Formalization of the Informal Economy Project

Moving towards e-formalization to facilitate the formalization of informal businesses and workers

As part of the Formalization of the Informal Economy Project in Mongolia, the Ministry of Labour and Social Protection (MLSP) established a tripartite working group to develop a strategy for transitioning to formality using digital systems.

The working group was established by the decree A/150 of the Minister for Labour and Social Protection dated 31 October 2023 and led by S.Zulpkhar, Deputy Minister, MLSP. The working group (WG) consists of representatives from the related ministries, government agencies, employers and trade union organizations.

The first meeting was organized on 5 December 2023 and discussed further implementation of integrated measures. MLSP proposed an action plan to enable the registration process and formalize business units and workers, which the WG members endorsed.

The project will also hire two national consultants based on the WG's decision to conduct an assessment and explore the possibilities of integrating the existing government's information systems and facilitating public engagement to tackle informality.

As a result of the assessment, an integrated action plan will be developed to formalize business units and informal economy workers.