(2023.01.02-ны өдрийн орчуулга)                                                          Unofficial translation

 

LAW OF MONGOLIA

May 31, 1994                                                                                            Ulaanbaatar city

 

ON SOCIAL INSURANCE

 

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the Law

The purpose of this law shall be to regulate relations in connection with the implementation of regulations determining the types, forms, and the scope of the effects of social insurance, defining the legal basis for payment of insurance premiums upon being insured, formation of the social insurance fund and its disbursement, as well as legal basis of activities of social insurance authorities and social insurance inspectors.

Article 2.Legislation on Social Insurance

1.The legislation on social insurance consists of the Constitution, this law, and other legislative acts issued in conformity with them.

2.If an international treaty to which Mongolia is a party stipulates otherwise than this law, then the provisions of the international treaty shall prevail.

Article 21.Terms and Definitions

1. The following terms stated in this law shall have the following meanings:

1/"the insured" is a person who is insured and paid social insurance premium to the social insurance fund and entitled to receive pensions, benefits and payments from the social insurance fund as provided by law and insurance policy;

2/"social insurance authority" is a legal entity carrying out activities to form the social insurance fund assets upon premiums paid by the employers, the insured and other sources stipulated by law, and to provide pensions, benefits and payments to the insured;

3/"social insurance fund" is the monetary asset being made up from revenue of the premiums paid from the payroll and wages or similar incomes of the employer, and the insured for the purpose of providing payment for pensions, benefits, payments and services, and covering the operational cost of social insurance, as well as the other sources;

4/"social insurance premium" is the advance payment to be paid by the insured and employer in due times specified in the law for the purpose of being covered by the social insurance;

5/"payment date of social insurance premium" is the day when the employer and insured transferred the social insurance premium to the social insurance fund;

6/"right to choose the pension type" is the right of the insured to choose a pension type in the event that he or she is entitled to two or more pension types in accordance with the terms and conditions of the Law on Pensions and Benefits provided from the Social Insurance Fund;

7/"premium payer" is the legal entity responsible to pay social insurance premium in accordance with the laws and regulations;

8/"pension" is the monetary asset to be provided monthly from the social insurance fund to the insured if he/she reached pensioner's age for rest of his/her life, or when he or she became disabled until regaining his/her ability of work or reaching pensioner's age, and when the insured is deceased, to his or her family members, who are incapable of working, with the purpose of ensuring social welfare guarantee;

/The sub-paragraph was amended according to the law as of January 30, 2015/

9/"benefit" is the monetary asset to be provided once from the social insurance fund to the insured in the event of temporary loss of work ability, pregnancy, maternity or death;

10/"payment" is the cost of artificial organs and therapy /orthopedics and prostheses/, and the variable cost of sanatorium and occupational disease therapy services to be provided from the social insurance fund to the insured who has lost 30 or more percent of his or her work ability due to industrial accident or occupational disease;

11/"variable cost of sanatorium and occupational disease therapy services" is the payment to be provided from the industrial accident and occupational disease insurance fund with the purpose of covering the cost of sanatorium services for the treatment of the insured who became disabled due to industrial accident or occupational disease; and

12/"accumulation fund" is the monetary asset reserved for the purpose of increasing resources of the social insurance fund and the revenue of inpidual accounts for pension insurance premiums.

/This sub-paragraph was added according to the law as of May 8, 2008 /

/This Article was added according to the law as of May 13, 2004/

Article 3.Social insurance and its types

1/Pension insurance;

2/Benefit insurance;

3/Health insurance;

4/Industrial accident and occupational disease insurance; and

5/Unemployment insurance.

Article 4.Social insurance forms and scope of its effect

1.Social insurance shall have forms of either compulsory or voluntary.

/This paragraph was amended according to the law of October 6, 2011/

/This paragraph was amended according to the law as of October 6, 2011/

1/Citizens of Mongolia, foreign citizens, and stateless persons being employed under employment agreement and/or under contract set out in Articles 343 and 359 of the Civil Code made with business entity and organization of all types of ownership, non-governmental organization, religious and other organizations, as well as with inpiduals;

/This sub-paragraph was revised according to the law as of January 30, 2015/

2/Citizens of Mongolia, foreign citizens, and stateless persons being employed by foreign business entities and organizations operating in the territory of Mongolia, as well as the units of the projects and programs being implemented with foreign loan and aid, diplomatic representative offices of foreign countries, and international organizations unless otherwise stated in international treaties to which Mongolia is a party;

3/Public servants unless otherwise stated in laws;

4/Citizens of Mongolia being employed abroad under employment contract.

