Budget allocates Rs3.63 billion for labour sector, focuses on safer foreign employment and skills development

Nepal's government has earmarked Rs3.63 billion for the labor and employment sector in its fiscal year 2026-27 budget. The plan prioritizes making foreign employment safer and enhancing skills development for workers. Key initiatives aim to support migrant welfare and mobilize remittances effectively.

The budget introduces programs to promote "zero-cost" foreign employment, reducing fees for Nepali workers seeking jobs abroad. It also proposes remittance investment schemes designed to encourage reverse migration and channel remittance income into productive sectors. A dedicated program will help utilize the knowledge and skills of returning migrant workers.

To bolster employability, the government will offer short-term, workplace-based training for young people. Labor agreements with destination countries will be reviewed and expanded to ensure foreign employment is more systematic and dignified. The budget also allocates funds for rescuing Nepali workers stranded abroad and repatriating the bodies of those who die overseas.

Before departing for foreign employment, Nepalis will be required to undergo skills training. The government plans to facilitate collateral-free loans and installment-based payment systems through employers to increase transparency and automation in foreign employment. Lottery schemes based on remittance receipts will be introduced to encourage formal banking channels for remittances. Additionally, informal sector workers will receive subsidized nutritious food to support their health and well-being.