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Capital City
Ulaanbaatar
Currency
Mongolian tögrög
(
₮
)
Timezone
GMT +8
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
12.5%- 14.5%
Languages
Mongolian
Capital City
Ulaanbaatar
Currency
Mongolian tögrög
(
₮
)
Timezone
GMT +8
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
12.5%- 14.5%
Languages
Mongolian
Over the past three decades, Mongolia's transition to a democracy has resulted in a threefold increase in its GDP per capita, accompanied by notable achievements in poverty reduction over the last ten years.
The abundant agricultural, livestock, and mineral resources, coupled with a well-educated population, position Mongolia optimistically for long-term development through the implementation of structural reforms.
The growth of the Mongolian economy is predominantly fueled by the ongoing recovery in mining production and services. This momentum is further supported by the easing of border restrictions, the commencement of the Oyu Tolgoi underground mining phase, resurgence in household consumption, and substantial public investments.
Projections indicate that Mongolia's economy is poised to grow by 6.2% in 2024 and 6-8% in 2025, driven by the robust expansion of the mining sector, the recovery of private consumption, and fiscal expansion.
Businesses can only operate smoothly in Mongolia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Mongolia below, to avoid any compliance issues.
According to the Mongolian Labour Law, employees should receive a written employment agreement within 10 days of starting their employment. These agreements are generally considered indefinite, except for cases like apprenticeships, probationary work, or temporary employment. Employment contracts are required to include essential details such as:
We can help you get a new employee started in Mongolia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.
For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
In Mongolia, the standard work week consists of 40 hours, distributed over 8 hours per day, and should not exceed 56 hours per week according to the New Labour Law. Employees are entitled to 2 consecutive rest days, commonly scheduled on Saturday and Sunday.
In Mongolia, overtime, regulated by employment contracts or collective agreements, is compensated at 150% of the regular salary rate and rises to 200% for public holidays. Time off may be provided instead of payment. According to the New Labour Law, the maximum daily overtime should not exceed 4 hours.
In Mongolia, the typical maximum duration of a probationary period is three months.
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1 January - 31 December is the 12-month accounting period that businesses in Mongolia use for financial and tax reporting purposes.
The payroll cycle in Mongolia is usually monthly, with employees being paid between the 25th and last day of the month.
The minimum wage for employees in Mongolia is typically 3,437.50 MNT per hour, amounting to ~550,000 MNT per month for a typical 40 hour work week.
The law in Mongolia does not include provisions regarding 13th-month salaries.
Employer payroll contributions are generally estimated at an additional 12.5%- 14.5% on top of the employee salary in Mongolia.
In Mongolia , the typical estimation for employee payroll contributions cost is around 11.7%.
In Mongolia, the individual tax rate is a flat 10%.
Every elderly individual in Mongolia is entitled to receive a pension. The Mongolian old-age pension system comprises both social insurance and social welfare pension schemes. Social welfare pensions are designed to offer a minimum income security net for those who do not qualify for a social insurance pension.
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The annual leave entitlement in Mongolia is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
In Mongolia, employees are entitled to paid holidays during festival holidays, which encompass both memorial holidays and religious holidays of Christian origin. The 9 public holidays in Mongolia are:
In Mongolia, employees are entitled to 15 days of paid annual leave, while those under 18 have a right to 20 days. The number of additional annual leave days depends on the length of employment:
In Mongolia, pregnant employees are granted 120 days of maternity leave: 60 days before and 60 days after the birth.
Those with a minimum of 12 social security contributions and 6 monthly contributions in the 6 months preceding the leave can receive payments equal to 70% of their average salary through Mongolia's social insurance program. Adopting mothers also receive an equivalent leave until the child is 60 days old.
Under the New Labour law, fathers with a newborn in Mongolia are entitled to a minimum of 10 working days of paid leave, with the compensation being equal to the average salary for the corresponding period.
Employees in Mongolia are entitled to sick leave for the duration of their illness, and sick leave is typically unpaid.
In Mongolia, mothers and single fathers with children under 3 years old are entitled to childcare leave. During this period, the employer is responsible for making social insurance payments on behalf of the employee.
In Mongolia, contracts can be terminated by either party with or without cause. However, employers are generally expected to provide reasonable cause for termination.
The statutory notice period for both employees and employers is 30 days.
In Mongolia, severance pay is equivalent to one month's wages in cases of termination due to the employee's military duty, business liquidation, or when an employee reaches retirement age.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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