Mongolia PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Mongolia to companies willing to enter the Mongolia market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Mongolia.  However our solution allows you to start the operations in Mongolia within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

Mongolia fast facts

Population, million: 3.3

Land area, sq. km: 1,566,000 km2

Capital: Ulaanbaatar

Local currency: Tögrög (MNT)

Hiring, Negotiating and Doing Business in Mongolia

Necessity of written employment contract

It is legally required to put a written employment contract in place in Mongolia, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements.

Mongolia Employment Contract

Types of employment agreements

Fixed term contracts of up to five years are permitted.

Mongolia working hours

In general the work week is 40 hours, with five, eight-hour days. 

Vacation leave in Mongolia

Employees are generally entitled to 15 days of annual paid leave. Additional leave is granted as follows:

• 6-10 years of service: 3 days
• 11-15 years: 5 days
• 16-20 years: 7 days
• 21-25 years: 9 days
• 26-31 years: 11 days
• 32+ years: 14 days

Sick leave: 

Employees are generally eligible for sick leave for as long as needed.

Mongolia Maternity Leave

Female employees are generally entitled to 120 days of maternity leave at 70% of pay. Women with children under the age of three are also eligible for baby care leave.

Mongolia Severance Laws

Employees may terminate the employment contract with 30 days’ notice.

Employees are generally entitled to between 30 days and two month’s notice, depending on the reason for dismissal. In general employees are entitled to at least one month’s wages on dismissal.

A labor contract can be terminated upon initiation by either the employee or the employer. Unless otherwise stated in the contract, employees are able to leave their position after 30 days of giving notice.

Grounds for terminating employment include:

• Mutual agreement by the parties to do so
• If the employer or employee has died
• If the labour contract has expired and both parties have decided not to extend the contract
• If a legal authority has so demanded
• If an unjustifiably dismissed employee has been reinstated on their previous position
• If an employee has been enlisted for army service
• If a court decision prevents an employee from performing their work duties as a result of a criminal offence

Employers who terminate a labour contract with an employee must establish a time for the transfer of duties to the new employee and provide this information when dismissing the original employee. Employers are obliged to provide the dismissed employee with the decision on the dismissal, any legally required dismissal allowances, as well as a letter of reference about the occupation, profession, specialisation, position and remuneration at the request of the employee.

Mongolia Tax

The current PIT rates are as follows: 

Citizens of Mongolia, foreign citizens, and stateless persons employed on a contract basis by all types of economic entities, organisations, civil servants, religious or other organisations, and foreign economic entities carrying out activities in Mongolia are subject to the following compulsory social insurance taxes:

Currently, the employer’s contribution varies from 12.5% to 14.5%, depending on the industry, while the employee’s contributions are taxed at a rate of 11.5%, capped at 483,000 MNT per month.

Additional Benefits in Mongolia

Performance-based bonuses are permitted.

Mongolia Holidays

• New Year’s Day
• Lunar New Year (2 days)
• International Women’s Day
• Mother and Child Day
• Naadam (5 days)
• Day of the Proclamation of the People’s Republic

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.