State pension to increase from 2018 and wage from 2019
ULAANBAATAR (GoGo Mongolia/ANN) - Minister of Labour and Social Welfare to increase pension amount from 2018 from 2019.
Minister of Labour and Social Welfare N.Nomtoibayar held press session today regarding the issue of increase in state pension from 2018 and wage from 2019. He stated;
Since the establishment of the Government led by Prime Minister J.Erdenebat, The Executive Board of the International Monetary Fund approved a three-year extended arrangement under Extended Fund Facility (EFF) for Mongolia and the country begun to see positive economic indicators.
According to the Prime Minister's direction, pension set to be increased by an average of 150 thousand Tugrik from Jan 2018, following a principle to rise pensions of people who get a lower rate of pension more than those people who get high rates of pension.
Secondly, the state has not increased wage since 2013 and 2014. The purchasing power of both pensions and wages is low which negatively affecting the purchasing power of the market. As a result, production and service enterprises can not expand their scope. Thus, there is an urgent need to increase wages.
The one thing to consider before increasing wages is that we need to estimate the number of civil servants to serve 3.1 million citizens. Today, nearly 186 thousand civil servants are working nationwide. We must balance the number of civil servants and citizens.
150 thousand civil servants were working when the population of Mongolia was 2.9 million. The population of the country increased by 3 percent while the number of civil servants risen by 22 percent. Wages of civil servants accounts one-quarter of the annual state budget. We set a goal to make civil service smaller and more skilled. We are studying to transit to a system that is more beneficial for people who worked efficiently.
Wages will be increased from Jan 2019. Currently, we are unable to predict the economic indicators of 2018.