In Mongolia, employers are legally required to provide certain benefits to their employees. These benefits fall into two main categories: social security contributions and paid leave and time off.

Social Security Contributions

Mongolia's social security system provides benefits such as pension, disability, and unemployment insurance. Both employers and employees are required to contribute to this system. Contribution rates are determined by the Social Insurance Law of Mongolia and can vary depending on the industry. Currently, employer contribution rates range from 12.5% to 14.5%, while employee contribution rates are 11.5% of their salary.

The benefits provided through social security contributions include:

• Pension: Provides income after retirement.
• Disability Insurance: Offers financial support in case of disability.
• Unemployment Insurance: Provides temporary financial assistance to unemployed individuals.

Paid Leave and Time Off

Mongolian labor law mandates a variety of paid leave and time off for employees.

• Annual Leave: Employees are entitled to a minimum of 15 days of paid annual leave after six months of service. This entitlement increases with the length of service, up to a maximum of 29 days for employees with 32 or more years of service. Employees under 18 years old receive 20 days of annual leave. Unused annual leave can be compensated financially if not taken due to urgent business needs. New employees are entitled to annual leave starting from the 7th month of employment.

• Public Holidays: Employees receive paid leave for all national holidays.

• Sick Leave: Employees are entitled to paid sick leave, with the specific details usually outlined in the employment contract.

• Maternity Leave: Female employees are entitled to 126 days of paid maternity leave, with an additional 30 days of unpaid leave if needed.

• Other Leave: Additional leave may be mandated by law or included in the employment contract, such as parental leave or childcare leave.

In Mongolia, many employers offer additional perks to attract and retain top talent, going beyond the strong foundation of employee benefits mandated by law.

Health and Wellness Benefits

Employers might offer supplemental health insurance plans that go beyond the basic coverage provided by social security. This can cover additional medical services, dental care, or vision insurance. Some companies may promote employee well-being by offering on-site fitness facilities, gym memberships, or health screenings.

Financial Benefits

Employers may provide daily or monthly meal allowances to offset employee lunch expenses. To ease commuting burdens, employers might offer transportation allowances or subsidies for public transportation or fuel costs. Financial incentives are a common way to motivate employees and reward high performance. These can be based on individual or team achievements. Some companies share a portion of their profits with employees, fostering a sense of ownership and engagement.

Work-Life Balance Benefits

Modern companies may offer flexible work schedules, remote work options, or compressed workweeks to enhance work-life balance for employees. Offering more paid vacation days, personal leave days, or paid sick leave beyond the legal minimum can be a significant perk.

Family-Friendly Benefits

Employers might provide financial assistance towards childcare costs or on-site childcare facilities to support working parents. Some companies offer extended parental leave beyond the mandated period, allowing more time for employees to care for newborns or newly adopted children.

Other Potential Perks

Companies may invest in employee development by offering training programs, conference attendance, or tuition reimbursement. Offering life insurance can provide financial security for employees' families. Companies may foster a positive work environment by organizing social events, team-building activities, or recreational programs.

This list is not exhaustive, and the specific benefits offered by employers in Mongolia will vary depending on the company size, industry, and overall benefit strategy.

In Mongolia, health insurance coverage is mandatory for all nationals, foreigners, and stateless persons employed within the country. This health insurance is facilitated through a social security system, which is funded by obligatory contributions from both employers and employees.

Employee Health Insurance Details

The mandatory health insurance program in Mongolia covers a variety of medical services. These include inpatient and outpatient care, emergency services, maternity care, and certain medications.

Employer Contributions

Employers are obliged to contribute a percentage of their employee's salary to social health insurance. The current rates for these contributions range from 12.5% to 14.5%.

Employee Contributions

Employees also contribute a portion of their salary to social health insurance. The current rate for these contributions is 11.5%.

Supplemental Health Insurance

In addition to the social health insurance, employers may offer private health insurance plans to their employees. These supplemental plans can provide additional benefits that are not covered by social security. These benefits can include coverage for a wider range of medical services, reduced wait times for treatment, private hospital room options, and dental and vision care.

Mongolia offers a two-tiered retirement system, with the specific plan an employee falls under depending on their date of birth.

Defined Benefit (DB) Pension Scheme (Pre-1960)

• Eligibility: This plan applies to employees born before January 1, 1960.
• Benefits: The DB scheme provides a retirement benefit based on a percentage of the employee's final salary and their total years of contributions.
• Funding: The DB scheme is funded by the Mongolian government with some financial assistance from employer contributions.

Notional Defined Contribution (NDC) Pension Scheme (Post-1960)

• Eligibility: This plan applies to employees born after January 1, 1960.
• Benefits: The NDC scheme is an individual account system where retirement benefits are based on the amount of money accumulated in the employee's individual account throughout their working career. This amount depends on employee and employer contributions, as well as investment returns.
• Funding: The NDC scheme is funded by mandatory contributions from both employers and employees. The current contribution rate for employees is 11.5% of their salary, with employers contributing a rate between 12.5% and 14.5%.

Important Considerations

• Minimum Pension: Both schemes have minimum pension requirements to qualify for benefits. These requirements are subject to change, so it's advisable to consult Mongolian government resources for the latest information.
• Retirement Age: The official retirement age in Mongolia is 60 years old for men and 55 years old for women. However, individuals can choose to retire earlier with a reduced pension benefit.

Additional Considerations

• Voluntary Pension Plans: Some employers may offer voluntary pension plans that allow employees to save additional funds for retirement on a pre-tax basis.
• Pension Reform: The Mongolian pension system is undergoing ongoing reform to ensure its long-term sustainability. It's recommended to stay updated on any changes that may impact future benefits.