(2023.10.24-ний өдрийн орчуулга)          Unofficial translation

Entry into force date: January 1, 2024

LAW OF MONGOLIA

July 7, 2023                                 Ulaanbaatar City

GENERAL LAW ON SOCIAL INSURANCE

/Revised edition/

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the Law

1.1.The purpose of this Law is to regulate relations in regards to determine the type, form, and scope of social insurance, to be covered Mongolian citizens, foreign citizens, and stateless persons under the social insurance, to create, distribute, and spend the social insurance fund in order to share financial risks of the insured, to report on its performance, to supervise, and to define the rights and duties of insurance activities and social insurance organizations.

Article 2.Social insurance legislation

2.1.The social insurance legislation shall consist of the Constitution of Mongolia, the Law on Pensions to be issued from the Social Insurance Fund, the Law on Benefits to be issued from the Social Insurance Fund, the Law on Pensions, Benefits and Payments for Industrial Accidents and Occupational Diseases to be issued from the Social Insurance Fund, this Law, and other legislative acts issued in accordance with these laws.

2.2.If an international treaty, to which Mongolia is a party, stipulates otherwise than the social insurance legislation, the provisions of the international treaty shall prevail.

Article 3.Scope of the application of the Law

3.1.This Law shall apply to social insurance premium payers, social insurance organizations and persons responsible for implementing social insurance legislation.

3.2.The relations in connection with the payment of social insurance premiums, payment of pensions, benefits, health rehabilitation expenses from the social insurance fund, payment of expenses for preventive measures against industrial accidents and occupational diseases, reduction and exemptions of premiums shall be regulated only under social insurance legislation.

Article 4.Definition of terms of the Law

4.1.The following terms used in this Law shall be interpreted in the following meanings:

4.1.1."employer" means as defined in sub-paragraph 4.1.1 of the Law on Labor;

4.1.2."insured" means a citizen of Mongolia, a foreigner, or a stateless person who is insured by paying premiums in advance to the social insurance fund in order to receive pensions, allowances, and health care rehabilitation expenses stipulated in the social insurance legislation;

4.1.3."quotient" means the expression established for the purpose of determining the current value of wages and equivalent income in the past;

4.1.4."monetized income" means the part of the income registered in the pension insurance account that has been converted into real money;

4.1.5."social insurance" means social security measures to create a fund by paying premiums in advance to the social insurance fund by the insured, the employer, and the state, in accordance with the law, in case of insured's old age, loss of working capacity, maternity leave, unemployment to grant payment of pensions, allowances, health rehabilitation costs prescribed by law to him/ herself and in case of insured's death, to grant it to family members under his/her care, to grant payment of costs of measures to prevent industrial accidents and occupational diseases to the employer, and to provide premium discounts and exemptions;

4.1.6."social insurance organization" means the legal entity engaged in activities creating a social insurance fund, paying pensions, allowances, and health rehabilitation expenses to insured persons, providing employers with the costs of preventive measures against industrial accidents and occupational diseases, and providing premium discounts and exemptions;

4.1.7."social insurance information unified database" means paper and electronic data sets that collected, processed, and stored information about premium discounts and exemptions employer, insured and insurer information, wage fund, salary and its equivalent income, paid premiums, provided pensions and allowances, measure costs for prevention of industrial accidents and occupational diseases, costs and fees for health rehabilitation;

4.1.8."social insurance fund" means monetary assets composed from social insurance premiums paid from the employer's salary fund, the salary of the insured and its equivalent income, and other sources for the purpose of payment of pensions, allowances, health rehabilitation expense payment, provide costs of measures to prevent industrial accidents and occupational diseases, and provide premium discounts, and exemptions;

4.1.9."free balance of the social insurance fund" means the remaining amount calculated by deducting 2-month pensions, allowances, health rehabilitation expenses, costs of measures to prevent from industrial accident and occupational disease and asset amount of to be spent for premium discounts, and exemptions to be provided to employers from the end-of-year balance of each social insurance fund;

4.1.10."social insurance premium" means monetary assets paid to the social insurance fund in advance by the insured, employer, and the state for the purpose of social insurance;

4.1.11."social insurance premium payer" means the insured person, employer, state, or legal entity who is obliged to pay premiums to the social insurance fund according to this Law;

4.1.12."digital signature" means as defined in sub-paragraph 4.1.3 of the Law on Electronic Signatures;

4.1.13."pension" means the amount of money paid monthly to the insured person, who has the right to receive a pension due to old age, loss of working capacity, or loss of breadwinner, according to the legislation on social insurance;

4.1.14."pensioner" means a person receiving a pension in accordance with the legislation on social insurance;

4.1.15."nominal account of pension insurance" means the record of each insured, including the initial balance of the insured, paid pension insurance premiums, calculated interest, monetized income, and paid pension;

4.1.16."benefit" means a one-time payment to the insured person and to his/her family member upon death in case of temporary loss of working capacity, maternity or maternity leave, or unemployment;

4.1.17."salary and its equivalent income" means salaries, benefits, wages agreed on employment contract, work performance contract, contract for hire and similar contracts specified in the Labor Law, Civil Service Law, and Civil Code, awards, incentives, food, transportation, housing usage fees provided by the employer on a monthly, quarterly, annually basis, or in each case, in accordance with the collective contract, collective agreement and internal labor regulations, if he/ she lives in an apartment or house without public heating, allowances granted in cash for the purchase of fuel, and voluntarily self-declared income of the insured;

4.1.18."electronic signature" is defined in sub-paragraph 4.1.10 of the Law on Electronic Signatures;

4.1.19."verification of health" means the professional activity of determining, extending, canceling, shortening working hours, changing working conditions, and controlling the cause, percentage, and duration of the insured person, who lost the ability to work.

Article 5.Principles of social insurance

5.1.Social insurance shall follow the following principles:

5.1.1.ensuring the participation of the insured, the employer, and the state;

5.1.2.ensuring financial stability, independence, and reliability;

5.1.3.pensions and allowances provided by the social insurance fund must be consistent with the period and amount of premiums paid by the insured;

5.1.4.to be based on the policy of transition from the pension distribution system to the accumulation system.

Article 6.Type of social insurance

6.1.Social insurance shall have the following types:

6.1.1.pension insurance;

6.1.2.benefit insurance;

6.1.3.unemployment insurance;

6.1.4.industrial accident and occupational disease insurance;

6.1.5.health insurance.

Article 7.Form and scope of social insurance

7.1.Social insurance shall have the form of compulsory and voluntary insurance.

7.2.The following Mongolian citizens, foreigners, stateless persons, and civil servants, unless otherwise specified by law, shall be compulsorily insured for the types of social insurance specified in sub-paragraphs 6.1.1, 6.1.2, 6.1.3, and 6.1.4 of this Law:

7.2.1.an employee working under an employment contract with a legal entity or person of all forms of ownership;

7.2.2.an employee working in foreign-invested legal entities operating in the territory of Mongolia, foreign enterprises and organizations, their branches and representative offices, foreign enterprises operating through their representative offices not located in Mongolia, and foreign enterprises and representative offices earning income originating from Mongolia;

7.2.3.Unless otherwise stipulated in the international treaty of Mongolia, an employee working in the diplomatic mission or consulate of a foreign country in Mongolia, international organization, project or program unit, branch, representative office, agency implemented with foreign loans and assistance;

7.2.4.an employee who has temporarily lost his ability to work for a period of one month or more, or is on pregnancy and maternity leave stated in the sub-paragraphs 7.2.1, 7.2.2 and 7.2.3 of this Law;

7.2.5.a person who was fired illegally;

7.2.6.a person who has been prosecuted for a false charge or sentenced to prison for a false charge.

7.3.The following person shall be compulsorily insured for the types of social insurance specified in sub-paragraphs 6.1.1, 6.1.2, and 6.1.4 of this Law:

7.3.1.member of the board of directors;

7.3.2.a citizen of Mongolia appointed to work in election divisions and committees at all levels;

7.3.3.a citizen of Mongolia working in a foreign country under an employment contract;

7.3.4.a pensioner set and received a pension in accordance with the Law on Welfare, the Law on Pensions and Benefits of Military Servicemen Law, Law on pensions provided by the Social Insurance Fund, Law on Law on pensions, allowances and payments for industrial accidents and occupational diseases provided by the Social Insurance Fund, who works under employment contracts, work performance, work for hire or similar contracts with employers and persons.

7.4.The following person shall be compulsorily insured for the types of social insurance specified in sub-paragraphs 6.1.1 and 6.1.2 of this Law:

7.4.1.unemployed spouses of officers, supervisors, and customs inspectors serving and working at the state border;

7.4.2.due to officers of the armed forces, intelligence office, police, or court decision enforcement organization move to another province, city, or settlement area, his/ her spouses, who are not employed;

7.4.3.chaplain or priest of a religious organization;

7.4.4.employees and civil servants who are studying at the employer's order;

7.4.5.an employee mother or father who has a leave to take care of his/ her child under the age of three, or a civil servant mother or father, unless otherwise specified by law;

7.4.6.spouses of employees of diplomatic missions working abroad from Mongolia who are not employed and have not received an old-age pension;

7.4.7.a person who worked in disaster prevention and other mobilization;

7.4.8.a person herding reindeer and living in the taiga;

7.4.9.temporary military serviceman;

7.4.10.an employee who performs work with legal entities and persons of all forms of ownership works for hire, or contracts similar to them.

