How to hire remote employees in

Mongolia

Though Mongolia flies under most people’s radar, there’s some great remote talent living in Ulaanbaatar and surrounding cities. If you’ve found someone there you’d like to hire, you’re in the right place. In the next few minutes, we’ll teach you how you can hire in Mongolia—without getting bogged down in expensive fees and complex labor laws.

Country snapshot

CURRENCY
MNT (Mongolian Tugrug)
EMPLOYER TAXES
12.50%- 14.50%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Mongolian/Khalkha dialect

What to know before you hire in 

Mongolia

Hiring in Mongolia can be confusing, but it’s easier when you know what you’re doing. If you want to hire remote talent in Mongolia, you have two options: Hire people as contractors, or hire them as employees.

If you want to successfully hire in 

Mongolia

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Mongolia

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Mongolia

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Mongolia

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Mongolia

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Mongolia

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Mongolia

?

If you’re hiring contractors in 

Mongolia

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Mongolia

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Mongolia

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Mongolia than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Mongolia.

Taxes in 

Mongolia

Employer tax

Social Security

Pension

Medical Insurance

Benefit Insurance

Individual tax

Leave

Paid Time Off (PTO)

Employees are generally entitled to 15 days of annual paid leave. Additional leave is granted, considering the length of their record of service, and their working conditions as follows:

  • 6-10 years of work, 3 working days
  • 1-15 years of work, 5 working days
  • 16-20 years of work 7, working days
  • 21-25 years of work 9, working days
  • 26-31 years of work 11, working days
  • 32 and more years of work 14, working days

Public Holidays

There are 15 public holidays.

Sick Days

Employees are generally eligible for sick leave for as long as needed.

Maternity Leave

Female employees are generally entitled to 120 days of maternity leave at 70% of pay.

Paternity Leave

Male employees do not receive paternity leave; however, single fathers are entitled to equal leave as a mother who gives birth to a child until the child reaches 60 days old.

Parental Leave

Childcare leave is granted to mothers and single fathers with children under three years old. During this leave, the employer is responsible for making social insurance payments on the employee’s behalf.

Other Leave

Baby Care leave - Female employees are entitled to have this leave with children under the age of three.

Adoption Leave -mother is entitled to equal leave as a mother who gives birth to a child until the child reaches 60 days old.

Military Leave - Employers are required to pay severance pay to employees who have terminated their employment due to military service.

Marriage Leave

Not specified by law.

Bereavement Leave

Not specified by law.

Termination

Termination Process

An employee shall have the right to leave his or her workplace upon the expiration of 30 days after submitting his or her request of resignation to the employer, in which case the employment agreement shall be considered as terminated.

An employment agreement may be terminated prior to the above mentioned time limit due to a valid reason or by an agreement with respect to the time of resignation with the employer.

Notice Period

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.

Severance Pay

Severance pay is one month's wages if the termination is due to the employee's military duty, liquidation of the business, or an employee reaches retirement age

Probation Period

Probation period is 6 months.

Employee requirements in 

Mongolia

Working Hours

The working week in Mongolia is Monday to Friday.

The working day for commercial offices is usually eight hours. Lunch breaks are usually one hour.

Overtime

Employee who has worked overtime or on the weekly rest days has not been compensated with other rest days, he shall be paid one and half times or more of his average remuneration.

It is prohibited to require a minor employee to perform overtime work or to work on public holidays or weekends.

If an employer has forced women or minors to perform a labour prohibited by law, or to lift or carry the load exceeding the prescribed limits, or has forced an employee under 18 years age to work in a working place harmful to his mental development and health or under abnormal or special conditions, or to perform overtime work or to work on public holidays or weekends, or has violated Section 74 of this law -i.e. an employee was compelled to work overtime - the state labour inspector shall fine that employer 15,000-30,000 to grogs;

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