/The second paragraph of this Article was revised according to the law of May 8, 2008/

3.Citizens of Mongolia, foreign citizens, and stateless persons who are not engaged in a specific employment other than those stated in Article 4.2 of this law may be insured voluntarily for the insurances specified in Articles 3.2.1, 3.2.2, and 3.2.4 of this law according to the terms and conditions of this law. The voluntary insured shall be covered under each type of social insurances mentioned above.

/The addendum to this paragraph was made according to the law as of May 13, 2004 and this paragraph was amended according to the law as of May 8, 2008/

4./This paragraph was invalidated according to the law as of May 8, 2008/

5.Compulsory social insurance terms and procedures for self-employing herders and business holders may be determined by law.

/This paragraph was added by the law as of January 16, 1997, and the amendment to this paragraph was made by the law as of October 6, 2011/

6.The pensioner working under employment contract made with the employer or the inpidual or working under the contract set out in Articles 343 and 359 of the Civil code shall be insured compulsorily for types of insurance other than those stated in Articles 3.2.3 and 3.2.5 of this law. Citizens of Mongolia, foreign citizens, and stateless persons who are working for another employer under employment contract in addition to their full-time principal employer or under the contract set out in Articles 343 and 359 of the Civil code shall be insured compulsorily for the insurance types other than that stated in Article 3.2.5 of this law.

/This paragraph was added according to the law as of May 8, 2008, and it was revised according to the law as of January 30, 2015/

7.The state shall cover the reindeer people, who are living as herding reindeers in taiga, in the insurance types set out in Articles 3.2.1 and 3.2.2 of this law.

/This paragraph was added according to the law as of January 30, 2015/

Article 5.Social insurance contract

The insured belongs to the Article 4.3 of this law, shall conclude a social insurance contract with the insurer in accordance with the terms and procedures of this law.

Article 6.Right to receive pensions and benefits from the social insurance fund

/The addendum to this paragraph was made according to the law as of May 13, 2004, and it was revised according to the law as of May 8, 2008/

Article 7.Choosing pensions and benefits from the social insurance funds

The insured shall not be entitled to receive both pension and benefit from same type of the social insurance fund. If there is any overlapping, the insured is entitled to choose only once the pension or benefit with more favorable terms and conditions.

/This paragraph was amended according to the law as of May 13, 2004/

Article 8.Decision on paying pensions, benefits and payments

CHAPTER TWO

SOCIAL INSURANCE FUND

Article 9.Types of social insurance fund

Each type of social insurance shall have the following independent monetary funds:

/The addendum to this paragraph was made according to the law as of January 16, 1997/

1/pension insurance fund;

2/benefit insurance fund;

3/health insurance fund;

4/industrial accident and occupational disease insurance fund; and

5/unemployment insurance fund.

Article 10.Income sources for social insurance fund

1/ social insurance premiums paid by insured;

2/ social insurance premiums paid by employers;

3/ bank interest on deposit of the uncommitted balance of the fund and income earned from the sale of securities;

/The addendum to this sub-paragraph was made according to the law as of May 8, 2008/

4/undue penalty imposed for delayed payment of social insurance premiums;

5/contributions from the state budget; and

/This sub-paragraph was amended according to the law as of January 2, 2003/

6/other sources.

2./This paragraph was invalidated according to the law as of January 15, 1998/

Article 11.Expenditure of social insurance fund

1.The social insurance fund resource shall be spent in accordance with the conditions and procedures provided by law for the following purposes:

1/paying pensions and benefits;

2/financing operational cost of the social insurance authority, national and branch council's activities; and

/The addendum to this sub-paragraph was made according to the law of May 8, 2008/

3/financing other payments and costs provided by law.

