Is the ‘Free Visa, Free Ticket’ Policy Set to be Scrapped?

The government is facing growing pressure to scrap or revise the “free visa, free ticket” policy for foreign employment, which on surface level appears worker-friendly but has failed to reduce migration costs for workers over the past decade.

Introduced on July 6, 2015, the policy allows Nepali workers travelling to the Gulf countries and Malaysia for employment to do so without bearing visa fees or airfare costs, which are to be covered by employers. However, despite remaining in force for nearly 10 years, the policy has not been effectively enforced.

Workers migrating to the Gulf and Malaysia continue to pay more than Rs 300,000 through informal channels, despite receiving official receipts showing payments capped at Rs 10,000. This persistent gap between policy and practice has prompted the government to formally review the provision.

Officials at the Ministry of Labour, Employment and Social Security say the policy has failed to reduce workers’ financial burden, while widespread informal collections by recruitment agencies have led to significant revenue losses for the state.

Joint Secretary Pitambar Ghimire said preparatory work has begun to review the “free visa, free ticket” policy. “It has been nearly a decade since the policy was introduced. We are reviewing both its positive and negative aspects before taking a decision,” he said, adding that government study reports have also recommended a review.

Recruitment agencies have argued that the policy makes it difficult to cover operational expenses, a concern that has been raised repeatedly with the government, prompting the latest reassessment.

What do government studies say?

A government-formed committee led by then joint secretary Rajiv Pokharel had earlier concluded that the policy was impractical. The committee recommended revising the service fee cap, citing high costs incurred by recruitment agencies in securing job demands and deploying workers abroad.

Former labour minister Sharatsingh Bhandari had initiated efforts to revise service fees for different destination countries, but the move was withdrawn following public opposition.

Background of the policy

The decision was announced on July 6, 2015, during the tenure of then state minister for labour Tek Bahadur Gurung. It mandated employers to bear visa and airfare costs for Nepali workers travelling to seven major labour destinations—Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, the UAE and Malaysia.

While the policy was popular among workers, recruitment agencies had opposed it from the outset, calling it unworkable. Successive governments, however, refrained from reversing the decision.

Despite employers covering visa and ticket costs, recruitment agencies allegedly continued to charge workers high fees by concealing employer-paid benefits.

Minister signals possible repeal

Labour Minister Rajendra Singh Bhandari has also indicated that a decision on the policy will be taken soon. Speaking at a programme in Singha Durbar last week, he said the policy, though appealing on paper, has enabled revenue leakage, tax evasion and even organised crime.

“How long should we continue to be misled by such populist measures?” the minister said, suggesting the policy could be scrapped.

Joint Secretary Ghimire said further studies are underway and a final decision will be taken after assessing whether the policy has achieved its intended objectives and how it has affected both workers and businesses.

Recruitment agencies welcome review

Recruitment agencies, which have long demanded the policy’s repeal, say they are encouraged by the minister’s remarks.

Nepal Association of Foreign Employment Agencies President Bhuvan Singh Gurung said the policy was introduced without adequate study and should be scrapped without further delay. “Each country has the right to decide whether workers are hired on a paid or unpaid basis. Nepal alone cannot dictate this,” he said.

“Some destination countries cover visa and ticket costs, and sending workers there is not a problem. But it is not possible to send all workers abroad free of cost,” he added.