Mongolia Prime Minister Uchral Unveils His “Fair” Pension Reforms

Mongolia’s pension system has been living beyond its means for years. Contributions no longer cover payouts. The resulting shortfall is routinely plugged by the state budget, turning what should be an insurance scheme into a growing fiscal obligation.

Prime Minister Nyam-Osoryn Uchral submitted a “Fair Pension System” reform bill to parliament that seeks to put contributions, rather than political compromises, at the centre of the system.

The destination is sensible. The route is less certain. In late 2024 the Social Insurance Fund was already 4.7 trillion tugrik ($1.3 billion) in the red, with taxpayers covering the gap.

At the heart of the reform lies a new formula. Pension payouts would rise from 67.5% to 72.5% of a worker’s career salary benchmark, calculated against a salary ceiling of 2.6m tugrik ($731) and a standard 35-year employment record.

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