Hire and pay employees in
Mongolia, hassle-free

With Deel, your business can easily hire employees in Mongolia. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Mongolia is 5 days with Deel.

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Mongolian Tughrik (MNT)



Official Language


Payroll Cycle


Onboard, pay and manage employees in Mongolia with Deel.

Usually, to hire in Mongolia, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Mongolia quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

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All the necessary benefits for Mongolia
built right in

Deel allows you to provide localized benefits for employees in Mongolia within minutes. All in one manageable online dashboard.

  • Health Insurance
  • Pension Fund
  • Unemployment
  • Private Healthcare - Allianz (optional)
  • Life Insurance - Allianz (optional)

Our quickstart guide to hiring in Mongolia

Navigate the tabs below to learn everything you need to know about hiring an employee in Mongolia

Minimum Wage Requirements

The minimum wage is MNT 660,000  per month for full time employees. For part time employees, the minimum wage is MNT 3.929 per hour.

Individual Income Tax

In Mongolia the individual income tax ranges from 10% to 20%. A non-resident taxpayer of Mongolia is subject to a flat tax rate of 20% on income earned in or sourced from Mongolia. 

Income tax is calculated according to progressive rates:

Gross Annual Income Tax Rate (%)
0-120 million MNT 10%
120 million MNT - 180 million MNT 15%
Over 180 million MNT 20%


Payroll Cost

The employer cost is generally estimated at 12.50% of the employee salary.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 8  hours per day, 40 hours per week . The standard work week is from Monday to Friday.

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 4  hours of overtime per day and 56 hours per week. For additional hours, employees are paid:

  • 150% of the hourly rate  for work days and weekends
  • 200% of the hourly rate for public holidays

Maternity Leave

Employees who have worked for a year, and 6 months continuously with the same employer are entitled to 120 days of paid leave. Between 60 to 30 days can be taken before the child's birth. The employee will receive full salary during this period, and Social Security will be responsible for this pay.

Paternity Leave

Employees are entitled to at least 10 days of paid paternity leave. The employee will receive full salary during this period, and the Employer will be responsible for this pay.

Parental Leave

Employees are entitled to up to 3 years of unpaid parental leave, also known as childcare leave. This leave must be agreed upon with the employer. 

Sick Leave

Employees are entitled to paid sick leave. The first 5 days  are paid by the employer, remaining days are covered by the authorities. This leave is paid at different rates and by different payers depending upon length:
  • First 5 days: the employer will pay 100% of the base salary
  • The remaining approved days, Social Insurance will pay 50-75% of the base salary. 

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Mongolia can be complex. There is no at-will termination in Mongolia for outside the probation period and termination must be done for just cause or mutual agreement.

  • Compliant terminations may occur through the following means:
  • Voluntary resignation by the employee
  • Mutual agreement between the parties
  • Unilateral termination by the employer based on:
  • Probation period evaluation
  • Objective grounds
  • Disciplinary reasons
  • Unsuitability for the job performance
  • Expiration of the employment contract

Notice Period

The minimum notice period is 30 days and will be increased according to the length of the employment.

Severance for Employees

In Mongolia,  employees are entitled to severance pay, if the termination follows one of the following reasons: 
  • the employee has been called to active duty;
  • the employer's organization has been dissolved, or;
  • the job or position within it has been discontinued;
  • the employee fails to meet the job description due to qualifications or health reasons; 
  • the employee reached 60 years of age and is eligible to receive a pension.

If the employee is terminated with one of those reasons and has been for more than 6 months with the company they will be entitled to a minimum of one month base compensation.

Employees terminated during the probation period are not entitled to severance pay.  

Paid Time Off

Full-time employees are entitled to 15 working days of paid time off (PTO) per year, accruing at a rate of 1.25 days per month. Part-time employees are entitled to a prorated calculation based on their working hours. However, it is common practice to grant a minimum of 10 days. Employees become eligible for annual leave after 6 months from the employment start date.

The employee will be entitled to additional time off based on their tenure:

  • From their 6th year of employment: 3 additional days
  • From their 11th year of employment: 5 additional days
  • From their 21st year of employment: 7 additional days
  • Over 21 years: 9 additional days, up to 14 days.

Public Holidays

Mongolia  celebrates 9 national holidays that can last up to 16 days. National public holidays include:

  • New Year’s Day
  • Tsagaan Sar
  • International Women’s Day
  • Buddha Day
  • Mother’s and Children’s Day
  • Naadam
  • Genghis Khan’s Birthday
  • Republic Day
  • Independence Day
If an employee is observing a religious holiday, they are entitled to additional leave days.


Onboarding takes 5 business days after the SOW signature.

The employee is required to provide all compliance documents to enable them to sign the contract and be registered with Social Insurance.

Employment Contract Details

Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

  • name
  • start date
  • length of the employment
  • job description
  • termination conditions
  • payment terms

Probation Period

The minimum probation period is 30 days and the maximum probation period is 90 days (3 months). However, the probation period can be renewed once if it is mutually agreed. 

Hiring in Mongolia, hassle-free

With Deel, your business can easily hire employees in Mongolia with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Mongolia and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)


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*of employee salary

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