Nepal Survey Reveals Heavy Financial Burden on Migrant Workers

The findings show that high recruitment costs continue to expose migrant workers to financial hardship and increase their risk of exploitation long before they receive their first pay cheque abroad.

For thousands of Nepali families, overseas employment remains one of the most reliable ways to earn a living and improve household incomes. A new national survey has found that many workers begin that journey under significant financial strain, paying high recruitment costs that leave them in debt before they even start earning abroad.

First national survey sets benchmark for labour migration costs

The National Statistics Office (NSO) of Nepal, with technical support from the International Labour Organization (ILO), has released the country's first nationally representative report on recruitment fees and related expenses paid by migrant workers.

Titled The Cost of Labour Migration in Nepal: Evidence from the 2023 Recruitment Cost Survey of Migrant Workers, the report provides the first comprehensive picture of the financial burden faced by Nepali workers seeking jobs overseas. It also establishes a national baseline for tracking Sustainable Development Goal (SDG) Indicator 10.7.1, which measures recruitment costs as a share of workers' monthly earnings in destination countries.

The findings show that high recruitment costs continue to expose migrant workers to financial hardship and increase their risk of exploitation long before they receive their first pay cheque abroad.

Recruitment costs leave many workers in debt

According to the survey, nearly two-thirds of migrant workers paid recruitment-related fees before securing employment overseas, while around one-third reported paying no recruitment fees. On average, workers needed 3.3 months of earnings in their destination country to recover the money spent during recruitment. Women faced a heavier financial burden, requiring around four and a half months of income to cover these costs.

The survey also found that workers recruited through unregistered brokers paid the highest recruitment fees, highlighting the risks associated with informal recruitment channels. Recruitment expenses and income varied depending on the destination country, occupation and industry. Workers employed in higher-skilled roles and the services sector generally earned more than those working in agriculture, manufacturing and lower-skilled occupations, reinforcing the value of skills in improving overseas earnings.

Report calls for fairer recruitment and stronger protections

Deputy Chief Statistician and NSO spokesperson Dhundi Raj Lamichhane said the survey offers valuable evidence on the financial challenges faced by Nepali migrant workers and will help shape policies that reduce recruitment costs through fair and transparent hiring practices. ILO Nepal Country Director Numan Özcan said no worker should begin their migration journey burdened by debt, adding that excessive recruitment fees increase the risk of exploitation and undermine the goal of ensuring labour migration provides decent work and dignity.

The report recommends stronger enforcement of recruitment regulations, faster implementation of fair recruitment practices, greater transparency across migration corridors and closer cooperation with destination countries. It also calls for better access to information and grievance mechanisms for migrant workers, alongside regular monitoring of recruitment costs through Nepal's national statistical system to help reduce the financial burden over time.