Development projects in Nepal

Nepal has ratified 11 International Labour Conventions, including, seven fundamental, one governance and three technical conventions. In 2024, the Ministry of Labour, Employment, and Social Security (MoLESS), formed a Tripartite plus Stakeholders International Labour Standard (ILS) Committee. This committee developed and approved a work plan in 2024 to prioritize the ratification of nine ILO standards by 2026, including: C081 (labour inspection), C087 (Freedom of Association), P029 (Forced Labour Protocol) , C190 (Violence and Harassment), C189 (Domestic Workers), C155 (Occupational Safety and Health), C187 (Promotional Framework for Occupational and Health), C177 (Home Work), and C181 (Private Employment Agencies). In 2025, Convention No. 81 (Labour Inspection Convention, 1947) and the Protocol of 2014 to the Forced Labour Convention, 1930 (P029) were submitted to the Cabinet for ratification. According to the Ministry of Labour, with regards to the ratification of Convention No. 87 has been circulated to the concerned ministries for their review and consent. For Convention No. 155 and Convention No. 187, a study task force has been established to conduct a detailed analysis related to ratification. Gap analyses between national legislation and the requirements of Convention No. 190 and Convention No. 189 are currently underway with technical assistance from the ILO. To support ILO constituents in their efforts towards the ratification and effective application of ILS, the ILO’s support in 2026–2027 includes: • Expert inputs for legal gap analyses of Conventions Nos. 190 and 189. • Organization of consultative meetings on the ratification of selected Conventions. As a member of the ILO, Nepal submits regular reports on ratified and fundamental international labour standards. In this biennium, Nepal is required to report on Conventions Nos. 111 and 100 in 2025.

Organization

ILO Nepal

Budget

— · not reported

Timeline

Jan 1, 2026 → Dec 31, 2027

Coverage

Nepal

Through this Country Programme Outcome, the ILO will strengthen the capacity of workers’ organisations in Nepal to engage in effective, evidence-based social dialogue, with a focus on promoting an adequate and fair wage system. Building on the 2025 trainings on formalization and ToT for sanitation and domestic workers, unions will be supported to develop their own wage negotiation modules, integrating macroeconomic and wage literacy. The programme will promote the modernization and digitalization of trade union operations through the use of digital tools and applications for training and wage analysis. This approach will enhance outreach, improve coordination, and attract greater engagement of youth and women leaders. Through these efforts, the ILO will contribute to stronger collective bargaining and more inclusive wage-setting mechanisms in Nepal. In line with the Constitution of Nepal 2015, the Labour Act 2017 and Decent Work Country Programme 2023-27, the ILO develops a comprehensive programme to support workers' organizations in strengthening institutional, technical and representational capacities to enable them to defend their rights and to influence policy at all levels of government. Given the new federal structure of Nepal, and the enactment of the two key legislations on labour rights and social security in 2017, it has become imperative for trade unions to expand their membership coverage at provincial and local levels in diverse sectors in line with the new governance system. The strategy focuses on enhancing technical capacity to engage with workers in the informal sector where majority of workers especially women workers are engaged. It also focuses on developing technical capacity of workers' organizations at the provincial level for effective social dialogue. This initiative benefits the workers' organizations in reducing industrial conflicts and unfair labour practices and promote decent jobs for all.

Organization

ILO Nepal

Budget

— · not reported

Timeline

Jan 1, 2026 → Dec 31, 2027

Coverage

Nepal

The Government of Nepal (GoN) through the commitments made by the constitution, the 16th Plan and other policy frameworks is keen to promote decent jobs primarily within the country. Number of initiatives have been taken by government to improve and strengthen governance frameworks to ensure decent employment generation, formalization of informal sectors and creating conducive industrial environment. Inclusive employment, sustainable enterprises and livelihoods, adequate and balanced wages and social security are crucial as Nepal transitions to a middle-income country and endeavours to overcome the negative economic legacy of COVID-19 on Nepali households, especially those most marginalised. Nepal became a pathfinder country for the implementation of Global Accelerator on Jobs and Social Protection for Just Transition and is also preparing for the graduation from least developed country. The country has also made a strong commitment on climate actions and associated transitions to reach at net zero carbon emissions. These transitions will bring different impacts in labour market, possess both positive and negative impacts on jobs and expansion of social protection. To understand impacts of these transitions in labour market and in jobs and social protection related issues and support the country to develop data driven and evidence-based policy and programme formulation, there is a growing need for relevant statistics, research and analysis. Therefore, to support policy makers and social partners with relevant data and research, this output will have key interventions as of below. - Provide technical assistance in designing and carrying out national labour force survey - Technical assistance and support in conducting recruitment cost survey of Nepali migrant workers - Macroeconomic analysis and analysis of coverage, adequacy and costing of social security protection - Green employment diagnostic

Organization

ILO Nepal

Budget

— · not reported

Timeline

Jan 1, 2026 → Dec 31, 2027

Coverage

Nepal

The economic growth in Nepal has not translated systematically into reducing geographical inequalities particularly between rural and urban areas and consequently affected availability and quality of jobs and livelihoods in the rural areas. Beside urban/rural, the availability and accessibility of decent jobs and livelihood opportunities for disadvantaged communities such as women, youth, marginalized castes, ethnic minorities, refugees, and person with disabilities is even scarce. Therefore, policies and programmes promoting gender equality and socially inclusive economic opportunities primarily in rural areas, including green jobs and a just transition in key sectors, will continue to be critical to ensure that Nepal’s desired economic transformation is just. Given the current structure of Nepal’s economy, the rural/urban and provincial disparities in the distribution of economic development and poverty as well as the country’s comparative advantages, ILO assistance under this output will continue to support development of policies and programmes that contribute to increased economic opportunities in rural areas, are gender-responsive, and socially inclusive towards promoting social justice. Considering these contexts, ILO Nepal will be focusing its interventions under this output as of below: - Surveys, assessments, and other research identifying labour market trends, including the extent of discrimination and exclusion in the labour market focusing in rural areas - Assistance in development of National Employment Policy and other related policy documents and action plans with due attention on the contexts of rural areas with focused strategies - Employment intensive and gender-responsive rural development policies and programmes focusing on value added agricultural development and climate resilient infrastructure and green works - Innovative local economic development intervention strategies to support the labour market inclusion of excluded groups

Organization

ILO Nepal

Budget

— · not reported

Timeline

Jan 1, 2026 → Dec 31, 2027

Coverage

Nepal

Nepal will graduate from least developed country (LDC) in 2026, and will likely to face a number of challenges in the short term, including increased competition from other developing countries, a loss of preferential market access, and a decline in aid flows . Considering the multiple crisis that Nepal has suffered over the last decade, such as the 2015 earthquake and the COVID-19 pandemic, the low productivity growth of the private sector, premature deindustrialization, and high levels of informality, with 62.2 per cent of employment concentrated in the informal sector, while 84.6 per cent of all workers are in informal employment, with about 50 per cent of all enterprises being informal. In this context, supporting Nepal to increase the productivity and competitiveness of its economy, particularly in those sectors more at risk from the LDC graduation (such as textiles and garment), while formalizing employment and enterprises is essential for Nepal to maintain its development trajectory and enjoy the opportunities of the graduation process. Supporting the creation of a better enabling environment for business is essential, in particular to support MSMEs to enhance their productivity and working conditions, and to formalize is seen as the key strategy to support sustainable and inclusive growth. To this end, the ILO is supporting the Government of Nepal, through the tripartite Formalization Committee, to implement the National Action Plan for Formalization, which includes the development of an integrated and comprehensive National Formalization Strategy, while supporting specific actions to promote the formalisation of SMEs in an enabling and sustainable environment. In parallel, the ILO is working with Government, Employers’ and Workers’ Organizations, including sectoral institutions (such as the Garment Association of Nepal), to support MSMEs directly to prepare for the LDC graduation.

