COUNTRY

Written Agreements

Employees and employers in Mongolia can conclude an employment contract with a mutual agreement. The contract must be in writing and signed by the relevant parties. If the employment contract is not concluded in writing for valid reasons, the employer shall be obliged to renew the employment contract within 10 working days after the employee starts performing his/her duties.

The contract must contain information on location of job, working conditions, nature of job, salary, working hours, grounds for termination, procedures for labor discipline and complaints, etc.

Employers can include a non-compete clause in employment agreements to protect their production and business secrets. The grounds for prohibiting competition, the type of activity, the territory covered by the restriction, the period of validity, and the compensation to be paid by the employer during that period shall be specified in the employment agreement or non-competition agreement. Non-competitive conditions in the employment agreement or the term of the accompanying agreement shall not exceed 1 year after the termination of the employee's employment relationship. Employers must pay at least 50% of the employee's last salary as compensation during the duration of the application of the non-compete clause.

Oral Agreements

It is mandatory to conclude employment contracts in writing in Mongolia. If the employment contract is not concluded in writing due to valid reasons, the employer shall be obliged to renew the employment contract within 10 working days after the employee starts performing his/her duties. An employment relationship shall be deemed to have been established when an employee starts performing his/her duties even if the employment contract has not been concluded in writing.

Implied Agreements

In Mongolia, an employment relationship is deemed to have been established when an employee starts performing his/her duties even if the employment contract has not been concluded in writing.

In Mongolia, the standard working hours are 40 per week or 8 hours per day. For part-time employees, the working hours are 32 hours per week. The working hours of a minor employee must not exceed 30 hours per week. The maximum working hours per week shall not exceed 56 hours. The additional working hours per day shall not exceed 4 hours. Employers must keep a record of employees' working hours. All employees must get 2 consecutive days' weekly rest.

An employee's working hours can be reduced under certain circumstances, and employees are paid by the hour.

Employees working on public holidays are compensated with a day off or twice their wages. It is prohibited to perform continuous production, public services, transportation, communication and necessary work, to work on public holidays and weekends at the initiative of the employer, except in case of emergencies. Pregnant employees, employees with a child under three years of age or a child with a disability under 16 years of age in need of permanent care cannot be employed to work on public holidays.

Employees in Mongolia are entitled to paid annual leave after they have worked for at least 6 months. The minimum duration of leave is 15 days. Employees under 18 years of age or with disabilities get 5 additional days of annual leave. Annual leave pay shall be calculated based on the employee's average annual salary for the given work year. Employees can break up their leave and take 10 days of their annual leave at a time.

The duration of annual leave increases with the length of service. Employees working in difficult working conditions are granted additional leave days. Part-time employees shall be provided with basic and additional annual leave based on the total number of hours worked during the working year.

Employees whose employment is terminated before the year ends are entitled to remuneration for their annual leave. If for some reason, an employee is unable to take his/her annual leave, they are paid a premium of 2% of their annual leave salary for unused leave.

There are no provisions regarding sick leave in Mongolia's Labor Code. Employees who have paid social security contributions for 3 or more months are entitled to temporary disability benefits due to non-occupational injuries or sickness on submission of a medical certificate. The benefit is paid as a percentage of 3 months' average salary of the employee, depending on the number of years of contributions.

Temporary disability benefits for the first 5 days of temporary disability shall be paid by the employer, and benefits for the period from the 6th day until the disability is restored or the right to receive a disability pension shall be paid from the benefit insurance fund. The maximum duration is 66 days or 132 days in case of cancer or tuberculosis.

The Labor Code of Mongolia grants 120 days' maternity leave to new mothers. It is increased to 140 days for twins. Maternity benefit is paid as 100% of the average salary of the employee by the Social Insurance Fund. Employees must have paid insurance contributions for at least 12 months, including immediate 6 months before taking maternity leave to be eligible for benefits. Adoptive parents of a newborn child get paid leave up to 60 days.

Maternity leave is also granted to a mother who gave birth to a child 196 or more days prematurely, had a medical abortion, terminated the pregnancy by medical means, or gave birth to a viable child without 196 days of pregnancy.

Employers must not dismiss an employee for being pregnant or on maternity leave. Pregnant employees can agree with the employer to perform their duties from home or from a distance. It is prohibited to engage a pregnant woman or an employee with a child under 3 years of age on a business trip, except with their consent.

In Mongolia, employers shall provide fathers with at least 10 working days off to take care of their newborn child and pay them an amount equal to the average salary for that period.

Minimum Wage

No employee can be paid less than the statutory minimum wage. The minimum wage is set by the tripartite National Committee on Labor and Social Consent every 2 years. Minimum wage was set at MNT 792,000 (Mongolian tugrik) per month as of April 1, 2025.

