Mongolia – Employer of Record
Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Mongolia. Your candidate is hired via Globalization Partners’ Mongolia PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Mongolia while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Mongolia.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in 150 countries around the world, quickly and painlessly.
Mongolia is a landlocked country in Eastern Asia, bordered by Russia and China. It is one of the least densely populated countries in the world with five people per square mile, and 45% of the population of three million residing in the capital city of Ulan Bator.
When negotiating terms of an employment contract and offer letter with an employee in Mongolia, it may be useful to keep the following in mind:
- 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
Bonus in Mongolia
Performance-based bonuses are permitted.
Working Hours in Mongolia
In general the work week is 40 hours, with five, eight-hour days.
Vacation 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 in Mongolia
Employees are generally eligible for sick leave for as long as needed.
Maternity/Paternity Leave in Mongolia
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.
Termination/Severance in Mongolia
Probationary periods of up to six months are allowed.
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.
Mongolian Tax Rate
Employers and employees both pay into social insurance at the following rates:
- Pension: 7%
- Medical Insurance: 2%
- Unemployment Insurance: 0.2%
Additionally, employers contribute between 0.4% and 3% of wages to benefit insurance.
Health Insurance in Mongolia
Mongolia has a public/private health care system.
Employment Contracts in Mongolia
Fixed term contracts of up to five years are permitted.
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. An offer letter and employment contract in Mongolia should always state the salary and any compensation amounts in Mongolian Tughriks rather than a foreign currency.
This information is provided as general accepted information and is not intended as advisory services.
Why Globalization Partners
Establishing a branch office or subsidiary in Mongolia to engage a small team is time-consuming, expensive and complex. Mongolian labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Mongolia. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Mongolia PEO and Global Employer of Record Platform provides you peace of mind so that you can focus on running your business.
If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Mongolia, please contact us.