Nepal is set to sign a labour agreement with Saudi Arabia, the largest destination for Nepali migrant workers. The Ministry of Labour has stated that the agreement is likely to be signed on January 26 or 27 during the Global Labour Market Conference in Saudi Arabia. A decade in the making, the deal aims to protect Nepali workers in areas such as insurance, workplace safety, wages and healthcare. Each year, thousands of Nepalis travel to Saudi Arabia for employment, and the agreement is expected to address long-standing issues such as unpaid wages, poor working conditions and lack of access to medical care. It is expected to provide much-needed protection for Nepali workers. Nepal has recently permitted Nepali agriculture students and caregivers to work in Israel, and this new agreement reflects the government’s broader effort to diversify labour destinations while strengthening worker protection and welfare. Labour experts note that despite decades of Nepali labour migration to Saudi Arabia, the absence of a formal agreement has left workers vulnerable to exploitative practices, including the Kafala system, under which workers are often unable to change jobs or return home without employer consent.
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The proposed agreement is expected to establish minimum wages, insurance coverage and other safeguards, potentially preventing many of the abuses faced by Nepali workers in the past. Labour agreements are not mere formalities; they have a direct impact on workers’ incomes, safety and overall well-being. Such agreements help ensure employer accountability, government oversight and access to support mechanisms, including social security and legal assistance. With large-scale construction projects continuing across the Gulf and beyond, the demand for Nepali workers remains high. Labour agreements allow Nepal to negotiate fair recruitment practices, prohibit worker-paid recruitment fees, ensure transparent contracts and mandate insurance coverage, reducing reliance on unscrupulous intermediaries and recruitment agencies.
The Saudi Arabia agreement could also serve as a model for other destination countries. Despite Nepali workers being employed in around 150 countries, Nepal has labour agreements with fewer than 20, including Qatar, Kuwait, Bahrain, Oman and Israel. In the absence of such agreements, Nepali workers often face uncertain conditions, including wage exploitation, unsafe workplaces and limited access to redress mechanisms. Expanding labour agreements would not only enhance worker protection but also strengthen remittance inflows, improve Nepal’s international standing and encourage safer labour migration. This agreement is a positive step forward, but the broader challenge lies in safeguarding the rights and interests of Nepali workers worldwide. Nepal must continue to pursue similar agreements to ensure the safety, dignity and well-being of its citizens abroad while contributing to national economic growth.
