Due to Mongolia’s vast agricultural, livestock, and mineral resources, and an educated population, the country has tripled its GDP per capita since 1991. The country’s moderately free economy was brought about by its transition from a closed single-party Communist state into a dynamic multiparty democracy. This has improved Mongolia’s financial ties with the U.S.A, Japan, and the European Union and has attracted more foreign investors to the country.
More information about average salaries in Mongolia can be found here.
The employers are entitled to a compulsory payroll tax varying between 12.5% and 14.5%. The breakup for the payroll tax is:
All employees are charged an 11.5% payroll tax. The breakup is as follows:
All employees are charged at a flat rate of 10% irrespective of their income. However, employees are given a tax credit of MNT 84,000 per year
The minimum wage in Mongolia is MNT 420,000 (USD 148) per month.
The payroll cycle followed is bimonthly or at fixed dates. This may vary depending on the employment contract and may also be hourly, daily or weekly.
13th month salary
Generally employers are supposed to pay their employees a bonus based on their performance but there is no law specifying about the amount of such bonus payments.
The working hours are usually limited to a 40 hrs weekly spread over 5 days.
In Mongolia, overtime work and work on public holidays is usually paid at 1.5 times the normal wages.
The list of public holidays in Mongolia can be found here.
All employees are bound to get 15 days of paid leaves annually.
Employees are granted need based sick leave. There is no law specifying whether the employer is entitled to pay for sick leaves.
Female employees are entitled to 120 days of maternity leave. This leave can also be entitled by an employee on account of adoption of a newborn child until the child has reached 60 days of age.Such a leave is also allowed to mothers until their child reaches the age of three years.
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.
An employment contract may be terminated on the following grounds:
The employment contract can be terminated by an employee by giving a notice 30 days before they plan to terminate the contract, unless otherwise specified in the contract. The same applies when the termination process is initiated by the employer.
Employees are entitled to a dismissal compensation of an amount roughly equal to the employees’ average compensation for one month.
The maximum period for probation in Mongolia is 6 months.
Mongolia offers social insurance for its citizens, particularly employees, to have basic coverage in cases of accidents, retirement, unemployment, etc. The types of social insurance are as follows:
Sales Tax in Mongolia is 10%