Guide to employment, payroll and benefits in

Mongolia

Rivermate offers complete payroll, benefits and compliance services for

Mongolia

01. Overview

Last updated: 

August 19, 2021

Currency
Mongolian Tugrik
Capital
Ulaanbaatar
Ease of doing business
67.8
Language
Mongolian
Population
3278290
GDP growth
5.30%

02. Grow your team in

Mongolia

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Mongolia

, particularly if you don't have established local relationships. You can hire employees in

Mongolia

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Mongolia is an East Asian landlocked republic. It is bordered on the north by Russia and on the south by China, where it shares a border with the Inner Mongolia Autonomous Region. Mongolia does not share a border with Kazakhstan, despite the fact that the two countries are just 37 kilometers apart. With a population of just 3.3 million people and a land area of 1,564,116 square kilometers, it is the world's most sparsely populated sovereign country. Mongolia is the world's largest landlocked nation without a closed sea and has very little arable land, with mountains to the north and west and the Gobi Desert to the south. The capital and largest city, Ulaanbaatar, is home to approximately half of Mongolia's population. Various nomadic empires have ruled over modern-day Mongolia, including the Xiongnu, the Xianbei, the Rouran, the First Turkic Khaganate, and others. In 1206, Genghis Khan founded the Mongol Empire, which grew to be the world's largest contiguous land empire. Kublai Khan, his grandson, conquered China and founded the Yuan dynasty. With the exception of the eras of Dayan Khan and Tumen Zasagt Khan, the Mongols withdrew to Mongolia after the Yuan's fall and revived their earlier pattern of factional strife. Tibetan Buddhism spread to Mongolia in the 16th century, aided by the Manchu-founded Qing dynasty, which absorbed Mongolia in the 17th century. By the early twentieth century, Buddhist monks made up about a third of the adult male population. Mongolia declared independence after the Qing dynasty fell apart in 1911, and gained full independence from the Republic of China in 1921. The nation was soon made a satellite state of the Soviet Union, which had helped it gain independence from China. The Mongolian People's Republic was founded as a socialist state in 1924. Mongolia held its own nonviolent democratic movement in early 1990, following the anti-Communist revolutions of 1989. This resulted in the establishment of a multi-party system, the adoption of a new constitution in 1992, and the transition to a market economy. Around 30% of the population is nomadic or semi-nomadic, and horse culture is still very important. The majority religion is Buddhism, with the nonreligious making up the second largest party. The second-largest religion is Islam, which is mostly practiced by ethnic Kazakhs. The majority of people are ethnic Mongols, with Kazakhs, Tuvans, and other minorities accounting for about 4% of the population, mostly clustered in the west. Mongolia is a member of the UN, the Asia Cooperation Dialogue, the G77, the Asian Infrastructure Investment Bank, the Non-Aligned Movement, and NATO. It became a member of the World Trade Organization in 1997 and is looking to increase its involvement in international economic and trade organizations.

04. Public holidays

05. Types of leave

Paid time off

Employees are given 15 days of paid annual leave per year to begin with, with the number of days increasing with years of service.

Public holidays

New Year’s DayLunar New YearInternational Women’s DayMother and Child DayNaadamDay of the Proclamation of the People’s RepublicMongolian People’s Revolution

Sick days

Employees are entitled to as much sick time as they require.

Maternity leave

Maternity leave is granted to female employees for 120 days. It begins 60 days before the child's birth and concludes 60 days after the child's birth. Mongolia's social insurance scheme provides payouts to eligible employees. Employees are eligible for benefits if they have made at least 12 contributions in the six months before to taking maternity leave, and those contributions have been continuous. Employees who qualify earn 70% of their average wage and income for the previous 12 months.

Paternity leave

Male employees do not receive paternity leave.

Parental leave

Mothers and single dads with children under the age of three are entitled to childcare leave. During this time off, the employer is responsible for paying the employee's social insurance.

Other leave

06. Employment termination

Termination process

Mongolia makes a distinction between collective bargaining agreements and collective bargaining contracts. Termination conditions and requirements differ according to the type of agreement or contract. An employment agreement may be terminated in the following circumstances: by mutual agreement of the employer and employee; upon the death of either the employer or employee; upon the expiration of the employment agreement without extension; if required by law; an improperly dismissed employee is reinstated to the position (the displaced employee must be provided with another job if possible); the employer and employee mutually agree; the employer and employee mutually agree; the employer and employee mutually agree; the employer and employee mutually agree; the employer and employee mutually agree. Unless otherwise agreed, an employee must offer 30 days' notice to an employer.


Employers may terminate employment agreements for the following reasons: the business is liquidated; the employee does not meet the job requirements due to a lack of professional qualifications or skill, or due to health reasons; the employee has reached retirement age and is eligible for a pension; the employee has repeatedly violated the employer's disciplinary rules or committed a serious offense.

Notice period

Unless otherwise agreed, an employee must provide 30 days notice to an employer.


Employers must provide 30 days' notice to employees who are terminated due to the business's liquidation or inability to fulfill job requirements. Employers must give 24 days' notice to an employee's representative, such as a union, if they are dismissing an employee due to the business's dissolution.

Severance pay

Severance pay is one month's wages if the employee is terminated due to military duty, the business's liquidation, or the employee reaches retirement age.

Probation period

In Mongolia, probationary periods of up to six months are allowed.

07. Working hours

General

The typical workweek is 40 hours, with an eight-hour workday. Employees are entitled to two days of rest in a row, which are typically Saturday and Sunday.

Overtime

On a regular day, overtime is paid at 150 percent of the basic rate; however, if an employee works on a public holiday and is not given another day off, overtime is paid at 200 percent of the basic rate.


Employees who work nights are entitled to overtime compensation, as determined by a collective bargaining agreement.

08. Minimum wage

General

The minimum monthly salary is 420,000.00 MNT.

09. Employee benefits

General

Healthcare is usually financed by the government, although depending on the treatment, people may be required to make co-payments.

Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Mongolia

to hire a team takes time, money, and effort. The labor law in

Mongolia

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Mongolia

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Mongolia

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Mongolia

via our Employer of Record / PEO solution.

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