The paper examines the impact of domestic remittances on the labour supply of male and female household members in both market and non‐market work. After controlling for the selectivity of migration and endogeneity of domestic remittances using the instrument variable approach, estimates show that the supply of male and female left‐behind members in market work decreases with the inflow of remittances. Domestic remittances do not affect the participation of left‐behind members in regular salaried work and the relocation of labour occurs from decline in casual wage work and unpaid family work to increase in self‐employment activities especially among female members. Additionally, the remittance inflow significantly increases the participation of female left‐behind members in domestic duties. The disaggregation of sample in different age groups did not affect the general findings of the study.