When you decide to expand to Mongolia, you have to consider all the factors that can make your expansion great along with those that can make it more difficult. The benefits and compensation you provide to employees can help your business stand out and attract all the right candidates to your company. However, if you fail to meet Mongolia’s compensation laws or provide all statutory benefits required by law, you could face fines or other delays.
As a global PEO, Globalization Partners makes it easy to expand without the hassle of compensation and benefits management. Our Mongolia compensation and benefits outsourcing services mean we can take on all the risk of compliance on your behalf, and we’ll source the best benefits for your team. You’ll have complete peace of mind knowing you can run your company without the fear of breaking compliance.
Mongolia’s Compensation Laws
Mongolia’s compensation laws recently changed as the country raised its monthly minimum wage to 420,000 Mongolian tugriks in January 2020. The new minimum wage applies to employers and trade unions, so even collective bargaining agreements (CBAs) should include this minimum wage.
Guaranteed Benefits in Mongolia
Every Mongolia benefits management plan must include guaranteed benefits for all employees, which usually starts with time off for Mongolia’s holidays, including New Year’s Day, two days for the Lunar New Year, five days for Naadam, International Women’s day, and more. Employees also get 15 days of annual paid leave, with additional leave incorporated as the employee works for your company longer.
Sick leave is another guaranteed benefit, and employees can take as much sick leave as needed. Female employees get 120 days of maternity leave at 70% of their usual pay. Women can also take baby care leave if they have children under the age of three.
Mongolia Benefits Management
After adding all guaranteed benefits to your Mongolia benefits management plan, you should consider adding supplemental benefits for your employees. One common benefit that’s not required by law is performance-based bonuses. Including these bonuses in an employment contract can show your employees you’re committed to their success at your company. If you’re not sure what other benefits to include, try polling employees to see what benefits would mean the most to them.
Restrictions for Benefits and Compensation
The biggest restriction for benefits and compensation is incorporation. Foreign companies need to go through the entire Mongolia subsidiary setup process before hiring employees, paying them, and providing benefits. It takes most companies at least a month to incorporate fully, and it can take longer if you’re not completely familiar with the country’s compliance laws.
Globalization Partners envisions a world without these barriers to entry. Instead of setting aside months to establish a subsidiary, you can rely on us to help you start working in a day or two thanks to our existing Mongolia subsidiary. Then, with Mongolia benefits and compensation outsourcing, we’ll make sure your employees get the pay and benefits they deserve.
Choose Globalization Partners Today
Globalization Partners is the team of experts you need for a successful expansion. Contact us today to learn more about Mongolia compensation and benefits outsourcing.