Talent Wiki – Mongolia

Your quick guide on talent and labor compliance norms in Mongolia

Capital

Ulaanbaatar

Currency

Mongolian tögrög (MNT)

Languages

Mongolian, Oirat, and Buryat

Payroll Frequency

Monthly

GDP per Capita

$4,977.09

Employer Tax

12.5% - 14.5%

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 in Mongolia are as follows:

National University of Mongolia

RANKING

Local: 1

World: 3586

Mongolian University of Science and Technology

RANKING

Local: 2

World: 4886

Mongolian National University of Medical Sciences

RANKING

Local: 3

World: 8172

University of Finance and Economics

RANKING

Local: 4

World: 8256

Mongolian University of Life Sciences

RANKING

Local: 5

World: 8586

Salary Data

Below listed are the average salaries in Mongolia:

Job Title Average Monthly Salary (MNT) Average Monthly Salary (USD)
Financial Accountant 1,300,000 MNT 377 USD
Software Engineer 1,870,000 MNT 542 USD
Data Analyst 1,720,000 MNT 498 USD
Sales Manager 3,470,000 MNT 1,006 USD
Project Manager 2,120,000 MNT 614 USD

Talent Sourcing Tips

Top Local Job Boards:

Job Island, Mongolia Talent Network

Number of LinkedIn users:

275,900

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
1 Jan New Year Public Holiday
10 Feb Tsagaan Sar Public Holiday
11 Feb Tsagaan Sar Holiday Public Holiday
12 Feb Tsagaan Sar Holiday Public Holiday
8 Mar International Women’s Day Public Holiday
23 May Great Buddha Day Public Holiday
1 Jun Children’s Day Public Holiday
11 Jul Naadam (National Day) Public Holiday
12 Jul Naadam Holiday (National Day Holiday) Public Holiday
13 Jul Naadam Holiday (National Day Holiday) Public Holiday
14 Jul Naadam Holiday (National Day Holiday) Public Holiday
15 Jul Naadam Holiday (National Day Holiday) Public Holiday
16 Nov Genghis Khan Day Public Holiday
26 Nov Republic’s Day Public Holiday
29 Dec Independence Day Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 15 days of leaves per annum. Yes 
Sick Leave As per requirement Yes
Maternity Leave 120 days Yes
Paternity Leave 120 days, the employee must be a single father of a child under three years of age Yes

 

Payroll

Payroll Cycle

The payroll cycle in Mongolia is monthly.

Minimum Wage

The minimum wage in Mongolia is MNT 550,000.00 per month.

Overtime Pay

The overtime pay is generally 1.5 times the normal pay.

Bonus

13th Month Pay:

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

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:

Value Added Tax in Mongolia is 10%.

Offboarding & Termination

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

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

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.

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration