Employment Cost Calculator for Mongolia
Calculate your complete hiring costs for Mongolia employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Insurance Contributions | 12.5% - 14.5% (employer) | Employee's gross salary |
| Personal Income Tax (PIT) Withholding | Progressive (residents: 10%-40%; non-residents: 20%) | Employee's salary/income |
| Value Added Tax (VAT) | 10% | Supply of taxable goods/services and imports |
Filing & Compliance
- Monthly: Remit withheld PIT and social security contributions by the 10th of the following month. File monthly tax declarations detailing employee income, withheld PIT, and social security contributions.
- Quarterly: File quarterly personal income tax and corporate income tax returns by the 20th of the first month of the following quarter.
- Annual: File annual tax declarations by February 15th of the following year.
In Mongolia, employee tax deductions primarily involve social security contributions and a general tax deduction based on annual income. No deductions for non-business expenses are permitted.
Social Security Contributions
Employees contribute 11.5% of their salary to social security, capped at MNT 910,800 per month. This contribution covers pension, health, unemployment, and other insurances. The employer also contributes a percentage, ranging from 12.5% to 14.5% of the employee's salary, dependent on the industry and job position.
General Tax Deduction
A general deduction ranging from MNT 120,000 to MNT 240,000 annually is available, based on the employee's annual income. Individuals earning MNT 36 million or more annually are not eligible for this deduction. This deduction is applied directly to the tax owed, rather than the taxable income.
Tax Rates and Payments
As of 2023, Mongolia employs a progressive tax system for employment income:
- 10%: Incomes up to MNT 10 million per month.
- 15%: Incomes between MNT 10 million and MNT 15 million per month.
- 20%: Incomes above MNT 15 million per month.
Taxes are withheld monthly by the employer through the Pay-As-You-Earn (PAYE) system. Payment is due by the 10th of the following month.
Other Considerations
Certain income types, including some pensions, benefits, and payments for disabled individuals, are tax-exempt. No deductions for non-business expenses are permitted. Business deductions are available only for individuals registered as entrepreneurs. While a tax credit exists, it's applied based on income brackets and isn't a standard deduction. These details are current as of February 5, 2025, and might change due to legislative updates.