7.5.The following person shall be compulsorily insured in the type of social insurance specified in sub-paragraph 6.1.1 of this Law:

7.5.1.an employee who performs several jobs at the same time in accordance with the parallel employment contract specified in Article 57 of the Labor Law outside of his/ her main job hours;

Note: "Main job" shall mean the job or position that takes up most of the working hours of the week, or if it is not possible to determine the working hours, initially contract executed job or position for the term of period.

7.5.2.pensioners lost their ability to work due to an industrial accident or occupational disease, who are not employed.

7.6.A pensioner specified in sub-paragraph 7.3.4 of this Law who has reached the age specified in sub-paragraph 5.1.1 of the Law on Pensions provided by the Social Insurance Fund, wishes him/ herself, may not be insured in the type of social insurance specified in sub-paragraph 6.1.1 of this Law.

7.7.Persons other than those specified in sub-paragraphs 7.2, 7.3, 7.4, and 7.5 of this Law, may be voluntarily insured in the types of social insurance specified in sub-paragraphs 6.1.1, 6.1.2, and 6.1.4 of this Law.

7.8.Pensioners shall not be insured voluntarily, except as specified in sub-paragraph 7.3.4 of this Law.

7.9.Voluntary re-insurance shall not allowed during the compulsory social insurance period.

7.10.Paragraph 7.9 of this Law shall not apply if the insured performed work under the contract specified in sub-paragraph 19.1.2 of this Law during the voluntarily insured period.

Article 8.Voluntary insurance contract for social insurance

8.1.The person referred to in paragraph 7.7 of this Law shall conclude a voluntary social insurance contract with the social insurance organization.

8.2.Procedures governing relationships including insured's employment information, monthly salary for premium payment, amount of equivalent income, premium payment period, rights, obligations, and responsibilities of the parties, conclusion, extension, cancellation, and termination of the contract, and voluntary insurance contract template shall be approved by the Cabinet member in charge of labor and social security.

8.3.Voluntary insurance contracts can be concluded electronically.

Article 9.Choosing to receive a pension from the social insurance fund

9.1.If the insured entitles the right to receive two or more types of pensions from the social insurance fund at the same time, he/she shall choose one type of pension with favorable conditions.

9.2.If the insured is entitled to receive two pensions in accordance with the Law on Pensions provided by the Social Insurance Fund and the Law on Pensions and Benefits of Military Servicemen, one pension shall be determined by combining the period of the premiums paid and the military service.

CHAPTER TWO

SOCIAL INSURANCE FUND

Article 10.Social insurance fund

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

10.1.1.pension insurance fund;

10.1.2.benefit insurance fund;

10.1.3.unemployment insurance fund;

10.1.4.industrial accident and occupational disease insurance fund;

10.1.5.health insurance fund.

10.2.Each social insurance fund shall have a bank account.

Article 11.Social insurance fund income

11.1.The income of the social insurance fund shall consist of the following sources:

11.1.1.social insurance premiums paid by the insured;

11.1.2.social insurance premiums paid by the employer;

11.1.3.social insurance premiums paid by the state;

11.1.4.income from investing fund assets in financial instruments;

11.1.5.undue losses and fines calculated on hidden income and an overdue payment of social insurance premiums and reduced salaries and equivalent income;

11.1.6.assets to be provided from the state budget;

11.1.7.other sources prescribed by law.

Article 12.Expenditures of the Social Insurance Fund

12.1.The assets of the social insurance fund shall be used for the following purposes:

12.1.1.providing pensions and benefits;

12.1.2.providing payment of expenses for health rehabilitation of the insured, payment of costs for preventive measures against industrial accidents and occupational diseases, and providing premium discounts and exemptions to employers;

12.1.3.bank service fee for providing pension;

12.1.4.incentives and operating expenses of council members specified in paragraph 13.3 of this Law;

12.1.5.premium payments from the social insurance fund;

12.1.6.financing the costs of advertising and consulting and assisting services specified in Article 41 of this Law.

12.2.It shall be prohibited to transfer, combine, or misuse the assets of the social insurance fund between funds.

12.3.Province and district social insurance organizations shall collect the not-spent balance of the income of each social insurance fund into the relevant account of the state administrative organization in charge of social insurance on a monthly basis.

12.4.The state administrative body in charge of social insurance shall approve the amount, period, and monitoring procedure of the assets to be collected as specified in paragraph 12.3 of this Law.

Article 13.Social insurance fund investment management

13.1.The free balance of the social insurance fund may be invested in the following financial instruments in accordance with the principles of reliability, efficiency, responsibility, transparency, and independence:

13.1.1.Government securities;

13.1.2.Mongolbank securities;

13.1.3.Cash deposits to be placed in the unified account of the State fund;

13.1.4.Cash deposits to be placed in a commercial bank /hereinafter referred to as "commercial bank" specified in sub-paragraph 3.1.20 of the Law on Banking.

13.2.The activity of investing in financial instruments specified in paragraph 13.1 of this Law shall be carried out by the state administrative organization in charge of social insurance.

13.3.There is a non-full-time public control board with the function of monitoring and providing expertise and methodology for investment activities specified in paragraph 13.2 of this Law.

13.4.The Government shall approve the amount of funds for the purchase of securities specified in sub-paragraphs 13.1.1 and 13.1.2 of this Law based on the proposal of the National social insurance council.

13.5.The amount of interest to be calculated on cash deposits specified in sub-paragraph 13.1.3 of this Law shall be equal to the amount of interest on Government securities.

13.6.The amount of cash deposits specified in sub-paragraph 13.1.4 of this Law shall not exceed 15 percent of the bank's equity capital.

13.7.The public control board shall have 7 members representing the state organizations and non-government organizations, investment professional committees, and insureds, and the procedures of the board shall be approved by the National Council of Social Insurance based on the proposal of the state central administrative organization in charge of labor and social security.

13.8.The National Council of Social Insurance shall approve the minimum interest rate for cash deposits to be placed in commercial banks at the current policy rate of the Bank of Mongolia, the average interest rate for institutional time deposits of commercial banks, and the average interest rate for commercial interbank markets.

13.9.The Government shall approve the procedures governing the investment of the free balance of the social insurance fund in financial instruments based on the proposals of the National Social Insurance Council, the Bank of Mongolia, and the Financial Regulation Committee.

Article 14.Development and approval of income and expenditure budgets of the Social Insurance Fund

14.1.The budget of the social insurance fund shall be prepared according to the schedule specified in paragraph 8.4 of the Budget Law.

14.2.The state administrative organization in charge of social insurance shall discuss the budget draft of the social insurance fund at the meeting of the National Council of Social Insurance and submit it to the state central administrative organization in charge of labor and social security.

14.3.The annual income and expenditure budget of each social insurance fund shall be approved by the State Great Khural.

14.4.According to the social insurance legislation, assets allocated from the state budget for the pension determined before 1995, financial support from the state budget shall be reflected in the annual state budget and the budget of the social insurance fund, and approved.

14.5.The assets specified in sub-paragraph 11.1.6 of this Law shall be transferred to the appropriate fund within the first 10 days of the month according to the monthly schedule of the state central administrative organization in charge of finance and budget.

Article 15.Social insurance fund accounting

15.1.Social insurance fund accounting shall be kept on an accrual basis according to international and national standards.

15.2.The model of the primary accounting form of the social insurance fund and the method of maintaining it shall be jointly approved by the state central administrative body in charge of labor and social security and the state central administrative body in charge of finance and budget.

15.3.The accounting policy document of the social insurance fund and the model of the form to be used in the activities of the social insurance organization, and the procedures for their publication, pricing, spending, and reporting shall be approved by the state administrative organization in charge of social insurance based on the proposal of the National Council of Social Insurance.

15.4.The social insurance organization shall record the premiums paid to each social insurance fund, pensions, allowances, health rehabilitation costs of the insured, costs of measures to prevent industrial accidents and occupational diseases, and premium discounts and exemptions for each employer and insured.

Article 16.Preparation and reporting of social insurance fund balance statement

16.1.The social insurance organization shall prepare and report quarterly, semi-annual, and annual budget performance and financial reports of the social insurance fund according to the following schedule:

16.1.1.soum and district social insurance organization quarterly and annual budget performance and financial report of the social insurance fund in accordance with sub-paragraph 8.9.1 of the Law on Budget;

16.1.2.provincial and capital city social insurance organizations shall submit half-yearly and annual budget performance and consolidated financial reports of the social insurance fund in accordance with sub-paragraph 8.9.2 of the Law on Budget, and state administrative organizations in charge of social insurance in accordance with sub-paragraph 8.9.5 of the law.

