In accordance with Resolution No.12, issued on October 13, 2023, by the National Tripartite Committee on Labor and Social Consensus, an adjustment has been made to the minimum wage in Mongolia. Commencing from January 1, 2024, the new minimum wage is set at MNT 660,000 per month. This change, as mandated by Section 4.2 of the Minimum Wage Law, reflects a meticulous consideration of various factors. These include alterations in the minimum standard of living among the population, the appropriate correlation of labor productivity and average salary, the minimum amount required for a full pension from the social insurance fund, economic growth, employment levels, and the prevailing inflation rate.
Aligning with the principles laid out by the International Labor Organization, the minimum wage is defined as the least amount of remuneration an employer must pay wage earners for their work during a specified period. This amount cannot be diminished through collective agreements or individual contracts. The overarching aim of instituting minimum wages is to safeguard workers against receiving unreasonably low compensation.
According to Mongolia's Minimum Wage Law, the term "Minimum wage" denotes the lower limit of basic hourly remuneration or wage that must be universally observed. This rate is determined by competent authorities to protect the legal interests of employees, also referred to as "workers," engaged under labor contracts, hired work contracts, and similar agreements for uncomplicated tasks that do not necessitate specific education or special skills. This legal framework underscores the commitment to fair compensation and the protection of the rights of the country's workforce.