6-month exemption approved for self-employers’ social insurance contributionsEconomy
Ulaanbaatar /MONTSAME/. On March 27, Friday, the government of Mongolian passed a set of measures to ease economic impact by the coronavirus pandemic. The measures contain an exemption of employers’ social insurance contributions by private enterprises and companies and of personal income tax for six months, effective from April 1.
The same day, the government issued an additional decision to grant an exemption of social insurance contributions by self-employed individuals, for six months until October 01, announced Ts.Ganzorig, Press Secretary of the Cabinet Secretariat.
The measure requires MNT 60 billion in addition to the initial MNT 5.1 trillion budget proposed for the stimulus economic plan, addressing the economic impact of the coronavirus.
On this decision, Minister of Labor and Social Protection S.Chinzorig earlier informed that there are estimated 180,000 people who voluntarily pay social insurance contributions.
The government’s measure on the six-month exemption of social insurance contributions for the private entities cover more than 38,000 employers, which total around MNT 800 billion in financing, according to Minister Chinzorig. This step is aimed at helping the employers retain their staff during financially challenging times and protecting the employees.
The Minister further informed that the government’s Social Insurance Funds’ balances currently equal to MNT 1.1 billion and pension fund balance is totaling MNT 300 billion.