Table of Contents
Foreign employment (वैदेशिक रोजगार) is the single largest source of remittance income for Nepal, contributing over 22% of the country's GDP. Every year, hundreds of thousands of Nepali citizens travel abroad for work — primarily to the Gulf states, Malaysia, South Korea, Japan, and other countries. The Foreign Employment Act 2064 (2007) is the principal legislation regulating this process, and the Department of Foreign Employment (DOFE) is the government body that oversees all foreign employment activities. This guide explains the complete legal process for going abroad to work from Nepal in 2026, your rights as a migrant worker, and how to avoid illegal recruitment.
Foreign employment in Nepal is regulated by the Foreign Employment Act 2064 (2007). The Department of Foreign Employment (DOFE) approves all departures. Workers must go through licensed manpower agencies or government-to-government (G2G) channels. Mandatory foreign employment insurance costs NPR 1,500 for NPR 1 million coverage. Workers leaving Nepal must obtain labour permit stickers from DOFE. Over 110 countries are open for Nepali workers. Key protections include repatriation rights, contract enforcement, and access to the Labour Act 2074 upon return. Complaints go to the Foreign Employment Tribunal.
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What Is Foreign Employment in Nepal?
Foreign employment (वैदेशिक रोजगार) means any employment undertaken by a Nepali citizen in a country other than Nepal. Under Section 2(h) of the Foreign Employment Act 2064, it includes any work performed outside Nepal under a contract of employment, whether arranged through a manpower agency, government channel, or individual effort.
| Detail | Information |
|---|---|
| Governing law | Foreign Employment Act 2064 (2007) and Foreign Employment Rules 2064 |
| Regulatory body | Department of Foreign Employment (DOFE), Ministry of Labour, Employment and Social Security |
| Tribunal | Foreign Employment Tribunal (वैदेशिक रोजगार न्यायाधिकरण) |
| Workers abroad (2082 BS) | Estimated 3.5 million+ Nepali workers in foreign employment |
| Top destinations | Qatar, Saudi Arabia, UAE, Malaysia, South Korea, Kuwait, Japan |
| Remittance contribution | Over NPR 1.2 trillion annually (22%+ of GDP) |
| Age requirement | Minimum 18 years (Section 7 of the Act) |
Nepal has bilateral labour agreements with several destination countries to protect the rights of migrant workers. The government has also implemented a free visa, free ticket policy for certain Gulf countries to reduce the financial burden on workers.
Foreign Employment Act 2064: Key Provisions
The Foreign Employment Act 2064 (2007) is the primary legislation governing foreign employment from Nepal. It was enacted to regulate and manage foreign employment, protect the rights of workers going abroad, and make the process safe, systematic, and dignified.
Key Sections of the Act
| Section | Provision | Details |
|---|---|---|
| Section 3 | Prohibition on sending without licence | No one can send workers abroad without a valid licence from DOFE |
| Section 7 | Eligibility of workers | Must be 18+ years, Nepali citizen, medically fit, and have valid passport |
| Section 9 | Labour permit | DOFE must issue labour permit before departure |
| Section 11 | Demand letter verification | DOFE verifies demand letters from foreign employers through Nepali embassies |
| Section 14 | Insurance mandatory | Every worker going for foreign employment must have insurance |
| Section 15 | Service charge ceiling | Manpower agencies cannot charge more than the prescribed service charge |
| Section 18 | Contract enforcement | Employment contracts must match the terms verified by DOFE |
| Section 33 | Foreign Employment Welfare Fund | Established for welfare, rescue, and repatriation of workers |
| Section 38 | Penalties | Imprisonment up to 7 years and/or fines for illegal foreign employment activities |
| Section 44 | Foreign Employment Tribunal | Dedicated tribunal to hear disputes related to foreign employment |
2064 Act Amendments
The Act has been amended several times, most notably in 2068 BS (2011) and 2075 BS (2018), to strengthen worker protections, increase penalties for fraud, and introduce the free visa/free ticket policy. The Foreign Employment Rules 2064 provide detailed procedural requirements for agencies, workers, and the department.
Countries Open for Nepal Foreign Employment (2082/83 BS)
The Government of Nepal has approved foreign employment in over 110 countries. However, the majority of Nepali workers go to a small number of destination countries. Here are the top destination countries and their key details:
Top Destination Countries
| Country | Labour Agreement | Key Sectors | Estimated Nepali Workers |
|---|---|---|---|
| Qatar | Yes (2005, renewed) | Construction, hospitality, domestic work | 400,000+ |
| Saudi Arabia | Yes (2015) | Construction, manufacturing, domestic work | 350,000+ |
| UAE (Dubai, Abu Dhabi) | Yes (2007, revised 2019) | Construction, hospitality, retail, domestic | 300,000+ |
| Malaysia | Yes (2018, G2G) | Manufacturing, plantation, services | 500,000+ |
| South Korea | Yes — EPS (G2G only) | Manufacturing, agriculture, fisheries, construction | 40,000+ |
| Kuwait | Yes (2013) | Domestic work, construction, services | 70,000+ |
| Japan | Yes — TITP/SSW (G2G) | Manufacturing, care work, agriculture, food processing | 15,000+ |
| Bahrain | Yes | Construction, manufacturing, services | 30,000+ |
| Oman | Yes | Construction, services | 25,000+ |
| Israel | Yes (caregiving) | Caregiving | 5,000+ |
Government-to-Government (G2G) Channels
Certain countries accept Nepali workers only through G2G channels, which means no private manpower agency is involved. These include:
- South Korea — Employment Permit System (EPS), managed by the Human Resource Development (HRD) Korea
- Japan — Technical Intern Training Programme (TITP) and Specified Skilled Worker (SSW) programme
- Israel — Caregiving programme through government selection
- Malaysia — Partly G2G (manufacturing sector via government portal)
G2G channels generally have lower costs for workers and more transparent selection processes, typically involving language tests and skills assessments.
DOFE: Department of Foreign Employment
The Department of Foreign Employment (वैदेशिक रोजगार विभाग) is the government body under the Ministry of Labour, Employment and Social Security responsible for regulating and managing all aspects of foreign employment from Nepal.
DOFE Functions
| Function | Details |
|---|---|
| Licence issuance | Issues and renews licences for manpower agencies |
| Labour permit | Issues labour permit stickers (required before departure) |
| Demand verification | Verifies demand letters from foreign employers through embassies |
| Complaint handling | Receives and investigates complaints against agencies |
| Agency monitoring | Inspects and monitors manpower agencies for compliance |
| Data management | Maintains records of all workers going for foreign employment |
| Service charge regulation | Sets maximum service charges that agencies can collect |
| Rescue coordination | Coordinates rescue and repatriation of workers in distress |
DOFE Online Services
DOFE has digitised several services through its online portal. Workers can now:
- Check the status of their labour permit application online
- Verify whether a manpower agency is licensed
- File complaints online through the DOFE website
- Access information about approved destination countries
Role of Licensed Manpower Agencies
Licensed manpower agencies (जनशक्ति कम्पनी) are private companies authorised by DOFE to recruit and send Nepali workers abroad. Under Section 3 of the Foreign Employment Act 2064, no person or entity can send workers abroad without a valid licence from the Department.
Manpower Agency Requirements
| Requirement | Details |
|---|---|
| Licence fee | Deposit of NPR 30 lakh (refundable) + licence fee |
| Office requirement | Must have a registered office in Kathmandu |
| Renewal | Licence must be renewed every 2 years |
| Bank guarantee | Must maintain bank guarantee as security |
| Service charge cap | Cannot charge more than prescribed amount (varies by country) |
| Contract obligation | Must provide written employment contract to the worker |
| Demand verification | Must get demand letters verified by Nepali embassy in destination country |
| Insurance | Must ensure worker has foreign employment insurance before departure |
Maximum Service Charges by Country
The government has set maximum service charges that manpower agencies can collect from workers. Under the free visa, free ticket policy (applicable to certain Gulf countries), the worker should pay almost nothing — the employer bears the cost.
| Destination | Maximum Service Charge | Notes |
|---|---|---|
| Gulf countries (free visa/free ticket) | NPR 10,000 (nominal) | Employer bears visa and ticket costs |
| Malaysia (G2G) | NPR 20,000 | Government-to-government channel |
| South Korea (EPS) | NPR 0 (government covers) | Only Korean language test fee applicable |
| Japan (TITP/SSW) | Varies | Training fees may apply |
| Other countries | Up to equivalent of worker's 1 month salary | As per Section 15 of the Act |
If any agency charges more than the prescribed amount, workers can file a complaint with DOFE or the Foreign Employment Tribunal.
