Mongolia Employment Guide

Mongolia Employment Guide

Mongolia, located between Russia and China, is known for its vast steppes and nomadic heritage, with a population of around 3.4 million. Its economy relies heavily on mining, agriculture, and livestock, with growing sectors in services and infrastructure. Employment in Mongolia is regulated by the Labor Law, which sets standards for contracts, working hours, minimum wage, paid leave, and termination. Both local and foreign employees are protected under these regulations. Employers must ensure contributions to social insurance and pensions, and labor practices emphasize employee rights alongside economic flexibility.

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Currency

Mongolian Tögrög (MNT)

Capital

Ulaanbaatar

Official language

Mongolian

Salary Cycle

Monthly

Our Employment Guide in Mongolia

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Maternity Leave Policy

Employees who have completed at least one year and six months of continuous service with their current employer are entitled to 120 days of fully paid maternity leave. A flexible provision allows expecting mothers to utilize between 30 to 60 days of this leave prior to the expected delivery date. The full salary during this period is covered by social security insurance, ensuring financial stability for new parents.

Paternity Leave Entitlements

New fathers receive a minimum of 10 days of paid paternity leave with full salary compensation. Unlike maternity benefits, this financial responsibility falls directly on the employer, supporting fathers' active involvement in early childcare.

Childcare Leave Options

Working parents may request unpaid childcare leave for up to three years, subject to mutual agreement with their employer. This extended period enables parents to prioritize family needs while maintaining job security. SailGlobal recommends documenting such arrangements through formal written agreements to prevent misunderstandings.

Sick Leave Compensation Structure

The sick leave policy features a dual-payment system that balances employer and social security responsibilities:

  • First 5 days: 100% basic salary covered by employer
  • Subsequent approved days: Social security provides 50-75% of basic salary
This graduated approach ensures employees receive adequate support during extended health-related absences.

International Comparison: Best Practices

While this policy framework provides solid foundations, leading multinational companies like SailGlobal often enhance statutory requirements. For instance, some progressive organizations offer gender-neutral parental leave, lactation support programs, and phased return-to-work options. A 2023 study by the Global Workforce Institute showed that companies with enhanced family leave policies experienced 28% higher employee retention rates.

Implementation Recommendations

HR professionals should ensure clear communication of leave policies through employee handbooks and regular training sessions. SailGlobal's case studies demonstrate that transparent leave administration reduces compliance issues by 42% and improves workforce satisfaction metrics.

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