On May 7, 2025, the Parliament's Standing Committee on Social Policy convened a regular meeting to review several critical issues.
During the session, lawmakers discussed the response to a parliamentary inquiry regarding the minimum wage, the implementation report of tasks assigned by law and parliamentary resolutions, and the 24th report on the human rights and freedoms situation in Mongolia.
A.Ariunzaya, Member of Parliament, addressed a question to L.Enkh-Amgalan, the Minister of Labor and Social Protection, regarding the legality of recent minimum wage increases.
She noted that although the law stipulates the minimum wage should be revised every two years, it was increased from MNT 660,000 MNT on January 1, 2024, to MNT 792,000 on April 1, 2025, an increase that appears to contradict the legally mandated schedule. A.Ariunzaya also questioned the impact of this change on health and social insurance contributions and the state budget.
In response, Minister L.Enkh-Amgalan clarified that the increase was based on the decision of the National Committee on Labor and Social Partnership and provisions in the Tripartite Agreement. He presented supporting proposals, stakeholder demands, and calculations conducted by a joint working group.
The wage hike, he explained, benefits workers earning minimum wage by boosting their income and increasing the amount of temporary disability, maternity, and unemployment benefits. However, it also raises contributions for voluntary and state-funded insured persons and increases employers’ salary costs.
According to estimates: The social insurance fund’s income will rise by MNT 129.9 billion MNT. And the fund’s expenses will grow by MNT 38.4 billion. 
The National Statistics Committee and the Bank of Mongolia estimate the wage increase will affect monthly inflation by just 0.02 percentage points, essentially having no significant economic impact.
Nevertheless, L.Enkh-Amgalan stressed that failing to raise the minimum wage could limit household consumption, lower living standards, push youth to work abroad, worsen professional labor shortages, and reduce worker satisfaction and productivity. It would also deepen social inequality and negatively impact quality of life.
He concluded by emphasizing the need to align with International Labor Organization (ILO) standards, which recommend setting the minimum wage at 40–66% of the average wage. He also called for reforms to disconnect the minimum wage from calculations for payments and contributions, and to develop a legal and policy framework that: Protects low-income workers, Rewards skills fairly, and Enhances the value of Mongolian labor.

Published Date:2025-05-12