Documents Required Before Going Abroad
Workers must prepare several documents before departing Nepal for foreign employment. Missing or incomplete documents can delay or prevent departure.
| # | Document | Details |
|---|---|---|
| 1 | Valid passport | Machine-readable passport with at least 6 months validity |
| 2 | Citizenship certificate | Original Nepali citizenship (नागरिकताको प्रमाणपत्र) |
| 3 | Employment contract | Signed contract with terms matching DOFE-verified demand letter |
| 4 | Labour permit sticker | Issued by DOFE after verification of demand letter and contract |
| 5 | Foreign employment insurance | Mandatory insurance policy (see section below) |
| 6 | Medical fitness certificate | From a DOFE-approved health institution |
| 7 | Orientation certificate | Pre-departure orientation training completion certificate |
| 8 | Visa of destination country | Valid work visa for the destination country |
| 9 | Educational certificates | As required by the job (SLC/SEE or relevant qualification) |
| 10 | Family consent | For workers under 18 not applicable (minimum age is 18); consent from guardian for first-time travellers may be required |
Labour Permit Process
The labour permit (श्रम स्वीकृति) is the most important document for foreign employment. Here is the step-by-step process:
- Demand letter submission: Manpower agency submits the demand letter from the foreign employer to DOFE
- Embassy verification: DOFE sends the demand letter to the Nepali embassy in the destination country for verification
- Demand approval: Once verified, DOFE approves the demand and assigns a demand number
- Worker selection: Agency selects workers matching the job requirements
- Medical examination: Workers undergo medical tests at approved health institutions
- Pre-departure orientation: Workers complete the mandatory orientation training programme
- Insurance purchase: Workers obtain foreign employment insurance
- Labour permit issuance: DOFE issues the labour permit sticker on the worker's passport
- Airport clearance: Immigration at the airport verifies the labour permit before allowing departure
Need assistance with the foreign employment process? Contact our legal team →
Foreign Employment Insurance Nepal
Under Section 14 of the Foreign Employment Act 2064, every worker going for foreign employment must obtain foreign employment insurance (वैदेशिक रोजगार बीमा). This is mandatory and is verified at the time of labour permit issuance.
| Detail | Information |
|---|---|
| Premium | NPR 1,500 (approximately) |
| Coverage amount | NPR 10 lakh (1 million) for death and disability |
| Coverage period | Duration of employment contract (typically 2-3 years) |
| Death benefit | NPR 10 lakh to the nominee/family |
| Permanent disability | Up to NPR 10 lakh depending on degree of disability |
| Medical expenses | Covered as per policy terms |
| Repatriation of remains | Cost of bringing remains back to Nepal is covered |
| Insurer | Must be a DOFE-approved insurance company |
Foreign Employment Welfare Fund
In addition to insurance, the Government of Nepal has established the Foreign Employment Welfare Fund (वैदेशिक रोजगार कल्याणकारी कोष) under Section 33 of the Act. Workers contribute NPR 1,500 to this fund before departure. The fund provides:
- Financial assistance for treatment of injuries and illnesses during foreign employment
- Compensation for death or permanent disability beyond insurance coverage
- Rescue and repatriation costs for workers in distress
- Skills development and reintegration programmes for returning workers
- Scholarships for children of workers who die during foreign employment
Rights of Migrant Workers
Nepali migrant workers have significant legal protections under the Foreign Employment Act 2064, the Labour Act 2074, and various international conventions. Nepal is a signatory to the UN International Convention on the Protection of the Rights of All Migrant Workers.
Key Rights Under Nepali Law
| Right | Legal Basis | Details |
|---|---|---|
| Right to a written contract | Section 18, FEA 2064 | Employment terms must be documented and match the verified demand letter |
| Right to prescribed wages | Section 18, FEA 2064 | Wages must be as stated in the contract; no deductions without consent |
| Right to safe working conditions | Section 18, FEA 2064 | Employer must provide safe and healthy working environment |
| Right to repatriation | Section 33, FEA 2064 | Workers in distress can be repatriated at government/fund expense |
| Right to compensation | Section 34, FEA 2064 | Compensation for death, injury, or contract violation |
| Right to complain | Section 36, FEA 2064 | Workers can file complaints with DOFE or the Foreign Employment Tribunal |
| Right to insurance | Section 14, FEA 2064 | Mandatory insurance coverage for death and disability |
| Right to information | Pre-departure orientation | Workers must receive pre-departure training about their rights and destination country |
| Right to passport retention | International law | Employer cannot confiscate the worker's passport |
| Freedom from forced labour | Constitution of Nepal, Art. 29 | No one can be subjected to forced or bonded labour |
Protections for Female Workers
Nepal has specific provisions for female workers going for foreign employment. Previously, the government had imposed restrictions on women travelling to certain countries, but the Supreme Court has ruled that blanket bans are unconstitutional. Current protections include:
- Mandatory pre-departure orientation with gender-specific content
- Safe houses maintained by Nepali embassies in destination countries
- Special provisions under the Foreign Employment Welfare Fund for female workers in distress
- Anti-trafficking protections under the Human Trafficking and Transportation (Control) Act 2064
Illegal Recruitment: How to Report
Illegal recruitment and fraud are significant problems in Nepal's foreign employment sector. Workers lose money to unlicensed agents, are sent to different jobs than promised, or end up in exploitative conditions. The Foreign Employment Act 2064 has strong penalties for such offences.
