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Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
MNT T (Mongolian Togrog)
Employer contributions
~12.5% employer SS (pension 7% + health 2% + unemployment 0.5% + work injury 1% + long-term care 2%)
Minimum wage
MNT 660,000/month (2026)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Ulaanbaatar
Timezone
ULAT (GMT+8)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~MNT 1,687,500 total
/month
For a gross salary of
MNT 1,500,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~12.5% employer SS (pension 7% + health 2% + unemployment 0.5% + work injury 1% + long-term care 2%)
Mandatory extras
Annual Bonus (Tsagaan Sar Bonus)
Monthly admin
Monthly payroll - SIGO by 10th - income tax - annual February return
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~MNT 1,687,500 total
Example gross salary
MNT 1,500,000 gross/month
~MNT 1,192,500 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~MNT 187,500 SS
Employer contributions on that salary
Employer contributions
~12.5% employer SS (pension 7% + health 2% + unemployment 0.5% + work injury 1% + long-term care 2%)
Employee contributions
~10.5% employee SS + 10% flat income tax
Total cost above gross
~12.5% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~MNT 800,000
Per month
Ulaanbaatar
MNT 1,200,000 - 4,000,000
~50%
Erdenet
MNT 800,000 - 2,500,000
~10%
Monthly gross. National average salary per year:
~MNT 9,600,000
Minimum wage
MNT 660,000/month (2026)
Paid:
Monthly
Extra pay
Annual Bonus (Tsagaan Sar Bonus)
Common before Lunar New Year (Tsagaan Sar)
January/February
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
10% flat income tax
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 10th
Social security payments
February 10 (annual income declaration)
Income tax
By January 31
Employee tax certificate
Tsutsah Shalgan Tsalin Todorkhoologo
February 10
Annual return
Annual income tax declaration
Late payment penalties
Late SS: 0.3%/day; late income tax: 0.3%/day
Who collects what
General Department of Taxation
Income tax
SIGO
Social insurance
Labour and Social Protection Authority
Labor law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
15 days/year
Public holidays
~16 public holidays
Sick leave
Olenii Chuluun (Sick Leave)
SIGO pays from day 4 at 60-70%
Maternity leave
16 weeks (120 days) maternity
60-70% from SIGO
The contracts you can use, and what ending an employment relationship costs.
Permanent
Tsag Hугаcаaгуй Хeдeлмeрийн Гeрeeлэл (Permanent)
Fixed term
Tsag Hugatsaatai Khedelmerin Gereelel (Fixed Term)
Independent contractor
Unechleltiin Gereelel
Collective agreements
Nugulsunii Gereelel (Collective Agreement)
Ending employment
Severance
How it is calculated
1 month per year of service
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Mining Sector Special Compliance
Risk Level: HIGH
Mongolia's dominant mining sector has additional compliance requirements including mandatory Mongolian ownership provisions and special work permit quotas. Foreign worker ratios are strictly controlled.
Tsagaan Sar Bonus Expectations
Risk Level: MEDIUM
While not legally mandatory, Tsagaan Sar bonuses are culturally expected and often contractually committed in employment letters. Failure to pay leads to turnover and reputational damage.
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150+
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$49
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1 run
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USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.