Foreign employment agencies charge workers excessively despite lower calculated costs

Kathmandu, November 13 — Manpower operators have calculated the estimated cost for workers going abroad for foreign employment. The total cost, including airfare and service charges taken by the operators, has been calculated at NPR 132,000.

This includes expenses such as orientation training, passport fees, medical charges, transportation costs, accommodation during interviews, visa fees, social security fund, welfare fund, insurance, service charges, and airfare, as well as costs for photos and documents, bringing the total to NPR 132,754.

However, there is some variation in the airfare prices. The agents have set their service fee at a minimum of one month's salary, which is around NPR 45,000 (for Malaysia and Gulf countries).

Based on these calculations, the estimated cost for sending one worker abroad for foreign employment is NPR 132,000. However, it has been found that businesses are charging workers several times that amount, ranging from NPR 200,000 to NPR 500,000 for workers going to Malaysia and Gulf countries.

When asked why businesses charge millions of rupees despite the calculated cost of NPR 132,000, Rajendra Bhandari, President of the Nepal Association of Foreign Employment Agencies, explained that the issue arises because the government has not set a fixed service charge. The state has only set a service fee of NPR 10,000, and businesses issue bills based on that amount.

He mentioned that businesses have long been stating that it is not possible to send workers for such a low fee, but the government has ignored these concerns. Bhandari also stated that if the state sets a proper service fee and regulates transactions through a banking system, many of the issues would be resolved. He emphasized that businesses cannot be accused of taking large sums of money without evidence, and that charging excessive fees without proof is not acceptable.

Bhandari also clarified that the association has been taking action against businesses that charge excessive fees or defraud workers. "Accusations alone are not enough for us to take action. If evidence is found and the Foreign Employment Department takes action, the association also takes disciplinary measures against its members," he said.