Mongolia EOR cost guide

Mongolia EOR Cost: What You Pay Each Month

Hiring through an employer of record in Mongolia costs three things: the employee’s salary, the employer’s social insurance, and the EOR’s fee. For a salary of MNT 3,000,000 a month, social insurance adds MNT 375,000. This guide shows how each part is worked out.
Last reviewed in October 2026 against Mongolia’s social insurance and income tax rules. Exchange rate used in examples: US$1 = MNT 3,596.
Illustration of Ulaanbaatar with a ger, an employment contract and a payslip in Mongolian tögrög

The three parts of a Mongolia EOR bill

1. Salary

The gross pay in the employment contract, plus any allowance, commission or bonus you agree. You set it; it is paid in MNT.

2. Employer social insurance

12.5% to 14.5% of gross salary, depending on the occupational risk class of the job. Our examples use 12.5%.

3. The EOR service fee

NNRoad charges a monthly service fee for each employee. We quote it after reviewing the role, and the proposal shows it on its own line, separate from the employment cost.

Employer social insurance in 2026

Employer social and health insurance contributions are a recurring cost on top of gross salary. The employer remits both its own contribution and the employee’s contribution, deducting the latter from pay. A complete budget should also account for statutory leave, overtime or other premiums, and termination payments where applicable.

ContributionEmployerEmployee
Pension insurance8.5%8.5%
Benefits insurance1.0%0.8%
Health insurance2.0%2.0%
Unemployment insurance0.5%0.2%
Industrial accident and occupational disease insurance0.5%, 1.5% or 2.5%None
Total12.5% to 14.5%11.5%

Rates for 2026. The employer’s rate depends on the occupational risk class of the job. The employee’s contribution is capped at MNT 910,800 a month. Sources: Invest Mongolia, PwC Worldwide Tax Summaries.

Three details that change the number

  • The risk class. The accident insurance part is 0.5%, 1.5% or 2.5% depending on the job, which is why the employer total runs from 12.5% to 14.5%.
  • The employee cap. The employee’s 11.5% stops at MNT 910,800 a month, reached at a salary of MNT 7,920,000. The employer’s share has no cap in 2026.
  • Income tax is not an employer cost. It is deducted from the employee’s pay: 10% on annual taxable income up to MNT 120 million, 15% up to MNT 180 million and 20% above. PwC

How NNRoad quotes

What your proposal shows

Every line, before you sign

Employment cost means gross salary plus the employer’s social insurance contribution and anything else you ask us to pay through payroll, such as a bonus or an allowance.
What you payHow it works
Monthly service feeQuoted per employee after we review the role
Employment costSalary, employer contributions and any benefits you agree, passed through at cost
Government and third-party feesPassed through at cost, if any apply
InvoicingOne invoice per payroll month, with a line-by-line breakdown
Our service covers local employees: Mongolian citizens. The proposal we send before you sign lists every charge for your hire.

Three worked examples

These examples assume a Mongolian citizen, employer social and health insurance at 12.5%, no bonus or allowance, and an illustrative exchange rate of US$1 = MNT 3,596. Figures are rounded. The totals exclude the EOR service fee. Confirm the applicable risk class and all charges in the written proposal.

MNT 3,000,000 salaryMNT 5,000,000 salaryMNT 7,500,000 salary
Gross monthly salaryMNT 3,000,000MNT 5,000,000MNT 7,500,000
Employer social insurance (12.5%)MNT 375,000MNT 625,000MNT 937,500
Employment costMNT 3,375,000MNT 5,625,000MNT 8,437,500
Employer’s liability insurance (0.60%)MNT 18,000MNT 30,000MNT 45,000
Monthly totalMNT 3,393,000 (about US$944)MNT 5,655,000 (about US$1,573)MNT 8,482,500 (about US$2,359)

What the employee takes home

MNT 3,000,000 salaryMNT 5,000,000 salaryMNT 7,500,000 salary
Employee social insurance (11.5%)MNT 345,000MNT 575,000MNT 862,500
Income taxMNT 255,500MNT 442,500MNT 663,750
Net monthly payMNT 2,399,500MNT 3,982,500MNT 5,973,750

Income tax is 10% of salary after social insurance at these levels. The first example includes the MNT 10,000 monthly tax credit that applies at that income. You can check any salary in our Mongolia labor cost calculator.

The first-year view

Using the MNT 5,000,000 example for twelve months:
ItemAmount
Salary for 12 monthsMNT 60,000,000
Employer social insurance (12 × MNT 625,000)MNT 7,500,000
Employer’s liability insurance (12 × MNT 30,000)MNT 360,000
Total for the yearMNT 67,860,000 (about US$18,871)

What changes on 1 January 2027

Parliament approved tax and social insurance amendments in June 2026, and a higher minimum wage was set in August. Three of the changes affect what an employee costs.
Item2026From 1 January 2027
Minimum wageMNT 792,000 a monthMNT 1,000,000 a month
Income tax on salary10% from the first tögrög, less a small credit for lower incomesThe first MNT 792,000 of monthly salary is exempt; 10% above that
Employer accident insurance0.5%, 1.5% or 2.5%0.3%, 1.2% or 2.2%, so the employer total becomes 12.3% to 14.2%

Sources: KPMG Mongolia tax newsletter, July 2026; PwC Mongolia tax alert 04/2026. KPMG noted that the final legal texts had not been published when it wrote. We will update this guide when they are.

The income tax change raises take-home pay rather than employer cost. The lower accident insurance rate reduces the employer’s bill slightly.

EOR or your own Mongolian company?

A company that is 25% or more foreign-owned needs an investment of at least US$100,000 per foreign investor. Before you compare that with an EOR fee, list what the company also needs every year:
  • Registration with the tax office and the social insurance office
  • Monthly payroll, income tax and social insurance filings
  • Bookkeeping, annual accounts and a local bank account
  • Someone in Mongolia who can sign and deal with the authorities
For one to a few employees, an EOR is usually cheaper and faster to start. Once you need local customer contracts or a bigger team, your own company usually makes more sense. See how our Mongolia EOR works.

Questions about Mongolia EOR cost

US dollars. Salaries, tax and social insurance are paid in Mongolian tögrög and converted for your invoice.

No. This page covers Mongolian citizens hired through our Mongolia EOR. Foreign hires who need a work permit go through our Hire Foreigner in Mongolia service, which has its own pricing because of permit, visa and workplace-fee costs.

Want the numbers for your own hire?

Send us the salary, the role and the start date. We will send a full monthly and yearly cost breakdown within 24 hours.