16.2.The National Council of Social Insurance shall review the half-year budget performance and financial report of the social insurance fund by September 10 of each year, and the annual budget performance and financial report of the social insurance fund by May 25 of the following year.

16.3.The social insurance organization shall submit the budget performance and financial report of the social insurance fund to the state audit organization within the period specified in paragraph 8.9 of the Law on Budget, and the audited report shall be submitted to the higher-level organization within the specified period.

16.4.The performance of the annual budget of the Social Insurance Fund, the financial report, and the conclusion of the state audit organization made on it shall be discussed by the State Great Khural and reported on public media within 20 days after the approval of the performance of the state budget.

16.5.The state administrative organization responsible for social insurance shall approve the procedure governing relations related to social insurance fund execution, receiving, controlling, correcting, and verifying financial statements.

Article 17.Social insurance unified database

17.1.The social insurance organization shall have a unified database containing information on contributors, pensioners, allowances, health rehabilitation cost receivers, income and expenses of the social insurance fund, activities of the social insurance organization, and other related information.

17.2.The social insurance organization shall use the information specified in paragraph 17.1 of this Law for the purposes of research, analysis, evaluation, forecasting, inspection, news and reports, and provision of social insurance services.

17.3.The social insurance organization shall use the information registered in the basic and specialized databases of state other organizations for the purpose of creating an accurate unified database, providing social insurance services to employers, insured persons, and individuals, and conducting inspections.

17.4.The state central administrative organization in charge of labor and social security shall approve the procedures for creating, storing, and using the unified database, monitoring information, and ensuring confidentiality and security.

CHAPTER THREE

SOCIAL insurance premiums

Article 18.Rate of social insurance premiums

18.1.The employer and the insured persons specified in articles 7.2, 7.3, 7.4, and 7.5 of this Law shall pay social insurance premiums monthly at the following rates:

18.2.The rate of insurance premiums for industrial accidents and occupational diseases shall be determined depending on the labor health and safety requirements and the working conditions of the workplace with risks distinctly from the employer salary fund and equivalent income, and job and profession list, premium rates and the applicable procedures shall be approved by the Government based on the proposal of the National Council of Social Insurance.

18.3.The insured shall pay social insurance premiums for the period agreed upon in the contract at the following rates as specified in paragraph 7.7 of this Law:

18.4.The National Council of Social Insurance shall determine the amount of social insurance premiums to be paid by citizens of Mongolia specified in sub-paragraph 7.3.3 of this Law.

18.5.The rate of health insurance premium shall be regulated by the Law on Health Insurance.

Article 19.Composition of income to be imposed social insurance premium

19.1.The following salaries and equivalent incomes shall be included in the social insurance premium income of the insured and the employer:

19.1.1.Salaries and allowances specified in paragraph 83.5 of Article 83, paragraph 101.1 of Article 101, Articles 111, 112, 113, 114, 115, 116, and 117 of the Labor Law;

19.1.2.Salaries agreed on the contracts for performance of work, work for hire and similar contracts specified in Articles 343 and 359 of the Civil Code;

19.1.3.food, transportation, firewood, coal price discount, housing usage fee, and other equivalent income provided by the employer to the insured in monetary form, rewards and incentives given based on monthly, quarterly, and annual work results;

19.1.4.salaries and allowances specified in sub-paragraph 19.1.1 of this Law provided by legal entities and persons other than his/ her main job;

19.1.5.salaries specified in paragraph 57.2 of the Civil Service Law;

19.1.6.incentives provided to employees who worked in election divisions and committees at all levels;

19.1.7.Voluntarily self-declared income and according to the contract of the insured.

19.2.The minimum amount of the premium imposed monthly salary and equivalent income of the insured and employer shall not be less than the minimum monthly salary applicable at that time.

19.3.The minimum amount of the premium imposed hourly salary of an employee working in accordance with the employment contract stipulated in Article 66 of the Labor Law shall not be less than the minimum amount of hourly salary applicable at that time.

19.4.The maximum amount of monthly salary and equivalent income to be followed for paying social insurance premiums and determining pensions and benefits shall be equal to 10 times increased amount of the current minimum salary for a compulsory insured person, and 7 times for a voluntary insured person.

Article 20.Registration of social insurance premium payers

20.1.The employer shall register as a social insurance premium payer with the relevant social insurance organization within 14 working days of receiving the certificate from the state registration organization.

20.2.The social insurance organization shall register the employer and the insured and issue a premium payer number.

20.3.The social insurance organization shall open a personal file containing the information of the employer and the insured, and enrich the information in each case.

20.4.Social insurance premium payment report, voluntary insurance agreement, inspection guidelines, reports, statements, acts, official requirements, and punishment sheets made by the competent authorities shall be attached to the personal file specified in paragraph 20.3 of this Law.

20.5.Procedures for issuing and using registration numbers, opening, registering, maintaining, and transferring personal files, and relevant forms shall be approved by the state administrative organization in charge of social insurance.

Article 21.Payment of social insurance premiums

21.1.The employer shall deduct the social insurance premium from the salary and equivalent income of the insured monthly, and pay it to the social insurance fund within the month, together with the premium calculated from the employer's salary fund and equivalent income.

21.2.If an international organization or foreign employer operating in the territory of Mongolia hires a citizen of Mongolia, his social insurance premiums shall be paid to the social insurance fund in accordance with paragraph 21.1 of this Law.

21.3.Social insurance premiums for employees of Diplomatic missions, employer's representative offices, and representative offices working abroad from Mongolia shall be calculated as a percentage of the premiums to be paid by the employer and the insured from the salary and equivalent income of employees of equivalent positions working in Mongolia, and employer hiring the employees shall pay to the social insurance fund.

21.4.The social insurance premium for the non-working period of the insured working under the employment contract specified in paragraph 50.2 of the Labor Law shall be calculated as a percentage of the premium to be paid by the employer from the monthly minimum salary in effective at that time and shall be paid by the employer to the social insurance fund.

21.5.The employee's social insurance premium specified in paragraph 63.3 of the Labor Law shall be calculated as a percentage of the employer's and insured's premium from the minimum monthly salary in effective at that time and shall be paid monthly by the Employment Support Fund to the social insurance fund.

21.6.The social insurance premiums for the period during the insured specified in sub-paragraph 7.2.4 of this Law, is receiving benefits for temporary loss of working capacity, pregnancy, and maternity as shall be calculated as a percentage social insurance premiums of the employer's monthly minimum salary in effective at that time, and the employer shall pay it to the appropriate social insurance fund.

21.7.The social insurance premiums of the person specified in sub-paragraph 7.2.5 of this Law for the period determined by the court decision shall be paid from the salaries and equivalent income specified in the court decision, or if the amount of salaries and equivalent income is not specified in the court decision, then the last month's salary received by the person before the dismissal from the job calculated as a percentage of the premiums paid by the employer and the insured from salaries and equivalent income, and a guilty person shall pay to the appropriate social insurance fund one time.

21.8.The social insurance premiums for the period determined by the court decision of the person specified in sub-paragraph 7.2.6 of this Law shall be calculated as a percentage of the premiums to be paid by the employer and the insured from the salaries and equivalent income received before the false prosecution or conviction, and the guilty person shall pay to the appropriate social insurance fund one time.

21.9.The insured's social insurance premiums specified in sub-paragraphs 7.3.1 and 7.3.2 of this Law shall be calculated as a percentage of the insured's and employer's premiums from salaries, equivalent income, and incentives, and shall be paid by the employer to the social insurance fund.

21.10.The insured's social insurance premium specified in sub-paragraph 7.3.3 of this Law shall be paid monthly by the insured him/ herself to the appropriate social insurance fund in the amount determined by the National Council of Social Insurance.

21.11.The insured's social insurance premiums specified in sub-paragraphs 7.4.1 and 7.4.2 of this Law are calculated as a percentage of the premiums to be paid by the insured and the employer from the minimum monthly salary in effective at that time, and the employer where the husband or wife works shall pay it to the appropriate social insurance fund every month.

21.12.The insured's social insurance premium specified in sub-paragraph 7.4.3 of this Law shall be calculated as a percentage of the insured's and employer's premiums from salaries and equivalent income and shall be paid by the employer to the appropriate social insurance fund every month.

21.13.The social insurance premium for the insured's study period specified in sub-paragraph 7.4.4 of this Law shall be calculated as a percentage of the employer's premium from the minimum monthly salary in effective at that time, and shall be paid monthly by the employer to the appropriate social insurance fund.

21.14.The social insurance premium for the period when the mother or father having leave for the child care as specified in sub-paragraph 7.4.5 of this Law shall be calculated as a percentage of the employer's premium from the minimum monthly salary applicable at that time, and shall be paid monthly by the employer to the appropriate social insurance fund.

21.15.The insured's social insurance premium specified in sub-paragraph 7.4.6 of this Law shall be calculated as the percentage of the insured's and the employer's premium from the monthly minimum salary in effective at that time, and the employer of the husband or wife shall pay it monthly to the social insurance fund.

