Navigating the hiring landscape in Mongolia can be complex, but with the right insights, you can streamline your process. Discover how to compliantly hire top talent and manage your workforce effectively in this emerging market.
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Mongolia's economy is driven by mining, construction, and growing tech sectors, with Ulaanbaatar serving as the primary business hub. Understanding the local market dynamics and talent landscape is essential for successful expansion into this resource-rich nation.
From payroll cycles to leave policies, Mongolia's employment regulations have specific requirements that differ from other markets. This comprehensive guide breaks down the essential compliance details you need to hire and manage employees successfully.
Mongolia's national minimum wage is 420,000 MNT per month, effective as of 2024. This applies to all employees across the country, with no regional variations.
The minimum wage is typically reviewed annually by the government and adjusted based on economic conditions and cost of living changes.
Mongolia operates a progressive income tax system:
Annual Income (MNT) | Tax Rate |
---|---|
Up to 3,000,000 | 10% |
Above 3,000,000 | 25% |
Individuals are considered Mongolian tax residents if they:
Tax residents pay income tax on worldwide income, while non-residents pay tax only on Mongolian-source income.
Employers in Mongolia must contribute to social insurance and other mandatory funds:
Contribution Type | Employer Rate | Employee Rate |
---|---|---|
Social Insurance | 11.5% | 10.5% |
Health Insurance | Included in social insurance | Included in social insurance |
Unemployment Insurance | Included in social insurance | Included in social insurance |
Total Employer Cost | ~11.5% | 10.5% |
Note: Social insurance contributions are capped at maximum salary levels set annually by the government.
The standard working schedule in Mongolia is:
Certain industries and positions may have different arrangements, but these require specific approval and must comply with maximum hour limits.
Bonuses are not legally mandated but are common practice. When included in employment contracts or company policies, they become legally binding obligations.
Annual leave entitlement increases with tenure:
Years of Service | Annual Leave Days |
---|---|
0-5 years | 15 working days |
5-10 years | 18 working days |
10+ years | 21 working days |
Leave Type | Duration | Paid? | Funding Source |
---|---|---|---|
Annual Leave | 15-21 days | Yes | Employer |
Sick Leave | Up to 183 days | Yes | Social Insurance |
Maternity Leave | 120 days | Yes | Social Insurance |
Paternity Leave | 5 days | Yes | Social Insurance |
Bereavement | 3-7 days | Yes | Employer |
Family Emergency | Up to 5 days | No | N/A |
Termination With Cause:
Termination Without Cause:
Length of Employment | Notice Period |
---|---|
Less than 1 year | 30 days |
1-5 years | 45 days |
5+ years | 60 days |
Employers may provide payment in lieu of notice.
Severance requirements based on tenure:
Years of Service | Severance Pay |
---|---|
1-3 years | 1 month's salary |
3-5 years | 2 months' salary |
5+ years | 3 months' salary |
Termination is prohibited based on:
Mongolia observes numerous public holidays throughout the year:
Holiday | Date | Notes |
---|---|---|
New Year | January 1 | |
Tsagaan Sar | February/March | Lunar New Year (3 days) |
International Women's Day | March 8 | |
Mothers' and Children's Day | June 1 | |
Naadam Festival | July 11-13 | National holiday (3 days) |
Independence Day | November 26 |
Note: Tsagaan Sar dates vary annually based on the lunar calendar.
Step | Timeline |
---|---|
Job offer accepted | Day 0 |
Document collection | Days 1-3 |
Contract signing | Days 3-5 |
Social insurance registration | Days 5-7 |
Tax registration | Days 5-7 |
Payroll setup | Days 7-10 |
First day of work | Days 10-14 |
Mongolia distinguishes between employees and independent contractors:
Mongolian workplace culture emphasises:
Mongolia prohibits discrimination based on:
Note: Given the research discrepancies mentioned, please verify all regulatory details with current Mongolian labour law and consult with local legal experts before implementing any employment practices.
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