Social protection assessment based national dialogue...нийгмийн хамгааллын...

HEALTH EDUCATION WATER SOCIAL TRANSFERSCHILDREN FAMILY PARTICIPATESANITATION

FOODOLD-AGECOUNTRY OWNERSHIP HOUSINGACTIVE-AGE

INFORMING

CO-OPERATING PROTECTION SECURITY

Social protection assessm

ent based national dialogue: Definition and cost of a social protection floor in M

ongolia

Social protec on assessment based na onal dialogue:Defi ni on and cost of a social protec on

fl oor in Mongolia

Social protec on assessment based na onal dialogue: Defi ni on and cost of

a social protec on fl oor in Mongolia

ILO/JapanMulti-bilateralProgramme

Copyright © United Na ons, Interna onal Labour Organiza on and the Government of Mongolia 2015

First published 2015

This report may be reproduced and circulated for non-profi t purposes with the appropriate acknowledgement.

Social protec on assessment based na onal dialogue: Defi ni on and cost of a social protec on fl oor in Mongolia /United Na ons; ILO Regional Offi ce for Asia and the Pacifi c; Government of Mongolia. Ulaanbaatar: UN/ILO/Government of Mongolia, 2015

ISBN: 9789221298359; 9789221298366 (web pdf)

United Na ons; ILO Regional Offi ce for Asia and the Pacifi c; Government of Mongolia

social protec on / social security / social security policy / social security fi nancing / rapid assessment / Mongolia

02.03.1

Also available in Mongolian: Нийгмийн хамгааллын үнэлгээнд суурилсан үндэсний хэлэлцүүлэг: Монгол Улсын нийгмийн хамгааллын суурь түвшний тодорхойлолт, зардал (ISBN 9789228298352; 9789228298369 (web pdf)), Ulaanbaatar, 2015.

ILO Cataloguing in Publica on Data

The designa ons employed in United Na ons, Interna onal Labour Organiza on and the Government of Mongolia publica ons, which are in conformity with United Na ons prac ce, and the presenta on of material therein do not imply the expression of any opinion whatsoever on the part of the United Na ons, Interna onal Labour Organiza on and the Government of Mongolia concerning the legal status of any country, area or territory or of its authori es, or concerning the delimita on of its fron ers.

The responsibility for opinions expressed in signed ar cles, studies and other contribu ons rests solely with their authors, and publication does not constitute an endorsement by the United Nations, International Labour Organiza on and the Government of Mongolia of the opinions expressed in them.

Reference to names of fi rms and commercial products and processes does not imply their endorsement by the United Na ons, Interna onal Labour Organiza on and the Government of Mongolia, and any failure to men on a par cular fi rm, commercial product or process is not a sign of disapproval.

ILO publica ons and digital products can be obtained through major booksellers and digital distribu on pla orms, or ordered directly from ilo@turpin-distribu on.com. For more informa on, visit our website: www.ilo.org/publns or contact [email protected]; www.un.org/publica ons or contact [email protected].

Cover photos and photos on pages 2, 29, 40, 61 © ILO/N. Munkhbaatar 2014

All other photos © ILO/B. Byamba-Ochir 2012

Printed in Mongolia

Descrip on of exis ng social security and social protec on schemes for each of the four social protec on fl oor guarantees, iden fi ca on of policy gaps and implementa on issues, recommenda ons, rapid cos ng exercise to es mate the cost of comple ng the social protec on fl oor

Celine Peyron Bista (ILO), Lkhagvademberel Amgalan (ILO), Baigalmaa Sanjjav, and Batsukh Tumurtulga produced the report on behalf of the United Na ons and Government of Mongolia joint Social Protec on Working Group.

In addi on to the four authors, Cheng Ong Boon provided support to the es ma on of the cost of the social protec on fl oor in Mongolia.



vi

ForewordDriven mainly by the mining sector, the Mongolian economy has grown rapidly in recent years, at an average of more than 9 per cent per year for the last decade. The benefi ts of economic growth have been uneven, and while poverty has declined somewhat, almost 30 per cent of the popula on s ll lives below the na onal poverty line. Enhancing social protec on is therefore vital to ensure that rapid economic growth is inclusive and improves the lives of all people, especially the poor and the vulnerable.