2.It is prohibited to transfer social insurance fund assets between the funds, disburse or deposit them on undesignated purposes, unless otherwise stated by law.

/The second sentence of this paragraph was excluded according to the law as of January 16, 1997, and this paragraph was amended according to the law as of May 8, 2008/

3.Assets of the accumulation fund can be increased by purchasing the Government bonds and securities issued by Mongol Bank or depositing in commercial banks.

/The paragraph was added according to the law as of May 8, 2008/

4.Amount of assets to purchase the Government bonds and securities of Mongol Bank from the accumulation fund shall be included in the annual budget of the social insurance fund and approved by the State Great Khural.

/The paragraph was added according to the law as of May 8, 2008/

5.Cabinet member in charge of financial and social welfare matters, Mongol Bank, and the National Council of Social Insurance shall jointly set the amount of assets to be deposited in commercial bank from the accumulation fund.

/The paragraph was added according to the law as of May 8, 2008/

Article 12.Approval of the social insurance fund expenditure and revenue budget

1.The State Great Khural shall approve annual revenue and expenditure budget of each social insurance fund.

/This paragraph was amended according to the law as of June 10, 1999, and it was revised according to the law as of November 30, 2007/

/This 2nd paragraph was added according to the law as of May 8, 2008 and this paragraph was revised according to the law as of January 30, 2015/

/This paragraph was amended according to the law as of January 2, 2003 and numbering of this paragraph was revised according to the law as of May 8, 2008/

/Numbering of this paragraph was amended according to the law as of May 8, 2008 and this paragraph was amended according to the law as of January 30, 2015/

Article 13.Preparation and reporting of balance statement of the social insurance fund

/This paragraph was revised according to the law as of January 30, 2015/

/This paragraph was revised according to the law as of January 30, 2015/

3.The National Council of Social Insurance shall revise, discuss and disclose to public the semi-annual budget performance and financial statements of the social insurance funds within 10th September of each year, and annual budget performance and financial statements of the social insurance funds within 25th May of the following year.

/This paragraph was revised according to the law as of January 30, 2015/

4.Aimag and district social insurance authorities shall centralize the balance of unspent revenue (revenue in excess of expenditure) of each social insurance fund in the respective central social insurance funds. If there is a need to transfer this unspent revenue to next month's spending, permission shall be obtained from the central social insurance authority.

/This paragraph was revised according to the law as of January 30, 2015/

5.Audit shall be conducted on the report on expenditure of the social insurance funds according to Law on State Audit, and conclusions shall be made.

/This paragraph was added according to the law as of May 8, 2008 and numbering of this paragraph was amended according to the law as of January 30, 2015/

6.The State Great Khural shall discuss the report stated in the Article 13.3 of this law and the audit conclusion stated in the Article 13.4 of this law and publicly inform on daily newspaper within 20 days of approval of the state budget performance.

/This paragraph was added according to the law as of May 8, 2008 and numbering of this paragraph was amended according to the law as of January 30, 2015/

Article 14.Registration and reporting of the social insurance fund

CHAPTER THREE

SOCIAL INSURANCE PREMIUM

Article 15.Social insurance premium rate and payment dates

1.The insured employee and the employer specified in Articles 4.2 and 4.4 of this law shall pay monthly social insurance premiums in the following rates:

 

Social insurance type	Rate of premium payable by employer's payroll and similar income (by percentage)	Rate of premium payable by the insured from labor wage and similar income (by percentage)
Pension insurance	8.5	8.5
Benefit insurance	1.0	0.8
Health insurance	2.0	2.0
Unemployment insurance	0.2	0.2
Total insurance premium	11.7	11.5

 

/This paragraph was amended according to the law as of June 11, 2021/

/This paragraph was amended according to the law as of January 16, 1997, and it was revised according to the law as of November 30, 2007. As well as it was amended according to the laws as of October 25, 2012, November 10, 2016, and April 14, 2017, respectively/

2.The minimum rate of social insurance premium payable by the insured stated in Article 4.3 of this law shall not be less than 11.5% for pension insurance of the minimum wage in force at the given period and approved by the Government, and 1.0% for each of benefit insurance and industrial accident and occupational disease insurance.

