Hire a remote team in Mongolia

Hiring a remote team in a country as Mongolia comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Mongolia. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

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1. Hire a remote team in Mongolia with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Mongolia, particularly if you don't have established local relationships. You can hire employees in Mongolia effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

Table of contents

Hire a remote team with Rivermate
Introduction
Hiring a remote team in your country
Cost of living
Cost of renting
Major industries
Hiring cost
Employment laws
Top skills
Economic landscape
Market size
Minimum wage

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Mongolia.As an employer of record, we help you hire employees and run payroll services in Mongolia, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Mongolia.It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.If you wish to hire a remote team in Mongolia or individually hire remote employees in Mongolia, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.Send us a message so we can talk about how Rivermate’s Employer of Record Mongolia services can best help your company!

3. Hire a remote team in Mongolia

Mongolia's economy has evolved from a traditional agriculture-based economy to one based on mining and extraction. Mongolia also has large reserves of minerals used in industry, such as copper, coal, molybdenum, tin, and tungsten. Significant foreign investment by businesses and governments has resulted in an economic boom. According to the IMF, Mongolia's GDP increased to US $13.6 billion in market exchange rates for the fiscal year 2019, while real GDP increased by 5.1%. Many historical and political shifts in the 1990s altered Mongolia's economic structure.Following foreign investment reforms, the economy has risen and is emerging to develop infrastructure. A massive influx of 1500 companies from 50 countries has contributed more than $300 billion to Mongolia. Private companies are the most important component and contributors to the Mongolian economy, accounting for 70% of GDP and 80% of exports.With its "Wolf Economy" strategy, Mongolia expects to emerge as the new "Asian Tiger" with exponential growth and development. The key drivers of the economic shift shaping Mongolia's promising future are railway expansion and reinventing housing infrastructure.Mongolia is a landlocked country that shares borders with Russia and China. Mongolia, a traditionally nomadic culture with a richly diverse history, is shifting to adopt new democratic measures in order to emerge as a developed and self-sufficient nation. Mongolia has tripled its GDP growth in the last 30 years. Mongolia's social protection plans have created a favorable economic environment in rural areas, helping to reduce rural poverty from 34.9% in 2016 to 30.8% in 2018.

4. Cost of living in Mongolia

Mongolia's cost of living is $546, which is 1.71 times less expensive than the global average. Mongolia ranked 161st out of 197 countries in terms of cost of living and 74th in terms of quality of life.Mongolia's average after-tax salary is $332, which is enough to cover living expenses for 0.6 months.

5. Cost of renting in Mongolia

The average cost of living in Mongolia is estimated to be (1,326,008.81 T) US $465.17 for a single person; for a family of four, the overall cost of living may be (4,755,611.58 T) US $1668.30. Overall, consumer prices are 52.17% lower than in the United States.The monthly rent varies depending on the type of apartment and lifestyle you prefer. A monthly 1-bedroom apartment in the city center would cost approximately $ 3,799,156 T (US $1333), whereas an apartment outside the city would cost approximately $ 3,080,315 T (1,083 $). A three-bedroom apartment in the city center costs around 6,176,520 T (2,168 $), while one outside the city costs around 4,995,953 T (US $1,754).Mongolia has many desirable locations and cities in which to live. The capital city of Ulaanbaatar, as well as Erdenet and Darkhan, are among the most sought-after destinations.Ulaanbaatar was built during the Soviet communist era and had a population of more than 140,000 people. It was built with a capacity of 6,00,000 people in mind.Erdenet is Mongolia's second-largest city, with a population of 97,814 people.Darkhan is Mongolia's third-largest city, with a population of 83,883.

6. Major industries in Mongolia

Mongolia's main economic drivers are agriculture, mining, services, and construction. Mongolian construction companies have employed over 100,000 people and indirectly created approximately 130,000 jobs.Domestic construction materials account for more than 60% of total production in the country. Cities house approximately 57% of Mongolia's population, necessitating a large amount of housing and related facilities.Mongolia's mining sector, which accounts for approximately 21% of GDP, is dominated by copper and gold mines. Coal projects have gained importance in recent years of development.Agriculture accounts for roughly 20% of GDP and 14% of foreign revenue. The service sector is emerging and plays an indirect role in the development of agriculture, mining, and construction services.Engineers, physicians, designers, and developers are being born on a daily basis in order to keep up with modern technological industries and foreign corporations.

7. Hiring cost in Mongolia

The total amount invested divided by the number of hires yields the cost per hire. The Cost per Hire metric takes into account advertising, software, relocation costs, and other factors.- Training and onboarding expenses.- Cost of conducting an interview- Time required for interview

8. Employment laws Mongolia

This law defines the rights and responsibilities of those who are involved in a labor relationship governed by a labor contract. This category includes collective contracts or collective agreements, as well as single or collective labor disputes. The employment laws of Mongolia ensure and outline a description of the working conditions, management, monitoring, and supervision measures to ensure that the law is followed and liability for violations is imposed, as well as mutual equality between the parties. The following sections are highlighted: - Rights and Obligations of an Employer and Employee- Regulations about discrimination, limitations and privileges- Contacts and Agreements- Working hours and working conditions

9. Top skills Mongolia

If you are an employer looking to hire in Mongolia, it is important to be in the know of the top industries in Mongolia. The Mongolian service sector is rapidly expanding because of foreign investments, foreign aid, and companies' government and private establishments, generating jobs in the democratic and liberal setup. Services such as banking, finances, software engineering, tourism, marketing etc. have an ever-increasing demand for ardent professionals.

10. Economic landscape in Mongolia

The Mongolian economy has undergone erratic changes since the pandemic. In 2020, it fell to the worst contraction rate of 5.3%. Because the Mongolian economy is largely based on industry exports, the drop was caused by a decrease in demand for industry-based materials. The service sector was also hit hard by covid restrictions and protocols. However, as the global economy recovers, a steady upward recovery is expected. The economy is expected to recover in 2021 as a result of ongoing efforts to control the pandemic. Econometric models predict growth of 7.50% in 2022, up from 6.50% in 2021.

11. Market size in Mongolia

Mongolia has trade and relief ties with the IMF and other FDI enterprises that monitor finances and quality production. Mongolia's market is dominated by Russia and China. Because Mongolia is landlocked, nearly 90% of its export goods are shipped through China. Russia provides 90% of Mongolia's petroleum and 20% of its electrical power.The mining industry accounts for approximately 30% of all industries. Mongolia is also the world's leading producer of cashmere. Mongolia is ranked 86th in terms of economic freedom. Mongolia has been a WTO member since 1997. The consequences have transformed Mongolia's economy into a market-oriented economy.