The Government of Mongolia, par cularly the Ministry of Popula on Development and Social Protec on, and the Ministry of Labour, has recognized the importance of implemen ng a na onal social protec on fl oor as a way of reducing poverty and ensuring inclusive growth in the country.

In September 2013 the Ministry of Popula on Development and Social Protec on launched the assessment based na onal dialogue (ABND) on social protec on and employment support in Mongolia.

The ABND was completed in September 2014, with the support of the United Na ons (UN) Country Team. It aims to set common priori es that can defi ne and help es mate the cost of a social protec on fl oor in Mongolia. It also creates a basis for the holis c development of social protec on, and will provide a way of measuring progress towards extending social protec on to all. The ABND off ers an analy cal and monitoring framework to measure progress made towards implemen ng a social protec on strategy and reducing poverty.

The UN recognizes that improving social protec on is an eff ec ve way for a country to reduce na onal poverty and promote social and economic development and put economic growth prospects on a more sustainable foo ng. Recently, and par cularly since the 2008–09 global fi nancial crisis, social protec on has a racted renewed global a en on as a way of mi ga ng the nega ve impact of economic shocks and providing a catalyst for economic and social development.

In April 2009 the UN Chief Execu ve Board adopted the Social Protec on Floor Ini a ve as one of its responses to the global fi nancial crisis. This decision refl ected a global commitment to extending a minimum level of social protec on and access to social services to all. Since then this idea has received global endorsement, notably at G20 mee ngs in France in 2011 and in Mexico in 2012, and by the Interna onal Labour Conference which adopted the Social Protec on Floors Recommenda on, 2012 (No. 202). Establishing a social protec on fl oor will also be one target of the Sustainable Development Goals, rela ng to the post 2015 development agenda.

A social protec on fl oor aims to provide a universal minimum level of social benefi ts and services, guaranteeing – at least – access to essen al health-care services; educa on, care and nutri on for children; and income security for those of working age, older people and people with disabili es. The social protec on fl oor framework also provides an opportunity for all UN agencies, development partners and interna onal fi nancial ins tu ons to work together to extend social protec on and improve the delivery of social benefi ts and services.

Many countries in the Asia Pacifi c region, including Afghanistan, Cambodia, India, Indonesia, Myanmar, Nepal, Pakistan, Philippines, Solomon Islands, Thailand, Vanuatu and Viet Nam, have adopted the social protec on fl oor concept when designing their na onal social protec on policies and strategies, and used the ABND tool to set priori es for their implementa on.

vii

We hope that the results of the ABND exercise, in par cular the policy recommenda ons presented in this report, will provide useful guidance towards the development of a plan to complete the social protec on fl oor in Mongolia, and that some of these recommenda ons will be translated into ac on. We are confi dent that the par cipatory approach adopted throughout the exercise has contributed to raising awareness among line ministries, representa ves of workers and employers, civil society organiza ons, and UN agencies about the social protec on fl oor concept, its relevance for Mongolia, and the importance of a coordinated approach to social protec on development.

Tim De Meyer

Director of the ILO Country Offi ce for China and Mongolia

Sezin Sinanoglu

UN Resident Coordinator UNDP Resident Representa ve for Mongolia

viii

Table of contents

Foreword ................................................................................................................................................. vi

Table of contents ................................................................................................................................... viii

List of fi gures ........................................................................................................................................... ix

List of tables ............................................................................................................................................. x

Acknowledgement by the Ministry of Popula on Development and Social Protec on ........................ xiii

Acknowledgement by the Ministry of Labour ....................................................................................... xiv

Acknowledgement by the authors ......................................................................................................... xv

Execu ve summary ............................................................................................................................... xvi

Abbrevia ons .......................................................................................................................................xxiii

1. Introduc on ...........................................................................................................................................1

2. Context and process ..............................................................................................................................3

3. Assessment based na onal dialogue: Objec ves, methodology and process .....................................5

3.1. Objec ves ..........................................................................................................................................5

