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Employer of Record Mongolia
Hire staff and expand your business in Mongolia with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Mongolia designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Mongolia. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Mongolia takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Mongolia
A Brief Guide to Mongolia
Mongolia, renowned for its breathtaking landscapes and rich nomadic heritage, is an inviting junction of the ancient and modern world. Nestled between Russia and China, it’s the birthplace of Genghis Khan and a cultural treasure chest.
Category | Information |
Location | Central Asia, between Russia and China |
Capital City | Ulaanbaatar |
Official Languages | Mongolian |
Area | 1,564,116 sq kilometers |
Population | Approx. 3.3 million |
Currency | Tögrög (MNT) |
Major Cities | Ulaanbaatar, Erdenet, Darkhan |
GDP | Approx. $13.4 billion (2022) |
Major Industries | Mining, Agriculture, Textiles |
Business Culture
Business Culture in Mongolia
Mongolian business culture draws heavily from its social traditions, showcasing a deep-rooted respect for elders and authorities. This directly translates to a hierarchical business environment where decisions are typically centralized. Face-to-face meetings are highly valued, and establishing personal relationships can considerably impact business outcomes. As a matter of courtesy, it’s common to present business cards with both hands, preferably in Mongolian on one side.
While punctuality is appreciated, meetings may not always follow a strict schedule. Gift-giving, though not mandatory, can help in fostering relationships, but it’s always recommended to avoid lavish or personal gifts.
Payroll and Taxes
Payroll and Taxes in Mongolia
Employee Taxation
In Mongolia, income tax rates are progressive, with higher income levels subject to higher tax rates.
Annual Taxable Income (MNT) | Tax Rate |
0 – 120 million | 10% |
120 million – 180 million | 15% |
Over 180 million | 20% |
Employer Taxation
Employers in Mongolia are also responsible for various employer costs, which may include:
Fund Type | Contribution |
Pension | 8.5% |
Healthcare | 2% |
Benefits | 1% |
Occupational Accident | 0.8% – 2.8% |
Unemployment | 0.2% |
Pension and Healthcare
Mongolia Pensions
Mongolia’s pension system is predominantly public, administered by the Social Insurance General Office (SIGO). It’s a mandatory, pay-as-you-go scheme where both employers and employees contribute. The scheme covers old age, disability, and survivorship. As of 2022, the standard retirement age is 60 for men and 55 for women, though there have been discussions to increase this due to longer life expectancies.
While the public scheme is dominant, a few private pension options are available. However, these are not as widespread and are typically opted for by those seeking additional security for their retirement years.
Healthcare in Mongolia
Healthcare in Mongolia is a blend of public and private services, administered by the Ministry of Health. The public health system, funded by general taxation and out-of-pocket payments, ensures a basic level of care for all citizens. However, the quality of care can vary across the country, with urban areas generally providing better facilities and access to specialist treatments compared to rural regions.
Private healthcare services have grown in recent years, mainly in response to the public sector’s challenges. These facilities often offer higher quality care, though at a significantly higher cost. Private health insurance is becoming increasingly popular among those who can afford it, particularly in urban areas.
While there are ongoing efforts to improve healthcare standards, especially in rural regions, the current scenario presents a blend of opportunities and challenges. Therefore, AgilityEOR offers comprehensive support to businesses expanding in Mongolia, ensuring that the local legislative and cultural nuances are efficiently navigated.
Employment Law
Employment Law in Mongolia
Relevant Legislation: The key pieces of legislation governing employment in Mongolia include the Constitution of Mongolia (1992), the Labour Law (1999), and the Law on Sending Labour Force Abroad and Receiving Labour Force and Specialists from Abroad (2001).
Employment Contracts: In Mongolia, employment contracts are required to be written and must specify terms such as job description, salary, working hours, and conditions. Both indefinite and fixed-term contracts are permissible, but fixed-term contracts are restricted to specific situations as defined in the Labour Law.
Working Hours: The standard working week in Mongolia is a maximum of 40 hours, typically spread over five days. However, this can vary depending on the nature of the job and specific agreements between employers and employees.
Leave: Mongolian law mandates a minimum of 15 days of paid annual leave for employees. Additional leave provisions include 60 days for maternity leave, and up to 14 days for paternity leave.
Overtime: Work beyond the standard working hours is considered overtime. Employers need to pay a minimum of 1.5 times the normal wage rate for overtime. Overtime is limited to 4 hours per day and should not exceed 36 hours per month.
Termination: Employers can terminate an employee on grounds of misconduct, redundancy, or inability to perform job duties. The process involves a notice period, during which the employer needs to consult with the employee and possibly the trade union representative.
Notice: For termination, employers are required to give a notice period of at least 30 days. In some cases, such as gross misconduct, immediate dismissal may be possible.
Severance Pay: In case of redundancy, employers are required to pay severance, typically one month’s salary or higher, depending on the employee’s length of service.
IMMIGRATION
Work Permits in Mongolia
Immigration in Mongolia is administered by the Immigration Agency of Mongolia, a government body that oversees the country’s immigration policies, regulations, and procedures. The system revolves around a well-defined structure of visas, residence permits, and work permits, depending on the purpose and duration of the foreign national’s stay.
Entry into Mongolia primarily starts with obtaining a visa, which is categorized into diplomatic, official, and ordinary visas. Ordinary visas are further divided into several types, catering to various purposes such as tourism, business, work, study, transit, or private visit.
Work in Mongolia for foreign nationals usually commences with an invitation from a Mongolian employer or sponsoring company. This invitation acts as a critical document when applying for the HG visa, the most common type of work visa. To get the HG visa, applicants need to submit several documents, including a valid passport, the aforementioned invitation, a completed visa application form, and a recent passport-sized photo.
The HG visa is initially valid for up to 183 days, but if the employment contract extends beyond this period, the visa can be extended. Please note that the process may require the visa holder to leave Mongolia and re-enter, depending on their home country and specific immigration agreements with Mongolia.
For long-term stay and employment, foreign nationals might need to apply for a residence permit, which can be obtained once they are in the country with a valid visa. This permit is usually linked to the duration of their employment contract.
For business owners or investors who wish to start a business in Mongolia, the T visa (Investor visa) might be an appropriate option. This visa allows foreign nationals to live in Mongolia and oversee their business operations. The T visa requires a higher level of documentation, including proof of investment and business licensure in Mongolia.
Public Holidays
Mongolia Public Holidays
Holiday | Date |
New Year’s Day | January 1 |
Tsagaan Sar (Lunar New Year) | Variable (Late January to Mid February) |
International Women’s Day | March 8 |
Naadam Festival (National Holiday) | July 11 – 13 |
Independence Day | November 26 |
Constitution Day | December 26 |
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The Benefits
Mongolia Employer of Record Benefits
When you choose Agility EOR to expand in Mongolia, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Mongolia so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Mongolian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Mongolia payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.