Only 36 % migrant workers reaping benefits of ‘free visa, free tickets policy’

Kathmandu, June 12: Although the government had implemented a ‘Free visa, free ticket’ policy for Nepali workers going to the Gulf and Malaysia for employment three years ago, only 36 per cent of the migrant workers have flown overseas as per the policy, concludes a recent study conducted by the Nepal Rastra Bank (NRB).

The study has revealed that even though 84 per cent of the workers were aware about the ‘Free visa, free ticket’ policy, and about 82.3 per cent of them flew abroad through it, only slightly more than one third of them could get the government-implemented minimum fee facility.

“Of the migrant workers who went abroad for employment through the manpower companies, 35.8 per cent had got the minimum fee facility. 27.8 per cent of them paid more than Rs. 50,000 to the manpower companies,” concluded the survey.

The cost of flying abroad for employment has gone down after the execution of the policy, but a large number of migrant workers have not been able to benefit from it.

Average cost per employee to fly abroad was Rs. 86,000 prior to the implementation of the ‘Free visa, free ticket’ policy, which has come down to Rs. 51,000 while the average fee paid to the manpower agencies has been reduced to Rs. 44,000 from Rs. 81,000.

Participants of the survey said that the manpower agencies did not send the workers overseas unless they paid the additional money as demanded, and the companies issued receipts of Rs. 10,000 only regardless of the amount, which is generally higher than that.

The survey found that as there were other candidates ready to pay additional charges to fly abroad for work, it was easy for the manpower companies to manipulate the fees against the rule.

It was also found that some of the migrant workers had no idea about the ‘Free’ provisions.

According to the study, contrary to the manpower agents’ opinion when the new policy was implemented, the demand for workers has been continuously increasing. But the number of workers flying abroad has gone down. It was due to the supply side weaknesses. However, the number of workers going out of the country has increased in about one third of the manpower agencies.

The study said that the ‘free’ provision had created problems on the part of both the manpower agents and workers.

It has discouraged the agencies from bringing demand for high income jobs from the destination countries. They are also facing problems from workers who leave their work in the middle of their service contract.

Likewise, the migrant workers complain of high processing cost, lack of awareness about the ‘Free visa, free ticket’ policy and two separate agreements with the manpower agencies.

The NRB has recommended signing labour agreements with the seven countries where the ‘free’ provision is implemented and allowing the manpower companies to charge additional fees if the employer companies do not give free visa, free ticket in the case of high income jobs.

It also suggested regular monitoring of the activities of the manpower companies.

The Ministry of Labour and Employment had announced ‘Free visa, free ticket’ provision for seven countries – Malaysia, Qatar, Saudi Arabia, United Arab Emirates, Kuwait, Bahrain and Oman. Since then, the government issues labour approval only on condition that there is no visa and two-way ticket fee, and no levy is cut from the workers’ salary.

The NRB has collected information from workers, foreign employment entrepreneurs, Department of Foreign Employment and Foreign Employment Promotion board.

Approximately 54 manpower companies and 313 migrant workers were surveyed to collect the data.

Of the Nepali migrant workers, 94.9 per cent, or 379,000 individuals, went to those countries with ‘Free visa, free ticket’ provision. The seven countries account for a 70 per cent share in the remittance inflow to Nepal.

About 81.4 per cent workers flew abroad through manpower companies, 7.4 per cent through agents, 5.1 per cent through friends and relatives, and 6.1 per cent through other media.

The central bank has recommended assigning ratings to the manpower agencies, developing software and mobile app to manage the data of immigrant workers, introducing public companies in the foreign employment sector, reducing the cost of sending remittance through negotiations with the source countries and focussing on institutional development.

Published in The Rising Nepal daily on 13 June 2018.