It is home to the famous Gobi Desert, one of the largest deserts in the world.
Payroll and Benefits Guide - Mongolia
Fun Facts
Mongolia is known for its skilled horse riders and has a long history of equestrian culture.
The Mongolian language uses the Cyrillic alphabet, which was adopted in the 1940s.
The traditional sport of Mongolian wrestling, known as “Bökh,”
Mongolia is rich in mineral resources, including coal, copper, and gold.
The “Naadam” festival is a major celebration held annually in Mongolia
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Pension Insurance | 8.5% |
| Benefit Insurance | 1.0% |
| Health Insurance | 2.0% |
| Unemployment insurance | 0.2% |
Employer Payroll Tax
| Contribution Type | Rate |
| Pension Insurance | 8.50% |
| Benefit Insurance | 1.00% |
| Health Insurance | 2.00% |
| Industrial accident and occupational disease insurance | 0.80% to 2.80% |
| Unemployment insurance | 0.20% |
Payroll
Payroll Cycle
The payroll cycles is monthly.
13th Salary
There are no provisions in the law regarding 13th salaries.
Work Hours and Week
A standard full-time working week in Mongolia consists of 40 hours per week or 8 hours per day.
Overtime
Any working hours that exceed the standard working hours are considered overtime and are governed by employment contracts, collective agreements, or other relevant arrangements.
Leave
Paid Time Off
Employees are entitled to 15 days of paid annual leave. For employees under the age of 18, the entitlement is 20 days.
Public Holidays
Public holidays that fall on the weekend are usually lost.
Sick Days
Employees are entitled to sick leave for the duration of the illness, sick leave is unpaid.
Maternity Leave
In Mongolia, pregnant employees are entitled to receive 120 days of maternity leave. The leave period is divided into two parts: 60 days must be taken before the birth of the child, and the remaining 60 days are taken after the birth.
Eligible employees, who have made at least twelve social security contributions with a minimum of six monthly contributions in the six months leading up to taking maternity leave, receive payments through Mongolia’s social insurance program.
The payment amounts to 70% of the employee’s average salary and income over the last 12 months.
Paternity Leave
Under the new labor law, a father with a newborn is entitled to a minimum of 10 working days of paid leave, and the payment during this period is equivalent to the average salary.
Parental Leave
Childcare leave is available to mothers and single fathers who have children under three years old. During this period, the employer is responsible for making social insurance payments on behalf of the employee.
Termination
Termination Process
Mongolia differentiates between employment agreements and employment contracts, each with distinct conditions and requirements for termination.
Notice Period
The statutory notice period in Mongolia is 30 days for both the employee and employer.
Severance Pay
In Mongolia, severance pay amounts to one month’s wages under specific circumstances, such as when termination occurs due to the employee’s military duty, liquidation of the business, or when the employee reaches retirement age.
Probation Period
Probation Period
The maximum length of probation is generally three months.
Immigration
On December 24, 2021, the Parliament of Mongolia passed the Labour Migration Law (LML), which is set to be effective from July 1, 2022. With the implementation of the LML, the preceding law, the Law on Sending Labour Force Abroad and Receiving Labour Force and Specialists From Abroad, which was enacted on April 12, 2001, will no longer be in force.
Under the LML, employers are required to apply for a work permit on behalf of a foreign employee after receiving permission to invite them. The application is submitted to the labor authority, which then issues a work permit to the foreign employee. The work permit’s duration can be up to one year, depending on the job position and terms of the employment agreement.
For Work Permits
Mongolia has introduced the Labor Migration Law (LML) that came into effect on July 1, 2022, replacing the previous law related to the employment of foreign workers.
VAT
The Standard rate of VAT in Mongolia is 10.00%.