Mongolia Employment Guide

Understanding Mongolia's Minimum Wage Regulations

Mongolia has established clear minimum wage requirements for both full-time and part-time employees. Full-time workers must receive a minimum monthly salary of 660,000 Mongolian Tugrik, while part-time employees are entitled to an hourly rate of at least 3,929 MNT.

Personal Income Tax Structure

The Mongolian tax system employs a progressive income tax rate ranging from 10% to 20% for residents. Non-resident taxpayers face a flat 20% tax rate on income sourced within Mongolia. The progressive tax brackets are structured as follows:

Employer Cost Considerations

Businesses operating in Mongolia should anticipate additional employment costs beyond base salaries. Employers typically incur approximately 12.50% of an employee's wage in social security and other mandatory contributions. For precise cost calculations tailored to your specific employment agreements, SailGlobal's HR specialists can provide detailed quotations.

Working Hours and Overtime Compensation

Mongolian labor law defines standard working hours as 8 hours per day or 40 hours weekly, typically Monday through Friday. Overtime regulations mandate premium pay for additional hours worked beyond this standard. Employees may work up to 4 hours of overtime daily, with a weekly maximum of 56 hours. Compensation rates vary:

1. 150% of regular hourly wage for overtime on weekdays and weekends
2. 200% of regular hourly wage for work on public holidays

Practical Implications for International Employers

Companies expanding into Mongolia should consider these regulations within their broader HR strategy. For instance, a technology firm establishing operations in Ulaanbaatar must budget not only for base salaries but also for the additional 12.50% employer costs and potential overtime expenses. SailGlobal's case studies show that businesses implementing compliant overtime policies typically experience better employee retention and regulatory compliance.