21.16.The social insurance premium of the insured person specified in sub-paragraph 7.4.7 of this Law shall be calculated as a percentage of the employer's premium from the minimum monthly salary in effective at that time and shall be paid from the state and local budgets to the appropriate social insurance fund in every occasion.

21.17.The social insurance premium of the insured specified in sub-paragraph 7.4.8 of this Law shall be calculated as a percentage of the premium payable by the insured person from the minimum monthly salary in effective at that time and shall be paid quarterly from the state budget to the appropriate social insurance fund.

21.18.Social insurance premiums for military servicemen specified in sub-paragraph 7.4.9 of this Law shall be calculated as a percentage of the employer's monthly minimum salary and shall be paid monthly by the military unit or organization to the appropriate social insurance fund.

21.19.The insured's pension insurance premium specified in sub-paragraph 7.5.2 of this Law shall be calculated as a percentage of the insured's monthly minimum salary and paid from the industrial accident and occupational disease insurance fund to the pension insurance fund.

21.20.Voluntarily insured shall pay social insurance premiums from the income specified in sub-paragraph 19.1.7 of this Law within the period agreed upon by the voluntary insurance contract to the appropriate social insurance fund.

21.21.If a mother who takes care of a child under the age of three is insured in accordance with paragraph 7.7 of this Law, she shall pay the social insurance premium per the minimum monthly salary ineffective at that time, calculated as follows:

21.21.1. 50 percent of the pension and benefit insurance premiums from the benefit insurance fund for mothers who receive pregnancy and maternity benefits satisfying the conditions set forth in paragraph 6.1 of the Law on Benefits provided from social insurance fund in her every giving birth;

21.21.2. 50 percent of the insurance premiums for the mother's pension and benefits, except for those specified in sub-paragraph 21.21.1 of this Law, from the state budget.

21.22.If an unemployed mother or father taking care of a disabled child under the age of 18 who is under medical supervision and in need of constant care is insured in accordance with paragraph 7.7 of this Law, the pension insurance premium corresponding to the minimum monthly salary ineffective at that time shall be paid monthly from the state budget.

21.23.If a herdsman or assistant herdsman is insured in accordance with paragraph 7.7 of this Law, 50 percent of the pension insurance premium for the minimum monthly salary in effective at that time shall be paid monthly from the state budget. The period of payment from the state budget shall not be more than 5 years.

21.24.The insured specified in paragraphs 21.21, 21.22, and 21.23 of this Law voluntarily pays according to the insurance contract, shall deduct the premium paid from the benefit insurance fund and the state budget from the amount of the payable premium, and pay the remaining part and the insurance premium for industrial accidents and occupational diseases by him/ herself.

21.25.The insurance fund for industrial accidents and occupational diseases shall not pay the premiums specified in paragraph 21.19 of this Law during the period of employment of a pensioner who has lost his ability to work due to an industrial accident or occupational disease.

21.26.If a military serviceman whishes to determine an old-age pension in accordance with the Law on pensions provided by the Social insurance fund, the pension insurance premium for the period of his military service shall be calculated as follows at the rate paid by the employer and paid from the state budget to the appropriate social insurance fund from time to time:

21.26.1.military service premiums from the salary and equivalent income received by the military serviceman from the income calculated according to paragraph 22.2 of this Law;

21.26.2.In accordance with paragraph 3 of article 6 of the Law on Pensions and Benefits of Military Servicemen and related other legislation, the premium for the period of military service is increased from the minimum monthly salary in effective at the time of payment of the premium.

21.27.In accordance with paragraph 22.4 of the Law on Diplomatic Service, the pension insurance premium for the increased period of work in a country with severe climatic conditions shall be calculated as a percentage of the monthly minimum salary applicable at the time of payment of the premium and shall be paid to the social insurance fund from the appropriate state budget from time to time.

21.28.The social insurance premiums required to be paid by the insured under paragraph 7.7 of this Law may be paid to the appropriate social insurance funds in accordance with the law on deducting health and social insurance premiums from the incentives provided from the state.

21.29.The list of equivalent positions of employees of diplomatic missions working abroad from Mongolia, standard salary rates to be followed for payment of social insurance premiums, pensions, and allowances shall be jointly approved by the Cabinet members in charge of foreign affairs, labor, and social security.

21.30.The Government shall approve the regulations governing relations related to the payment of social insurance premiums.

21.31.Payment of health insurance premiums shall be regulated by the Law on Health Insurance.

Article 22.Application and determination of quotient

22.1.A quotient shall be used to determine the current value of salaries and equivalent incomes for the payment of premiums and determining pensions and allowances of the insured.

22.2.Based on the proposal of the National Statistics Committee, the Government shall set the quotient by August 1st of each year in compliance with changes in national average salaries and consumer prices, and it shall be effective from January 1st of the following year.

22.3.The Cabinet member in charge of labor and social security shall approve the procedure regulating relations related to the use of quotient.

Article 23.Period to be considered as paid social insurance premiums

23.1.The following periods shall be considered as paid social insurance premiums:

23.1.1.the period of employment of the employee until July 1, 1991;

23.1.2.Period that employees worked in all types of enterprises and organizations of state and private ownership, agricultural cooperatives, cooperatives, and religious organizations from July 1, 1991, to January 1, 1995, and paid social insurance premiums from the salary fund;

23.1.3.Period of regular or conscript military service of a citizen of Mongolia before 1995;

23.1.4.a period considered as one year and six months for each child born or adopted by a mother who paid pension insurance premiums for at least 10 years and gave birth or adopted a child up to the age of three and raised him/ her until the age of six;

23.1.5.the period considered as one year and six months as paid the pension insurance premiums for one year of conscript military service of the insured to determine old-age pension in accordance with the Law on pensions provided by the social insurance fund;

23.1.6.the period of service before 1995 was compensated and verified according to the relevant law;

23.1.7.the period that one year of working in a country with severe climatic conditions according to the Law on Diplomatic Service, is considered as one year and six months.

23.2.The Government shall approve the procedure for considering as paid social insurance premiums based on the proposal of the National Council of Social Insurance.

Article 24.Reimbursement of social insurance premiums

24.1.Social insurance premiums shall be reimbursed in the following cases:

24.1.1.if the employer hides or deliberately reduces the amount of the salary fund for social insurance premiums or equivalent income;

24.1.2.if the employer has not paid within the period stipulated in paragraph 21.1 of this Law or has paid incompletely;

24.1.3.if it is not paid within the period agreed upon by the voluntary insurance contract;

24.1.4.if a court decision on illegal dismissal is issued;

24.1.5.if a court decision is issued regarding prosecuted for a false charge or serving a prison sentence for a false charge.

24.2.In the case of reimbursement of social insurance premiums, the quotient determined in accordance with paragraph 22.2 of this Law shall be applied to the salary and equivalent income imposed on the premium.

24.3.Reimbursement of social insurance premiums shall be prohibited except as specified in paragraph 24.1 of this Law.

24.4.The Cabinet member in charge of labor and social security shall approve the procedure for reporting payment of social insurance premiums and regulating the relationship of reimbursement of premiums.

Article 25.Reporting payment of social insurance premiums

25.1.The employer shall submit the social insurance premium payment report for that month to the relevant social insurance institution by the 5th of the following month, certified by electronic or digital signature, and if this period overlaps with a weekend or public holiday, the report shall be made on the next working day.

25.2.If the state inspector of social insurance establishes an act for the following violations, the social insurance premium payment report shall be reimbursed by the employer:

25.2.1.concealed, intentionally reduced, or misidentified the salary fund and equivalent income for social insurance premiums;

25.2.2.Social insurance premiums are underpaid;

25.2.3.Social insurance premiums have not been paid within the period specified in this Law.

Article 26.Refund of overpaid social insurance premiums

26.1.The social insurance institution shall refund the overpaid social insurance premiums as described below:

26.1.1.based on the employer's or voluntary insured's request, overpaid social insurance premiums shall be transferred to the payable premiums for the next month, quarter, or year, or within 30 days after the calculation;

26.1.2.if the insured person who has voluntarily paid social insurance premiums in advance is employed and is compulsorily insured, within 30 days based on his/ her request, the voluntarily paid premiums for the overlapping period;

26.1.3.if the total amount of salary and equivalent income paid by the insured for working in two or more organizations exceeds the maximum amount specified in paragraph 19.4 of this Law, the overpaid premium for the excess part shall be paid in the second quarter of the following year based on his/ her request.

26.2.The procedure regulating the refund of overpaid social insurance premiums shall be approved by the state administrative organization in charge of social insurance.

Article 27.Nominal account registration of pension insurance

27.1.The insured born on or after January 1, 1960, who has paid pension insurance premiums, shall have a nominal account of pension insurance /hereinafter referred to as "nominal account".

27.2.The social insurance organization shall open a nominal account for each insured person.

