completed· Climate

Strengthened institutional capacity of employers' organizations

Employers in Nepal are faced with the double challenge of limited availability of skilled workers, and cumbersome and uncertain regulations and legal requirements for operation. This is compounded by a large informal sector, which does not comply with legal requirements, and therefore create an environment of unfair competition, and the looming LDC Graduation of Nepal in 2026, which could increase the challenges of international competitiveness and shrinking policy space for trade and private sector support policies. To overcome these challenges, Employers' and Business Membership Organizations (EBMOs) in Nepal need targeted positive action aiming at promoting decent work and enhancing productivity of their members, as well as supporting them on formalization process, while expanding their membership to employers linked to the informal economy. EMBOs have identified the need to expand their services to members, including on OSH, social protection, compliance to labour standards, LDC graduation and greening practices. The ILO in Nepal is supporting EMBOs during the biennium 2024-25, particularly with the Federation of Nepalese Chamber of Commerce & Industries (FNCCI) and Federation of Woman Entrepreneurs' Associations of Nepal (FWEAN), to strengthen their capacity to attract new members, and provide services related to productivity, compliance to labour standards, formalization, and preparation for the LDC graduation.