Individual - Significant developments

Last reviewed - 22 December 2023

Personal income tax (PIT) rates

To align with the international tax practice and to reduce income inequality, the Parliament has approved introduction of a progressive PIT rate on salaries, wages, equivalent income, and indirect income effective as of 1 January 2023. According to the Ministry of Finance (MOF), the aforementioned reform will impact only 0.1% of taxpayers. These newly introduced progressive rates are only applicable to resident taxpayers of Mongolia.

Minimum wage

In accordance with Resolution No. 12, dated 13 October 2023, issued by the National Tripartite Committee on Labour and Social Consensus, the minimum wage has changed to 3,929 Mongolian tugrik (MNT) per hour or MNT 660,000 per month effective as of 1 January 2024.

Social insurance

On 7 July 2023, the Parliament of Mongolia passed the General Law on Social Insurance (GLSI), which will replace the existing Law on Social Insurance (1994) effective as of 1 January 2024. Significant changes are related to the social insurance rates and scope, specifically the reduction of the rate for industrial accidents and occupational diseases and increase of the rate for unemployment. 

The monthly cap of the employee’s social insurance contribution has changed to MNT 759,000 effective as of 1 January 2024.