1. M ONGOLIA F ELLOWSHIP T RAINING ON E MPLOYMENT I NSURANCE (EI) AND E MPLOYMENT I NJURY I NSURANCE (EII) COUNTRY REPORT ( Mongolian Social Insurance General Office) S EOUL, R EPUBLIC OF K OREA O CT.05-14.2011

2. 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

3. B RIEF S TATISTICS  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 National GDP 8 255 bln.tug

4. 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 1995.01.01

5. 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

6. O RGANIZATIONAL STRUCTURE Social Insurance General Office Ulaanbaatar city Social Insurance Office Aimag (Province) Social Insurance Divisions Medical Labour Accreditation Commission Medical Labour Accreditation Commission District SID Dispute Resolution Council Soum SI inspector Dispute Resolution Council Social Insurance National Council Health Insurance Sub Council Minister of Social Welfare and Labor Dispute Resolution Council

7. Social Insurance Representative Office in the Republic of Korea Information and Public Awareness Division Department of Health Insurance Inspection and Financing Inspection and Evaluation Department Financial Bookkeeping and Reserve Fund Department Foreign Relations Division Public Administration Department Policy Implementation and Planning Department Information Technology and Training Centre DIRECTOR GENERAL Social Insurance General Office Organizational Chart Medical Labour Accreditation Central Commission

8. T YPES OF S OCIAL INSURANCE Pensions insuranceBenefits insuranceHealth insurance Insurance against employment injury and occupational diseases Unemployment insurance 5 T YPES OF S OCIAL INSURANCE

9. C ONTRIBUTION RATES Types of Insurance Contribution Rates for Compulsory Insurance (percentage) Contribution Rates for Voluntary Insurance (percentage) EmployerEmployee Pension 7.0 10.0 Benefit 0.5 1.01.0 Employment Injury and Occupational Diseases 1.0, 2.0, 3.01.01.0 Unemployment 0.5 Health 2.0 Total 11.0,12.0,13.010.012.0

10. S TATISTICS ( CONT.)

13. 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

14. C OORDINATION SYSTEM AMONG RELATED INSTITUTION  Social insurance general office - Collect UI contribution - Finance benefit and other service cost to LWSO  Labour, Welfare service office - UI benefit service - Job matching service - Vocational training SIGO and LWSO are both agency of Ministry of Social Welfare, Labour

15. 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

16. 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

17. 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.

18. 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.

19. N UMBER OF OCCUPATIONAL DISEASES AND EMPLOYMENT INJURIES \ BY INDUSTRY \ No.Industry Number of people Percent 1 Education, health1241.9 2 Culture and science400.6 3 Heavy industry, geology, mining455871.371.3 4 Light and food industry3725.8 5 Construction, road transportation, communication 83713.1 6 Agriculture1051.6 7 Trade, service300.6 8 Other3255.1 Total 6391100

20. 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.

21. 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.

22. 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.

23. THANK YOU FOR YOUR ATTENTION