Common Fraudulent Practices
- Overcharging: Charging more than the prescribed service charge
- Fake demand letters: Using forged or expired demand letters
- Job substitution: Sending workers for different jobs than contracted
- Unlicensed operation: Operating without a valid DOFE licence
- Individual agents (dalals): Unlicensed brokers recruiting workers at the village/district level
- Passport confiscation: Holding workers' passports to prevent them from leaving
Penalties Under the Act
| Offence | Penalty (Section 38-43) |
|---|---|
| Sending workers without licence | Imprisonment up to 7 years and/or fine up to NPR 5 lakh |
| Fraud/deception | Imprisonment up to 10 years and/or fine up to NPR 10 lakh |
| Overcharging service fees | Fine up to NPR 3 lakh and licence suspension/cancellation |
| Sending to unapproved country | Imprisonment up to 5 years |
| Complicity by government official | Additional penalties under anti-corruption laws |
How to File a Complaint
- DOFE Complaint Desk: Visit DOFE office in New Baneshwor, Kathmandu or use the online complaint form at dofe.gov.np
- Hotline: Call the foreign employment complaint hotline 1141 (toll-free within Nepal)
- Nepali Embassy/Consulate: Contact the nearest Nepali embassy or consulate in the destination country
- Foreign Employment Tribunal: File a case directly with the Tribunal for compensation and legal action
- Nepal Police: Report to the police for criminal fraud cases
Returning Workers: CTEVT Skills Recognition
Nepal recognises that returning migrant workers bring valuable skills and experience. The Council for Technical Education and Vocational Training (CTEVT) has a programme to formally recognise and certify the skills acquired by workers during their foreign employment.
Skills Certification Process
| Step | Details |
|---|---|
| 1. Application | Apply to CTEVT with proof of foreign employment and work experience |
| 2. Skills assessment | Undergo practical skills testing at a CTEVT-affiliated testing centre |
| 3. Certification | Receive a skills certificate recognised by the Government of Nepal |
| 4. Further education | Certificate holders can enrol in higher-level CTEVT programmes |
Reintegration Support
The government provides several reintegration programmes for returning workers:
- Soft loans: Banks offer concessional loans for returning workers to start businesses
- Entrepreneurship training: Programmes through DOFE and the Foreign Employment Welfare Fund
- SSF registration: Returning workers can register with the Social Security Fund (SSF) if they enter formal employment
- Tax obligations: Workers returning with savings should understand their income tax obligations and get a PAN card
Foreign Employment vs. Work Permit for Foreigners in Nepal
It is important to distinguish between foreign employment (Nepali citizens going abroad to work) and work permits in Nepal (foreigners coming to Nepal to work). These are governed by entirely different laws.
| Aspect | Foreign Employment (Nepali going abroad) | Work Permit (Foreigner in Nepal) |
|---|---|---|
| Governing law | Foreign Employment Act 2064 | Labour Act 2074, Section 53 |
| Regulatory body | DOFE | Department of Labour |
| Who applies | Worker (through manpower agency) | Nepali employer |
| Key document | Labour permit sticker | Work permit certificate |
| Immigration | Exit clearance at airport | Work visa required |
| Insurance | Foreign employment insurance (mandatory) | Employer provides as per Labour Act |
Foreigners wanting to invest in Nepal should also refer to our guide on foreign investment in Nepal and immigration law in Nepal.
