For companies hiring in Mongolia without a local entity

Employer of Record in Mongolia

NNRoad employs your team member in Mongolia on your behalf, through a registered Mongolian employer that works under contract to us. We handle the employment contract, payroll in tögrög, social insurance and income tax. You choose the person, set the salary and direct the work.
12% of monthly employment cost. No setup fee, no minimum fee and no minimum headcount. One invoice a month, in US dollars.
Illustration of Ulaanbaatar with a ger, an employment contract and a payslip in Mongolian tögrög
Last reviewed in October 2026 against Mongolia’s Labour Law, Law on Personal Income Tax and social insurance rules.

Can you hire in Mongolia without your own company?

Yes. With an employer of record, a Mongolian company becomes the legal employer of the person you want to hire. The employee works in your team every day. The employer of record holds the employment contract, pays the salary in tögrög (MNT), withholds income tax and pays social insurance.
NNRoad does this through a registered Mongolian employer that works under contract to us. You sign one service agreement with NNRoad, pay one monthly invoice and have one point of contact. There is no minimum headcount, so you can start with one employee, and companies from any country can use the service.
Our Mongolia EOR is for hiring Mongolian citizens. If the person you want to hire is a foreign national who needs a work permit and visa, that is a separate service: Hire Foreigner in Mongolia.

A good fit

A Mongolian citizen, an ongoing role, and no Mongolian company of your own yet.

Hiring a foreigner

The person needs a work permit, an employment visa and a residence permit. See Hire Foreigner in Mongolia.

Another route is simpler

You already have a Mongolian company (payroll outsourcing), or the work is a short project with clear deliverables (on-demand talent).

Is EOR the right route for this hire?

Many companies search for “Mongolia EOR” while they are still deciding how to engage someone. This table points each situation to the service that fits it.
Your situationBetter fit
You have no Mongolian company and want to employ a Mongolian citizen in an ongoing roleEmployer of record (this page)
The person is a foreign national who needs a work permit and visaHire Foreigner in Mongolia
The work is a defined project and the person works independentlyOn-demand talent and contractors
You already have a Mongolian company and need someone to run payroll, tax and social insuranceMongolia payroll outsourcing
You plan a sizeable local team or will sign contracts with Mongolian customersYour own Mongolian company, with EOR as a bridge while it is set up
Not sure which applies? Read our guide to choosing an employer of record in Mongolia, or tell us about the hire and we will say which route fits.

What NNRoad handles and what stays with you

Diagram of how NNRoad's Mongolia employer of record works: your company, NNRoad, the local Mongolian employer and your employee

NNRoad and the local employer

You, as the company the employee works for

Mongolia EOR pricing

We charge a percentage of what the employee costs each month, so you can work out the fee from the salary you agree. There is no setup fee and no monthly minimum.

Mongolia EOR pricing

12% of monthly employment cost

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 payNNRoad Mongolia EOR (local employees)
Monthly service fee12% of the employee’s monthly employment cost
Setup feeNone
Minimum monthly feeNone
Employer’s liability insurance0.60% of the employee’s monthly gross salary
Bank chargeUS$67.50 per monthly payment
Deposit1.5 months of the employee’s gross salary, returned after the final invoice when the employment ends
InvoicingOne invoice a month, in US dollars
Example: an employee earning MNT 3,000,000 a month costs MNT 3,375,000 with employer social insurance at 12.5%. At US$1 = MNT 3,596 that is about US$939, so the monthly fee is about US$113.

What a hire in Mongolia costs on top of salary

The main employer cost is social insurance. The employer pays 12.5% to 14.5% of gross salary and the employee pays 11.5%, deducted from pay.
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.

Also plan for

  • Income tax is deducted from the employee’s pay, so it is not an extra employer cost: 10% on annual taxable income up to MNT 120 million, 15% up to MNT 180 million and 20% above. PwC
  • Pay twice a month. Salaries are paid in MNT in two instalments on fixed days. Invest Mongolia
  • From 1 January 2027 the minimum wage rises from MNT 792,000 to MNT 1,000,000 a month, and the first MNT 792,000 of monthly salary becomes exempt from income tax.

Mongolia employment rules to plan around

Your employee’s contract has to meet Mongolia’s Labour Law, revised in 2021. These are the rules overseas employers ask us about most often.
TopicWhat the law requires
Employment contractIn writing, with one copy for the employee. If it cannot be signed before work starts, within 10 business days of the start date.
ProbationUp to 3 months, and it can be extended once by up to 3 more months if both sides agree.
Working hours40 hours a week and 8 hours a day. Saturday and Sunday are the normal rest days.
Overtime and holidaysAt least 1.5 times average pay for overtime and rest-day work, 1.2 times for night work and 2 times for public holidays, unless time off is given instead.
PayIn MNT, in two instalments a month on fixed days.
Minimum wageMNT 792,000 a month, rising to MNT 1,000,000 on 1 January 2027. Ministry of Labour
Annual leave15 working days, with extra days from the sixth year of service.
Maternity and paternity leave120 days of maternity leave (140 for twins) and at least 10 days of paid leave for new fathers.
Notice30 days’ written notice when the employer ends the job for business or capability reasons. Employees also give 30 days.
SeveranceOne month’s base salary after 6 months of service, two months after 2 years, three after 5 years and four after 10 years, for employer-initiated termination on the statutory grounds.