/This paragraph was amended according to the law as of June 11, 2021/

/This paragraph was revised according to the law as of May 8, 2008, and it was amended according to the law as of April 14, 2017/

3.Form, scope, premium rate of health insurance and other relations concerning health insurance shall be regulated by the Law on Health insurance.

/This paragraph was added according to the law as of January 29, 2015/

4.The employer shall pay the premium for industrial accident and occupational disease insurance in full on behalf of the insured specified in Article 4.2 of this law.

5.Amount of social insurance premium on industrial accident and occupational disease shall be established at a different rate, which is up to 2.8% of employer's payroll and similar income depending on occupational health and safety requirements and based on the proposals of the National Council of Social Insurance, and the Government shall approve a list of employers who must pay at a different rate and the amount of premium.

/This paragraph was revised according to the laws as of January 16, 1997 and November 30, 2007, and it was amended according to the law as of November 10, 2016/

6.The State central administrative bodies in charge of labor and social welfare matters shall jointly approve a list of professions and works pertaining to hard working conditions that require to work underground, toxic or hazardous working conditions and in hot temperature, by which pension will be set by easy/discounted terms.

/This paragraph was added according to the law as of January 16, 1997, and it was revised according to the law as of January 30, 2015/

7.Each year the Government shall set the maximum amount of salary to be governed in payment of the social insurance premium and in determination of the pension and benefit by the employer and the insured, based on the national average salary which has paid social insurance premium by considering the proposal by the National Council of Social Insurance, and average salary informed by the National Statistical Office respectively.

/This paragraph was added according to the law as of May 8, 2008, and it was revised according to the law as of January 30, 2015/

8.Amount of social insurance premium to be paid by citizens of Mongolia employed abroad shall be set by the National Council of Social Insurance.

/This paragraph was added according to the law as of May 8, 2008/

Article 16.Procedure for payment of social insurance premium

1.Each month social insurance premium of the insured and the employer set out in the Article 4.2 of this law shall be calculated for each type of social insurance using the rate specified in the Article 15.1 of this law, and transferred to the bank account of the social insurance fund within that month.

/This paragraph was amended according to the law as of May 8, 2008, and it was revised according to the law as of January 30, 2015/

2.Premiums shall be calculated according to the social insurance premium report or the employer's payroll and similar revenue, the insured's wages and similar income, and premium determining sheet, and shall be paid by non-cash payment method of a bank. The insured referred to in the Article 4.3 of this law may pay his or her premiums in cash.

3.The employer shall submit a report on the monthly social insurance premium payment to the social insurance authority within the 5th of the following month. If this date coincides with weekend or public holiday, the report shall be received next working day.

/This paragraph was revised according to the law as of January 30, 2015/

4.Calculation of the social insurance premium to be paid by the insured specified in the Article 4.2 of this law shall be done by an accountant of the relevant business entity or organization, and for the insured specified in the Article 4.3 of this law by an employee of the social insurance authority.

5.International organization, foreign business entity, and foreign organization carrying out activities in the territory of Mongolia and employing a Mongolian citizen shall transfer his or her social insurance premium to the social insurance fund account in accordance with the procedure and rate stated in Articles 15.1, 16.1, 16.2, 16.3, and 16.4 of this law.

/This paragraph was amended according to the laws as of July 04, 1997 and May 08, 2008/

6.The insured set forth in the Article 4.3 of this law shall pay social insurance premiums on a monthly, quarterly, semi- annual or annual basis in accordance with the contract.

/This paragraph was revised according to the law as of January 30, 2015/

7.Employee being employed under labor contract by a business entity or organization that engages in seasonal works and services for not less than 7 months in a calendar year shall be deemed to have been insured for the whole year.

/This paragraph was added according to the law as of May 8, 2008/

8.Social insurance premium for the employee specified in the Article 16.7 of this law shall be paid at the rate pertaining to the employer set out in the Article 15.1 of this law.

/This paragraph was added according to the law as of May 8, 2008/

9.Social insurance premium to be paid by the insured set forth in the Article 4.7 of this law shall be calculated at the rate specified in the Article 15.2 of this law and transferred from the state budget to the social insurance fund.

