Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in Mongolian and use the Mongolian Togrog or Turgik currency (MNT).
Working Hours
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.
The new labor law states that employees should not work more than 56 hours per week.
The new labor law requires employers to provide extra pay to employees who work during night hours (10pm-6am) if time off in lieu is not provided. The pay amount must be not less than 1.2 times the respective hourly salary rate. In addition, employers are responsible for covering expenses in relation to preventive medical examinations of full-time night shift workers.
Overtime
All working hours beyond standard working hours are to be paid as overtime and are regulated by employment contracts/collective agreements etc. Overtime must be agreed upon before the commencement of any overtime working hours.
Overtime is paid at 150% of the basic salary rate and at 200% 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.
The New Labour Law states the maximum overtime per day should not exceed 4 hours.
Public Holidays
Public holidays that fall on the weekend are usually lost.
For the year 2024:
- Jan 1: New Year’s Day (Monday)
- Feb 10: Tsagaan Sar (Saturday)
- Feb 11: Tsagaan Sar Holiday (Sunday)
- Feb 12: Tsagaan Sar Holiday (Monday)
- Mar 8: International Women’s Day (Friday)
- May 23: Buddha Day (Thursday)
- Jun 1: Children’s Day (Saturday)
- Jul 11: Naadam Holiday (Thursday)
- Jul 12: Naadam Holiday (Friday)
- Jul 13: Naadam Holiday (Saturday)
- Jul 14: Naadam Holiday (Sunday)
- Jul 15: Naadam Holiday (Monday)
- Nov 16: Chinggis Khaan’s Birthday (Saturday)
- Nov 26: Republic Day (Tuesday)
- Dec 29: Independence Day (Sunday)
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
The new labor law states that employees who were unable to take their annual leave in an annual leave cycle due to an urgent business necessity should be paid an allowance of 1.5 times their respective standard annual vacation pay. Under the new law, new employees are entitled to an annual vacation from the 7th month of the commencement of employment. Furthermore, employees are entitled to 10 consecutive calendar days of leave at least once out of the minimum 15 calendar days leave.
Sick Days
Employees are entitled to sick leave for the duration of the illness, sick leave is unpaid.
Maternity and Paternity
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
The new labor law provides a father with a newborn shall be provided at least 10 working days of paid leave, which is equal to the average salary for the respective period.
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.
Employee Severance and Terminations
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.
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.
The monthly minimum wage is 550,000.00 MNT.
13th Salary
There are no provisions in the law regarding 13th salaries.
Income Tax
10.00% flat rate for all salaries.
Employer Payroll Contributions
VISA
On 24 December 2021, the Parliament of Mongolia passed the Labour Migration Law (the “LML”) effective from 01 July 2022. Once the LML is 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 labor authority after they are permitted to invite the foreign employee. The labor authority issues a work permit to the foreign employee for up to one year subject to the job position and terms of the employment agreement. Detailed procedures for granting work permits shall be approved by the Ministry of Labor and Social Protection.
The work permit shall specify the full name and nationality of the foreign employee, 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
The Standard rate of VAT in Mongolia is 10.00%.