential to turn the policy from paper to practice.