/This paragraph was added according to the law as of January 30, 2015/

10.The Government shall approve the insurance payment procedure and the amount of income from which the premium set out in the Article 16.9 of this law will be calculated.

/This paragraph was added according to the law as of January 30, 2015/

Article 17.Duty of the employer and insured to pay insurance premiums

1.The employers, and the insured specified in the Article 4.2 of this law shall assume the following duties as to insurance premium payment:

1/to honestly and correctly calculate the payroll and similar income and the premium levied on them, and to pay it in the due dates;

2/to submit information and reports in respect of imposing and paying premiums to the social insurance authority within the determined date;

3/to keep primary and accounting records related to social insurance in accordance with the relevant procedure and to prepare balance statements; and

4/to meet the legitimate demands issued by the competent authority or official to eliminate the violation if the legislation on social insurance has been violated.

2.The insured set out in the Article 4.3 of this law shall assume the duties in respect of paying the social insurance premiums provided in the insurance contract concluded with the insurer.

Article 18.Expiry, transfer, and suspension of duty to pay premiums

1.The duty to pay premiums shall be terminated in the following cases:

1/the insured is deceased or the insured is declared to be deceased;

2/the employer's dissolution or bankruptcy;

3/expiry of the term of the insurance contract; and

4/termination of employment contract.

2.If the employer merges, splits, or undergoes any other form of reorganization, the duty to pay premiums shall be assigned to the newly formed legal person.

3.As provided in the Article 19.5 of this law, complaints of the insured shall not form a basis for ceasing or terminating the duty to pay premiums. Only a decision of the appropriate level court considering the complaint may suspend the payment of premiums.

4.If an employer becomes bankrupted or dissolved for other grounds, the dissolution commission or the claimants' council shall transfer any unpaid premiums from property of such employer to the appropriate social insurance fund according to procedure stipulated by law.

Article 19.Rights of employers and the insured in respect of paying premiums

Employers and insured shall exercise the following rights in respect of paying premiums:

1/to familiarize with audit reports of the social insurance authority or inspector, and if necessary, to make comments;

2/to receive or give comments on the imposition or payment of premiums, and to audit results;

3/to be compensated for damage caused by the fault of the social insurance authority or its employees in accordance with the procedures provided in law;

4/to recover excess of the paid premiums or to have them deducted to the next payment of the premiums; and

5/to file complaints about unlawful actions and decisions of the social insurance authority or its employees to the authorized higher-level authorities or officials, and to court if in disagreement with their decisions.

Article 20.Liability for violation of law

/This Article was revised according to the law as of January 10, 2020/

1.If the premium is underpaid due to a calculation error, the underpaid premium shall be paid and penalty shall be imposed for the premium amount at the rate of 0.1 percent for each day after the calculation error and the total amount of penalty shall not exceed 30 percent of the underpaid premium.

2.In case of incorrect calculation of the premium amount to the insurance fund for industrial accidents and occupational diseases, the underpaid premium shall be paid and penalty specified in the Paragraph 1 of this Article shall be imposed.

3.If the acts of an official in violation this Law are not of a criminal nature, he/she shall be subject to liability specified in the Law on Civil Service.

4.A person or legal entity in violation of this Law shall be subject to liability specified in the Criminal code or Law on Infringement.

5.The imposition of fines and penalties for the violation of the Law on Social Insurance shall not serve as a ground for release from liability to eliminate the violation and compensate for the damages caused to others. Fines and penalties imposed for violations specified in the Article 10.17 of the Law on Infringement shall be accumulated in the Social insurance fund.

CHAPTER FOUR

SOCIAL INSURANCE AUTHORITY

Article 21.Structure of social insurance authority

1.The structure of the social insurance authority shall consist of the central social insurance authority, and local branches and units (inspectors and representatives).

/This paragraph was amended according to the laws as of July 04, 1997 and July 21, 2016 respectively/

2.A complaint demand council (non-staff) designed to review and resolve disagreement arising between employers and the insured on the one side, and the social insurance authorities on the other side, shall be established under the central and local social insurance authorities.

3.The Government shall approve the charters of the social insurance authorities and of the Council referred to in the paragraph 2 of this Article.

