Nepali Workers Increasingly Heading to Europe Despite Lack of Labor Agreements

The demand for foreign employment in European countries has been rising recently, according to government data. Nepali workers traveled to countries such as Romania, Croatia, Malta, and Portugal with individual labor approvals in the first four months of the current fiscal year (FY 2025/26).

Around 1,300 Nepalis traveled to Romania under individual work permits from mid-July to mid-November. Similarly, over 100 workers went to Croatia, 288 to Malta, and 152 to Portugal during the same period.

Despite growing interest in European jobs, the absence of formal labor agreements forces workers to take alternative routes. Ramchandra Pokharel from Somadi, Palpa, said he traveled to Malta via India after paying nearly NPR 1 million, but did not receive the promised job. “Fourteen of us joined the same company through a consultancy in India, yet the work we received does not match what was promised,” he told New Business Age.

Hundreds of workers like Pokharel bear significant financial burdens while failing to secure the expected employment. Although Nepal has signed labor agreements with some European countries including with Romania in October 2023, the United Kingdom for nurses in August 2022, and Germany for skilled workers in October 2023, agreements with most European countries remain pending.

The government has reportedly initiated talks with Croatia, Poland, Portugal, Malta, and Spain to finalize labor agreements. However, most European countries still lack formal agreements with Nepal.

Bhuwan Singh Gurung, president of the Foreign Employment Entrepreneurs’ Association of Nepal, said the government has not delivered the promised results on labor agreements. “Manpower agencies are finding new destinations and sending workers, but without formal agreements, it is difficult to prevent financial exploitation of workers,” he said.

A senior official at the Ministry of Labour, Employment and Social Security said efforts to negotiate with European countries are ongoing but require time. “We are continuously engaged in bilateral discussions. While it takes time, results will come soon,” the official said. Coordination is challenging in countries where Nepal lacks embassies, and the absence of a departmental minister has further limited progress, the official added.

According to the Department of Foreign Employment, a total of 273,805 workers received work permits by mid-November, up from 227,615 during the same period last year — an increase of 46,190 permits.

Increased financial burden on workers

The government has also raised health examination fees for foreign employment to Rs 9,500, up from Rs 6,500. The increase follows recommendations by a 30-member high-level expert committee led by then-Additional Secretary Dipendra Raman Singh from the Ministry of Health, which proposed expanding testing, improving laboratories, and including additional tests.

The Ministry of Labour, Employment and Social Security confirmed that the new fee is based on the schedule set by the Ministry of Health and Population. While conducting all 34 required tests in government labs could cost over Rs 12,000, the package fee has been fixed at Rs 9,500.

However, stakeholders have criticized the decision, calling it an added financial burden for workers. Gurung said, “This decision should be reconsidered immediately. If the fee is not withdrawn, it will impose unnecessary cost burden on workers. A syndicate appears to have influenced these charges, which is unacceptable.”