27.3.The following income shall be recorded in the insured's nominal account:

27.3.1.the initial balance of the nominal account;

27.3.2.pension insurance premiums paid by the insured;

27.3.3.pension insurance premiums paid by the employer;

27.3.4.premiums paid by the social insurance fund;

27.3.5.premiums paid by the Employment support fund;

27.3.6.pension insurance premiums paid by the state;

27.3.7.interest calculated on the income registered in the nominal account;

27.3.8.return on investment of monetized income of nominal account.

27.4. 4 percent of the income from premiums specified in sub-paragraphs 27.3.2, 27.3.3, 27.3.4, 27.3.5, and 27.3.6 of this Law shall be specially registered for the purpose of providing pensions for the loss of working ability and loss of breadwinner.

27.5.The final balance of the nominal account of the previous year shall be the first balance of the current year.

27.6.Annual interest shall be calculated and recorded on the first balance of the insured's registered account and registered premium income minus monetized income specified in paragraph 29.2 of this Law.

27.7.The rate of interest for the current year specified in paragraph 27.6 of this Law shall be determined by the National Council of Social Insurance within the first quarter of the following year, based on the proposal of the state central administrative organization in charge of labor and social security and the National Statistics Committee, considering the following indicators:

27.7.1.the inflation rate of the previous year;

27.7.2.The average interest rate for the previous year on citizens' cash deposits was officially announced by the commercial bank specified in sub-paragraph 3.1.20 of the Law on Banking.

27.8.The balance of the insured's nominal account at the end of the current year is calculated using the following formula:

NA C2 =NA C1 -MI+ RPI+I o

NA C2 - the balance of the nominal account at the end of the current year;

NA C1 - the first balance of the nominal account of the current year;

RPI -registered premium income for that year;

I o - the amount minus monetized income from the initial balance of the nominal account, interest income calculated on the registered income of the current year;

MI-monetized income.

27.9.The starting balance of the nominal account shall be calculated for the insured persons who were employed and paid pension insurance premiums before 2000, and the starting balance shall be the first balance of the year when the insured's nominal account was opened.

27.10.The National Council of Social Insurance shall approve the procedures for opening, registering, and maintaining nominal accounts and calculating the initial balance of the insured.

Article 28.Special conditions for registering the income of the nominal account

28.1.Pension insurance premiums for the period when the compulsory insured having pregnancy and maternity leave of their children up to the age of three and received maternity benefits, shall be calculated from the average of the last 12 months of salary and equivalent income by the premium percentage to be paid by employer and the insured, and shall be registered in their nominal account and interest shall be calculated.

28.2.The pension insurance premiums for the period of military service before 1995 of the insured to be determined old-age pension in accordance with the law on pensions provided by the Social Insurance Fund, shall be calculated from the following income by the percentage of pension insurance premiums payable by employer and the insured, and registered in the nominal account:

28.2.1.for the salary and equivalent income received during military service from the income using the quotient according to paragraph 22.2 of this Law;

28.2.2.according to the relevant legislation, the pension insurance premium for the increased period of military service from the minimum monthly salary applicable at that time.

28.3.Pension insurance premiums for the period specified in sub-paragraph 23.1.4 of this Law shall be calculated from the monthly minimum salary applicable at the time of determining the old-age pension of the insured by the percentage of pension insurance premiums payable by employer and the insured and recorded in the nominal account.

28.4.The pension insurance premiums of the insured for the period receiving disability pension, who completely lost his/ her ability to work, shall be calculated by the percentage of pension insurance premiums payable by employer and the insured from the monthly minimum salary in effective at the time of determining the old-age pension and registered in the nominal account.

Article 29.Formation of pension reserve fund and inheritance of monetized income

29.1.There shall be a pension reserve fund for depositing the monetized income of the insured's nominal account for the purpose of a gradual transition from the pension distribution system to the accumulation system.

29.2.The final balance of the nominal account specified in Article 27 of this Law shall be monetized from the following sources:

29.2.1.From the income transferred to the state budget specified in paragraph 9.6 of the Law on Future heritage fund, in the amount determined by the Government;

29.2.2.other income from the state budget.

29.3.The pension reserve fund specified in paragraph 29.1 of this Law shall consist of the following sources:

29.3.1. 1.0 percent premium income of the employer's pension insurance premium rate and 1.0 percent of the insured provided in paragraph 18.1 of this Law, 2.0 percent of the total, and 2.0 percent premium income of the voluntary insured's pension insurance premium rate provided in paragraph 18.3 of this Law;

29.3.2.monetized income specified in paragraph 29.2 of this Law.

29.4.The income specified in paragraph 29.3 of this Law shall be distributed to each insured person and deposited in the pension reserve fund account.

29.5.The insured's monetized income deposited in the pension reserve fund may be invested as follows based on his proposal:

29.5.1.the financial instruments specified in paragraph 13.1 of this Law;

29.5.2.for health, education, and housing mortgage financing regulated by the specific law.

29.6.If the insured deceased, his monetized income shall be inherited by his legal heirs.

29.7.If a family member of a deceased insured person is entitled to determine survivor's pension for lost his/ her breadwinner in accordance with the Law on pensions provided by the Social Insurance Fund, the monetized income of the nominal account and the total amount of assets to be spent on the survivor's pension shall be calculated, and the balance shall be inherited in accordance with the procedure specified in paragraph 29.8 of this Law.

29.8.The Government shall approve the procedures for the collection, registration, distribution, placement, reporting, investment, inheritance and supervision of assets in the pension reserve fund on the basis of the proposals of the state central administrative organizations in charge of finance, budget, labor, and social security and the National Council of Social Insurance.

Article 30.Social insurance premium debt

30.1.The following premiums, penalties, and fines shall be considered as premium debt:

30.1.1.unpaid social insurance premiums within the period specified in paragraphs 21.1 and 21.20 of this Law;

30.1.2.unpaid social insurance premiums, penalties, and fines determined to be paid by the state inspector's act;

30.1.3.unpaid social insurance premiums, penalties, and fines determined to be paid by a court decision.

Article 31.Limitation period

31.1.There is not limitation period in the following cases:

31.1.1.reimbursement of social insurance premiums specified in paragraph 24.1 of this Law;

31.1.2.to pay the penalty and fine calculated for the social insurance premiums specified in paragraphs 24.1.1, 24.1.2, and 24.1.3 of this Law;

31.1.3.to pay the debt of social insurance premiums specified in Article 30 of this Law;

31.1.4.If pensions and allowances are obtained unjustifiably or in excess due to the preparation of false documents and false information, to pay the pensions and allowances that are unjustified or in excess.

31.2.Except for the cases specified in paragraph 31.1 of this Law, the period specified in paragraph 75.1 of the Civil Code shall be followed.

CHAPTER FOUR

RIGHTS AND DUTIES OF THE EMPLOYER AND THE INSUREd

Article 32.Rights and obligations of the employer

32.1.The employer shall have the following rights:

32.1.1.enjoy discounts and exemptions from insurance premiums for unemployment, industrial accidents, and occupational diseases;

32.1.2.refund or recalculate overpaid social insurance premiums to premiums to be paid later;

32.1.3.to receive inquiries, definitions, information, advice, and training on social insurance issues;

32.1.4.get acquainted with the inspection results and acts of the competent authorities, get and give explanations;

32.1.5.to file complaints about illegal activities and decisions of the social insurance organization to the competent higher-level organizations and officials;

32.1.6.to appeal to the Dispute Resolution Board if the decision of the complaint is not acceptable, which is issued in accordance with sub-paragraph 32.1.5 of this Law;

32.1.7.other rights stipulated by law.

32.2.The employer undertakes the following obligations:

32.2.1.compulsory insurance of the employee with social insurance starting from the date of signing the employment contract, performance of work, work for hire, or similar contract;

32.2.2.accurately determine the composition of salary fund and equivalent income, impose social insurance premiums at the rate determined by this Law, and pay them to the social insurance fund every month;

32.2.3.maintain primary and accounting records of social insurance importance, issue social insurance premium payment reports, and submit them to the social insurance institution within the period specified in paragraph 25.1 of this Law;

32.2.4.to provide the social insurance organization and the insured with the decision regarding the conclusion or termination of the contract and the payment of social insurance premiums as specified in sub-paragraph 32.2.1 of this Law;

32.2.5.in case of violation of social insurance laws, to fully comply with the acts, punishment sheets, official requirements, and notices given by the authorized organizations and officials regarding the elimination of the violation;

32.2.6.pay full responsibility for the damage caused to the insured due to the fault of the employer;

32.2.7.providing employees with information about social insurance laws and social insurance premium payments;

32.2.8.other obligations stipulated by law.

