Nepal Advances Decent Work for Informal Workers

For workers in Nepal's informal economy, the transition to formality means greater recognition, stronger rights and representation, access to social protection, and safer and more decent working conditions.

These priorities guided the ILO's Promoting Rights and Social Inclusion through Organization and Formalization (PRS) - Phase 2 project, whose Nepal component concluded with a workshop in Lalitpur on 13 October 2026. Participants reviewed results and lessons and discussed how successful approaches and partnerships could be sustained and scaled beyond the project.

Funded by the Government of Japan, the project was implemented from 2023 to 2026 in India, Nepal and Pakistan. In Nepal, the project worked with government, employers' and workers' organizations and other partners to advance formalization, social protection, workers' representation, social inclusion and gender equality.

Speaking at the event, Numan Özcan, Director of the ILO Country Office for Nepal, said: "The real test of our work is not only the policies we develop or the discussions we hold. It is whether a worker who previously had no protection now has greater security, whether someone working in hazardous conditions can now work more safely, and whether work that has long been overlooked is increasingly recognized and respected. A project has an end date. Our shared responsibility to advance workers' rights, dignity and protection does not."

From informality towards decent work

In partnership with the Solid Waste Management Association of Nepal (SWMAN), the project promoted more formal, safe and gender-inclusive employment in the waste management sector through stronger policies, workplace practices and social dialogue among government and employers' and workers' organizations.

The project contributed to:

• Stronger institutions and workplace practices: Sectoral guidelines, a Code of Conduct, standard operating procedures, model employment and subcontractor agreements, and 10 enterprise-level unions helped translate capacity-building into concrete workplace improvements. These included higher wages, reinstatement of dismissed workers, improved welfare facilities and stronger occupational safety and health measures.
• Progress towards formalization and social protection: All assessed organizations were registered in some form, 94.4 per cent maintained payroll records and 72.2 per cent were registered with the Social Security Fund (SSF). Among surveyed workers, 43.6 per cent reported SSF enrolment.
• Safer and more inclusive workplaces: Among surveyed workers, 77.2 per cent reported feeling safe at work, 83.6 per cent had access to safe drinking water and 76.4 per cent to handwashing facilities. Vehicle and loading-area safety measures were observed in 72.2 per cent of assessed workplaces, while improvements included separate toilets for women and men and designated rest areas.
• Contribution to national policy: ILO expertise, tools and project lessons provided practical inputs to the National Solid Waste Management Guidelines, led by the Ministry of Infrastructure Development.

• Support for international labour standards: The ILO supported the Government of Nepal in conducting a legal gap analysis on ILO Convention No. 189 on domestic workers, contributing to tripartite dialogue and laying the groundwork for consideration of ratification and related legislative reforms.

  

  © Nistha Rayamajhi/ILO

  © Nistha Rayamajhi/ILO

Connecting formalization with a just transition

The workshop which marked the closure of the project in Nepal explored how formalization and decent work can support Nepal's transition towards greener and more sustainable development. Government, Kathmandu Metropolitan City, SWMAN, workers' organizations and development partners discussed ways to improve working conditions and ensure sustainable waste management creates decent work opportunities.

The event also featured the ILO's Policy Guidelines for the Promotion of Decent Work in Recycling, presented by Casper Edmonds, Head of the Manufacturing, Mining and Energy Unit at ILO headquarters. Discussions highlighted their relevance to Nepal's evolving waste management and recycling sector and their potential to inform future policy and industry action.

As PRS Phase 2 concludes, participants emphasized the importance of sustaining partnerships and building on its lessons to advance formalization, social protection, workers' representation and decent work in Nepal.