Earlier today (9 December), President Kh.Battulga vetoed some parts of the Law on the 2020 State Budget and related legislation. So far, the parliamentary group of the ruling Mongolian People’s Party has agreed to accept one of the four presidential vetoes, namely, the planned 2 percent increase in social insurance. This was due to come into force in January 2020.
In 2017, the Mongolian Parliament passed several amendments to the Law on Personal Income Tax, the Law on Social insurance and relevant accompanying laws due to demands from the International Monetary Fund (IMF).
Pursuant to amendments to Law on Social Insurance, the rate for the pension insurance fee have been gradually increasing over the past three years. The rate will be increased by two percent to 26 percent in January 2020.