Basics of Mongolia Unemployment Insurance

Right to get unemployment compensation

The employee or insurer is entitled to get the compensation if employee were paying the unemployment insurance fees 24 months before he or she get unemployed and moreover employee must be paid the insurance 9 months continuously.  If insurer or employee get unemployment compensation previously, then they must be paid the unemployment insurance fee for 12 months, in this occasion, they are eligible to obtain the compensation. 

Compensation amount

Compensation will be granted considering the period of employee has been paid the insurance and the compensation will be provided as a percentage of below amount of last 3 months’s average salary or equivalent amount of payment. 

Work period of paid insurance Percentage of compensation
Until 5 years 45%
5-10 years 60%
10-15 years 60%
Above 15 years 70%

Minimum standard of compensation is no less than minimum wage of 75 percentage.

Employee or insurer is obliged to register the unemployment with 14 days after completed the handover work with employer, if there is reasonable reason for employee for the delay, it should be registered in 3 months with employment department or social insurance organization.

Employment department or social insurance organization will make a decision whether to grant compensation or not within 14 days after receiving the application and relevant document

The compensation will be granted to the employee or insurer within 76 working days after the registration of unemployment.  The employment department or social insurance organization will calculate the compensation and pay it up to two times per month.

Required documents to get the compensation

Following documents need to be collected in order to obtain the compensation:

  1. Application
  2. Social Insurance Book
  3. Termination order by employer

Reduction for the unemployment insurance

If employer or insurer has not been taken or obtained any compensation from unemployment insurance fund in 5 years, following year’s insurance fee will be reduced by 10 percentage. If employer and insurer continually meeting the above requirement, the reduction will be increased by 10 percentages, but it should not be exceeded 50 percentages. 

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