The Trilateral National Committee for Labor and Social Agreement has recently issued their decision to increase the minimum monthly wage by 25 percent, up to 240,000 tugrugs (approximately US$125).

The minimum wage is the lowest legally allowed salary. Workers employed in general labor not requiring certain education or professional skills, such as trade and services, cleaning services, loading, carrying and unloading cargo.

According to the Law on the Minimum Monthly Wage, the Trilateral National Committee for Labor and Social Agreement is required to confer on potential increases to the minimum wage every 2 years. Accordingly, the Trilateral National Committee for Labor and Social Agreement, which is composed of representatives of the Ministry of Labor, the Mongolian Employers’ Federation and he Confederation of Mongolian Trade Unions), increased the minimum monthly wage rate to 140,400 tugrugs in 2011 and 192,000 tugrugs in 2013, respectively. Since the 2013 increase, no changes have been made.

An employer is obligated by the law to pay a base salary which is not less than he minimum monthly wage to an employee who is under employment agreement, service agreement or other similar agreements. In the event an employer fails to do so, a judge or state labor inspector shall fine a business entity or company by 600,000-1,000,000 tugrugs and official by 300 000-500 000 tugrugs.

The increase to the minimum wage will come into effect as of Jan 1, 2017.