Mongolia foreign labor force ratio for 2013

Hogan Lovells
Michael Aldrich and Chris Melville
Mongolia
February 18 2013

On 22 December 2012, the Government of Mongolia issued resolution #192 approving the foreign labour force quota ratio for 2013. This quota ratio sets out the total number of foreign employees an economic entity operating in specific sectors may employ, depending on the size of its workforce and its paid-in capital. Please note that the quota ratio only applies to those foreign employees who are permitted to reside in Mongolia under "HG" type visas.

Notable changes for the 2013 year are:

the agriculture, forestry, fishing and hunting sector has been removed in its entirety;

there have been changes to the ratios for some sectors such as (i) support activities for mining (reduced from 25 per cent into 20 per cent in some cases), (ii) provision of accommodation services (some percentage increases), (iii) human health activities (1 per cent fluctuations depending on entity size), (iv) other personal service activities (1 per cent fluctuations depending on entity size), (v) food and beverage service activities (now 10 per cent for all entities) and (vi) wholesale and retail trade and repair of motor vehicles and motorcycles sector (now 20 per cent for all entities up from 5-10 per cent).

a new category has been created for "representative offices of foreign legal entities and authorized foreign non-governmental organizations operating in the humanitarian sector".

For sectors that are not specified in the ratio, up to 5 per cent of the employees can be foreigners. If the total number of local employees is less than 20, only one foreigner as an HG visa will be permitted in the workforce.

Further, the Government resolution instructs the Minister of Health to arrange for health screenings of foreign workers. This was not a requirement previously. No details were included in the Government resolution as to what this will entail, the frequency of the screenings or otherwise.

For the numbers/percentages for the main industries please CLICK HERE.

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