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Key Country Facts

Currency: Mongolian Tughrik (MNT)

Time zone: UTC +8, some areas use UTC+7

Capital city: Ulaanbaatar

Official language: The official language of Mongolia is Mongolian and is spoken by 95% of the population. A variety of dialects of Oirat and Buryat are spoken across the country, and there are also some speakers of Mongolic Khamnigan. In the west of the country, Kazakh and Tuvan, both Turkic languages, are also spoken. Mongolian Sign Language is the principal language of the deaf community.

Employment Contracts

According to the Labor Law, an employer is obliged to conclude an employment agreement with an employee in writing and is prohibited to conclude agreements other than employment agreement for a permanent workplace.

The following basic matters shall be provided for in a contract of employment:

  • Name or title of the position of employment;
  • Duties and work to be performed;
  • Amount of compensation;
  • Conditions in which work is to be performed.

Mongolia Holidays

There are 9 public holidays in Mongolia:

  • New Year’s Day – January 1
  • Lunar New Year – February 12-14
  • International Women’s Day – March 8
  • Buddha Day – May 26
  • International Children’s Day – June 1
  • Naadam Festival – July 11-15
  • Birth anniversary of Chinggis Khaan – November 5
  • Republic Day or the anniversary of the adoption of the first Constitution of Mongolia and the proclamation of the Mongolian People’s Republic – November 26
  • Day of Restoration of National Freedom and Independence of Mongolia – December 29

Vacation

The basic annual leave entitlement is 15 days, or 20 days if the employee is under 18 years of age. There may be additional leave days awarded based on the tenure of employment ranging from 3 days to 14 days, depending on the length of employment.

Sick Leave

If an employee contracts a normal disease or domestic injury and therefore rendered unable to perform their duties, as determined by a competent medical authority, then they are entitled to sick leave for the duration of such temporary inability.

Maternity/Paternity Leave

Maternity leave of 120 days shall be provided to the mother.
If a woman has a stillborn child or has interrupted a pregnancy with hospital methodology before the 196th day of pregnancy, the general regulation on granting sick leave shall be applied, and such leave shall be granted.
An adopting mother shall be entitled to equal leave as a mother who gives birth to a child, until the child reaches 60 days old.
All the above shall apply equally to single fathers with a new-born child.

Termination/Severance

A labor contract can be terminated upon initiation by either the employee or the employer. Unless otherwise stated in the contract, employees can leave their position after 30 days of giving notice. Employers may terminate the contract with valid grounds.

Grounds for terminating employment include:

  • Mutual agreement by the parties to do so
  • If the employer or employee has died
  • If the labor contract has expired and both parties have decided not to extend the contract
  • If a legal authority has so demanded
  • If an unjustifiably dismissed employee has been reinstated to their previous position
  • If an employee has been enlisted for army service
  • If a court decision prevents an employee from performing their work duties as a result of a criminal offense.

Employers who terminate a labor contract with an employee must establish a time for the transfer of duties to the new employee and provide this information when dismissing the original employee. Employers are obliged to provide the dismissed employee with the decision on the dismissal, any legally required dismissal allowances, as well as a letter of reference about the occupation, profession, specialization, position and remuneration at the request of the employee.

The employer is entitled to pay an allowance equal to an average wage of one month or more.

Mongolia Social Security

In Mongolia, the Social Security Rate is a tax related with labor income charged to both employers and employees. Revenues from the Social Security Rate are an important source of income for the government of Mongolia because they help to pay for many social programs including welfare, health care and many other benefits.

Social security contributions cover Mongolia’s statutory pension scheme, medical insurance, benefit insurance, and unemployment insurance. Contributions to social security are made by both employers and employees.

Contribution New rate 2020
Employee 11.5% (capped – current cap of MNT 420,000 per month)
Employer 12.5% – 14.5% (depends on industry)

This information does not constitute legal advice.

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