(2023.08.03-ны өдрийн орчуулга)                                                   Unofficial translation

LAW OF MONGOLIA

April 16, 2010                                                                                           Ulaanbaatar city

ON MINIMUM WAGE

/Revised edition/

cHApTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the Law

1.1.The purpose of this Law is to regulate relations in connection with determining the minimum basic hourly salary /wage/ to be adhered to in labor contracts, hired work contracts, and other similar contracts.

Article 2.Legislation on the minimum wage

2.1.Legislation on the minimum wage shall consist of the Constitution of Mongolia, the Law on Labor, the Civil Code, this Law and other legislative acts issued in conformity with them.

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

Article 3.Minimum wage

3.1.The Minimum wage shall mean the minimum limit of the basic hourly remuneration /wage/ that should be observed in general which was determined by the competent person in order to protect the legal interests of employees and workers /hereinafter referred to as "employees"/ who work under labor contracts, hired work contracts, and other similar contracts for simple jobs that do not require specific education or special skills.

3.2.It shall be prohibited to set the basic hourly salary /wage/ of an employee working under a labor contract, a hired work contract, or other similar contracts for the job requiring certain education, special professions, and skills at the minimum wage.

3.3.Provision specified in paragraph 3.1 of this Law shall not prevent an employee from setting his/her salary /wage/ higher than the minimum wage, and the employer or principal (hereinafter referred to as "employer") from providing a salary/wage higher than the minimum wage.

Article 4.Principles and factors for determining and changing the minimum wage

4.1.The minimum wage shall not be lower than the level established in accordance with paragraph 5.1 of the Law on Determining the minimum standard of living of the population, and if the minimum standard of living of the population is also determined in accordance with paragraph 5.3 of the above Law, the minimum wage shall be higher than the highest regional level of it.

4.2.The minimum wage shall be determined or changed by taking into account of the following factors:

4.2.1.changes in the minimum standard of living of the population;

/This sub-paragraph was amended by the law as of July 2, 2021/

4.2.2.appropriate ratio of labor productivity and average salary;

4.2.3.the minimum amount of full pension to be provided by the social insurance fund;

/This sub-paragraph was modified by the law as of July 2, 2021/

4.2.4.economic growth and employment level; and,

4.2.5.inflation rate.

/This sub-paragraph was added by the law as of July 2, 2021/

CHAPTER TWO

DETERMINING AND COMPLYING WITH THE MINIMUM WAGE

Article 5.Determining and changing the minimum wage

5.1.The minimum wage shall be determined by the tripartite National Committee for Labor and Social Consensus, which has the representatives of the state-level organization that represents and protects the rights and legal interests of the Government, the employer, and the employee.

5.2.The tripartite National Committee for Labor and Social Consensus shall exercise the following powers related to setting the minimum wage:

5.2.1.to issue a resolution on determining and revising the minimum wage;

5.2.2.to employ a team of researchers specializing in labor productivity and salary /wages/ in order to determine the minimum wage;

5.2.3.to collect and analyze information on the minimum wage to be determined in accordance with paragraph 5.4 of this Law;

5.2.4.to issue methodologies and instructions in connection with determining and enforcing the minimum wage.

5.3.The minimum wage may be set higher than the amount determined by the tripartite National Committee for Labor and Social Consensus specified in paragraph 5.1 of this Law through sectoral and inter-sectoral agreements upon mutual agreement between sectoral organizations representing and protecting the rights and legal interests of employers and employees.

5.4.The tripartite National Committee for Labor and Social Consensus shall set the minimum wage once every two years by taking into account of the factors specified in paragraph 4.2 of this Law, and may revise it according to the proposals specified in paragraphs 6.1 and 6.2 of this Law.

Article 6.Making proposals on determining and changing the minimum wage

6.1.Proposals for determining or changing the minimum wage may be made by any party or parties jointly represented in the tripartite National Committee for Labor and Social Consensus.

6.2.In the event of a nationwide economic crisis, disaster or state of emergency, the Government may make a proposal to maintain sustainably the minimum wage for a certain period of time, and to temporarily lower it in combination with other social security measures on behalf of public interest.

Article 7.Compliance with minimum wages

7.1.An employer who employs an employee under a labor contract or a hired work contract or other contracts equivalent to them shall be obliged to pay him/her a basic salary /wage/ not less than the amount determined by the tripartite National Committee for Labor and Social Consensus. If the employee falls under the minimum wage specified in paragraph 5.3 of this Law, it shall pay not less than such basic salary /wage/ regardless of the type and form of ownership as well as membership in the sectoral organization that represents and protects the rights and legal interests of employers and employees of the respective sector.

7.2.If the minimum wage is revised, the deadline for compliance with it shall be January 1st of the subsequent year. If it is revised after approval of the budget of the given year, it shall be enforced from the subsequent budget year.

/This paragraph was modified by the law as of July 2, 2021/

7.3.The implementation of this Law shall be monitored by the state central administrative body in charge of labor issues and the state-level organization representing and protecting the rights and legal interests of employers and employees within their powers.

/This paragraph was amended by the law as of November 11, 2022/

7.4.When implementing provisions of other laws related to the application of the minimum wage, the minimum wage set by the tripartite National Committee for Labor and Social Consensus shall be governed.

7.5.Negotiating parties shall be responsible for announcing the minimum wage and the minimum wage specified in paragraph 5.3 of this Law which determined by sectoral and inter-sectoral mutual agreements.

/This paragraph was added by the law as of July 2, 2021/

chapter tHREE

MISCELLANEOUS

Article 8.Liabilities to be imposed on violators of the Law

/The title of this article was amended by the law as of December 4, 2015/

8.1.Complaints about violations of legislation on the minimum wage can be submitted to the state labor inspector or court by an employee or an organization protecting his/her rights and legal interests.

8.2.An individual or a legal entity who has breached this Law is subject to the liability in accordance with Criminal code or Law on Violations. 

/This paragraph was modified by the law as of December 4, 2015/

8.3.The employer shall fully compensate the damage caused to the employee due to the payment of the basic salary /wage/ lower than the minimum wage.

Article 9.Entry into force of the Law

9.1.This Law shall enter into force on January 1, 2011.

THE CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA DEMBEREL.D