Article 22.Governance of the social insurance authority

1.The central social insurance authority shall function under the management of the Cabinet member in charge of social insurance matters, and local authorities shall function under the management of the relevant level Governors and higher-level social insurance authorities.

2.The central social insurance authority shall provide local social insurance authorities with professional and methodological guidance.

3.The head of the central social insurance authority shall be appointed and released by the Cabinet member in charge of social insurance matters according to the Article 183.2 of the Law on Government of Mongolia, the heads of aimag and capital city social insurance authorities shall be appointed and released by the head of the central social insurance authority, and the heads of district social insurance authorities shall be appointed and released by the head of social insurance authority of the capital city in consultation with that level governor, respectively.

/This paragraph was amended according to the law as of January 16, 1997, the addendum to this paragraph was made according to the law as of January 2, 2003. In further it was amended according to the law as of December 22, 2006/

/This paragraph was amended according to the law as of December 23, 2011/

/This paragraph was amended according to the law as of September 14, 2012/

/This paragraph was amended according to the law as of December 07, 2017/

/This paragraph was amended according to the law as of June 27, 2018/

4.The heads of aimag, capital city and district social insurance departments and pisions shall be selected and appointed from civil servants who worked for not less than 3 years in social insurance organization pursuant to Articles 25, 26 and 27 of the Law on Civil Service.

/This paragraph was added according to the law as of December 22, 2006/

/This paragraph was amended according to the law as of December 07, 2017/

Article 23.Principles of the activities of social insurance authorities and social insurance inspectors

Social insurance authorities shall uphold the principle of self-financing, and social insurance inspectors shall uphold the principle of rule of law, not being influenced by others, respect for and protection of the legitimate rights and interests of the insured and employers.

Article 24.Functions of Social Insurance Authorities

Social insurance authorities shall be subject to the following basic functions:

1/ to organize the enforcement of social insurance legislation;

2/ to form social insurance funds and ensure performance of their expenditure and revenue;

3/ to organize timely payment of the relevant types of pensions and benefits from social insurance funds, and to improve the service;

4/ to do research with regard to perfecting the national social insurance system, activities and their methods and forms, and to prepare proposals and decide on them, or submit them to the relevant authorities for a resolution;

5/ to control the activities of lower level authorities; and

6/ to undertake other functions provided in law.

Article 25.Rights of Social insurance authorities

1.Social insurance authorities shall enjoy the following rights:

1/ to impose premiums on employers whose payroll and similar revenue cannot be determined as a result of lack of primary and accounting records, according to the rate imposed on other employers engaged in similar production or service;

2/ to stop withdrawals from the bank accounts of employers who fail to pay premiums in due time until payment is completed;

3/ to receive the asset equal to the amount of overdue premiums, undue loss, interest, and fines imposed by a social insurance inspector through the penalty sheet, in accordance with the relevant laws;

4/ to deduct excess premiums into the premium payable in the following month, quarter or year or if the premium payer wishes, the excess may be repaid within 30 days after the calculation is made;

5/ to have the liability imposed as prescribed in law to the employer who avoids paying premiums, undue loss, interest and fines, or who fails to submit information and reports on the social insurance premium on time, or who fails to undertake measures to eliminate infringements discovered by inspection and audit of a social insurance authority;

6/ to revoke or amend decisions made by lower level social insurance authorities, if they are found to be unjustifiable; and

7/ to obtain free of charge from employers and insured any information, research, and other relevant documents required for social insurance auditing.

Article 26.Rights and responsibilities of social insurance inspectors

1.The rights of a social insurance inspector shall be granted to a social insurance employee, who has worked for the social insurance authority for not less than 2 years and has gained high qualification and a professional degree, by the decision of the Cabinet member in charge of social insurance matters based on the recommendation of the central social insurance authority.

The Government shall approve the rules of social insurance inspectors.

