Mongolia
Though Mongolia flies under most people’s radar, there’s some great remote talent living in Ulaanbaatar and surrounding cities. If you’ve found someone there you’d like to hire, you’re in the right place. In the next few minutes, we’ll teach you how you can hire in Mongolia—without getting bogged down in expensive fees and complex labor laws.
Country snapshot
CURRENCY
MNT (Mongolian Tugrug)
EMPLOYER TAXES
12.50%- 14.50%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Mongolian/Khalkha dialect
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Hiring in Mongolia can be confusing, but it’s easier when you know what you’re doing. If you want to hire remote talent in Mongolia, you have two options: Hire people as contractors, or hire them as employees.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Mongolia than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Mongolia.
Employer tax
Social Security
Pension
Medical Insurance
Benefit Insurance
Paid Time Off (PTO)
Employees are generally entitled to 15 days of annual paid leave. Additional leave is granted, considering the length of their record of service, and their working conditions as follows:
- 6-10 years of work, 3 working days
- 1-15 years of work, 5 working days
- 16-20 years of work 7, working days
- 21-25 years of work 9, working days
- 26-31 years of work 11, working days
- 32 and more years of work 14, working days
Public Holidays
There are 15 public holidays.
Sick Days
Employees are generally eligible for sick leave for as long as needed.
Maternity Leave
Female employees are generally entitled to 120 days of maternity leave at 70% of pay.
Paternity Leave
Male employees do not receive paternity leave; however, single fathers are entitled to equal leave as a mother who gives birth to a child until the child reaches 60 days old.
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
Baby Care leave - Female employees are entitled to have this leave with children under the age of three.
Adoption Leave -mother is entitled to equal leave as a mother who gives birth to a child until the child reaches 60 days old.
Military Leave - Employers are required to pay severance pay to employees who have terminated their employment due to military service.
Marriage Leave
Not specified by law.
Bereavement Leave
Not specified by law.
Termination Process
An employee shall have the right to leave his or her workplace upon the expiration of 30 days after submitting his or her request of resignation to the employer, in which case the employment agreement shall be considered as terminated.
An employment agreement may be terminated prior to the above mentioned time limit due to a valid reason or by an agreement with respect to the time of resignation with the employer.
Notice Period
Employees may terminate the employment contract with 30 days’ notice.
Employees are generally entitled to between 30 days and two month’s notice, dependent on the reason for dismissal. In general employees are entitled to at least one month’s wages on dismissal.
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
Probation period is 6 months.
Working Hours
The working week in Mongolia is Monday to Friday.
The working day for commercial offices is usually eight hours. Lunch breaks are usually one hour.
Overtime
Employee who has worked overtime or on the weekly rest days has not been compensated with other rest days, he shall be paid one and half times or more of his average remuneration.
It is prohibited to require a minor employee to perform overtime work or to work on public holidays or weekends.
If an employer has forced women or minors to perform a labour prohibited by law, or to lift or carry the load exceeding the prescribed limits, or has forced an employee under 18 years age to work in a working place harmful to his mental development and health or under abnormal or special conditions, or to perform overtime work or to work on public holidays or weekends, or has violated Section 74 of this law -i.e. an employee was compelled to work overtime - the state labour inspector shall fine that employer 15,000-30,000 to grogs;
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