How to hire and pay EMPLOYEES IN

Mongolia

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Before hiring

EMPLOYEES IN
Mongolia

Before hiring employees in Mongolia, there are a few important things you’ll need to know. Firstly, overtime work beyond regular hours or on weekly rest days is paid at the rate of one and a half times (or more) of an employee’s average salary. In Mongolia, overtime work can also be compensated with additional rest days. 

It’s also important for employers to know that in Mongolia, all employees pay a flat rate income tax of 10%.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform. 

Get an overview of what you need to know when hiring in Mongolia below.

At a Glance

CURRENCY

MNT

OFFICIAL LANGUAGE

MONGOLIAN

PAYROLL FREQUENCY

MONTHLY

PUBLIC HOLIDAYS

9

(based on region;
see here
)

EMPLOYER TAXES

13.5% TO 14.5%

of gross salary

13th / 14th SALARY

N/A

Good to know

  • Employers can only terminate employment contracts on grounds of redundancy, liquidation of business, or worker incompetence and inability. An employee terminated under these grounds is eligible for a severance pay in an amount equal to at least their average salary for one month.
  • There is no limit on the number of sick leave days to which employees are entitled.
  • Paid vacation entitlement in Mongolia increases with length of service, reaching a maximum of 29 days in a year for employees with over 32 years of service.

Employment in

Mongolia

Working hours and overtime

Employees in Mongolia work eight hours per day, five days a week. 

Overtime work beyond regular hours or on weekly rest days is paid at the rate of one and a half times (or more) of an employee’s average salary. Overtime work can also be compensated with additional rest days.

Employment contracts
Probationary period

The probationary period in Mongolia is a maximum of three months. 

Pensions
Notice period

Notice periods in Mongolia are 30 days.

Employment cost calculator

Holidays

01 Jan

New Year's Day

11 Jul to 18 Jul

Naadam Holiday

12 Feb to 14 Feb

Lunar New Year

26 Nov

Chinggis Khaan's Birthday

08 Mar

International Women's Day

26 Nov

Republic Day

26 May

Buddha Day

29 Dec

Independence Day

01 Jun

Children's Day

01 Jan

New Year's Day

12 Feb to 14 Feb

Lunar New Year

08 Mar

International Women's Day

26 May

Buddha Day

01 Jun

Children's Day

11 Jul to 18 Jul

Naadam Holiday

26 Nov

Chinggis Khaan's Birthday

26 Nov

Republic Day

29 Dec

Independence Day

Employer tax

Employer social contributions in Mongolia are between 12.5% and 15.5% of an employee’s salary. This depends on the industry. The tax breakdown is as follows:

  • Pension: 7%
  • Medical Insurance: 2%
  • Benefit Insurance: 0.4-3%
  • Unemployment Insurance: 0.2%

Individual tax

In Mongolia, all employees pay a flat rate income tax of 10%. Employees also pay 11.5% of their salary in social security contributions, which is capped at MNT483,000 per month. 

Termination of employment

A labor contract can be terminated by the employer only for grounds of redundancy, liquidation of business, or worker incompetence or inability. An employee terminated under these grounds is eligible for a severance pay in an amount equal to at least their average salary for one month.

Start hiring employees in

Mongolia

Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast. 

We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities. 

With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.

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