Organization

ILO Nepal

Budget

— · not reported

Timeline

Jan 1, 2026 → Dec 31, 2027

Coverage

Nepal

The Government of Nepal (GoN) is keen to promote decent jobs within the country and number of initiatives have been taken by government to improve and strengthen governance frameworks to ensure decent employment generation, formalization of informal sectors and creating conducive industrial environment. GoN has prepared Smooth Transition Strategy to graduate from LDC in 2026 and planning to mitigate the potential shocks primarily in economy and employment. Nepal also became a pathfinder country for the implementation of Global Accelerator on Jobs and Social Protection for Just Transitions. GoN made amendments into the provisions of different legislative frameworks which were considered as bottlenecks for the investment in Nepal. The 16th Plan has identified productive employment, decent jobs and sustainable social security as one of the focused sectors for structural transformation. The National Planning Commission (NPC) has developed Integrated National Employment Information Management System Framework which recommended ways to develop a robust integrated labour and employment information management system. Ministry of Labour, Employment and Social Security (MoLESS) has initiated the process to review and reformulate the National Employment Policy, Labour Act and Rules to make them relevant and effective in addressing emerging challenges and opportunities of the labour market. Considering those national contexts and priorities, this CPO will be focusing as of below: - Support constituents to effectively engage in reformulating policies, legislations and strategies that promotes employment-centric and inclusive growth in line with ILO’s normative frameworks - Provide technical assistance to NPC for the development of roadmap to accelerate jobs creation and extension of social protection ensuring just transition - Provide technical assistance including building capacity of MoLESS in strengthening public employment services focusing on employment service center

Organization

ILO Nepal

Budget

— · not reported

Timeline

Jan 1, 2026 → Dec 31, 2027

Coverage

Nepal

During formulation of the DWCP (2023-2027) for Nepal, the social partners along with the government identified the protection of Nepali migrant workers as a top priority. Labor migration forms an integral part of Nepali economy. In recent years, Nepal is issuing labour approvals to over 800,000 Nepali workers going abroad for employment through regular pathway. Nepal received workers remittances above USD 12 billion during last fiscal year 2024-25, and the income is distributed among 76 per cent of households. The foreign currency received through the remittances is primarily fuelling the import-based economy. While the government prioritizes employment creation within Nepal, it also recognizes the continued importance of labour migration and remains committed to protecting the rights of migrant workers through safe, orderly, and regular migration. This commitment is reflected in national plans and policies, including the 16th National Plan and the National Labour Migration Policy 2025. Labour migration remains a priority area for the ILO in Nepal. The ILO supports the federal and selected provincial governments in implementing key elements of the National Labour Migration Policy 2025, engages with the Ministry of Foreign Affairs and the Ministry of Labour, Employment and Social Security (MoLESS) to facilitate new bilateral labour agreements with destination countries, and continuously generates evidence for advocacy to promote fair recruitment principles, including through capacity building of government institutions and private recruitment agencies. It also collaborates closely with MoLESS to ensure that provisions for migrant workers and returnees are duly integrated into the Operational Procedure for Employment Service Centres (ESCs) currently under development. ILO continues collaborating with MoLESS, MoFA, provincial and local governments, Nepal Association of Foreign Employment Agencies, other private actors, trade unions and CSOs for the results.

Organization

ILO Nepal

Budget

— · not reported

Timeline

Jan 1, 2026 → Dec 31, 2027

Coverage

Nepal

In line with the Constitution of Nepal and Labour Act 2017, the ILO develops a comprehensive programme to support the Government of Nepal and its social partners to reform labour administration and inspection system, social dialogue mechanism and institutions. The srategy focuses on reforming labour legislations, labour administration and labour inspection system at local, provincial and federal level, and developing capacity for social dialogue among the ILO constituents. This initiative benefits both the employers and workers through effective and efficient labour market governance that facilitates to reducing industrial conflicts and increasing productivity and decent work. By doing so, it also enhaces an enabling environment for more domestic and foreign direct investment.