Salary must be paid at least twice a month on a fixed day, and the day of payment shall be reflected in the internal labor norms or in the labor contract. If the payment day falls on a weekly holiday or public holiday, it must be paid on the previous working day. Based on the agreement of the parties, the employee's salary can be paid by the hour, day, or week.

Overtime, Holiday & Vacation Pay

Employees working in excess of the standard daily, weekly working hours limit are eligible for overtime pay in Mongolia. Overtime can be performed only in urgent situations. Pregnant women, employees with children less than 3 years of age, and minors cannot be employed in overtime work.

Overtime work or work done on weekends is compensated with time off or at a premium of 50% above the normal wages of the employee. Overtime done at night is paid with an additional premium over and above the nighttime wages. Overtime work cannot exceed 4 hours per day. For work done on public holidays, employees are paid twice their normal wages.

Annual leave pay shall be calculated based on the employee's average annual salary for the given work year.

Notice Period

In Mongolia, employees must give their employers written notice at least 30 days before terminating their employment. Employers are required to give a written notice of at least 30 days for mass dismissals.

Severance Benefits

Employees who are dismissed are entitled to receive severance benefits regardless of whether they are entitled to unemployment benefits from the social insurance fund, except when they are dismissed for gross misconduct. The amount of severance benefit is calculated as follows:

• If they have worked for the business entity or organization for 6 months to 2 years, it shall be equal to at least 1 month's basic salary
• If they have worked for the business entity or organization for 2 to 5 years, it shall be equal to at least 2 months' basic salary
• If they have worked for the business entity or organization for 5 to 10 years, it shall be equal to at least 3 months' basic salary
• If they have worked for the business entity or organization for 10 or more years, it shall be equal to at least 4 months' basic salary

In case of mass dismissal of an employee, the employer shall determine the amount of termination benefit in negotiations with the employee's representatives not less than that specified above. Part-time employees are also entitled to severance benefits.

Pension

The Social Insurance Fund of Mongolia provides retirement pensions for the insured. It is compulsory for employers to register their employees with the fund. To qualify, individuals must meet either of the following criteria:

• A contribution period of 21 years and 9 months or more in 2024 (increasing by 3 months annually to 25 years by 2037) and an age of 60 for men or 55 for women; or
• A contribution period of 10–20 years and an age that corresponds to their birth year (see the "Pension Insurance" reference)

The retirement age and contribution period requirement are lower for those working in underground or toxic conditions.

Pensions are calculated based on 45% of the average salary or equivalent income from any consecutive five years (60 months) within the last 20 years of contributions. If the insured has paid the pension insurance premiums and does not meet the above requirements, the old age pension shall be determined proportionally.

Mongolia also provides social welfare benefits to elderly citizens 65 years or older who are not eligible for insurance pensions. They receive a monthly pension set by the government, along with employment and training support, and care services.

Dependents/Survivors Benefits

The Social Insurance Fund of Mongolia provides pension to survivors of deceased insured persons. The deceased must have been working and paid insurance premiums for 20 years, paid contributions for at least 36 months (including 12 consecutive months) in the last 5 years before death, or was already receiving an old-age, or disability pension. Eligible survivors include spouses, children, parents, and grandparents.

The full survivors' pension is calculated as 45% of the deceased's average salary from any consecutive 5 years (60 months) within the last 20 years of contributions, increased by 1.5% per year of contribution beyond that. It is paid as 100% of the calculated amount for 3 or more family members, 75% for 2 family members, and 50% for 1 family member.

In case of death of an employee due to a work accident or occupational disease, dependent survivors become eligible for survivors pension paid by the Industrial Accident and Occupational Disease Insurance Fund. The pension is paid as 100% of the average salary of the deceased for 3 or more family members, 75% for 2 family members, and 50% for 1 family member.

Invalidity Benefits

The Social Insurance Fund of Mongolia provides disability pension to insured persons who have lost at least 50% of their ability to work, provided they have paid contributions for 20 years or 3 years out of the last 5 years before disability. Insured persons who have paid contributions for at least 3 years and have lost at least 50% of their ability to work may be entitled to a proportional disability pension.

Disability pension for complete disability is 45% of the average salary from any consecutive five years within the last 20 years of contributions, increased by 0.125% per month of contribution beyond that. The minimum complete disability pension is MNT 550,000 (Mongolian tugrik). Partial disability pension is calculated by multiplying the complete disability pension by the degree of disability, with a minimum amount of MNT 440,000.

In case of permanent disability due to work-related accidents or illnesses, employees receive a disability pension from the Industrial Accident and Occupational Disease Insurance Fund. Disability pension is calculated as a percentage of the average monthly salary depending on the degree of disability. The disability pension for an insured who has lost at least 30% of his/her ability to work and cannot be less than 75% of the minimum wage. Insured persons who have lost their ability to work due to an industrial accident or an occupational disease shall be reimbursed 100% of the cost of prosthetics and surgery for the first time and 50% of the price for the second time.