From Gulf to Europe: Nepali Labour Market Diversifies Amidst Rising Opportunities

In recent years, European nations have emerged as a new and attractive destination for Nepali migrant workers, drawn by higher wages, comparatively safer working conditions, and the promise of stronger labour rights. Government data reveals a significant and steady shift in the flow of Nepali workers from traditional Gulf states towards European countries.

However, this growing migration trend has also exposed a major policy gap. Nepal has yet to formalize bilateral labour agreements with most of these European countries, leaving workers' safety, rights, and legal protections in a precarious state, experts warn.

According to the Department of Foreign Employment, the number of Nepalis obtaining labour permits for five key European nations—Romania, Cyprus, Malta, Poland, and Turkey—has grown substantially in recent years.

Romania Emerges as a Top European Destination

Among these, Romania has become the largest European destination for Nepali workers. In fiscal year 2022/23, 14,225 Nepalis took labour permits for Romania. This number slightly increased to 15,021 in 2023/24.

However, the figures saw an explosive surge in the last fiscal year (2024/25), with 27,874 Nepalis heading to Romania—a staggering increase of 85.6 percent in just one year. This data underscores the rapidly accelerating preference for the European labour market. Romania's share of Nepal's total foreign labour migration is also on the rise.

Cyprus is also solidifying its position as a key destination. Labour permits issued for Cyprus jumped from 5,317 in 2022/23 to 6,950 in 2023/24, and further to 9,182 in 2024/25, marking a 32 percent increase year-on-year.

Government officials attribute this rise to growing labour demands in Europe's construction, hospitality, and service sectors, prompting European countries to increasingly recruit workers from Asian nations like Nepal.

Mixed Trends in Other European Markets

The trend is not uniform across all European destinations. Malta has seen a decline in recent years. After 6,303 Nepalis went to Malta in 2022/23, the number dropped to 5,668 in 2023/24 and further to 4,457 in 2024/25.

Poland has experienced an even sharper decline. Worker outflow fell from 5,112 in 2022/23 to 1,969 in 2023/24, and then to 1,166 in 2024/25.

Conversely, Turkey, starting from a smaller base, has witnessed the most dramatic growth. The number of Nepali workers obtaining permits for Turkey soared from just 258 in 2022/23 to 501 in 2023/24, and then to 1,796 in 2024/25.

Data from the current fiscal year suggests the attraction to Europe continues to intensify. In just the first seven months of the current fiscal year, 17,751 Nepalis have already secured labour permits for Romania, a significant jump from 15,723 during the same period last year.

Cyprus has also maintained its upward trajectory, with 5,733 permits issued in the first seven months of this fiscal year, compared to 4,402 in the corresponding period last year. During the same period, 3,581 Nepalis received permits for Malta, 2,833 for Turkey, and 1,484 for Poland, showing a slight improvement for the Polish market.

Higher Wages, But Legal Risks Remain

Experts in labour migration view these trends as a sign of Nepal's foreign employment market gradually diversifying. While Gulf countries and Malaysia have traditionally been the primary destinations, European markets are now offering a compelling alternative.

Bhuvan Singh Gurung, president of the Nepal Association of Foreign Employment Agencies, points to salary and working conditions as the primary drivers. He notes that while a general worker in the Gulf or Malaysia might earn between NPR 45,000 to 50,000 monthly, wages in many European countries are nearly double. Depending on skills and experience, some Nepalis are earning over NPR 100,000 per month.

However, this growing appeal has cast a sharp light on policy shortcomings. Over a year and a half ago, the Ministry of Labour, Employment and Social Security sent formal proposals for labour agreements to 16 European countries, including Croatia, Malta, Denmark, and Spain. Till date, no formal response has been received from any of them.

Pitambar Ghimire, a joint secretary at the ministry, stated that the proposals were aimed at sending Nepali workers institutionally to these countries with better employment environments. "The proposal, including a draft agreement and a formal request, has been sent to the concerned countries," he said. "However, we have not received any response yet." The proposals were forwarded through the Ministry of Foreign Affairs and Nepali embassies in the respective nations.

Government officials note that many European countries are facing growing labour shortages. Declining population growth rates have created demand for workers in agriculture, construction, tourism, and manufacturing. Spain and Portugal, for instance, require large numbers of workers for fruit and vegetable farming and seasonal agricultural work, including harvesting grapes, oranges, and strawberries. The construction sector in countries like Poland, Croatia, and Serbia also has a high demand for masons, plumbers, electricians, and general labourers. The hotel and tourism industry, particularly in Croatia and Cyprus, is another major source of opportunity for waiters, kitchen helpers, and housekeeping staff.

In the absence of formal agreements, officials acknowledge that Nepali workers heading to these countries remain vulnerable to fraud, exploitation, and insecurity.

Currently, Nepali workers can go institutionally to 111 countries, while individuals travel for work to 178 countries globally. From a policy perspective, the European market represents a significant opportunity for Nepal's foreign employment strategy. However, the rising migration without corresponding labour agreements increases the risks for workers.

To make this growing flow of migration to Europe safe and orderly, experts argue that proactive diplomatic efforts and formal labour agreements are essential. Such pacts would clarify issues related to worker safety, minimum wages, insurance, housing, and labour rights. "European countries offer good pay and a good working environment," said Gurung. "But without formal agreements, the legal protection workers should receive remains weak. The time has come for the government to prioritize these labour agreements."