Minimum Wage

General

The monthly minimum wage is 420,000.00 MNT.

Payroll

Payroll Cycle

The payroll cycle in Mongolia is monthly, and salaries must be paid by the 5th of the following month; however, wages are typically paid between the 25th and last day of the month.

13th Salary

There are no provisions in the law regarding 13th salaries.  

Working Hours

General

A standard full-time working week in Mongolia consists of 40 hours per week or 8 hours per day; employees are entitled to two consecutive days of rest, generally Saturday and Sunday.

Overtime

All working hours beyond standard working hours are to be paid as overtime and are regulated by employment contract/collective agreements etc. Overtime must be agreed upon before the commencement of any overtime working hours.

Overtime is paid at 150.00% of the basic salary rate and at 200.00% of the basic salary if an employee works on a public holiday.

Time off in lieu of overtime work completed may be offered as an alternative to financial compensation. Employees who work at night are entitled to additional pay, which is determined by a collective agreement.

Working Week

Monday-Friday

Leave

Paid Time Off

Employees are entitled to 15 days of paid annual leave.  For employees under the age of 18, the entitlement is 20 days.

Depending on the length of employment, employees are entitled to additional annual leave days:

• 6-10 years of employment: 3 working days
• 11-15 years of employment: 5 working days
• 16-20 years of employment: 7 working days
• 21-25 years of employment: 9 working days
• 25-31 years of employment: 11 working days
• 32 years or more: 14 working days

Public Holidays

There are 15 public holidays.  

Sick Days

Employees are entitled to sick leave for the duration of the illness.  

Maternity Leave

Pregnant employees are entitled to receive 120 days of maternity leave. The maternity leave must begin 60 days before the birth of the child with the remaining 60 days taken after the birth.

Eligible employees, those who have made at least twelve social security contributions with at least 6 monthly  contributions in the six months prior to taking maternity leave, receive payments through Mongolia’s social insurance program equivalent to 70.00% of the average salary and income over the last 12 months.

An adopting mother is entitled to equal leave as a mother who gives birth to a child up to the child reaching 60 days. This law equally applies to single fathers with a new-born child.

Paternity Leave

There is no statutory paternity leave; however, single fathers are entitled to equal leave as a mother who gives birth to a child until the child reaches 60 days old.

Parental Leave

Childcare leave is granted to mothers and single fathers with children under three years old. During this leave, the employer is responsible for making social insurance payments on the employee’s behalf.

Other Leave

There is no other statutory leave in Mongolia.

Termination

Termination Process

Mongolia makes a distinction between employment agreements and employment contracts. The conditions and requirements for terminating an agreement or a contract vary.

An employment agreement can be terminated under the following circumstances:

• By mutual agreement of the employer and employee
• Upon the death of either the employer or employee
• Expiration of the employment agreement without extension
• If required by law
• An improperly dismissed employee is reinstated to the position (the displaced employee must be provided with another job if possible)
• The employee is called to active military service.
• A court sentences the employee to a punishment that prevents the employee from working.
• At the initiative of either the employer or employee

An employee generally must provide 30 days of notice to an employer unless otherwise agreed.

An employer can terminate an employment agreement for the following reasons:

• The business is liquidated.
• The employee does not meet the job requirements because of a lack of professional qualifications, skills, or health reasons.
• The employee has reached retirement age and is eligible for a pension.
• The employee has repeatedly violated the employer’s disciplinary rules or has committed a severe violation.
• The employee breaches fiduciary responsibility.
• The employee gets another job.
• Other grounds established in the agreement

Notice Period

The statutory notice period in Mongolia is 30 days for both the employee and employer.

Severance Pay

Severance pay is one month’s wages if the termination is due to the employee’s military duty, liquidation of the business or an employee reaches retirement age.

Probation Period

The maximum length of probation is generally three months.

VISA

VISA

On 24 December 2021, the Parliament of Mongolia passed the Labour Migration Law (the “LML”) effective from 01 July 2022. The LML, once effective, its preceding law, the Law on Sending Labour Force Abroad and Receiving Labour Force and Specialists from Abroad (12 April, 2001) shall no longer be in force.

Employers are required to submit an application for a work permit of a foreign employee on behalf of the employee to the Labour Authority after they are permitted to invite the foreign employee. The Labour Authority issues a work permit to the foreign employee for up to one year subject to the job position and term of the employment agreement. The detailed procedure for granting work permits shall be approved by the Ministry of Labour and Social Protection.

The work permit shall specify the full name and nationality of the foreign employee, the name of the employer, the workplace location, and validity period of the work permit.

Extension of a work permit of a foreign employee:  A work permit granted to a foreign employee can be extended subject to applicable regulations. The continuous employment of a foreign employee in an assistant position in Mongolia shall not exceed a period of 5 years.

VAT

General

The Standard rate of VAT in Mongolia is 10.00%.