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Mongolia - Minimum Wages - 2011


LAST UPDATE

17 November 2011

SOURCES


Name of Act

Labour Code of Mongolia of 14 May 1999 as amended up to Law 22 May 2003. Official Gazette, 1999, No. 25(104), pp. 339-366. Sourced from http://www.ilo.org/dyn/natlex/natlex_browse.details?p_lang=en&p_isn=57592.
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Name of Act

Law of Mongolia on Minimum Wage, 1 August 1998, Ulaanbaatar, 1998.

Other source used

Minimum Wage Resolution dated 5 April 2011. Published by the Ministry of Social Welfare and Labour at http://mswl.gov.mn/index.php/mn/huuli/2010-05-10-09-10-54/133-business-tech/1184--2011-4-5-01-.html and accessed 17 November 2011.

LEGAL DEFINITIONS


Employee/worker

Employee means a citizen employed by an employer on the basis of an employment agreement.

Employment agreement means an agreement between an employee and an employer pursuant to which an employee undertakes to perform certain work subject to internal labour regulations established by the employer in conformity with the law, and the employer undertakes to pay wages to the employee on performance of duties and to ensure labour conditions are met as provided for in the legislation, collective agreements and bargaining.
Labour Code 1999 §§3.1.2, 3.1.3
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Employer

Based on the work contract, the body that employs the employee.
Labour Code 1999 §3.1.1

MINIMUM WAGE FIXING


Procedure


Government decides after consultation of the social partners

Government shall fix the minimum wage rate taking account of proposals of national organizations representing employers’ and workers’ interests.
Law of Mongolia on Minimum Wage 1998 §7.1

Criteria


Needs of workers and their families

Minimum wage should not be lower than the minimum level of living standards.
Law of Mongolia on Minimum Wage 1998 §5.1

Cost of living

In fixing or adjusting the minimum wage, account should be taken of the cost of living.
Law of Mongolia on Minimum Wage 1998 §5.2.2

Level of wages and incomes in the country

In fixing or adjusting the minimum wage, account should be taken of the general level of wages in the country and changes in real incomes of the population.
Law of Mongolia on Minimum Wage 1998 §§5.2.2, 5.2.4

Social security benefits

In fixing or adjusting the minimum wage, account should be taken of the amount of social insurance and welfare benefits.
Law of Mongolia on Minimum Wage 1998 §5.2.3

Economic development

In fixing or adjusting the minimum wage, account should be taken of economic growth.
Law of Mongolia on Minimum Wage 1998 §5.2.1

Productivity

In fixing or adjusting the minimum wage, account should be taken of the levels of productivity.
Law of Mongolia on Minimum Wage 1998 §5.2.1

Level of employment

In fixing or adjusting the minimum wage, account should be taken of the employment situation.
Law of Mongolia on Minimum Wage 1998 §5.2.1

Coverage


Scope

The minimum wage legislation consists of the Labour Code and the Law on Minimum Wage. As such, it applies to labour relations between:
(a) domestic business entities or organisations and citizens of Mongolia, foreign citizens or stateless persons;
(b) foreign business entities or organisations operating within the territory of Mongolia and citizens of Mongolia, foreign citizens or stateless persons (unless otherwise provided in applicable international treaties); and
(c) citizens of Mongolia, foreign citizens or stateless persons.

However, the Law on Minimum Wage stipulates that minimum wage should be a minimum rate of wages payable to a worker executing simple work or a job that does not require specified qualifications and special skills.
Law of Mongolia on Minimum Wage 1998 §§2.1, 3.1
Labour Code 1999 §4

Excluded categories

No excluded categories identified.

Specific minimum wage rates

No specific minimum wage rates identified.

Level


Minimum wage level(s) in national currency

MNT140,400 per month and MNT835.71 per hour
Minimum Wage Resolution 5 April 2011

Last minimum wage update

5 April 2011
Minimum Wage Resolution 5 April 2011

In-kind allowances

Basic salary, additional pay, extra pay, and other pays shall be paid in a monetary form.
Labour Code 1999 §61.1

Rate of payment


» Hourly

Salary may be paid on an hourly calculation basis.
Labour Code 1999 §60.2

» Daily

Salary may be paid on a daily calculation basis.
Labour Code 1999 §60.2

» Weekly

Salary may be paid on weekly calculation basis.
Labour Code 1999 §60.2

» Other

Salary to an employee shall be paid at least bimonthly, on fixed dates.
Labour Code 1999 §60.1

Scheduled frequency of adjustment

The minimum wage shall be established annually.
Law of Mongolia on Minimum Wage 1998 §7.2

Enforcement mechanisms


Labour inspection

The following persons shall monitor enforcement of the labour legislation:
(a) national monitoring shall be implemented by the State Ikh Khural, the Government, Governors of all levels, authorities exercising control, and other authorities and officials authorized by legislation organizations or within their respective powers;
(b) the local Governor and monitoring offices shall exercise state labour monitoring at the aimag, capital city, soum and district level;
(c) organizations representing and protecting the rights and legitimate interests of employees, non-government organizations, and the public shall exercise public control over implementation of the labour legislation within their respective authority.

The state inspection authority shall exercise labour inspection at the national level, and the local labour monitoring offices at the provincial level.

Labour monitoring shall be regulated by the Rules of the State Labour Inspection.
Labour Code 1999 §§139, 140
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Fines in national currency for non-respect of legislation

In the event that an entity or individual is found to have paid its employees wages at a rate less than the minimum wage rate, a judge or authorized official shall impose a fine of:
(i) 50,000-150,000 tugrug on an entity or enterprise; and
(ii) 5,000-40,000 tugrug on an individual.
Law of Mongolia on Minimum Wage 1998 §§8, 10

Other penalties

An employer shall fully reimburse any loss resulting from payment of wages lower than the minimum wage for the employee.

Where it has been determined that an employer delayed or did not make timely payment of an employee’s salary, a judge shall impose a penalty for late payment equal in amount to 0.3% per day of the delay. This is to be paid to the employee.
Law of Mongolia on Minimum Wage 1998 §10.2
Labour Code 1999 §141.3

Results generated on: 02nd August 2014 at 00:31:01.
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