Children in Nepal are subjected to the worst forms of child labor, including in commercial sexual exploitation, sometimes as a result of human trafficking. Children also engage in the production of bricks. (1-3) The government and the ILO are still analyzing the Nepal Labor Force Survey-III dataset to estimate child labor victim numbers. (4) Approximately 286,000 children were involved in work for pay, although the report noted that not all working children are in child labor. (4,5) The survey also incorporated the first forced labor module, and it reports that of the 34,338 individuals involved in forced labor, an estimated 17 percent are children. However, the survey does not report on all forms of child labor, including hazardous jobs. (4,5) Table 1 provides key indicators on children’s work and education in Nepal. Data on some of these indicators are not available from the sources used in this report.

Source for primary completion rate: Data from 2019, published by UNESCO Institute for Statistics, 2021. (6)
Source for all other data: International Labor Organization's analysis of statistics from Multiple Indicator Cluster Survey 5 (MICS 5), 2014. (7)

Based on a review of available information, Table 2 provides an overview of children's work by sector and activity.

† Determined by national law or regulation as hazardous and, as such, relevant to Article 3(d) of ILO C. 182.
‡ Child labor understood as the worst forms of child labor per se under Article 3(a)–(c) of ILO C. 182.

Children are subjected to commercial sexual exploitation, sometimes as a result of human trafficking, both within and outside Nepal, including to India, the Middle East, Asia, and Sub-Saharan Africa. (26,28,29) Traffickers promise families work and education opportunities for their children, but instead bring them to often under-resourced and unregistered orphanages in urban centers, where the children are subjected to forced labor and forced begging on the streets. In addition, there are reports that some orphanages keep children in destitute and unsanitary conditions to attract charitable donations from foreigners. (3,25,26)

Many children in Nepal are engaged in the production of bricks, which exposes them to hazardous working conditions, including carrying heavy loads, using dangerous machinery, and working in extreme heat. (1,3,30) According to the Report on Employment Relationship Survey in the Brick Industry in Nepal, conducted by the ILO, UNICEF, and the Central Bureau of Statistics of Nepal, there are an estimated 17,738 child laborers in the brick kilns of Nepal, with 15,400 of these children engaged in hazardous work. (15,31)

Due to COVID-19 pandemic-related national lockdowns, most of the industries in which children would work remained closed. However, bonded labor in agriculture, domestic work, and in brick kilns continued to exist. (4,23,32) Furthermore, although quantitative data are unavailable, the media, civil society, and NGOs report that the pandemic led to an increase in the number of children working in agriculture and domestic work, and on the streets. (4)

Carpet factories are considered to be in the formal sector, but many of the subcontractors working in the informal sector use child labor further down the supply chain. Although NGOs believe that the number of children involved in producing carpets continued to decrease, there were no data available to verify this claim. (16)

Last year, as the government increased the number of raids in the entertainment sector, the number of children working in this sector decreased; and with an increased awareness of child labor, research found a decrease in child labor across all sectors. (16) However, due to the pandemic-related national lockdown, the entertainment sector was closed for more than 10 months and remained closed at the end of the reporting period. No prevalence data are available to determine whether pandemic-related lockdowns affected child labor in this sector. (4)

Some children, particularly girls, face barriers to accessing education due to a lack of sanitation facilities, geographic distance, costs associated with schooling, household chores, and a lack of parental support. (16,33) In Nepal, 32.4 percent of schools lack separate toilet facilities for girls, which can deter them from attending school, especially when they are menstruating. (2,34) The government has introduced free sanitary napkins in all schools across the country to encourage girls to attend their classes. (16) Barriers for attending school for school-age boys include pressure to find employment, migration to work outside Nepal, and issues with drugs and alcohol. Children with disabilities face additional barriers to accessing education, including denial of school admission. (16)

The government allows Bhutanese refugee students in grades 9–12 to attend local public schools at no cost, but enrollment remains restricted for younger children. UNHCR provides parallel free education at lower grades to refugees in the two remaining refugee camps in the country. (4,35) Most Tibetan refugees who live in the country, particularly those who arrived after 1990 or turned 16 after 1995, do not have documentation, nor do their descendant children. Even those with acknowledged refugee status have no legal rights beyond the ability to remain in the country. (35,36) Nevertheless, the government allowed NGOs to provide primary- and secondary-level schooling to Tibetans living in the country. (35) In addition, more than 700 refugees and asylum seekers from Pakistan, Burma, Afghanistan, Sri Lanka, Bangladesh, Somalia, Iran, Iraq, and the Democratic Republic of the Congo are not recognized as having the status of refugees, but the government allows UNHCR to provide some education, health, and livelihood services to them. These refugees lack legal access to public education, as well as the right to work. (3,4,35) Child refugees who cannot legally access public education and those of legal age to work but who are not authorized to do so, are more susceptible to being exploited in the worst forms of child labor.