Article 33.Rights and obligations of the insured

33.1.The insured shall have the following rights:

33.1.1.to receive payments for pensions, allowances, and health rehabilitation expenses if the conditions specified in the social insurance legislation are met;

33.1.2.refund or recalculate overpaid social insurance premiums to premiums to be paid later;

33.1.3.to receive information on salaries and equivalent income paid for social insurance premiums, the amount of employer's and self-paid premiums, the period for which premiums have been paid, pensions and allowances received from the social insurance fund, and the payment of health rehabilitation costs in electronic and paper form;

33.1.4.to submit a request to relevant organizations and officials to check the basis of social insurance premiums and payments and the payment of pensions, allowances, and health rehabilitation expenses provided by the social insurance fund;

33.1.5.to monitor the amount of social insurance premiums paid by the employer and whether they have been paid to the social insurance fund within the period specified in paragraph 21.1 of this Law;

33.1.6.if the payment for allowances and health rehabilitation expenses is not received, or if it is not received in full on time due to the fault of the employer, the social insurance premiums were not paid, paid incompletely or lately, the premium report was not submitted, and the documents for the payment of pensions, allowances, and health rehabilitation expenses were not submitted to the insured and the social insurance institution within the time specified by the law, to have paid the expenses incurred in restoring the violated right by the employer;

33.1.7.to choose whether or not to include the monetized income in the pension reserve fund for investments specified in paragraph 29.5 of this Law;

33.1.8.other rights provided by law.

33.2.The insured undertakes the following obligations:

33.2.1.accurately prepare documents necessary to determine salary and equivalent income for social insurance premiums, calculate the period for which premiums have been paid, and receive payments for pensions, allowances, and health rehabilitation expenses;

33.2.2.to inform the social insurance organization and related organizations about the employer's activities that violate the social insurance legislation;

33.2.3.to voluntarily pay the social insurance premiums within the period specified in the contract concluded with the social insurance organization;

33.2.4.to eliminate the violations revealed during the inspection on payment of social insurance premiums and determining and providing pensions, allowances, health rehabilitation costs, and settlement of payments determined by the state inspector's act;

33.2.5.other obligations stipulated by law.

CHAPTER FIVE

structure OF SOCIAL INSURANCE INSTITUTIONS

Article 34.Structure and operation principles of the social insurance organization

34.1.The structure of social insurance organizations shall consist of the National Council of Social Insurance, the state central administrative organization in charge of labor and social security, the state administrative organization in charge of social insurance, the province, capital city, and district social insurance offices, soum and district departments, social insurance inspectors, and employees.

34.2.The social insurance organization shall uphold the rule of law, not be influenced by others, respect the rights and legitimate interests of the employer and insured, perform its official duties in an equal, fair, and responsible manner, and be transparent in its activities.

Article 35.National Council of Social Insurance

35.1.The National Council of Social Insurance /hereinafter referred to as "National Council"/ shall have the following non-full-time members representing the Government, the insured, and the employer in equal quantity:

35.1.1.Representing the Government, one person each from the state central administrative organizations in charge of labor, social security, finance, budget, and legal affairs;

35.1.2.three persons from the trade union representing the insureds and protecting the rights and legal interests of the majority of the insured;

35.1.3.three persons from the organization representing the employer and protecting the rights and legal interests of the majority of the employer.

35.2.The representatives specified in sub-paragraph 35.1.1 of this Law shall be the Cabinet members in charge of labor, social security, finance, budget, and legal affairs.

35.3.Employers' and insured representative organizations shall select a candidate for a member of the National Council through an open selection process and submit it to the relevant Standing Committee of the State Great Khural.

35.4.The State Great Khural shall hold a hearing of the candidate specified in paragraph 35.3 of this Law and shall appoint and dismiss the member of the National Council for a period of six years.

35.5.The National Council shall have a chairman, deputy chairman, and members.

35.6.The head of the National Council shall be the Cabinet member in charge of labor and social security.

35.7.The Deputy Chairman of the National Council shall be appointed and dismissed on the parties' negotiation by the Chairman of the National Council for a period of two years from the representation specified in sub-paragraphs 35.1.2 and 35.1.3 of this Law.

35.8.In the event that a member of the National Council resigns before the expiration of the term of office specified in the law, the next member shall be selected in accordance with paragraph 35.3 of this Law and appointed by the National Assembly for the remaining period of the term of office of the resigned member.

35.9.The National Council shall exercise the following powers:

35.9.1.to make suggestions and opinions on the implementation of social insurance legislation and to improve social insurance operations, to make decisions and to develop proposals for amendments to social insurance legislation and to be decided by relevant organizations;

35.9.2.to vote on the social insurance fund's budget project, projections, budget framework statement project, and monitor budget performance;

35.9.3.discuss reports and information about investment activities of the social insurance fund, make conclusions and decisions;

35.9.4.In connection with the matter to be discussed at the meeting of the National Council, the representatives of the Financial Regulation Committee, organizations engaged in academic and research work in the field of social insurance, researchers, and organizations for the protection of the legal rights of the elderly and disabled persons to participate in the meeting, receive explanations, information, and listen to their opinions;

35.9.5.resolve proposals, applications, and complaints submitted by employers, insured persons, and citizens, and give recommendations and directions to the social insurance organization;

35.9.6.to expand the scope of social insurance, to increase the funds of the fund, to improve public confidence and belief in social insurance, to provide suggestions and opinions for improving the activities of social insurance organizations, information technology, software, and social insurance services;

35.9.7.Formulate suggestions for monitoring and improving the activities of the Health probability council and the Dispute resolution board;

35.9.8.Approving resolutions, procedures, procedures, methodology, and making recommendations related to the implementation of the powers of the National Council and in accordance with the social insurance legislation;

35.9.9.other powers stipulated by law.

35.10.The main form of activity of the National Council shall be a meeting.

35.11.The National Council shall meet quarterly with the attendance of not less than two-thirds of the members. In case of necessity, the chairman of the National Council and the majority of the members may convene an extraordinary meeting.

35.12.The National Council shall report its work to the State Great Khural every year.

35.13.The National Council shall have an office. The appointment and dismissal of the head of the office shall be discussed at the meeting of the National Council and appointed and dismissed by the head of the National Council.

35.14.Management and executive positions of the office shall belong to public administration positions.

35.15.The procedures of the National Council and the open selection procedure specified in paragraph 35.3 of this Law shall be approved by the relevant Standing Committee of the State Great Khural.

35.16.The member of the National Council shall be given a quarterly incentive based on his/ her work participation, and the maximum amount of the incentive shall be determined by the relevant Standing Committee of the State Great Khural based on the proposal of the state central administrative organization in charge of labor and social affairs.

35.17.A non-full-time professional audit and investment committee shall be established next to the National Council, to make risk management and actuarial calculation with functions to conduct required research, risk assessment, proposals and opinions for improving the operation of the social insurance organization, generating and spending the fund income, and making a decision to invest the free balance of the social insurance fund in financial instruments.

35.18.The member of the professional committee specified in paragraph 35.17 of this Law shall be appointed and dismissed by the National Council through an open selection procedure.

35.19.The National Council shall approve the structure and working procedures of the National Council's office, the working procedures of the professional committee specified in paragraph 35.17 of this Law, and the amount of incentives to be paid to members of the professional committee.

35.20.The National Council shall grant the incentive stated in paragraph 35.19 of this Law, considering the results of the professional committee member's work.

35.21.The operational costs of the National Council office and the incentives specified in paragraphs 35.16 and 35.19 of this Law shall be provided by the state budget.

Article 36.Functions of the state central administrative organization in charge of labor and social security

36.1.The state central administrative organization in charge of labor and social security shall perform the following functions:

36.1.1.to define social insurance policy and planning, to develop the social insurance fund's budget draft, to make mid-term estimates of the social insurance fund's income and expenses;

36.1.2.to develop proposals to improve social insurance legislation and increase the amount of pensions and allowances, and have them decided by competent organizations;

36.1.3.providing social insurance organizations with policy and professional management;

36.1.4.to approve the staffing standards of the social insurance organization based on the proposal of the state administrative organization in charge of social insurance;

36.1.5.to study and have resolved the issue of accessing into international treaties and conventions on social insurance issues with foreign countries;

36.1.6.other functions prescribed by law.

Article 37.Management, rights, and functions of the state administrative organization in charge of social insurance

37.1.The state administrative organization in charge of social insurance shall work under the supervision of the head of the National Council, the Cabinet member in charge of labor and social security, and the provincial, capital city, and district social insurance organizations shall work under the supervision of the higher-level social insurance organization.

37.2.The state administrative organization in charge of social insurance shall be the implementing agency of the Government in charge of the implementation of social insurance legislation at the national level.

37.3.The state administrative organization in charge of social insurance issues shall have a Health Probability Board, a Specialized Hospital for Occupational Disease Research, and a Dispute Resolution Board.

37.4.The head of the state administrative organization responsible for social insurance shall be selected in accordance with the Law on Civil Service, appointed and dismissed by the Government based on the proposal of the Cabinet member responsible for labor and social security.

37.5.Heads of social insurance departments of provinces, capitals, and districts shall be selected in accordance with the Civil Service Law, appointed, and dismissed by the head of the state administrative organization responsible for social insurance.

37.6.Employees of the state administrative organization responsible for social insurance shall be appointed and released by the head of the state administrative organization responsible for social insurance, and the employee of the province, capital city, and district social insurance office shall be appointed and released by the head of the social insurance organization at that level.

