Establishing and running payroll in Mongolia
If you are planning a Mongolian expansion, one of your first steps will probably be hiring a local workforce. To do this you will generally need a legal entity in the country and will need to establish an in-country payroll and employment infrastructure. This can be a long and difficult process in many cases, taking several months to complete and causing delays.
At Horizons, we specialize in providing Mongolia payroll support services, offering organizations a way to outsource the time-consuming process of setting up payroll and hiring employees. We offer flexible service packages to simplify your expansion, whether or not you already have a Mongolian entity.
If you have an entity
If your organization has already registered an official entity in Mongolia, then you can outsource your payroll setup and management to us to get expert support and to fast-track your operations.
This level of outsourcing is perfect for larger organizations that are looking to expand into Mongolia long term.
If you don’t have an entity
If your business has not registered an official entity in the country, then you have the option of hiring through our Mongolian subsidiary. We can act as employer of record in the country, set up and manage your payroll, and handle associated HR, administration, and compliance.
This solution provides a low-risk, scalable, and flexible route into the Mongolian marketplace so you can access all of the benefits of employing locally without any of the hassle.
How we can help you expand in Mongolia
Mongolia payroll guide
Taxation and withholdings requirements in Mongolia
Employees and employers in Mongolia are both required to pay toward social security. Each pay equally, with 7% of salary paid to pension, 0.2% to unemployment insurance, and 2% to medical insurance. Additionally, employees must pay a small contribution toward benefit insurance (up to 3%).
Income tax in Mongolia is progressively rated so varies depending on income level. For residents, the rates are between 10% and 40%. For non-residents, there is a flat rate of 20%.
Entitlements and terminations in Mongolia
Employers and employees in Mongolia are generally required to give notice of termination of an employment contract. The length of notice depends on the precise reason for termination, but usually between 30 days and two months. Additionally, employees are usually entitled to around 30 days of normal pay as severance upon dismissal.
How to establish a Mongolian payroll
In most cases, a foreign organization looking to establish a payroll in Mongolia will need to register an official entity within the country. This can take longer than expected, and you will need you to closely adhere to the country’s complex employment regulations.
Alternatively, you can choose to outsource your Mongolia payroll to Horizons. We provide the use of our Mongolian subsidiary to act as employer of record for your Mongolian workforce, so you won’t have to go through the complex process yourself and can benefit from our outsourcing services even without a registered entity in Mongolia. Additionally, we can build your payroll and manage your HR, compliance, and any other associated administration, enabling you to work on successfully expanding your businesses in Mongolia.
Your all-in-one solution for Mongolia payroll outsourcing and global expansion
Horizons’ Mongolia payroll services help your business to quickly and compliantly begin trading in Mongolia, without the complex process of establishing a local entity and navigating local regulations. This can help your business to commence its Mongolia operations in as little as 48 hours and has the potential to cut your expansion costs by more than 80%, whether or not you already have a registered entity in the country.
Horizons can also manage your company’s payroll, benefits, and expenses in Mongolia. Additionally, we can oversee HR duties, as well as employment and tax compliance. And as the only global PEO with an in-house recruitment team, Horizons can source, recruit, and onboard your local workforce.