Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Mongolia.
Overview
A country housing as many horses as it does people, Mongolia has one of the lowest population densities globally, rivalled only by the sparsely inhabited Greenland. However, that hasn't hindered the country's rapidly growing economy. With its strategic location, abundant natural resources and growth potential, Mongolia is an ideal destination for organizations expanding their operations into Asia.
Do your organization's expansion plans require hiring employees in Mongolia? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo – one of the best Global payroll providers, assists organizations worldwide with onboarding and managing employees in Mongolia- payroll accounting and payroll software processing, managing local and global payroll compliance requirements, benefits, and more.
Facts And Stats
Capital
Ulaanbaatar
Currency
tögrög or tugrik (MNT)
Official Language
Mongolian
Fiscal Year
1 January - 31 December
Date Format
DD/MM/YYYY
Country Calling Code
+976
Other Languages
Khalkha,Cahar,Khorchin
Time Zone
UTC+08:00
Global Payroll
Overview
Handling payroll for a widespread workforce can pose as a major challenge for any firm. The added complication of compliance can make things worse and drastically affect the time and effort that can be used in other equally important aspects of an organization's development.
Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.
Payroll Taxes
Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees. Neeyamo aids you in completing all your payroll and tax accounting needs.
Employee Taxes
Employee Payroll Contributions:
8.5% - Pension Insurance (maximum 632,500 MNT per month)
1.0% - Benefit Insurance (maximum 632,500 MNT per month)
2.0% - Health Insurance (maximum 632,500 MNT per month)
0.2% - Unemployment insurance (maximum 632,500 MNT per month)
Employer Taxes
Employer Payroll Contribution:
8.50% - Pension Insurance
1.00% - Benefit Insurance
2.00% - Health Insurance
0.80% to 2.80% -Industrial accident and occupational disease insurance (varies depending on industry)
0.20% - Unemployment insurance
Payroll Cycle
Overview
Undoubtedly, payroll is a critical aspect of any organization. The pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.
Frequency
The frequency cycle is Monthly.
13th Month Cycle
There is no law that requires employers in Mongolia to provide employees with a 13th/14th/15th month bonus pay.
Global Work
Overview
An Employer of Record service provider helps you eliminate the hassle of handling the complexities of setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance, payroll taxes, and employee benefits to comply with local tax laws and regulations. This ensures that the client company can focus on the employee’s everyday tasks safely, knowing they have a cost-effective solution as they continue their global expansion.
HR Mandates and Practices
Minimum Wage
Effective January 1, 2024, the minimum wage in Mongolia will increase to 660,000 Mongolian tugriks per month.
Overtime
If an employee works over 40 hours a week, then the company is expected to pay for overtime to the employee unless they work in management. Overtime is paid at 150% of the basic salary rate, and if an employee works on a public holiday, it is paid at 200% of the basic salary. If an employee works overtime or during their arranged weekly rest days and has not been provided with an alternative rest day, they shall be paid one and a half times their average remuneration. According to New Labour Law, the maximum daily overtime should not exceed 4 hours.
Data Retention Policy
The Law of Mongolia on Personal Data Protection states that personal data must be erased when it is no longer necessary for the purpose for which it was collected. It does not specify a specific retention period for personal data. Instead, it requires data controllers to establish retention periods based on the purpose for which the data was collected and to ensure that the retention period is not longer than necessary.
Hiring and Onboarding Requirements
Hiring
When hiring employees in Mongolia, employers may prefer candidates who meet the following criteria: Have the necessary qualifications and work experience for the job Speak English and ideally Mongolian Have a dual citizenship document (for Mongolian and foreign citizens) Have a work permit and work visa (for migrants).
Onboarding
There are no such requirement according to law but following documents are generally required for onboarding in Mongolia:
- Full name
- Date of Birth
- Passport
- Passport size photo
- Work permit
- Work visa
- Employment contract
- Employment agreement
Probation
Generally observed probation period is a maximum of 3 months.
Leave
Public Holidays
- 1 Jan - New Year's Day Tsagaan Sar (Lunar New Year)
- 8 Mar - International Women's Day
- 1 Jun - Children's Day
- 11,12,13 July - Naadam Holiday
- 5 Nov - Chinggis Khaan's Day (First day of the first winter month of the lunar calendar)
- 26 Nov - Republic Day
- 29 Dec - Independence Day
Annual Leave
Sick Leave
In general, there are no sick leave rights in Mongolia. When employees get sick they use their paid annual leave to take leave of absence.
Maternity Leave
Maternity leave of 120 days shall be provided to a mother.The benefit of this law will be granted to any woman who has had an abortion after the 196th day of pregnancy, delivered a stillborn child, had a pregnancy interrupted by hospital procedures, or delivered a premature baby before the 196th day. in such conditions the general regulation on granting sick leave shall be applied, and such leave shall be granted.
Adoption Leave
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 newborn.
Termination
Overview
The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason or circumstances for termination. All notices of termination must be delivered by the employee in writing.
Notice Period
According to labour law the notice period for the employee is for 30 days.
Severance Pay
If the termination is caused by the employee's military service, the company's bankruptcy, or the employee's retirement age, severance pay is equal to one month's earnings.
Visa
Overview
Employment visa in Mongolia vary depending on your nationality and the type of work you will perform–
- Valid passport with a minimum validity of six months.
- Two recent passport-sized photos.
- Completed and signed visa application form.
- An invitation letter from your employer in Mongolia. This letter should state the purpose of your visit, the length of your stay, and your job title and salary.
- Copy of your employment contract with your Mongolian employer.
- Medical certificate from a doctor in your home country stating that you are in good health and free of contagious diseases.
- Police clearance certificate from your home country stating that you have no criminal record. Proof of financial support to cover your living expenses in Mongolia. This could be in the form of bank statements, credit card statements, or a letter from a sponsor.
Employee Background Checks
Legal and Background Checks
Most common types of legal and background checks in Mongolia
- Criminal record check
- Civil court record check
- Employment verification
- Education verification some companies may also conduct credit checks, drug tests, and medical examinations.
Last updated on Januar 31, 2024
If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com
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