Labour migration has long been a lifeline for Nepali families, creating employment opportunities, boosting household incomes and contributing significantly to the country's economy. However, many migrant workers incur substantial debt before securing employment abroad, increasing their vulnerability to exploitation.
The National Statistics Office (NSO) of Nepal, with technical support from the International Labour Organization (ILO), conducted the first-ever national survey on the recruitment fees and related costs incurred by migrant workers. The findings are presented in the report, The Cost of Labour Migration in Nepal: Evidence from the 2023 Recruitment Cost Survey of Migrant Workers.
The report provides the first nationally representative evidence on the financial costs borne by Nepali migrant workers during the recruitment process and assesses their burden relative to workers' monthly earnings in destination countries. It establishes a national baseline for monitoring Sustainable Development Goal (SDG) Indicator 10.7.1, which measures recruitment costs borne by employees as a proportion of their monthly income earned in the country of destination.
© S. Irfan Ahmed IPS/Flickr
The report finds that high recruitment fees and related costs continue to place a significant financial burden on migrant workers, leaving many vulnerable to debt and exploitation before they begin earning abroad.
Key findings
The survey found that while around one-third of migrant workers reported paying no recruitment fees, nearly two-thirds incurred recruitment-related costs before securing employment abroad. On average, migrant workers required 3.3 months of earnings to recover their recruitment costs, while women faced a greater financial burden, requiring around four and a half months of earnings. Workers recruited through unregistered brokers experienced the highest recruitment costs, highlighting the risks associated with informal recruitment channels.
© ILO Nepal
The survey also found that recruitment costs and earnings varied across destinations, sectors and occupations. Workers employed in the services sector and those in higher-skilled occupations generally earned more than those working in agriculture, industry and lower-skilled jobs, reinforcing the strong link between skills and earnings. Women incurred higher recruitment costs on average than men, although the typical (median) cost paid by women was lower, indicating greater variation in the costs borne by female migrant workers.
Mr Dhundi Raj Lamichhane, Deputy Chief Statistician and spokesperson, National Statistics Office (NSO) said, "This survey provides valuable insights into the recruitment cost incurred by Nepali migrant workers when seeking international labour migration. By systematically capturing recruitment costs, the survey aims to shed light on financial burdens faced by Nepali migrant workers and inform strategies to reduce costs through fair and transparent recruitment practices."
"No worker should begin their migration journey burdened by debt. High recruitment fees increase workers' vulnerability to exploitation, highlighting the urgent need to strengthen fair recruitment so that labour migration remains a pathway to decent work, dignity and sustainable development," said Numan Özcan, ILO Country Director for Nepal.
From evidence to action
The findings provide an important baseline for monitoring and reporting on Sustainable Development Goal (SDG) Indicator 10.7.1, which measures recruitment costs borne by workers as a proportion of their monthly earnings. The evidence will help inform policies to strengthen labour migration governance and ensure migration remains safe, orderly and beneficial for workers, their families and the country.
The report calls for stronger enforcement of recruitment regulations, accelerated implementation of fair recruitment principles, greater transparency across migration corridors, enhanced bilateral cooperation with destination countries, improved access to information and grievance mechanisms for migrant workers, and regular monitoring of recruitment costs through Nepal's national statistical system to progressively reduce these costs.
The report can be accessed here too:
https://nsonepal.gov.np/content/13498/nepal-labor-migrant-recruitment-cost-survey-2080/
