M ONGOLIA
F ELLOWSHIP T RAINING ON E MPLOYMENT
I NSURANCE (EI) AND E MPLOYMENT I NJURY
I NSURANCE (EII)
COUNTRY R E P ORT
(Mongolian Social Insurance General Office)
S EOUL , R EPUBLIC
O C T. 0 5 - 1 4 . 2 0 1 1
OF
K OREA
C ONTENTS

Brief statistics

Social insurance legislation

Organizational structure

Types of social insurance

Contribution rates, coverage and benefits

Coordination system among related institution

Policy responses toward the resent global economic
crisis since 2008

Challenges ahead regarding the development of EI or
EII
B RIEF S TATISTICS
National
GDP
8 255
bln.tug

Population: 2.8 million, scarcely populated

Economically active population – 1.147 million

Total number of employees –

1.033 million
34.7% of which work in the agricultural sector
(mainly herders)

Official unemployment rate – 9.9%

Inflation rate – 10.1%

Life expectancy at birth:
Men-64.33
Women-71.19**

Average salary: appr.
USD300
1995.01.01
SOCIAL INSURANCE
LEGISLATION
Social Insurance Package
Law was approved by the
Parliament of Mongolia on
May 31, 1994 and came
into effect on January 1,
1995
L EGISLATION
LIST

Law on Social Insurance

Law on Pensions & Benefits Provided by the
Fund of Social Insurance

Health Insurance Law

Law on Benefits Provided by the Fund of Social
Insurance Against Employment Injury &
Occupational Disease

Law on Unemployment Benefit Provided by the
Fund of Social Insurance

Law on Individual Pension Insurance Contribution
Accounts

Law on Social Insurance Fund Budget

Law on Pensions and Benefits for Servicemen
O RGANIZATIONAL STRUCTURE
Minister of Social
Welfare and Labor
Social Insurance General Office
Dispute Resolution
Council
Health Insurance
Sub Council
Ulaanbaatar city
Social Insurance Office
Medical
Labour
Accreditation
Commission
District SID
Social Insurance
National Council
Dispute
Resolution
Council
Aimag (Province)
Social Insurance Divisions
Medical
Labour
Accreditation
Commission
Soum
SI inspector
Dispute
Resolution
Council
DIRECTOR
GENERAL
Social
Insurance
General Office
Organizational
Chart
Public Administration
Department
Information and Public
Awareness Division
Department of Health Insurance
Inspection and Financing
Medical Labour
Accreditation Central
Commission
Policy Implementation and
Planning Department
Inspection and Evaluation
Department
Financial Bookkeeping
and Reserve Fund
Department
Foreign Relations Division
Information Technology
and Training Centre
Social Insurance
Representative Office in
the Republic of Korea
SOCIAL INSURANCE
5 TYPES OF
T YPES OF S OCIAL INSURANCE
Pensions insurance
Benefits insurance
Health insurance
Insurance against employment
injury and occupational diseases
Unemployment insurance
C ONTRIBUTION
Types of Insurance
Contribution Rates for Compulsory
Insurance (percentage)
RATES
Contribution
Rates for
Voluntary
Insurance
(percentage)
Employer
Employee
Pension
7.0
7.0
10.0
Benefit
0.5
0.5
1.0
Employment Injury and
Occupational Diseases
Unemployment
1.0, 2.0, 3.0
1.0
Health
0.5
2.0
0.5
2.0
Total
11.0,12.0,13.0
10.0
12.0
S TATISTICS ( CONT.)
Social Insurance Coverage compared to total population
(percent)
95.0%
90.0%
89.1%
85.0%
81.7%
80.0%
86.3%
85.6%
85.1%
77.6%
79.5%
74.5%
75.0%
70.0%
65.0%
1995
2000
2005
2006
2007
2008
2009
2010
S TATISTICS ( CONT.)
Social Insurance Fund Revenue and Expenditure (mln.
tugriks)
500000
400000
300000
200000
100000
0
1995
2000
2005
Social Insurance Fund Revenue
2006
2007
2008
2009
Social Insurance Fund Expenditure
S TATISTICS ( CONT.)
Number of beneficiaries from the Pension
Insurance Fund (thous.persons)
350
300
250
200
150
100
50
0
1995
2000
2005
2006
2007
2008
2009
Number of beneficiaries from the Pension Fund
Number of Old-age pensioners
2010
U NEMPLOYMENT INSURANCE

