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Basic Economic Summary


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. 

Basic Information

  • Local Languages: Mongolian, Oirat and Buryat
  • Capital: Ulaanbaatar
  • Currency: Mongolian tögrög (MNT)
  • Population: 3.48 million (2022)
  • Date Format: dd/mm/yyyy

Useful Information

Local Universities

Top Local Universities

University Name Rankings
National University of Mongolia World University Rankings: 5102, Mongolia Rankings: 1
Mongolian University of Science and Technology World University Rankings: 6595, Mongolia Rankings: 2
Mongolian National University of Medical Sciences World University Rankings: 7934, Mongolia Rankings: 3
Mongolian State University of Education World University Rankings: 8774, Mongolia Rankings: 4
Khovd University World University Rankings: 9533, Mongolia Rankings: 5

Salary Data

Average Salary of Jobs (Per Month)

Job Title Average Salary (in MNT) Average Salary (in USD)
Financial Accountant 628,000 - 2,170,000 219.42 - 758.20
Software Engineer 1,010,000 - 2,830,000 352.90 - 988.81
Data Analyst 1,570,000 - 2,760,000 548.56 - 964.35
Sales Manager 1,870,000 - 5,240,000 653.38 - 1,830.86
Project Manager 1,260,000 - 3,890,000 440.25 - 1359.17

More information about average salaries in Mongolia can be found here.

Talent Sourcing Tips


Employer Payroll Tax

The employers are entitled to a compulsory payroll tax varying between 12.5% and 14.5%. The breakup for the payroll tax is:

Type of tax Tax Rate
Pension Insurance 8.5%
Benefit Insurance 1.0%
Health Insurance 2%
Industrial Accident Insurance 0.8% - 2.8%
Unemployment Insurance 0.2%
Total 12.5% - 14.5%

Employee Payroll Tax

All employees are charged an 11.5% payroll tax. The breakup is as follows:

Type of tax Tax Rate
Pension Insurance 8.5%
Benefit Insurance 0.8%
Health Insurance 2%
Industrial Accident Insurance 0%
Unemployment Insurance 0.2%
Total 11.5%

Employee Income Tax

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

Minimum Wage & Payroll

Minimum Wage

The minimum wage in Mongolia is MNT 420,000 (USD 148) per month.

Payroll Cycle

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.

Working Hours & Statutory Leave

Working hours

The working hours are usually limited to a 40 hrs weekly spread over 5 days.

Overtime pay

In Mongolia, overtime work and work on public holidays is usually paid at 1.5 times the normal wages.

Public Holidays

The list of public holidays in Mongolia can be found here.


Annual Paid Leave

All employees are bound to get 15 days of paid leaves annually.

Sick Leave

Employees are granted need based sick leave. There is no law specifying whether the employer is entitled to pay for sick leaves.

Parental Leave

  • Maternity Leave

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.

  • 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.

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 expiration of either the employer or employee
  • On 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 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.

Severance Pay

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

Probation period

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:

  1. pension insurance;
  2. benefit insurance;
  3. health insurance;
  4. industrial accident and occupational disease insurance;
  5. unemployment insurance.


Sales Tax in Mongolia is 10%

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