Roshan Sedhai 

The government's failure to ensure uniformity while raising money for the migrant workers' welfare fund has placed both workers and state coffers at a loss. Current provision ensures that migrant workers bound for the Gulf, the Middle East and Malaysia pay a total of Rs 1,000 to the workers' welfare fund whenever they renew their contracts. These workers usually have a two-year work contract.

However, those headed to South Korea, Israel, Japan and the West also pay the same amount to the fund. They usually get a fiveyear work contract. Despite the vastly disproportionate salaries among the two categories of migrant workers, they are all paying only Rs 1,000 to the fund. While those headed to the Middle East and Malaysia earn around Rs 12,000 a month, those in South Korea, Isreal and Japan earn an average of Rs 80,000 per month.

Also, due to the standard two-year contract, the former workers end up paying double the amount to the fund. Following this progression, the state is losing Rs 2,000 from each worker with a five-year work term.

"These criteria and conditions are impractical. It shows the government's inefficiency in formulating plans and policies,” said Bal Bahadur Tamang, Chairman of the Nepal Association of Foreign Employment Agencies (NAFEA). Tamang urged the government to make welfare fund provisions more scientific. “The amount they pay should be the same only if they get the same benefits," he said.

Typically, workers to the Gulf and Malaysia come from poor economic backgrounds and most of them go aboard with debts at high interest rates, which, according to Amnesty International, can range up to "30 percent." A large section of these workers are further plagued by overwork, low wages and environmental hazards.

The condition of workers to Japan, Korea and the West is much better. Besides good wages, the work environment is much more favourable and they also benefit from additional facilities. Records at the Department of Foreign Employment (DoFE) show that around 15 percent of migrant workers go to countries other than in the Gulf, the Middle East and Malaysia.

This number, if translated into cash, could earn the country millions every year. Secretary at the Ministry of Labour and Employment Somlal Subedi admitted that the current provisions are unequal. He said the law should be amended and rationalised but that there are many technical problems that will be resolved only after the appointment of the head of the Foreign Employment Promotion Board that looks after the fund. “We have to change the very law to change this provision,” said Subedi. The government uses the migrant worker welfare fund for the benefit of migrant workers and in areas related to foreign employment.

Workers pay Rs 1,000 to the fund no matter where, and how long, they will be going.

Published on: 2 November 2012 | The Kathmandu Post