DECODE MONGOLIA
INSTITUTIONS
Employment Promotion Fund
Government special fund

Mongolia's fund for employment support, established under the 2001 Law on Employment Promotion, which finances skills training, career guidance and support for youth and small enterprises (International Labour Organization, Youth Employment Promotion Project in Mongolia, project period 1 July 2024 to 31 December 2026). Under the earlier Law on Employment Promotion described in Mongolia's report to the UN Committee on Economic, Social and Cultural Rights, public employment agencies provided employment promotion services free of charge, in forms including professional orientation and information, job mediation, small loans, training and retraining, public works and support for employers, with financing allocated from the Fund on Employment Promotion, described as one of the special public funds (UN Committee on Economic, Social and Cultural Rights, Mongolia fourth report).

The fund's stated purpose is to finance activities that support employment (Government of Mongolia, National report to the UN Human Rights Council Universal Periodic Review, 19 August 2025, footnote 49).

MONEY
Financing sources - DOCUMENTED
The Employment Promotion Fund is financed by allocations from the state and local budgets (0.3 percent), fees paid by employers who hire foreign nationals under contract, and loans, donations and assistance from foreign countries and international organisations. It also receives payments from businesses and organisations that do not employ persons with disability, bank interest, repayments of loans and financial support, and other related funds (Government of Mongolia, National report to the UN Human Rights Council Universal Periodic Review, 19 August 2025, footnote 49).
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Workplace fee for foreign workers - REPORTED
Employers hiring foreign workers are required by law to pay a monthly workplace fee equivalent to twice the minimum wage, allocated to the Employment Promotion Fund to support domestic employment, and the fund accumulated MNT 124.9 billion in 2024 and MNT 189.8 billion in 2025 (Montsame reporting, via Mongolian Business Database, published 5 May 2026, reporting Immigration Agency figures as of 30 April 2026).
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Microloan ceiling raised in 2021 - DOCUMENTED
A new regulation for implementation and disbursement of microloans under the Employment Promotion Fund, provided by Government Resolution No. 340 approved in November 2021, increased the ceiling for microloans to microenterprises and microentrepreneurs engaged in production of goods and services to up to MNT 50 million; the World Bank's Emergency Relief and Employment Support Project limited its own financed ceiling to up to MNT 25 million per borrower, increased from MNT 10 million per borrower in the past (World Bank, Mongolia Emergency Relief and Employment Support Project P174116, results framework document).
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RECORD
What the fund finances - DOCUMENTED
Key initiatives include the Employment Promotion Fund, established under the 2001 Law on Employment Promotion, which finances skills training, career guidance, and support for youth and small enterprises (International Labour Organization, Youth Employment Promotion Project in Mongolia).
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Services under the employment promotion law - DOCUMENTED
In 2001 the State Great Khural passed a Law on Employment Promotion according to which public employment agencies shall provide persons seeking employment with services on employment promotion free of charge, in the form of providing professional orientation and information, mediating jobs, providing small loans, providing training and retraining, organising works involving general public, and supporting employers, with financing allocated from the Fund on Employment Promotion, which is one of special public funds (Mongolia fourth report to the UN Committee on Economic, Social and Cultural Rights).
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Special funds transparency risk - DOCUMENTED
The OECD's Anti-corruption reforms in Mongolia report describes state special funds as a hotspot carrying massive corruption risks, established by line ministries and state agencies, some managing big amounts providing subsidies and loans to citizens and companies, with transparency and accountability raising serious concerns, especially in view of information uncovered in the SME case; it states that 29 such funds operated, and that the Independent Authority Against Corruption had provided the Cabinet 150 recommendations on their transparency and accountability with no action seeming to have followed (OECD, Anti-corruption reforms in Mongolia, 2019). That finding is about special funds as a class; Decode Mongolia has not verified a specific misuse claim against the Employment Promotion Fund itself.
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A filled seal is documented. An open seal is an allegation, source named.
How to read this page. Every line names its source. A line marked ALLEGATION is a claim already published by the named source and already in the public record. Decode Mongolia republishes it as reported, with the source named, and has not verified it. An allegation is not a finding, and nothing on this page is proof of wrongdoing.
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