wage setting

Performance related pay system in health and education sectors of Mongolia

Tripartite constituents of Mongolia have been undertaking efforts to strengthen collective bargaining as a central mechanism for regulating labour relations. This exercise is a part of such efforts to improve wage setting by defining performance related pay (PRP) system in health and education sectors, and will be organized in series of workshops.

The newly established Government of Mongolia has announced its Action Plan for 2020-2024 with highlights “to increase wages, pensions and benefits step by step in line with inflation and labour productivity”, which has been translated into the workplan of Ministry of Labour and Social Protection to introduce performance-based wage system in health and education sector.



The Parliament of Mongolia is discussing the draft Labour Law, to which ILO has provided technical comments. The ILO Technical Memorandum (October 2020) suggests “linking any process of changes in remuneration to the corresponding bargaining process, as no unilateral changes in working conditions that may negatively affect workers should be permitted.”

This work provides technical support to the wage negotiations through “bipartite wage sub-committees” in the health and education sectors to introduce performance component in the wage system.