How to Hire Remote Employees In 


The Basics

MNT (Mongolian Tugrug)
Employer Taxes
12.50%- 14.50%
Payroll Frequency
Official Language
Mongolian/Khalkha dialect

Employment in 


Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Time savings: Hiring through a subsidiary or EOR can take months of onerous paperwork and legal wrangling. This is only multiplied if you want to hire in multiple countries.
Reduced overhead: You can save tens of thousands of dollars in onboarding costs by hiring through a company like Panther. You also have fewer responsibilities to provide benefits, further reducing overhead.
Greater flexibility: Contractors can be brought on as-needed. If they are not a good fit, you can choose not to renew them without incurring significant additional termination costs.
Reduced legal risk: Contractors generally don't have the host of legal protections that typically cover full-time employees.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: While it's important to understand local contractor law, for most firms, misclassification risk is minimal.
Lack of Control: For a worker to be classified as a contractor, they should be allowed to work independently on their assigned tasks. Hiring full-time employees offers a wider range of management options.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.

Set up a subsidiary in 


A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Mongolia can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Mongolia, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Mongolia.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Mongolia is not the same as paying workers in your own country. Employees have to be paid using Mongolia's employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.


 Specific Information

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.


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;

Payroll Tax



  • Social Security such as:


             Medical Insurance

             Benefit Insurance

Minimum Wage

The monthly minimum wage is 420,000.00 MNT.


Pay Cycle

The payroll cycle in Mongolia is monthly, and salaries must be paid by the 5th of the following month.

Employees are typically page between the 25th and last day of the month.

13th Salary

 There are no provisions in the law regarding 13th salaries.


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 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.