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Mongolia offers a relatively cost-effective hiring environment, especially in Ulaanbaatar, where most skilled professionals are based. Your total employer cost in Mongolia includes gross salary plus mandatory social insurance contributions and small employment-related taxes, which together typically add around 12%-14% on top of salary up to the statutory cap.
Below are average monthly cost estimates for key roles in 2026, combining market salaries in Ulaanbaatar with Mongolia's standard 12% employer social insurance contribution applied up to the monthly ceiling, plus minor payroll charges. USD figures assume an exchange rate of roughly MNT 3,450 = USD 1 and are rounded.
- Software Engineer:
Average salary MNT 4,000,000 (≈ USD 1,160) + employer contributions MNT 480,000 (≈ USD 140) = Estimated Total Monthly Cost MNT 4,480,000 (≈ USD 1,300). Compensation varies significantly by tech stack, foreign-language skills, and whether you are competing with multinational or mining-adjacent employers for talent. - Product Manager:
Average salary MNT 4,800,000 (≈ USD 1,390) + employer contributions MNT 576,000 (≈ USD 170) = Estimated Total Monthly Cost MNT 5,376,000 (≈ USD 1,560). Costs trend higher for product leaders with end-to-end ownership, data skills, or experience working with international stakeholders and distributed teams. - Marketing Specialist:
Average salary MNT 2,800,000 (≈ USD 810) + employer contributions MNT 336,000 (≈ USD 100) = Estimated Total Monthly Cost MNT 3,136,000 (≈ USD 910). Digital and performance marketers with campaign-optimization and analytics experience usually command higher packages than generalists focused on offline channels. - Customer Support Representative:
Average salary MNT 2,000,000 (≈ USD 580) + employer contributions MNT 240,000 (≈ USD 70) = Estimated Total Monthly Cost MNT 2,240,000 (≈ USD 650). English-speaking agents serving international customers or working night shifts may receive higher base pay plus shift or attendance allowances. - HR Manager:
Average salary MNT 4,200,000 (≈ USD 1,220) + employer contributions MNT 504,000 (≈ USD 150) = Estimated Total Monthly Cost MNT 4,704,000 (≈ USD 1,360). HR leaders with strong knowledge of Mongolian labor law, social insurance rules, and multinational practices often negotiate premium salaries and performance bonuses.
Figures are market-based estimates rather than legal minimums and may vary with seniority, sector, benefits, and whether salaries exceed the social insurance ceiling.
💡 Curious how much it would cost to hire your next role in Mongolia? Use our Salary Benchmarking Tool to get an instant, role-specific estimate - including taxes and compliance costs.
When you hire in Mongolia, salary is just one part of your budget. You also need to plan for social insurance contributions, leave entitlements, public holidays, probation and termination rules, and any bonuses or allowances written into your compensation policies.
In 2026, statutory employer social insurance contributions generally add around 12% on top of gross salary up to the capped amount, with overall employment costs rising further if you offer private health insurance, transport support, or performance-related bonuses.
Leave and Paid Time Off
In Mongolia, employees are generally entitled to at least 15 working days of paid annual leave, increasing with service, and employers must also honor public holidays, of which there are roughly 10-15 widely observed days each year. You should budget for maternity leave of at least 120 days, part of which is employer-funded, while paternity and additional parental leave are governed by the Labor Code and your internal policies.
Mandatory Employer Contributions
For most employees in Mongolia, you must contribute around 12% of gross salary to social insurance, which covers pensions, health, unemployment, and other risks, applied up to a government-set monthly cap. Because this cap is adjusted periodically, your percentage cost decreases for higher earners once they exceed the ceiling, so you should monitor annual changes when planning budgets.
Probation and Notice Periods
Mongolia's Labor Code allows employers and employees to agree a probation period, commonly up to three months, during which either side can usually terminate with shorter notice. After probation, notice periods and any severance obligations depend on contract terms and legal grounds for termination, so exits can add meaningful one-off costs for your Mongolia team.
Compensation Structure and Bonuses
Compensation packages in Mongolia typically consist of a base salary plus potential performance bonuses, sales incentives, or allowances for meals, transport, or mobile usage, depending on your sector. A 13th-month salary is not mandated by law and is not universally practiced, but some larger or international employers offer discretionary annual bonuses, which you should treat as market-driven rather than statutory costs.
Social Security and Tax Compliance
As an employer in Mongolia, you are responsible for registering with the tax and social insurance authorities, withholding personal income tax and employee contributions, and remitting employer social insurance on a monthly basis. Late or incorrect filings can trigger penalties and interest, so accurate local payroll processing and documentation are essential to keeping your Mongolia hiring costs predictable.
Hiring and Engagement Models
If your company does not have a Mongolian legal entity, using an Employer of Record lets you hire local talent compliantly without setting up a company, while the EOR handles contracts, payroll, and contributions. If you operate through your own entity, you can hire directly but must manage labor-law compliance, social insurance registration, and ongoing payroll internally or via a trusted local provider, which can increase your administrative overhead but may reduce per-employee fees at scale.
Bring them on board seamlessly with Playroll. Our legal experts handle compliance so you don’t have to.
Book a DemoHere are six actionable ways to make your hiring strategy more cost-efficient – wherever you’re building your team.
- Plan Around Statutory Contribution Caps
Most countries set salary ceilings for mandatory employer contributions like pensions, healthcare, or unemployment insurance. Once an employee’s earnings exceed that cap, your contribution amount stays fixed. Mapping compensation bands against these limits before finalizing offers helps you remain competitive without paying unnecessary premiums. - Localize Benefits Strategically
Every market values different perks. Instead of applying a global benefits template, align packages to local expectations and cultural norms. In some regions, private healthcare or transport allowances are far more attractive than bonuses or extra paid leave. Prioritize what your team will value most and trim the rest – you’ll keep engagement high while reducing spend. - Consider an Employer of Record (EOR)
Running your own entity can be expensive – local payroll systems, tax filings, and compliance administration add up fast. Partnering with a trusted EOR like Playroll simplifies hiring anywhere in the world. We manage contracts, benefits, payroll, and compliance for you, all under one transparent monthly fee. It’s the easiest way to scale globally without unexpected costs or compliance risks. - Revisit Employment Contract Types and Terms
Not every role needs to be permanent or full-time. Many labor frameworks allow fixed-term or project-based contracts, which can offer both flexibility and cost control. Be intentional about probation periods, notice clauses, and renewal terms – clear definitions reduce risk and prevent costly disputes later. - Explore Cross-Border Hiring Options
If a role doesn’t require strict on-site presence, widen your search to include neighboring or lower-cost markets. With compliant hiring solutions, you can engage top talent in other countries while reducing salary and overhead costs – all without setting up additional legal entities. - Build Internal Mobility
Before recruiting new talent, look at who you already have. Upskilling or promoting existing employees can fill gaps faster and for less cost than external recruitment. This also boosts retention and engagement, since employees see clear career progression within your organization.
What is the average employer cost of hiring in Mongolia in 2026?
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In 2026, total employer costs in Mongolia for mid-level roles typically range from MNT 2.5-5.5 million per month, including salary and around 12% employer social insurance. Actual budgets vary by role, seniority, and benefits.
Are there regional or industry-specific variations in employer costs in Mongolia?
Employer costs in Mongolia are highest in Ulaanbaatar and in sectors like mining, finance, and international tech, while regional and SME roles tend to be cheaper. Location, industry, and company type strongly influence salary benchmarks.
What is the estimated timeline for hiring in Mongolia?
Most employers can expect a 4-8 week hiring timeline in Mongolia, with longer cycles for senior or highly specialized roles. Strong language or niche-skill requirements may extend the process.
What factors impact the cost of hiring in Mongolia?
Hiring costs in Mongolia are driven by seniority, skill scarcity, language needs, and competition from high-paying sectors, plus mandatory social insurance and any bonuses or allowances. Your engagement model (direct hire vs EOR) also affects total cost.
How often do employment-cost rules change in Mongolia?
Mongolia periodically updates social insurance caps, minimum wages, and related labor rules, often on an annual cycle. Employers should review official changes each year to keep payroll and hiring budgets compliant and accurate.
about the author
Jaime Watkins
Jaime is a content specialist at Playroll, specializing in global HR trends and compliance. With a strong background in languages and writing, she turns complex employment issues into clear insights to help employers stay ahead of the curve in an ever-changing global workforce.
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