Nepal Saudi Labor Agreement Signed for Fair Worker Recruitment
26th January 2026, Kathmandu
The formal signing of the Nepal Saudi Labor Agreement represents a historic shift in the diplomatic and economic relationship between the two nations. As Saudi Arabia continues to be a primary destination for the Nepali workforce, this bilateral pact provides a long awaited legal framework to ensure that migration is safe, orderly, and respectful of human rights.
Nepal Saudi Labor Agreement
Signed in Riyadh by Nepal’s Minister for Labor, Rajendra Singh Bhandari, and Saudi Arabia’s Minister of Human Resources, Ahmed bin Suleiman Al Rajhi, the agreement is designed to bring stability to the hundreds of thousands of Nepalis working in the Kingdom.
The Road to the Bilateral Agreement
Reaching this point required nearly a decade of continuous negotiation. Since 2070 BS, Nepal has sought a formal agreement to protect its citizens from the vulnerabilities of informal labor arrangements. The process faced several hurdles, particularly regarding the inclusion of domestic workers, which led to multiple delays. Ultimately, both governments decided to move forward with a general labor agreement focusing on the construction and service sectors, while committing to further dialogue on a separate framework for domestic help. This strategic decision allowed the core protections for the majority of the workforce to take effect immediately following approval from the Cabinet of Nepal.
Comprehensive Protections for Workers
At the heart of the Nepal Saudi Labor Agreement are provisions that directly target the most common grievances faced by migrant workers. The agreement emphasizes the integrity of the employment contract, ensuring that the terms agreed upon in Nepal are the same ones honored upon arrival in Saudi Arabia. This is a critical step in eliminating the practice of contract substitution, where workers are often forced to sign new, less favorable agreements once they leave their home country.
The pact also addresses financial transparency. It mandates that recruitment processes be fair and cost effective, aiming to reduce the debt burden placed on workers by unscrupulous middlemen. By establishing formal channels for grievance handling, the agreement provides workers with a structured way to seek justice if their rights are violated. Key focus areas include:
Wage Security: Ensuring that minimum wages are paid on time through digital systems.
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Health and Safety: Guaranteeing access to medical treatment and social security benefits.
Workplace Dignity: Protecting workers from forced retention and ensuring they have the right to return home upon contract completion.
Impact on Nepal’s Economy and Migration Trends
The economic significance of this agreement cannot be overstated. In the fiscal year 2081/82 alone, over 152,000 Nepali workers received permits to work in Saudi Arabia. This follows a consistent upward trend from previous years, highlighting the Kingdom’s role as a vital employment hub. By formalizing these labor ties, Nepal secures a steady and safer flow of remittances, which are a cornerstone of the national economy.
Moreover, the agreement aligns with International Labour Organization standards, signaling to the global community that Nepal is committed to the welfare of its citizens abroad. It sets a benchmark for future negotiations with other countries and helps to professionalize the migration cycle, from the initial job offer to the eventual return of the worker.
A Vision for the Future
As the agreement moves into the implementation phase, the focus will shift toward monitoring and enforcement. Joint committees from both countries will likely be responsible for overseeing labor practices and ensuring that employers adhere to the new standards. For the thousands of Nepalis currently in Saudi Arabia and those planning to travel, this pact offers a newfound sense of security and a promise that their contributions to both economies are recognized and protected.
The successful signing of the Nepal Saudi Labor Agreement is more than just a diplomatic win; it is a life changing development for the migrant community. By fostering a well managed and dignified employment environment, both nations are building a sustainable partnership that benefits workers, their families, and the broader economy of Nepal.
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