Nepal to set new migrant recruitment fees after revised law

Nepal's government announced it will set new recruitment fees for migrant workers only after enacting a revised foreign employment law. This decision came after the Nepal Association of Foreign Employment Agencies suspended a planned shutdown of recruitment companies. The agencies had threatened to halt sending workers abroad unless their 15 demands, including a clear service fee, were met.

Minister for Youth, Labour and Employment Ramjee Yadav stated that the new fee could not be set until the revised law is in place. The ministry is amending the Foreign Employment Act, 2007, and has incorporated the agencies' demands into the draft. A task force recommended a scientific basis for setting the service fee, considering factors like destination country, job type, and earnings, though the specific amount remains undisclosed.

Recruitment agencies are pushing for fees equivalent to two months' salary for unskilled workers, one month for semi-skilled, and half a month for highly skilled workers. This demand arises amid a significant gap between official fees and what workers actually pay, with many paying hundreds of thousands of rupees, and up to 1.2 million for jobs in Europe.

The Department of Foreign Employment has intensified actions against agencies charging illegal fees, with 771 agencies facing penalties for violations. The draft law aims to shift recruitment costs to foreign employers, with workers paying a government-set fee only if employers do not cover these expenses. The proposed changes also bar agencies from charging fees for contracts shorter than one year and aim to simplify demand letter certification through an accreditation system for foreign employers.

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The task force’s report has been finalised. We have recommended a scientific basis for setting the service fee.