The literacy rate among children aged 6-14 is as high as 63.2 per cent. Agricultural sector is identified as the largest sector absorbing child labour in Nepal. Children working in this sector are generally involved in collecting fodder and firewood, animal care, weeding, planting and harvesting. Children working in this sector generally work as unpaid family workers to provide help to their seniors in domestic and farm works. It is indicated that female children are more involved in such agricultural as well as other domestic works such as looking after siblings, fetching water, preparation of meals and other household related works.
Children are also at work in service sectors especially in urban areas.
Unlike the children working in agricultural sectors, children working in this sector are generally directly paid or can earn some money. Studies have shown that children working in the agricultural sector are severely underpaid for their relatively long hours of work. Child labour in Nepal is not a new phenomenon. The child labour situation in Nepal is said to be worsening as development activities are getting expanded. Migration of children to urban areas for employment is aggravating the child labour situation in the urban areas of Nepal.