37.7.The Central Council of Health Probability /hereinafter referred to as "Central Probability Council"/ with the function of assessing the rate, duration, and cause of incapacity for work of the insured person, shall operate under the state administrative organization responsible for social insurance, the Council of Health Probability /hereinafter "Probability Council of province and district"/ shall operate under the Province and District Social Insurance office, and Mental Disease Sub-Council and Occupational Disease Sub-Council shall operate under the Central Probability Council respectively. Taking into consideration the population size, density, and location, the soum health probability council may be established under the soum social insurance department.

37.8.Central Dispute resolution board /hereinafter referred to as "central council"/ with the function of settling disagreements and disputes between insureds, individuals, employers, and social insurance organizations in accordance with relevant legislation and regulations, under the state administrative organization responsible for social insurance issues, and branch councils for dispute resolution /hereinafter referred to as "branch councils"/ shall be operated under the provincial, capital city and district social insurance offices respectively.

37.9.Specialized hospitals for occupational diseases with the functions of early detection, treatment, rehabilitation, nursing, labor regulation, specialized specialist, and public health care services shall be operated under the state administrative organization responsible for social insurance.

37.10.A branch council of the social insurance can be established having functions to provide social insurance for Mongolian citizens who are temporarily or permanently living abroad, to provide social guarantee, to generate income from premiums, and to ensure the implementation of international social security treaties between Mongolia and foreign countries in that country.

37.11.Heads of hospitals and branches specified in paragraphs 37.9 and 37.10 of this Law shall be appointed and dismissed respectively by the head of the state administrative organization responsible for social insurance.

37.12.The working procedures of the specialized and categorized hospital for occupational diseases shall be jointly approved by the Cabinet members in charge of labor, social security, and health issues.

37.13.The state administrative organization responsible for social insurance shall exercise the following powers:

37.13.1.to issue orders, procedures, regulations, instructions, methodologies, recommendations, and directions related to the implementation of social insurance legislation;

37.13.2.to carry out social insurance inspections in electronic form and based on documents, to obtain necessary information, research, and other related documents free of charge from employers, insured persons, banks, finance, state organizations, and other organizations, officials, and people, impose legal liability on employers according to the law who violate the social insurance legislation;

37.13.3.to impose legal liability on employers who evade the payment of premiums, penalties, interest, and fines set by lower-level social insurance organizations and inspectors, or who violate social insurance legislation;

37.13.4.annul or change the decision issued by the lower-level social insurance organization in accordance with the relevant legislation if it is considered to be without legal basis;

37.13.5.to conduct internal audit, analysis, assessment, and risk management in the activities of the social insurance organization;

37.13.6.to use the personal information of the insured person for the purpose of providing social insurance services;

37.13.7.other rights provided by law.

37.14.The state administrative organization responsible for social insurance shall perform the following functions:

37.14.1.organizing the implementation of social insurance legislation and improving social insurance services;

37.14.2.developing the social insurance fund's budget draft, projections, and budget framework statement, and approve the detailed schedule of provincial and capital city budgets;

37.14.3.organization and control of social insurance fund revenue generation, and provision of payment of pensions, allowances, health rehabilitation costs, costs of measures to prevent industrial accidents and occupational diseases, premium discounts, and exemptions to insureds and employers within the time limit set by law;

37.14.4.to carry out activities specified in paragraph 29.4 of this Law;

37.14.5.develop proposals on the improvement of social insurance laws and have made decisions by relevant organizations;

37.14.6.to make calculations, research, and submit proposals to the National Council and the state central administrative organization in charge of labor and social security, on the issue of changing the number of payments for pensions, allowances, health rehabilitation costs, and investing the free balance of the social insurance fund in financial instruments;

37.14.7.to provide professional and methodological assistance to lower-level organizations, to spread good practices, to prevent and supervise operational violations and deficiencies, and to hold them accountable according to the law;

37.14.8.promote social insurance legislation to employers, insureds, and the public, and provide information;

37.14.9.review and resolve petitions, complaints, suggestions, and requests of employers, insured persons, and individuals in accordance with laws and regulations, and forward them to relevant organizations;

37.14.10.formation of social insurance organizations with qualified human resources, continuous training, and qualification of social insurance inspectors and employees;

37.14.11.to keep information on the activities of social insurance organizations, social insurance funds, and investment information transparent and open to the public;

37.14.12.to support the National Council in exercising its powers, to provide necessary information and research;

37.14.13.exchanging information electronically with the tax office;

37.14.14.other functions provided by law.

37.15.The Government shall approve the regulations of social insurance institutions and inspectors.

37.16.The procedures for exchanging information specified in sub-paragraph 37.14.13 of this Law shall be jointly approved by the state administrative organization responsible for social insurance and taxation.

Article 38.Social insurance inspection and rights and duties of state inspector of social insurance

38.1.The inspection of social insurance shall be carried out by the state general inspector, state senior inspector, and state inspector of social insurance /hereinafter referred to as "state inspector of social insurance"/.

38.2.The social insurance organization shall carry out the monitoring of the imposition and payment of social insurance premiums.

38.3.The head of the state administrative organization responsible for social insurance shall be the state general inspector of social insurance.

38.4.The right of the state inspector of social insurance shall be granted, confirmed, suspended, and canceled by the Cabinet member in charge of labor and social security.

38.5.The head of the main functional unit of the state administrative organization responsible for social insurance, and the head of the social insurance office of the province, capital city, and district shall be the state senior inspector of social insurance.

38.6.The state inspector of social insurance shall meet the requirements as has worked in the social insurance organization for not less than 3 years, has not committed any ethical violations, is qualified, and has passed the examination for granting the right to be a state inspector of social insurance.

38.7.The state inspector of social insurance shall have an identity card and badge.

38.8.Procedures regulating relations related to granting, confirming, suspending, and canceling the rights of the state inspector of social insurance, and the model of the state inspector's license and badge shall be approved by the member of the Government in charge of labor and social security.

38.9.The state administrative organization responsible for social insurance issues shall approve the procedure for inspection specified in paragraph 38.2 of this Law.

38.10.The state inspector of social insurance shall have the following rights:

38.10.1.to inspect documents related to labor relations, salary fund, its equivalent income, balance statement, financial and other documents related to the imposition and payment of social insurance premiums, to obtain explanations and inquiries;

38.10.2.to obtain explanations and inquiries free of charge from the employer, bank, finance, archive, court, health and other organizations, officials, and persons for the purpose of determining and providing pensions and allowances, and inspecting financial documents;

38.10.3.to temporarily confiscate or take copies of proof of concealment of social insurance premium income from employers, insured persons, legal entities, and individuals;

38.10.4.to withdraw overpayment of pensions, allowances, medical rehabilitation costs, costs of measures to prevent industrial accidents and occupational diseases, premium discounts, exemptions, and social insurance premium debts from bank accounts of pensioners, insured persons, employers, and people without dispute;

38.10.5.in the event he/ she is appointed to conduct an inspection on his/ her own related social insurance premium payer, to notify the conflict of interest and refuse to conduct the inspection;

38.10.6.to impose the responsibility specified in this Law and related laws on social insurance premium payers and related organizations, officials, and persons who violate social insurance laws, and, if necessary, to claim to legal authorities for resolving;

38.10.7.other rights provided by law.

38.11.The State inspector of social insurance shall undertake the following duties:

38.11.1.implementing social insurance legislation and increasing social insurance coverage;

38.11.2.to check determination and providing pensions and allowances, payment of health rehabilitation costs, costs for industrial accident, and occupational disease prevention measures, premium discounts and exemptions, and to eliminate detected violations;

38.11.3.to carry out an inspection of the cause, rate, and duration of disability of the insured, pensioner, and person, and take measures to eliminate the detected violations;

38.11.4.notify the competent authorities if an employer, insured, or person is found to be engaging in illegal activities while performing their official duties;

38.11.5.other obligations provided by law.

Article 39.Prohibition of social insurance state inspectors

39.1.The followings shall be prohibited in the activities of the state inspector of social insurance:

39.1.1.conducting inspections without instructions or appointments;

39.1.2.wasting printing  sheets and forms of acts, official requirements, and other documents of state inspector of social insurance, illegally printing and using invalid or fake forms of social insurance;

39.1.3.to compel the employer, insured, or person to present and approve the act and other documents not certified by the signature or stamp of the state inspector of social insurance;

39.1.4.editing or changing acts and other documents certified by the signature and seal of the employer, insured, person and the state inspector of social insurance;

39.1.5.to provide illegal advice and provide opportunities to avoid paying social insurance premiums to employers, insured persons, on obtaining premium discounts and exemptions, pensions, allowances, health rehabilitation costs and costs of measures to prevent industrial accidents and occupational diseases;

39.1.6.examine and resolve applications, complaints, and notices issued by social insurance premium payers, pensioners, and persons not registered in the unified record of record keeping;

39.1.7.illegally changing, attacking, editing, deleting, restoring, entering false information in the social insurance database;

39.1.8.falsifying or producing without basis inquiries, health care decisions, social insurance, and pension books;

39.1.9.Illegal use of the state inspector's badge and stamp, or use by others;

39.1.10.in the course of performing official duties, disclosing state, organizational, or individual secrets protected by law, using them for personal interests, expressing a position on any issue, disclosing news and information before the result of an inspection or an official decision has been made;

39.1.11.to contact the payer of social insurance for personal purposes, to give him/ her advice in any form, to prepare a social insurance report, to conduct an audit, to help or demand him to avoid paying social insurance premiums;

39.1.12.other prohibitions provided by law.