Key Statistics: Foreign Employment from Nepal
| Indicator | Data (FY 2081/82) |
|---|---|
| Total labour permits issued | Approximately 500,000 per year |
| Remittance received | NPR 1.2+ trillion |
| Remittance as % of GDP | 22%+ |
| Top destination (by permits) | Saudi Arabia, UAE, Qatar, Malaysia, Kuwait |
| Female workers (% of total) | Approximately 5-7% |
| Licensed manpower agencies | 800+ registered with DOFE |
| Complaints received by DOFE | 10,000+ annually |
| Foreign Employment Welfare Fund collections | NPR 5+ billion total |
How Court Marriage in Nepal Can Help
Our legal team assists with various foreign employment matters including:
- Filing complaints against fraudulent manpower agencies
- Representing workers before the Foreign Employment Tribunal
- Compensation claims for death, injury, or contract violations
- Legal advice on marriage visa and visa matters related to migrant workers' families
- Document preparation for passport applications and national ID cards
- Advice on social security and provident fund matters for returning workers
Have a foreign employment legal issue? Get free consultation from our lawyers →
Frequently Asked Questions
The minimum age for foreign employment from Nepal is 18 years as per Section 7 of the Foreign Employment Act 2064. No person below 18 can be sent for foreign employment. The worker must also be a Nepali citizen with a valid passport.
Under the free visa, free ticket policy for Gulf countries, the maximum charge is approximately NPR 10,000. For other countries, agencies can charge up to the equivalent of one month's salary as per Section 15 of the Foreign Employment Act 2064. South Korea (EPS) has zero agency fees.
DOFE stands for the Department of Foreign Employment (वैदेशिक रोजगार विभाग). It is the government body that issues labour permits, licenses manpower agencies, verifies demand letters, handles complaints, and regulates the entire foreign employment process in Nepal.
Yes. Under Section 14 of the Foreign Employment Act 2064, every worker going for foreign employment must obtain insurance. The premium is approximately NPR 1,500 and provides coverage of NPR 10 lakh for death and permanent disability during the employment period.
The main G2G channels are South Korea (Employment Permit System), Japan (TITP and SSW programmes), Israel (caregiving programme), and partly Malaysia (manufacturing sector). G2G channels have lower costs and more transparent selection processes.
You can verify a manpower agency's licence status through the DOFE website at dofe.gov.np, by visiting the DOFE office in New Baneshwor, Kathmandu, or by calling the foreign employment hotline 1141. Always verify before paying any money.
Key documents include a valid passport, citizenship certificate, signed employment contract, labour permit sticker from DOFE, foreign employment insurance, medical fitness certificate, pre-departure orientation certificate, and a valid work visa for the destination country.
The Foreign Employment Welfare Fund (वैदेशिक रोजगार कल्याणकारी कोष) is established under Section 33 of the Foreign Employment Act 2064. Workers contribute NPR 1,500 before departure. It provides rescue, repatriation, medical treatment, compensation, and scholarships for workers' children.
You can file a complaint at the DOFE office in New Baneshwor, through the DOFE online portal at dofe.gov.np, by calling the toll-free hotline 1141, through the Nepali embassy in your destination country, or directly with the Foreign Employment Tribunal.
Penalties under the Foreign Employment Act 2064 include imprisonment up to 7 years for sending workers without a licence, up to 10 years for fraud and deception, and fines up to NPR 10 lakh. Agencies can also have their licences suspended or permanently cancelled.
Yes. The Supreme Court of Nepal has ruled that blanket bans on women going for foreign employment are unconstitutional. Women have the same right to foreign employment as men. Special protections include gender-specific orientation training and safe houses at Nepali embassies.
The Employment Permit System (EPS) is a government-to-government programme between Nepal and South Korea. Workers must pass the Korean Language Test (EPS-TOPIK) and a skills test. There are no agency fees — the process is managed entirely by the government through HRD Korea.
Returning workers can get skills certified through CTEVT (Council for Technical Education and Vocational Training). The process involves applying with proof of foreign work experience, undergoing a practical skills assessment at a CTEVT-affiliated centre, and receiving a government-recognised skills certificate.
Foreign employment refers to Nepali citizens going abroad to work, governed by the Foreign Employment Act 2064 and regulated by DOFE. A work permit is for foreigners coming to Nepal to work, governed by the Labour Act 2074 and issued by the Department of Labour.
If your employer violates the contract, you can contact the Nepali embassy in the destination country, file a complaint with DOFE through the hotline 1141, or seek compensation through the Foreign Employment Tribunal upon return. The manpower agency that sent you is also liable under Section 34 of the Act.
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