/This paragraph was amended according to the law as of May 13, 2004/

1/to inspect and audit accounting records, balance statements and other financial documents related to the imposition and payment of premiums, and to obtain comments and references;

2/to obtain copies of documents exclusively required for social insurance audit and control free of charge from the employer's correspondent bank and financial organization;

3/to temporarily take away and copy from an employer or insured documents that prove the concealing of income on which premiums could be imposed in accordance with the procedure stated in the Law on Infringement Examination and Resolution;

/The addendum to this sub-paragraph was made according to the law as of May 18, 2017/

4/to oblige the premium payer to pay in undisputable manner the untimely paid premiums and re- imposed premiums, undue loss, interests and fines;

/This sub-paragraph was revised according to the law as of May 13, 2004/

5/to oblige employers and insured to meet their liabilities provided by respective law;

/This sub-paragraph was amended according to the law as of January 10, 2020/

6/to inform to relevant authority about unlawful actions of employers and insured, discovered while fulfilling their official functions;

7/to check the workplace and number of employees of an organization or business entity against the payroll and paid premium records;

/This sub-paragraph was added according to the law as of May 13, 2004/

8/to impose legalized liabilities to officials who have breached the law by willingly concealing the number of employees or employing people without labor contracts or providing salary lower than the minimum wage or creating debts due to unpaid social insurance premiums or not transferring premiums paid by the employees to the proper social insurance fund in a timely manner, and if necessary, to address the matter to law enforcement authorities for resolution;

/This sub-paragraph was added according to the law as of May 13, 2004/

9/to disseminate information through mass media about the activities of an organization, business entity or an official who has repeatedly breached the social insurance legislation.

/This sub-paragraph was added according to the law as of May 13, 2004, and it was invalidated according to the law as of May 18, 2017/

3.Social insurance inspectors, who fail to accomplish their official duties by concealing unlawful actions related to premium payment, using premium revenue for private purposes, being bribed, infringing ethical principles, disclosing confidential information, or exceeding their rights, shall bear disciplinary, administrative, material and criminal liabilities.

/The addendum to this paragraph was made according to the law as of May 13, 2004/

Article 26¹.Social guarantee, qualification rank and rank allowance of social insurance inspectors

1.The following irrevocable aids shall be granted to the social insurance inspector or his/her family in the event that the social insurance inspector lost his or her work ability temporarily, became disabled or lost his or her life because of other's involvement:

1/in case of temporary loss of work ability, work absence benefit during the hospitalized period plus the basic salary difference;

2/in case of permanent disability, disability pension and the basic salary difference; and

3/in case of death, one-time irrevocable grant aid equivalent to 3 years' basic salary to his or her family.

2.The irrevocable aid stipulated in the Article 26¹.1.3 of this law shall be granted by the organization where he or she worked, and the guilty person in accordance with the law shall reimburse damage.

3.The social insurance inspector shall have a qualification rank. The Government shall set the qualification rank and rank allowance procedures.

4.Performance-based cash bonus could be awarded to the social insurance inspector. The Government shall set the procedure for cash bonus award to the social insurance inspector.

5.The social insurance inspector shall wear a special uniform suited to the service specifics free-of-charge. The special uniform of the social insurance inspector, the badge design, instruction of use, and durability periods shall be approved by the Central Social Insurance Authority.

/This paragraph was invalidated according to the law as of January 23, 2015/

/This Article was added according to the law as of May 13, 2004/

Article 27.National council of Social Insurance

1.The State Great Khural will establish the National Council of Social Insurance (hereinafter referred to as the "National Council") consisting of equal numbers of non-staff members representing the Government, the insured and employers, and put it into operation. The National Council shall report to the State Great Khural.

/This paragraph was revised according to the law as of June 10, 1999/

2.The State Great Khural shall appoint the head and members of the National Council for 6 years upon conducting public hearing on the members as offered by the relevant parties, and the National Council shall consist of the following:

/The addendum to this paragraph was made according to the law as of December 24, 2021/

1/as the Government representatives, 1 person each from the state central administrative bodies in charge of finance, justice and social welfare matters;

/This sub-paragraph was amended according to the law as of October 11, 2012/

2/as the insured representative, 3 people from the trade unions that can legally represent and protect rights and interests of absolute majority of total employees; and

3/3 people representing employer.

Chairman of the National Council shall appoint the deputy chairman of the National Council for two years from the representatives, in consultation with three parties.

/This paragraph was revised according to the laws as of January 16, 1997 and June 10, 1999, respectively/

The National Council shall have an office.

