As Nepal’s economy grows increasingly dependent on remittances and millions of citizens continue to leave for foreign employment, access to social protection for migrant workers remains fragmented and inadequate, exposing them to heightened risks, especially during crises such as the ongoing conflict in West Asia.

Nepali migrant workers’ access to social protection at destination is constrained by legal status, employer practices, administrative complexities, low awareness, and limited portability of benefits, despite the government’s efforts to protect and support migrant workers through labour migration governance, welfare arrangements, social security measures, and reintegration initiatives.

Nepal’s Labour Migration Report 2024 highlights a disconnect between enrolment and sustained coverage, as many workers enrol in the Social Security Fund (SSF) but only a small proportion continue contributing.

“The ongoing conflict in West Asia reminded us how vulnerable migrant workers can become in times of crisis, and these situations show why social protection matters, not only in principle, but also in practice,” said Numan Ozcan, country director of the International Labour Organisation (ILO) in Nepal.

Speaking at a programme titled ‘National Dialogue on Strengthening Social Protection for Nepali Migrant Workers Across the Migration Cycle’, organised by the ILO in collaboration with the Social Security Fund on Tuesday in Kathmandu, Ozcan said migrant workers have been facing job losses, non-payment of wages, limited access to healthcare, and difficulties in securing compensation and support due to the West Asia conflict.

He said destination countries, particularly those in the Gulf Cooperation Council (GCC), are evolving. The GCC, a regional intergovernmental political and economic union established in 1981, comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

“Social protection systems in GCC are becoming more structured and more institutionalised. This also creates an important opportunity for labour-sending countries like Nepal,” Ozcan said.

Across the migration cycle—from pre-departure to employment abroad and return—many Nepali migrant workers continue to face significant risks, including high recruitment costs, workplace injuries, coercive wage withholding, job loss, limited access to healthcare and insurance, psychosocial distress, and weak reintegration support.

Many also face legal and practical barriers to accessing social protection and enforcing their rights, often linked to nationality or documentation status, sectoral segmentation, employer practices, and precarious employment arrangements.

These risks are particularly acute for women migrant workers, low-wage earners, undocumented workers, and those in informal or poorly regulated sectors, according to ILO Nepal.

Kavi Raj Adhikari, executive director of the SSF, said that currently 2.2 million Nepali migrant workers have been affiliated with the fund and have gone abroad with labour approval to work in different countries.

In December 2022, the Ministry of Labour, Employment and Social Security introduced two working guidelines—one related to migrant workers and another targeting informal sector workers and self-employed persons—aimed at expanding the social safety net.

Migrant workers or self-employed persons based abroad are required to contribute at least Rs2,002 monthly, equivalent to 21.33 percent of the minimum basic monthly salary fixed by the government for domestic industrial workers. The maximum contribution is capped at three times the minimum basic salary.

According to the Department of Foreign Employment, a total of 839,266 labour permits were issued in the last fiscal year, including 744,811 for men and 94,455 for women—equivalent to more than 2,300 approvals per day.

Workers contributing to the SSF are eligible for a range of benefits. Adhikari said they can receive family medical treatment coverage of up to Rs100,000. At childbirth, a childcare allowance of up to Rs12,170 is provided for each child.

Workers are also entitled to a temporary disability allowance in case of incapacity and a lifetime disability allowance in the event of permanent disability. In the event of death, dependent family members are eligible for a lifelong pension.

However, Adhikari acknowledged that the government has not been able to bring all migrant workers under the SSF due to limited outreach, lack of awareness about benefits, and challenges in ensuring continued contributions.

“To bring everyone under the SSF, we need a joint effort. In Nepal, we have multiple social protection mechanisms such as the Social Security Fund, the Foreign Employment Welfare Fund, and private insurance schemes. Integrating these into a unified system could be more effective,” he said.

Currently, around 4.4 million Nepalis are working abroad. Remittances remain a key pillar of the economy and are projected to account for 33.02 percent of GDP in the current fiscal year, up from 27.80 percent last year.

The country’s economy heavily depends on remittance income, with a majority of households relying on earnings sent home by migrant workers.

“When the government signs bilateral labour agreements with destination countries, SSF affiliation among migrant workers can be further strengthened,” said Binod Shrestha, president of the Joint Trade Union Coordination Center.

He warned that without SSF affiliation, migrant workers remain deprived of health insurance, accident coverage and other protections.

“We need stronger coordination with GCC countries to expand SSF coverage for Nepali workers. Linking the SSF with digital systems could also make it more accessible,” Shrestha said.