Organization

ILO Nepal

Budget

— · not reported

Timeline

Jan 1, 2026 → Dec 31, 2027

Coverage

Nepal

A recent review on Nepal’s social security coverage shows that only about 31 % of the population is covered by at least one benefit in 2023/24. 64% children are covered by social protection, 14% through income support schemes. Working age population in any social protection scheme is considerably low, less than 14% are benefiting from one of the schemes targeted to working age populations. With almost 15% of the national budget of 2023/24 allotted to over 80 schemes, without effective coordination mechanisms resulting to low coverage and benefit levels heavily skewed towards old age, while investments in children remain significantly low. This represents a challenge for Nepal in the achievement of the SDGs, particularly SDG Target 1.3. The GoN has set ambitious targets for social protection in its 16th National Plan, aiming to increase coverage to 60 per cent of the population by 2028. Extending social protection coverage is critical, particularly for those with lower levels of access to schemes and/or with access to only limited or inadequate benefits. Among these, extending the social protection coverage among children would benefit the largest group of the population leading to better educational outcomes and higher life-long earning capacity. Similarly, extending social security coverage to workers in the informal economy, would offer protection to the workers that have the largest decent work gaps. The ILO is supporting the GoN to improve the coverage and effectiveness of its social protection programmes, working with key institutions, such as the Ministry of Labour, Employment and Social Security, the Social Security Fund (SSF) and the National Planning Commission, as well with social partners. The work in 2026-27 biennium will be focusing to bring more informal workers and MSMEs under social security coverage, modernizing SSF’s MIS system and implementation of National Integrated Social Protection Framework.

Organization

ILO Nepal

Budget

— · not reported

Timeline

Jan 1, 2026 → Dec 31, 2027

Coverage

Nepal

CPB Nepal 2024-2028 - Direct Support Cost that correspond to country level expenditures that are directly linked to the execution of the programme but cannot be attributed to a specific activity within it.

Organization

World Food Programme Nepal

Budget

USD 6.3M

Timeline

Jan 1, 2024 → Dec 31, 2028

Coverage

Nepal

Country portfolio budget - CPB Nepal 2024-2028 Provide on-demand services, including supply chain, cash-based transfers, engineering, analysis and evidence generation to the Government and humanitarian and development partners

Organization

World Food Programme Nepal

Budget

USD 508K

Timeline

Jan 1, 2024 → Dec 31, 2028

Coverage

Nepal

Country portfolio budget - CPB Nepal 2024-2028 Provide technical assistance to national institutions and an integrated package of livelihood support activities, skills, services and assets to communities vulnerable to climate and other risks to build resilience to shocks and stressors

Organization

World Food Programme Nepal

Budget

USD 15.2M

Timeline

Jan 1, 2024 → Dec 31, 2028

Coverage

Nepal

Country portfolio budget - CPB Nepal 2024-2028 Provide nutrition-sensitive school meals in targeted food-insecure areas and technical and operational assistance to strengthen the Government’s capacity to implement the national school meals programme as part of the national social protection framework

Organization

World Food Programme Nepal

Budget

USD 13.7M

Timeline

Jan 1, 2024 → Dec 31, 2028

Coverage

Nepal

Country portfolio budget - CPB Nepal 2024-2028 Assist national institutions and the private sector to strengthen and deliver effective and sustainable health and nutrition-focused social protection programmes to meet the needs of vulnerable populations

Organization

World Food Programme Nepal

Budget

USD 3.1M

Timeline

Jan 1, 2024 → Dec 31, 2028

Coverage

Nepal

Country portfolio budget - CPB Nepal 2024-2028 Provide assistance to meet the immediate essential needs of crisis-affected populations, including food, nutrition and livelihood recovery, before, during and after shocks and other stressors

Organization

World Food Programme Nepal

Budget

USD 4.2M

Timeline

Jan 1, 2024 → Dec 31, 2028

Coverage

Nepal

Country portfolio budget - CPB Nepal 2024-2028 Provide capacity strengthening and coordination support to the Government, communities and humanitarian actors for evidence-based emergency preparedness and effective response

Organization

World Food Programme Nepal

Budget

USD 1.6M

Timeline

Jan 1, 2024 → Dec 31, 2028

Coverage

Nepal

Country portfolio budget - CPB Nepal 2019-2023 Provide on-demand cash-based transfer management support to all humanitarian and development partners to enable them to provide efficient cash transfer services to the affected population in order to meet their essential needs

Organization

World Food Programme Nepal

Budget

USD 52K

Timeline

Jan 1, 2019 → Dec 31, 2023

Coverage

Nepal

Country portfolio budget - CPB Nepal 2019-2023 Provide on demand service provision to all stakeholders in the country in order to support effective humanitarian response

Organization

World Food Programme Nepal

Budget

USD 685K

Timeline

Jan 1, 2019 → Dec 31, 2023

Coverage

Nepal

Country portfolio budget - CPB Nepal 2019-2023 Provide technical assistance and support evidence generation for government and multi-sector partners to enhance rights-based food security and nutrition plans, policies, regulatory frameworks and service delivery.