Source: Law on Labour of Mongolia (English translation published by Invest Mongolia). For recent changes see our Mongolia compliance hub.

How a Mongolia EOR hire works with NNRoad

We confirm a realistic start date in the proposal, once we know when the employee’s documents will be ready.

01

Tell us about the hire

Citizenship, job title, salary, start date and any bonus or benefits you want to offer.

02

Proposal and agreement

We send a cost breakdown and a service agreement. The deposit is invoiced once you sign.

03

Onboarding

The employment contract is signed, the employee is registered for social insurance and we collect their payroll details.

04

Every month

You confirm any variable pay. Payroll runs in MNT, contributions and tax are paid, and you receive one invoice in US dollars.

EOR or your own Mongolian company?

EOR is often the first step, not the permanent setup. This is how the two compare for an overseas company.
Employer of recordYour own Mongolian company
Legal employerA registered Mongolian employer, arranged by NNRoadYour company
Before the first hireA service agreement and a depositCompany registration, tax and social insurance registration, a local bank account
CapitalNoneAt least US$100,000 per foreign investor for a company that is 25% or more foreign-owned
Every monthOne invoice from NNRoadYour own payroll, tax and social insurance filings, and bookkeeping
SuitsOne to a few employees, or a first step into the marketA larger team, or contracts with Mongolian customers

Source for the investment threshold: Invest Mongolia, setting up a business.

When you set up your own company, the employee signs a new contract with it and the EOR arrangement ends. If you want us to keep running payroll, tax and social insurance for the new company, see Mongolia payroll outsourcing.
Planning the switch? Tell us the expected date when you ask for a quote. We will cover the notice and handover steps in the proposal.

Typical first hires through an EOR in Mongolia

A country or sales manager

For trading, equipment and consumer companies that want someone in the market before they open an office.

Engineers and support staff

For technology and service companies adding a small team in Ulaanbaatar.

A local project coordinator

For suppliers to mining, energy and infrastructure projects that need a person on the ground.

Get a quote

Tell us about your Mongolia hire

We reply within 24 hours with a cost estimate and the next steps. The more you tell us about the person and the package, the more exact the estimate. This form is for employers; we do not place job seekers.

Mongolia EOR questions

Straight answers to what overseas employers ask us before they hire.

NNRoad charges 12% of the employee’s monthly employment cost, which is gross salary plus the employer’s social insurance contribution. There is no setup fee and no minimum monthly fee. For a salary of MNT 3,000,000 the fee is MNT 405,000, about US$113 a month. Employer’s liability insurance (0.60% of gross salary) and a US$67.50 bank charge per monthly payment are billed separately. See worked examples.

No. You can hire one employee through NNRoad’s Mongolia EOR, and companies from any country can use the service.

A registered Mongolian company that works under contract to NNRoad signs the employment contract as the employer. NNRoad does not have its own company in Mongolia. You sign one service agreement with NNRoad, and we remain your contracting party for the fee, the invoice and anything that needs putting right.

Mongolian citizens. If the person is a foreign national who needs a work permit, an employment visa and a residence permit, our Hire Foreigner in Mongolia service handles the hire, with its own process and pricing. Our C6 work visa guide explains one of the common routes.

Social insurance of 12.5% to 14.5% of gross salary, depending on the occupational risk class of the job. Through NNRoad you also pay employer’s liability insurance at 0.60% of gross salary and the 12% service fee. Income tax and the employee’s 11.5% social insurance come out of the employee’s gross pay.

In Mongolian tögrög (MNT), in two instalments a month on fixed days, with income tax and social insurance already deducted. You fund payroll through one monthly invoice in US dollars.

Yes: 1.5 months of the employee’s gross salary, invoiced when you sign. It is returned after the final invoice when the employment ends.

You tell us the decision and the reason. When an employer ends a job for business or capability reasons, the Labour Law requires 30 days’ written notice and severance of one to four months’ base salary, depending on length of service. We prepare the termination documents and the final pay with the local employer, then return the deposit after the final invoice.

Yes. Once your company is registered, the employee signs a new contract with it and the EOR arrangement ends. A foreign-invested company in Mongolia needs at least US$100,000 of investment per foreign investor, so many employers stay on EOR until the team is large enough to justify it. We can keep running payroll for your new company if you want.

Use an EOR when the person works regular hours under your direction as part of your team. That is employment, and it should be set up as employment. Use a contractor when the work is a defined project that the person delivers independently. Our On-Demand Talent in Mongolia service covers contractors.

From 1 January 2027 the minimum wage rises from MNT 792,000 to MNT 1,000,000 a month, the first MNT 792,000 of monthly salary becomes exempt from income tax, and the employer’s accident insurance rate falls from 0.5%-2.5% to 0.3%-2.2%. Sources: KPMG Mongolia, PwC Mongolia. We will update this page when the final legal texts are in force.

Further reading

What you pay each month, with three worked examples.
Eight checks to make before you sign.
Gross to net and employer cost for any salary.
Labour, tax and social insurance updates.