Overview

In December 2024, Mongolia’s Parliament introduced a draft bill to significantly ease the country’s restrictions on hiring foreign workers. The legislation proposes two major reforms: (1) the removal of quota-based limits on foreign employees outside of extractive industries, and (2) a temporary waiver of employer contribution fees for hiring non-citizens through the end of 2026.

What’s Changing?

Quota Removal: The existing sector-based quotas that restrict foreign worker numbers—especially in services, IT, and education—would be lifted entirely (except for mining and petroleum).
Fee Waiver: Employers will be exempt from paying the government-imposed foreign worker fee (currently ~MNT 1M per worker annually) for a two-year period.

Policy Rationale

The proposed changes reflect growing concerns over Mongolia’s skilled labor shortage, especially in the private and service sectors. The government also aims to boost foreign direct investment by reducing administrative and financial friction for international hiring.

“We must open up our workforce to global talent if we are to compete in the digital and green economy.” — Committee on Social Policy, 2024 Draft Summary

Implications for Employers

Positive Impact

Broader access to global talent for sectors previously constrained by quota rules.
Lower hiring costs—employers can save up to MNT 1 million per foreign hire annually.
Faster recruitment cycles with reduced regulatory hurdles.

Compliance Considerations

Employers must still complete work visa processes and ensure local contract compliance, including labor law alignment and tax obligations. The draft bill includes provisions to strengthen post-entry monitoring and improve labor inspection systems.

Impact on the Labor Market

If passed, the legislation could help ease skill gaps in key sectors such as:

Information Technology and software development
Technical education and training institutions
Tourism and hospitality services

Domestic labor unions have voiced cautious support, emphasizing the need for oversight to prevent exploitation and undercutting of local wages.

What’s Next?

The bill is under committee review and is expected to be debated in the spring 2025 parliamentary session. If passed, implementation is likely by mid-2025.

Conclusion

Mongolia’s proposed labor reform signals a strategic pivot toward a more open and flexible workforce. While subject to parliamentary approval, the draft law has strong backing from business associations and may provide employers with a valuable window to attract international talent and reduce hiring costs over the next two years.

Sources

• Parliament of Mongolia – Draft Labor Reform Announcement
• Playroll – Mongolia Hiring Guide
• Velocity Global – Work Visa Overview

Mongolia Proposes Major Reforms to Foreign Labor Restrictions