Organization

World Food Programme Nepal

Budget

USD 83K

Timeline

Jan 1, 2019 → Dec 31, 2023

Coverage

Nepal

Country portfolio budget - CPB Nepal 2019-2023 Strengthen preparedness capacity, establish emergency logistics and institutional platforms and improve access to food reserves to enable government and humanitarian partners to respond rapidly to crises.

Organization

World Food Programme Nepal

Budget

USD 1.8M

Timeline

Jan 1, 2019 → Dec 31, 2023

Coverage

Nepal

Country portfolio budget - CPB Nepal 2019-2023 Provide technical assistance to the Government to strengthen the food security monitoring, analysis and early-warning system and align it with the federal governance structure.

Organization

World Food Programme Nepal

Budget

USD 4.0M

Timeline

Jan 1, 2019 → Dec 31, 2023

Coverage

Nepal

Country portfolio budget - CPB Nepal 2019-2023 Develop and improve risk-resilient infrastructure and strengthen local capacity to identify climate risks and implement adaptive strategies.

Organization

World Food Programme Nepal

Budget

USD 7.1M

Timeline

Jan 1, 2019 → Dec 31, 2023

Coverage

Nepal

Country portfolio budget - CPB Nepal 2019-2023 Support the strengthening of national nutrition-sensitive social safety nets for vulnerable populations and provide specialized nutritious foods, technical assistance, logistics, as well as social behaviour change communication for the prevention of malnutrition.

Organization

World Food Programme Nepal

Budget

USD 5.3M

Timeline

Jan 1, 2019 → Dec 31, 2023

Coverage

Nepal

Country portfolio budget - CPB Nepal 2019-2023 Provide technical support to the Government in order to develop a rice fortification policy framework and supply chain system for use in social safety nets.

Organization

World Food Programme Nepal

Budget

USD 114K

Timeline

Jan 1, 2019 → Dec 31, 2023

Coverage

Nepal

Les crédits globaux pour petites actions permettent le financement d’opérations ponctuelles, peu coûteuses, significatives en termes de développement, à composantes diverses (techniques, sociales, organisationnelles et de gestion, politique, économique, informative, etc.)

Organization

Swiss Development Cooperation

Budget

— · not reported

Timeline

Nov 1, 2021 → Oct 31, 2024

Coverage

Nepal

Les crédits globaux pour petites actions permettent le financement d’opérations ponctuelles, peu coûteuses, significatives en termes de développement, à composantes diverses (techniques, sociales, organisationnelles et de gestion, politique, économique, informative, etc.)

Organization

Swiss Development Cooperation

Budget

— · not reported

Timeline

Nov 1, 2021 → Oct 31, 2024

Coverage

Nepal

Les crédits globaux pour petites actions permettent le financement d’opérations ponctuelles, peu coûteuses, significatives en termes de développement, à composantes diverses (techniques, sociales, organisationnelles et de gestion, politique, économique, informative, etc.)

Organization

Swiss Development Cooperation

Budget

— · not reported

Timeline

Nov 1, 2021 → Oct 31, 2024

Coverage

Jajarkot, Karnali

Les crédits globaux pour petites actions permettent le financement d’opérations ponctuelles, peu coûteuses, significatives en termes de développement, à composantes diverses (techniques, sociales, organisationnelles et de gestion, politique, économique, informative, etc.)

Organization

Swiss Development Cooperation

Budget

— · not reported

Timeline

Nov 1, 2021 → Oct 31, 2024

Coverage

Nepal

Les crédits globaux pour petites actions permettent le financement d’opérations ponctuelles, peu coûteuses, significatives en termes de développement, à composantes diverses (techniques, sociales, organisationnelles et de gestion, politique, économique, informative, etc.)

Organization

Swiss Development Cooperation

Budget

— · not reported

Timeline

Nov 1, 2022 → Oct 31, 2026

Coverage

Nepal

Les crédits globaux pour petites actions permettent le financement d’opérations ponctuelles, peu coûteuses, significatives en termes de développement, à composantes diverses (techniques, sociales, organisationnelles et de gestion, politique, économique, informative, etc.)

Organization

Swiss Development Cooperation

Budget

— · not reported

Timeline

Nov 1, 2022 → Oct 31, 2026

Coverage

Nepal