Article 40.Degree of qualification of social insurance inspector

40.1.The state inspector of social insurance shall have the qualifications of a social insurance trusted advisor, social insurance advisor, and social insurance leading inspector.

40.2.The degree of trusted advisor, advisor, and leading qualification shall be granted by the decision of the Cabinet member in charge of labor and social security, based on the proposal of the state administrative organization responsible for social insurance.

40.3.The procedure for establishing, suspending, and granting the degree increments to state inspectors of social insurance shall be approved by the Cabinet member in charge of labor and social security.

Article 41.Advertising and consulting services for employers, insureds, and the public

41.1.The social insurance organization shall provide the following services to employers, insureds, and the public in order to expand the scope of social insurance, and promote and educate the importance of social insurance:

41.1.1.to promote social insurance legislation;

41.1.2.to provide methods, instructions, and information for the implementation of social insurance legislation, to provide professional advice, and to organize training;

41.1.3.coverage of social insurance and preparation for old-age pension;

41.1.4.organizing training, promotion, information giving and distribution through media;

41.1.5.providing social insurance services in electronic, one-stop, and mobile form.

Article 42.Dispute resolution board

42.1.The head, member, and secretary of the central council and branch council specified in paragraph 37.8 of this Law shall be non-full-time.

42.2.The secretary of the central council shall be full-time and belong to the structure of the state administrative organization responsible for social insurance.

42.3.The central council and the branch council shall consist of 9 people, and the central council shall consist of representatives of the state central administrative organization in charge of labor, social security and legal affairs, social insurance organization, employer and insured representatives, and the branch council shall consist of representatives of social insurance organization, local administrative organization, employer and insured.

42.4.The chairman, secretary, and member of the Central Council shall be appointed and dismissed by the head of the state administrative organization responsible for social insurance.

42.5.The head of the social insurance department of the province, capital, and district shall be the head of the branch council.

42.6.The secretary and member of the branch council shall be appointed and dismissed by the head of the branch council in consultation with the head of the state administrative organization responsible for social insurance.

42.7.Meetings of the Central Council and Branch Council shall be convened with the attendance of at least two-thirds of the members, and the issues shall be resolved by the majority vote of the members present at the meeting.

42.8.The central council and the branch council shall issue resolutions, notes, and recommendations, and the parties involved in social insurance relations shall be responsible for their implementation.

42.9.If it is deemed the decision of the branch council is unjustified settled disagreements and disputes arise out between the insured person, the employer, and the social insurance organization, shall appeal to the central council, for the decision of the central council, shall appeal to the court.

42.10.Heads, members, and secretaries of the central council and branch council shall be paid an hourly fee based on the time they attended the meeting.

42.11.The amount of hourly salary and the payment procedure specified in paragraph 42.10 of this Law shall be approved by the Cabinet member in charge of labor and social security.

42.12.The procedures of the Dispute resolution board, which regulate relations including the rights and duties of the central council and branch councils, the order of meetings, the dispute resolution process, work reports, and responsibilities, shall be approved by the Government based on the proposal of the state central administrative organization in charge of labor and social security.

Article 43.Health Probability Council

43.1.The Probability Central Council provided in paragraph 37.7 of this Law shall have a composition of 21 people, including representatives of the head, secretary, social insurance institution's probabilistic doctor, expert doctor, insured and employer. The Probability Central Council's representatives of expert physicians, insured, and employer shall be non-full-time.

43.2.The head of the state administrative organization responsible for social insurance shall appoint and dismiss the head, secretary, probabilistic doctor, and a member of provincial and district probabilistic council, and branch council.

43.3.The head, member, and expert doctor of the Probability Center and branch council, province, district, and soum probability council shall be paid a monthly hourly fee based on the time spent in the meeting.

43.4.The Government shall approve the hourly fee rates specified in the procedures of the Health probability council and paragraph 43.3 of this Law.

43.5.The list of diseases and instructions to be followed for determining the percentage, duration, and causes of incapacity for work of the insured person and for employment regulation shall be jointly approved by the Cabinet members in charge of health, labor, and social security.

CHAPTER SIX

MISCELLENEAOUS

Article 44.Liabilities to be imposed on the violators of the Law

44.1.If the violation of social insurance legislation does not have a nature to be imposed criminal liability, the social insurance premium payer shall be held the following liabilities:

44.1.1.If the salary fund or equivalent income to be imposed social insurance premium is hidden or the amount is intentionally reduced, hidden or reduced social insurance premium imposed salary fund or equivalent income shall be compensated, and a loss of penalty equal to the income shall be charged. The amount of the loss of penalty does not exceed 50 percent of payable amount of the social insurance premiums;

44.1.2.If payable amount of the social insurance premium is not paid on time specified the this Law or by the competent authority, or underpaid social insurance premium shall be compensated, and a loss of penalty as 0.3% shall be charged from that amount of the premium per exceeding day. The amount of the loss of penalty shall not exceed 50 percent of payable amount of the social insurance premiums;

44.1.3.If the social insurance premium is underpaid due to a calculation error, the underpaid social insurance premium shall be compensated, and a loss of penalty as 0.1% from that amount of premium shall be charged per each day after the calculation error occurred. The amount of the loss of penalty does not exceed 30 percent of payable amount of the social insurance premiums;

44.1.4.If a salary lower than the current monthly minimum salary is provided and the insured is harmed, the social insurance premium for the underestimated salary shall be compensated, and a loss of penalty as 0.1% shall be charged for each day after the underestimation of the amount of that premium. The amount of the loss of penalty does not exceed 30 percent of payable amount of the social insurance premiums.

44.2.If pensions, allowances, and health rehabilitation costs are overdetermined and be paid, by the decision of the authorized official, the person who overpaid the pensions, allowances, and health rehabilitation costs shall be reimbursed to the relevant fund.

44.3.If the bank does not provide pensions, allowances, medical rehabilitation costs, expenses for industrial accidents and occupational disease prevention measures, premium discounts, or exemptions in time, a loss of penalty shall be charged by the interest rate of term deposits of citizens of that serving bank for each delayed day that the appropriate amount is withheld and paid to the employer, the insured, the pensioner, and the payee.

44.4.If the assets of the social insurance fund are spent inappropriately, or earned income by illegal usage of the assets, the illegally earned income and caused damages shall be paid to the social insurance fund by the guilty person.

44.5.If the insured fails to fulfill his/ her obligations under this Law and the contract concluded with the social insurance organization, he/ she shall be held liable as specified in sub-paragraphs 44.1.2 and 44.1.3 of this Law.

44.6.The head, member, secretary of the Health probability council, doctors, and specialists of the health institution shall be responsible by the relevant legislation and the caused damage shall be reimbursed to the social insurance fund, who unreasonably determined the cause, percentage, and period of the insured's incapacity for work, extended the period, and illegally influenced others.

44.7.The imposition of fines and a loss of penalty on violators of social insurance legislation shall not be grounds for rectification of the violation or exemption from responsibility for compensating for damages caused to others. Payment of fines imposed for violations specified in the Law on Violations shall be collected in the social insurance fund.

Note: The "calculation error" specified in sub-paragraph 44.1.3 of this Law shall include making corrections in the verified report of social insurance premiums, changing and correcting the type of insured, and incorrectly calculating the percentage of premiums for industrial accidents and occupational diseases to be paid to the insurance fund.

44.8.If the action of an authorized official who violates this Law does not have a criminal nature, he, she shall be held liability as provided in the Civil Service Law.

44.9.Any person or legal entity who violates this Law shall be charged with the responsibility specified in this Law, the Criminal Law, and the Law on Violations.

Article 45.Monitoring the implementation of social insurance legislation

45.1.The Government, the National council of social insurance, Governors at all levels, and other organizations and officials authorized by law shall exercise control over the implementation of social insurance legislation in accordance with their respective powers.

Article 46.Regulations on compliance with the Law

46.1.Paragraph 9.2 of this Law shall be applied to a person who has been newly determined a pension starting from the date of entry into force of this Law.

46.2.Assets specified in sub-paragraph 29.2.1 of this Law shall be provided from the state budget starting from 2030 in accordance with paragraph 9.6 of the Law on future heritage fund.

46.3.Paragraph 29.6 of this Law shall be implemented starting from 2030.

Article 47.Entry into force of the Law

47.1.This Law shall enter into force on January 1, 2024.

THE CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA

ZANDANSHATAR.G