Due to pandemic-related school closings, online learning opportunities are limited for many children who do not have access to a personal computer or Internet connection. This situation has increased the risk of children being diverted from education to child labor, especially in rural and high mountain areas, where local resources are inadequate. (4) Furthermore, as schools reopen, families with economic hardship due to the pandemic may deprioritize education to meet basic needs, which may lead children to be at an increased risk of engaging in child labor when work is available. (37)

Nepal has ratified all key international conventions concerning child labor (Table 3).

During the reporting period, the Government of Nepal ratified the Palermo Protocol to Prevent, Suppress, and Punish Trafficking in Persons. (4)

The government has established laws and regulations related to child labor (Table 4). However, gaps exist in Nepal’s legal framework to adequately protect children from the worst forms of child labor, including the prohibition of child trafficking and the prohibition of using children in illicit activities that are consistent with international standards.

* No conscription (45,47)

The minimum age for hazardous work is not consistent with international standards because it does not prohibit children age 17 from engaging in hazardous work. (38) Furthermore, the types of hazardous work prohibited for children do not include brickmaking, a sector in which there is evidence that work involves carrying heavy loads and being exposed to hazardous substances. (15,38,48) However, Nepal's National Master Plan on Child Labor (2018–2028) has identified children working in brick kilns as targeted groups for hazardous occupation. (49)

Laws related to child trafficking are insufficient because they do not clearly criminalize recruitment, harboring, receipt, or transportation in the absence of force, fraud, or coercion. (41,50) However, with accession to the Palermo Protocol, the Government of Nepal will be required to align its legal framework for human trafficking with international standards, including broadening its definition of human trafficking and better addressing child trafficking. (4) In addition, the legal framework prohibiting the use of children in illicit activities is insufficient, because it does not prohibit the use of children in the production of drugs. (51)

Although the Constitution prohibits the recruitment of children by non-state armed groups, there is no specific legislation penalizing this practice. (33,45,47)

The government has established institutional mechanisms for the enforcement of laws and regulations on child labor (Table 5). However, gaps exist within the operations of enforcement agencies that may hinder adequate enforcement of their child labor laws.

During the reporting period, Nepal established its first labor court to address labor-related issues under the 2017 Labor Act, including child labor issues in certain circumstances. (53)

Labor Law Enforcement

In 2020, labor law enforcement agencies in Nepal took actions to combat child labor (Table 6). However, gaps exist within the operations of the Department of Labor (DOL) that may hinder adequate labor law enforcement, including human resource allocation.

† Data are from July 2018 to July 2019.
‡ Funding is for July 2020 to July 2021.

Under a new Constitutional provision and Nepal's transition to federalism, the provincial governments have been given more authority, including the task of overseeing child labor monitoring and inspection and maintaining data and documentation on inspections. (4,40) During the reporting period, the government issued the "Procedure on Establishment and Operation of Information and Records Center" for local levels, which aims to establish information centers at each local government. Once implemented, this procedure will play a key role in tracking child labor data. (55,56)

Also during the reporting period, DOL increased its budget for inspections focused specifically on child labor from $3,000 during Nepali fiscal year 2019/2020 (mid-July 2019 to mid-July 2020) to $3,400 during fiscal year 2020/2021, although both DOL officials and NGO representatives continued to report that resource insufficiency is a challenge. DOL also increased its number of labor inspections, as factories outside Kathmandu were operating and inspections were performed following pandemic health protocols. (4) According to Nepal's annual State of Children report, 79 children were rescued from child labor, including 10 children under age 10. (4) Although DOL reported that penalties were issued in 15 cases of violation of labor laws, DOL did not provide data on the amount or nature of the penalties. NGOs stated that the fines and employer-paid compensation outlined in the Child Labor (Prohibition and Regulation) Act were not adequate as deterrents to child labor violations. (2,4)

In addition, research found that DOL does not take meaningful action against perpetrators of child labor and its worst forms, despite having the authority to do so. Cases are often resolved through negotiations, and DOL encourages mediation over prosecution, resulting in mild punishments for perpetrators. (4,16,50) In addition, business owners are known to put pressure on labor inspectors to settle disputes outside court. Furthermore, DOL officials and NGOs stated that officials are sometimes paid not to move child labor cases forward, or parents are given nominal compensation to abandon cases. (4)

The government has also confirmed that it calls on NGOs to assist with official inspections, because it lacks funding and resources, and to increase transparency. (4) The government and NGOs state that most child labor occurs in the informal sector, including in companies with fewer than 10 employees and those that are not registered with the government. (4,19) However, the government conducted most of its labor inspections in the formal sector. (57) Although the government claims to monitor companies regularly, NGOs report that due to resource limitations, enforcement agencies respond only to child labor complaints. (4)