Purpose
Benefit during loss of employment, bankruptcy
of the business, and vocational training and
retraining opportunities
Current unemployment insurance is at least 3
points lower than the international standard:
1.
Tight eligibility requirements
2.
Low amount of benefit
3.
Benefit duration is 76 days
C OORDINATION SYSTEM AMONG
SIGO and LWSO are both
agency of Ministry of Social
Welfare, Labour
RELATED INSTITUTION

Social
insurance
general office

Labour,
Welfare
service office
- Collect UI contribution
- UI benefit service
- Finance benefit and
other service cost to
LWSO
- Job matching service
- Vocational training
INSURANCE AGAINST
EMPLOYMENT INJURY AND
OCCUPATIONAL DISEASES

Insurance against employment injury and
occupational diseases (IAEIOD)
-
Employer is responsible for contribution
payment
-
Services provided by the IAEIOD fund
include providing pensions and benefits,
taking prevention measures, making
prosthesis, rehabilitation care, resort for
people with occupational diseases and
acute toxicity
E MPLOYMENT
INJURY

Injuries acquired during the following
circumstances are considered as
employment injury:

1/ while discharging employment duties at
work place or other places;

2/ before the commencement of the
general working hours or after the general
finishing time in the course of arranging the
work place and equipment;

3/ travel to or from an insured person's
place of work
B ENEFITS PROVIDED BY THE FUND
FOR I NSURANCE AGAINST
EMPLOYMENT INJURY AND
OCCUPATIONAL DISEASES ( IAEIOD )

The following benefits are provided by the fund for
IAEIOD:

Disability pension

Survivor’s pension

Benefit for temporary loss of working capacity

Rehabilitation cost

Pension insurance contributions for people who
became disabled as a result of employment injury or
occupational diseases

Variable cost which incurred for the health care of
the insured at the resort.
B ENEFITS PROVIDED BY THE F UND FOR
I NSURANCE AGAINST EMPLOYMENT INJURY
AND OCCUPATIONAL DISEASES ( IAEIOD )

Contribution rate for the IAEIOD is set
differently for employers depending on the type
of activity.

The amount of contribution rates are set by the
Government decree.

State Social Insurance General Office (SSIGO)
considers the propositions by the local Social
insurance divisions and then elaborates the
revenue and expenditure budget for the fund
which then is reviewed by the Social Insurance
Nation Council and approved according to the
Law on state budget.
N UMBER OF OCCUPATIONAL
DISEASES AND EMPLOYMENT
INJURIES \ BY INDUSTRY \
No.
Industry
Number of
Percent
people
1
Education, health
124
1.9
2
Culture and science
40
0.6
3
Heavy industry, geology, mining
4558
71.3
4
Light and food industry
372
5.8
5
Construction,
837
13.1
road
transportation, communication
6
Agriculture
105
1.6
7
Trade, service
30
0.6
8
Other
325
5.1
Total
6391
100
P OLICY RESPONSES TOWARD THE RESENT
GLOBAL ECONOMIC CRISIS SINCE 2008
Mongolian government conducted the following short term measures
(till 1 January 2011) in order not to reduce the income of unemployed people.

The term of the right to get unemployment benefits was changed
from the last 9 months till 6 months when contribution was paid
non stop.

The beneficiary who got unemployment benefits before had the
new right of unemployment benefits when he paid during 6 months.
This term was deducted till 3 months.

Unemployment insurance was accounted by 126 days not by 76
days.

But the above mentioned concession was carried out during the
short term and cancelled on 1 January 2011.
C HALLENGES AHEAD REGARDING THE
DEVELOPMENT OF EI OR EII
The goal of Mongolian government is to undergo pension
reform and it is preparing for moving to 3 pillars pension
scheme.
Within the frame of this reform the packet laws of social
insurance are being reformed and the following changes will be
made herein.
1. For unemployment insurance :
-Unemployment benefits will be granted by the Social
insurance organizations not by the General Office of Labour and
Benefits Service.


- not to increase unemployment insurance contribution.

- to raise the calculating rate of unemployment benefits.
C HALLENGES AHEAD REGARDING THE
DEVELOPMENT OF EI OR EII ( CONT )
2. Within the frame of Employment injury
insurance:

- to establish disability pension newly.

- to increase contribution paid from
employers.

- to increase the calculating rates of
pension and benefits.

- to reduce the number of documentation.
THANK YOU
FOR YOUR
ATTENTION