On 20 August 2018, the Tripartite Committee on Labor and Society announced that they had issued a decision to increase the monthly minimum wage to MNT 320,000 (approx. USD 129.70) from MNT 240,000 (approx. USD 97.30), effective from 1 January 2019. Prior to this increase, the monthly minimum wage had been increased from MNT 192,000 (approx. USD 77.80) to MNT 240,000 on 20 April 2016, effective from 1 January 2017. The increase of the monthly minimum wage to MNT 320,000 means that the minimum hourly wage is now MNT 1,904 (approx. USD 0.77).
Under the Law of Mongolia on Minimum Wage enacted by Parliament on 16 April 2010 (“Minimum Wage Law”), wages not less than the minimum monthly wage, as set by the Tripartite Committee on Labor and Society, must be paid to employees who are carrying out general work which does not require specific education or specialization. For employees who are carrying out work which does require specific education, specialization or skills, it is prohibited to set their wages at minimum wage level.
The Minimum Wage Law provides that the monthly minimum wage amount may be determined or changed by taking into certain factors such as changes in living costs, labor productivity, amount of social insurance benefits and pensions as well as economic growth and employment level. During the announcement, the Tripartite Committee on Labor and Society also noted that they intend to increase the monthly minimum wage to MNT 420,000 (approx. USD 170) from 1 January 2020.
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