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Population
Mongolia has a population of approximately 3.4 million people (as of 2023). The country is sparsely populated, with a large portion of the population residing in urban areas, especially in the capital, Ulaanbaatar. The Mongols make up the majority of the population, but there are also minorities such as Kazakhs and other ethnic groups. Nomadic lifestyles are still common in rural areas.
Capital
The capital of Mongolia is Ulaanbaatar, the political, economic, and cultural center of the country. Ulaanbaatar is a rapidly growing city, characterized by both modern development and traditional influences.
Economic Strength
Mongolia’s economy is primarily based on the extraction of natural resources, especially coal, copper, and gold. The mining sector accounts for a significant portion of the gross domestic product (GDP). In addition, agriculture, particularly livestock farming (sheep, goats, cattle), plays a crucial role in the economy. Mongolia has greatly benefited from the export of its resources, especially to China. However, the country faces economic volatility and dependence on global commodity prices and international markets.
Culture
Mongolian culture is deeply rooted in its nomadic traditions and Buddhism. Nomadism, horse breeding, and traditional festivals such as Naadam are integral to Mongolian cultural life. Naadam, Mongolia’s largest festival, celebrates the three traditional sports: wrestling, horse racing, and archery. Tibetan Buddhism plays a central role in Mongolian society, with monasteries and Buddhist festivals being key elements of religious life.
Currency
The official currency of Mongolia is the Mongolian Tugrik (MNT).
Health Insurance and Social Security System
Mongolia offers a state health insurance system that provides basic medical care to all citizens. Both employees and employers contribute to the social security system, which covers pensions, unemployment insurance, maternity benefits, and sick pay. Employers contribute around 11% of the salary towards social security, while employees contribute about 10%.
Employer Costs
Employer costs in Mongolia include contributions to social security, amounting to 11% of the employee’s gross salary. These contributions cover pensions, health insurance, and other social benefits. Additionally, employers in certain sectors may also provide housing and meals as part of their employment packages.
Salary and Bonuses
Salaries in Mongolia vary significantly by sector. The minimum wage is 550,000 MNT (approximately 160 EUR) per month (as of 2023). In many companies, especially in the private sector, bonuses are common, particularly at the end of the year or during holidays such as the Mongolian New Year (Tsagaan Sar). These bonuses are often linked to company performance and individual productivity.
Payroll
Employers in Mongolia are required by law to issue monthly payroll statements. These statements must provide a detailed breakdown of basic salary, bonuses, allowances, and deductions for taxes and social security contributions. Payroll transparency is essential to meet legal requirements.
Public Holidays
Mongolia observes several public holidays, both religious and national, including:
- New Year’s Day (January 1)
- Tsagaan Sar (Mongolian Lunar New Year, varies)
- Naadam Festival (July 11-13)
- Independence Day (November 26)
There are approximately 10 public holidays each year, during which employees are entitled to paid time off.
Working Hours
Standard working hours in Mongolia are 40 hours per week, typically spread over five days, with 8-hour workdays. Overtime must be compensated according to legal guidelines, either through additional pay or extra time off.
Vacation
Employees in Mongolia are entitled to 20 days of paid annual leave, with the entitlement increasing based on the length of service. In addition, employees are entitled to paid leave during public holidays.
Sick Leave
In the event of illness, employees in Mongolia are entitled to sick leave, which is covered by the social security system. A medical certificate is required to qualify for sick leave. Employees continue to receive their salary during sick leave, which is partially funded by the social security system.
Termination/Severance
Mongolian labor law requires a 30-day notice period for the termination of employment. In the case of involuntary termination, employees are entitled to severance pay, which is calculated based on the length of service. Typically, severance amounts to one month’s salary per year of service. In some cases, additional severance or benefits may be negotiated depending on the terms of the employment contract.