/The addendum and amendment to the third sub-paragraph of this paragraph was made according to the law as of May 8, 2008/

1/to develop proposals on the strengthening of social insurance legislation, system and operation and on the pension increase, and to get the proposals solved by relevant authorities;

2//This sub-paragraph was invalidated according to the law as of May 08, 2008/

3/to monitor the implementation of social insurance legislation and the status of revenue and expenditure of the social insurance funds;

4/to discuss information and reports of the social insurance authority on the social insurance activities, human resource provision and financial matters, to make proposals and conclusion, and take relevant measures;

5/to monitor computer hardware and software, technology, and service of social insurance authorities, and evaluate their work;

6/approve the structure of the central social insurance authority, develop draft budget of the social insurance fund, approve detailed schedule of the approved budget, and monitor its performance;

/This sub-paragraph was revised according to the law as of May 8, 2008/

7/to issue recommendations and procedures on social insurance matters;

8/to monitor the Medical and Labor Examination Commission and Complaint Demand Council in order to strengthen their activities;

9/to meet or respond the requests, applications and complaints of citizens regarding social insurance, and medical and labor examination matters; and

10/other particular powers stated in the legislation.

/This paragraph was revised according to the law as of June 10, 1999/

4.The relevant Standing Committee of the State Great Khural shall approve the charter of the National Council.

/This paragraph was revised according to the law as of June 10, 1999/

5.Additions to the salary of members of the National Council may be paid each quarter depending on their participation in the work. The maximum addition to salary shall be determined by the Government based on the proposal of the central administrative body in charge of social insurance matters.

CHAPTER FIVE

MEDICAL AND LABOR EXAMINATIONS

Article 28.Understanding of medical and labor examination

1.A medical and labor examination is a professional process to establish reasons for losing normal mental or physical ability or sense and for becoming disabled /losing work abilities completely or partially/, the degree and duration of disability.

2.The Cabinet members in charge of health and social welfare matters will jointly approve a list of diseases to use to ascertain lost work ability due to common and occupational diseases, percentage and period of lost work ability.

/This paragraph was added according to the law as of May 8, 2008/

Article 29.Organization in charge of medical and labor examination

Medical and labor examination commission may be established in soums.

4.The Government shall approve charters of medical and labor examination commissions.

CHAPTER SIX

MISCELLANEOUS

Article 30.Social insurance documents

1.The insured shall have a social insurance book with state registration number.

2./This paragraph was invalidated according to the law as of January 20, 2011/

Article 30¹.Nominal account for pension insurance premium

/This Article was added according to the law as of June 10, 1999/

Article 31.Financing operational expenses of social insurance

/The title of this Article was amended according to the law as of September 09, 2016/

1.The operational expenses of social insurance shall be financed from revenue of the social insurance fund.

/This paragraph was amended according to the law as of September 9, 2016/

2.Budget of the social insurance activities expenses funded from revenue of the social insurance fund shall be set in accordance with the Law on Budget of Social Insurance Fund.

/This paragraph was revised according to the law as of May 08, 2008, and it was amended according to the law as of September 09, 2016/

/This paragraph was revised according to the law as of May 13, 2004/

Article 32.Wage and similar income subject to imposition of social insurance premium

1.Social insurance premium shall be imposed on the following wages and similar income:

1/Salaries stated in the Articles 83.5 and 101 of the Labor Law, and allowances stated in Articles 113, 114, 115, 116 and 117 of the Labor Law;

/This sub-paragraph was revised according to the law as of July 2, 2021/

2/Payment agreed under contracts stated in Articles 343 and 359 of the Civil Code;

3/Income of the insured specified in the Article 4.3 of this law as declared by himself/herself;

4/Meal and transport allowance, concessions for housing, firewood, and coal, and other income similar thereto granted by business entity or organization to its employees.

/This Article was amended according to the law as of January 22, 1996, and it was revised according to the law as of May 08, 2008/

Article 33.Monitoring implementation of social insurance legislation

The Government, all levels of Governor, and other authorities and officials authorized by legislation shall carry out monitoring the implementation of social insurance legislation within respective powers of each.

 

 

CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA N. BAGABANDI