Economic Overview, Oyu Tolgoi Mega-Mine & Cashmere Superpower
Mongolia is one of the world's primary copper, gold, and coking coal suppliers, driving high-tech mining and cashmere agro-processing.
Key Economic Sectors
- Mega-Scale Copper & Gold Mining: Oyu Tolgoi underground copper mine (Rio Tinto) powering global green energy transition metals.
- Cashmere & Agribusiness: World's #2 producer of premium raw and finished luxury cashmere (Gobi Cashmere).
- FinTech & Digital Commerce: Advanced mobile payments and software engineering in Ulaanbaatar.
Employment Contracts, Revised Labour Law 2022 & Mining 14/14 Rosters
Regulated by the Revised Labour Law of Mongolia (2022).
- Mining Roster Rule (14/14): Employees working on remote mining sites must follow a strict statutory schedule of **14 working days followed by 14 consecutive rest days**.
- Written Contracts: Mandatory in Mongolian (or bilingual).
- Probation Period: Maximum statutory probation is 3 months.
Working Hours, Leave & Social Insurance (SIGO)
- Standard Hours: 40 hours per week (8 hours/day over 5 days).
- Annual Leave: Minimum 15 working days (scaling with tenure up to 33 working days for long service).
- Public Holidays: ~15 official national public holidays (including Naadam and Tsagaan Sar).
- Maternity Leave: 120 calendar days (17 weeks) paid via SIGO social insurance.
Social Insurance (SIGO ~13.5% Employer) & MTA Tax
| SIGO Fund | Employer Share | Employee Share | Coverage |
|---|---|---|---|
| Pension Insurance | 8.50% | 8.50% | Old-age retirement pension fund (capped base) |
| Health Insurance | 2.00% | 2.00% | Universal healthcare insurance |
| Benefit & Unemployment Insurance | 1.20% | 1.00% | Short-term sickness, maternity & job-loss benefits |
| Industrial Accident (OIRFD) | 0.8%–2.8% | 0.00% | Occupational injury insurance based on risk tariff |
| Total Statutory Contributions | ~12.5%–14.5% | 11.50% | Remitted monthly to SIGO |
Personal Income Tax: Progressive rates: 10% (up to MNT 120M/yr), 15% (MNT 120M–180M), and 20% on excess, remitted to MTA.
Why Use an Employer of Record (EOR) in Mongolia
- Mining & Engineering Deployment: Onboard mining geologists and software engineers in Ulaanbaatar or South Gobi in days.
- Revised Labour Law & SIGO Compliance: Full compliance with 14/14 mining rosters and 13.5% employer social security.
- Work Permit (HG Visa) Sponsorship: EOR manages Ministry of Labour foreign workforce quota approvals.
Hiring in Mongolia? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:
