Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Mongolia

Your quick guide on talent and labor compliance norms in Mongolia
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Capital
Ulaanbaatar
Currency
Mongolian tögrög (MNT)
Languages
Mongolian, Oirat, and Buryat
Payroll Frequency
Monthly
GDP per Capita
$5,205.96
Employer Tax
12.5% - 14.5%

Supplementary Guide for Employment and Expansion in Mongolia

Talent Overview

Mongolia or Mongol Nation is a country in South Asia that shares boundaries with China and Russia. The country holds a population of 3.3 Million; it is the world’s most scarcely populated sovereign nation. While Agriculture has been the primary source of income for most Mongolians, industries such as coal, copper, tin, etc., have been emerging.

Major Economic Hubs:

Ulaanbaatar, Erdenet, Darkhan

Skills in Demand:

Manufacturing, Construction, Mining

Local Universities

The top local universities of Mongolia with world rank are:

National University of Mongolia

RANKING

Mongolia : 1

World : 4504

Mongolian University of Science and Technology

RANKING

Mongolia : 2

World : 6064

Mongolian National University of Medical Sciences

RANKING

Mongolia : 3

World : 8769

University of Finance and Economics

RANKING

Mongolia : 4

World : 8923

Mongolian University of Life Sciences

RANKING

Mongolia : 5

World : 9441

Salary Data

Job Title Average Monthly Salary (MNT) Average Monthly Salary (USD)
Financial Accountant 1,300,000 MNT 405.74 USD
Software Engineer 1,870,000 MNT 583.64 USD
Data Analyst 1,720,000 MNT 536.83 USD
Sales Manager 3,470,000 MNT 1083.02 USD
Project Manager 2,120,000 MNT 661.67 USD

Talent Sourcing Tips

Top Local Job Boards

Job Island, Mongolia Talent Network, World Vision

Number of LinkedIn Users

229,300

Top Recruitment Agencies

indeed, Uni Agents

Employing in Mongolia

In order to onboard an individual, the employer must know about the labor laws, statutory benefits, leaves, and allowances. Below listed are the key points an employer must keep in mind while seeking employees in Mongolia.

Employee Contract

The employer must draft the employment contract in the local language, Mongolian. The employer must mention all the necessities along with the duties and responsibilities of the individual. The contract must mention leaves and bonuses provided to the employee.

Probation Period

The probationary period for employees in Mongolia is up to three months.

Public and Provincial Holidays

Date Name Type
1st January New Year’s Day Public Holiday
1st February Lunar New Year’s Day Public Holiday
2nd February Lunar New Year’s Day Public Holiday
3rd February Lunar New Year’s Day Public Holiday
8th March International Women’s Day Public Holiday
16th May Great Buddha Day Public Holiday
1st June Children’s Day Public Holiday
11th July Nadaam Holiday Public Holiday
12th July Nadaam Holiday Public Holiday
13th July Nadaam Holiday Public Holiday
14th July Nadaam Holiday Public Holiday
15th July Nadaam Holiday Public Holiday
26th November Republic Day Public Holiday
29th December Independence Day Public Holiday

Payroll

Payroll Cycle

The payroll cycle in Mongolia is monthly.

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Minimum Wage

The minimum wage in Mongolia is MNT 420,000 per month for 18 years of age and above.

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Overtime pay

The overtime pay is generally 1.5 times the normal pay.

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Health Examination Clause

Bonus

13th Month Pay

There is no statutory law for 13th Month pay in Mongolia.

Employee Benefits

Annual Paid Leave:

15 days of leaves per annum.

Sick Leave:

Employees are entitled to need-based sick leaves. There is no law specifying whether the sick leaves are paid or unpaid.

Maternity Leave:

120 days of maternity leave.

Paternity Leave:

A male employee is entitled to a 120-day leave period if he is a single father in order to take care of a child under three years of age.

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Taxes

Employer Payroll Tax

Type Of Tax Rate
Pension Insurance 8.5%
Benefits Insurance 1%
Health Insurance 2%
Industrial Accident Insurance 0.8% - 2.8%
Unemployment Insurance 0.2%

Employee Payroll Tax

Type Of Tax Rate
Pension Insurance 8.5%
Benefits Insurance 1%
Health Insurance 2%
Unemployment Insurance 0.2%

Employee Income Tax

All employees are charged at a flat rate of 10%, irrespective of their income. Employees are given a tax credit of MNT 84,000 per year. Flat 20% tax rate for the non-resident individual irrespective of the income. 

VAT

Sales tax in Mongolia is 10%

Offboarding & Termination

Termination Process

An employment contract may be terminated on the following grounds:

  • ~By mutual consent of the employer and employee to terminate the contract
  • ~On the expiration of either the employer or employee
  • ~On the expiration of the employment contract and in the event of the parties not wanting to extend the contract
  • ~If it is demanded by law to terminate the contract
  • ~In the event of an employee being called for active duty in the army
  • ~In the event of the employee being charged against and crime and the employer is restricted by law to hire that employee
  • ~On the initiative to terminate the contract by either the employer or the employee

Notice Period

The notice period before termination for regular and probationary employees starts with 30 days.

Severance Pay

Employees are entitled to a dismissal compensation of an amount roughly equal to the employees’ average compensation for one month.

Visa and Immigration

The visa process is initiated by the Mongolian employer and approved by the Mongolia Immigration agency. The individual can only apply if there is a employment contract from the employer mentioning all the details of the work and services.

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