Furthermore, the number of labor inspectors is likely insufficient for the size of Nepal's workforce, which includes more than 16.8 million workers. According to the ILO’s technical advice of a ratio approaching 1 inspector for every 15,000 workers in developing economies, Nepal would employ about 1,120 inspectors. (58,59) Although the total number of labor inspector positions is 15, only 10 positions are filled currently. (4) DOL noted that the number of inspectors was still inadequate and limited the government's abilities to deal with child labor issues, particularly at the local levels. (4,16,60)

Although labor inspectors periodically receive training on child labor laws and inspections, this training does not necessarily adhere to any formal schedule. (57) Due to the pandemic, webinars were held in place of in-person trainings. DOL officials mentioned that the training was insufficient and stressed the need for specialized training on child labor inspection and law enforcement. (4)

Criminal Law Enforcement

In 2020, criminal law enforcement agencies in Nepal took actions to combat child labor (Table 7). However, gaps exist within the operations of the criminal enforcement agencies that may hinder adequate criminal law enforcement, including allocating financial resources.

Once fully operational, the newly formed Anti-Trafficking in Persons Bureau within the Nepal Police, headed by a Senior Superintendent of Police, will assist in children's rescue, rehabilitation, and coordination for arrest of perpetrators. (16,24) The establishment of this bureau will allow the Government of Nepal to meet some of the obligations arising from the process of acceding to the Palermo Protocol. (24) In addition, the Nepal Police's Crime Investigation School conducts trainings for all levels of police personnel in juvenile justice, child rights, and laws relating to child labor issues. (4)

However, the government lacks both the human resource and financial capacity to enforce laws prohibiting crimes related to the worst forms of child labor, and it lacks the resources to maintain a centralized database of cases involving the worst forms of child labor, including child trafficking. (4,9,19,61) The Nepal Police do, however, collect and disaggregate data related to human trafficking cases, and reported 75 victims of child trafficking in Nepali fiscal year 2019/2020 (mid-July 2019 to mid-July 2020). (4)

The government does not publicly release information on its criminal law enforcement efforts. (4)

The government has established mechanisms to coordinate its efforts to address child labor (Table 8). However, gaps exist that hinder the effective coordination of efforts to address child labor, including efficacy in accomplishing mandates.

The Ministry of Labor, Employment, and Social Security also leads an inter-agency working group against child labor headed by a Joint Secretary, which coordinates efforts against child labor with UN agencies and international organizations working on child rights and child protection. (54)

The government has established policies related to child labor (Table 9). However, policy gaps exist that hinder efforts to address child labor, including updating existing policies to better align with the constitutional transition to federalism.

‡ The government had other policies that may have addressed child labor issues or had an impact on child labor. (2,4)

The fifteenth National Plan of Nepal (2019/20–2023/2024) has incorporated ending child labor as one of its objectives, including making necessary legal provisions to end all forms of child labor and increasing the target number of inspections conducted for child labor in each Nepali fiscal year. (4,73) In addition, the Ministry of Women, Children, and Senior Citizens has formulated the Child Development Strategy, aimed at targeted programs for children, including the elimination of child labor. (4)

There is a need to update the National Plan of Action on Combating Trafficking in Persons so that it better aligns Nepal's anti-trafficking programming with the constitutional transition to federalism, as well as to better address forced labor. (24,26)

Nepal is a Pathfinder country under Alliance 8.7, which calls for the eradication of child labor by 2025, and forced labor, modern slavery, and human trafficking by 2030. (4,74)

In 2020, the government funded and participated in programs that include the goal of eliminating or preventing child labor (Table 10). However, gaps exist in these social programs, including adequacy to address the problem in all sectors.

† Program is funded by the Government of Nepal.
‡ The government had other social programs that may have included the goal of eliminating or preventing child labor. (4)

The Ministry of Labor, Employment, and Social Security, with support from international NGOs, passed the "Child Labor Free Declaration Procedures for the Local Governments" to identify and declare at least 25 local jurisdictions "child labor free" in the Nepali fiscal year 2020/2021. These guidelines incorporated several indicators, including a child labor survey and programs at the local level to eliminate child labor. (4) Through this measure, the government set up an Emergency Fund at the national and local levels to rescue and rehabilitate vulnerable children. (4)

Also during the reporting period, the Government of Nepal published the Report on Employment Relationship Survey in the Brick Industry in Nepal, which was conducted in 2019 in partnership with the ILO, UNICEF, and the Central Bureau of Statistics of Nepal. The survey is the first nationally representative research conducted in the brick industry, providing information on the prevalence of child labor, forced labor, and bonded labor in the brick production sector. (15)

However, gaps exist in these social programs, including programs that support child victims of commercial sexual exploitation and children working in the production of bricks.

Based on the reporting above, suggested actions are identified that would advance the elimination of child labor in Nepal (Table 11).

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