The government has allocated Rs3.63 billion to the labour and employment sector in the budget for fiscal year 2026-27, introducing a series of programmes focused on safer foreign employment, skills development, migrant welfare and remittance mobilisation.

Finance Minister Swarnim Wagle presented the budget at the joint session of the federal Parliament on Friday.

Under the new budget, the government said it would promote zero-cost foreign employment and make service fees more worker-friendly for Nepalis seeking jobs abroad.

The budget also proposes the operation of remittance investment schemes and funds aimed at encouraging reverse migration and transforming remittance income towards consumption and productive sectors.

To make use of the knowledge, skills and experience gained by workers returning from foreign employment, the government announced a dedicated returnee migrant programme.

The budget further states that youths will be provided with short-term workplace-based training programmes to help develop practical skills and improve employability.

The government said labour agreements with destination countries would be reviewed and new agreements signed with additional countries to make foreign employment safer, more systematic and dignified.

Budget has also been allocated for the rescue of stranded Nepali workers abroad and for facilitating the repatriation of bodies of migrant workers who die overseas.

The finance minister announced that Nepalis would be required to acquire skills training before going abroad for employment.

To make foreign employment more transparent, dignified and automated, the budget proposes arrangements for collateral-free loans and instalment-based payment systems through employers.

In an effort to encourage remittances through formal banking channels, the government said lottery schemes based on remittance receipts would be introduced for every remittance inflow transaction.

The budget also includes programmes to provide nutritious food at subsidised rates for informal sector workers as part of efforts to support their basic health and wellbeing.