3.2. Generic methodology and process ....................................................................................................6

3.3. Overview of the na onal social protec on context ........................................................................10

4. Step 1. Development of the assessment matrix and the results of the ABND on social protec on and employment promo on in Mongolia .............................................................................15

4.1. Health care ......................................................................................................................................16

4.2. Children ...........................................................................................................................................25

4.3. Working age popula on ..................................................................................................................35

4.4. Older persons ..................................................................................................................................53

5. Step 2: Cos ng methodology, descrip on of the policy op ons (‘scenarios’) to complete the social protec on fl oor and cost projec ons .....................................................................................61

5.1. Health care ......................................................................................................................................66

5.2. Children ...........................................................................................................................................70

5.3. Working age .....................................................................................................................................75

5.4. Older persons ..................................................................................................................................84

6. A Na onally Defi ned Social Protec on Floor for Mongolia ................................................................87

6.1. Consolidated package to close gaps in the social protec on fl oor in Mongolia ..............................87

6.2. Cost comparison of diff erent op ons for social protec on fl oor in Mongolia ................................89

6.3. Defi ni on and cost of a social protec on fl oor for Mongolia ..........................................................91

ix

6.4. Fiscal space for fi nancing the na onally defi ned social protec on fl oor of Mongolia ....................93

6.5. The need for coordina on and effi cient delivery of services ..........................................................97

Annexes ..................................................................................................................................................98

Bibliography ..........................................................................................................................................121

List of fi gures

Figure 1. Results of the addi onal cost es mate for comple ng a social protec on fl oor

in Mongolia, per guarantee ................................................................................................................... xix

Figure 2. Projected cost of a social protec on fl oor compared to the projected cost of social

expenditures as percentage of GDP (2014-20) ....................................................................................... xx

Figure 3. RAP model structure ..................................................................................................................6

Figure 4. The ABND process in Mongolia ...............................................................................................10

Figure 5. Overall structure of the social protec on system in Mongolia ................................................11

Figure 6. The social insurance schemes of Mongolia .............................................................................12

Figure 7. Structure of the assessment matrix .........................................................................................15

Figure 8. Mul ple dimensions of health coverage in Mongolia compared to other countries

(2011) ......................................................................................................................................................23

Figure 9. Exis ng social protec on programmes for children in Mongolia ............................................26

Figure 10. Exis ng social protec on and employment promo on programmes for people of working age in Mongolia ........................................................................................................................35

Figure 11. Overall popula on and revised popula on over age 15 in 2012,

(a) male and (b) female ...........................................................................................................................62

Figure 12. Addi onal cost to complete the social protec on fl oor for the

combined low and high scenarios, per programme, as a percentage of GDP (2014–20)........................89

Figure 13. Results of the addi onal cost es mates for the combined low and high scenarios per guarantee .........................................................................................................................................90

Figure 14. Projec ons of social expenditures as a percentage of GDP, comparing the cost of the

status quo, low and high scenarios for a social protec on fl oor ............................................................90

Figure 15. Projec ons of social expenditures as a percentage of GDP, comparing the status quo and comple on of a social protec on fl oor (2014-20) ...........................................................................92

Figure 16. Consolidated budget, share of social expenditures and growth rate of revenues and expenditures compared to previous year (billion MNT) ..................................................................93

Figure 17. Total social protec on expenditures in Mongolia by source (billion MNT) ...........................94

Figure 18. Projec ons of social expenditures as percentages of GDP and State revenues ....................95

Figure 19. Social protec on expenditures and cost of a social protec on fl oor as percentages of revenues and grants, actual and projected ...................................................................95

Figure 20. Fiscal defi cit as a percentage of GDP at current prices, comparison between status quo in terms of social expenditures and the establishment of a social protec on fl oor .......................96

Figure 21. Cost of a social protec on fl oor compared to State revenues and expenditures (2005-20) 96

x

List of tables

Table 1. Defi ni on of social protec on fl oor for Mongolia ...................................................................xviii

Table 2. Scope of the ABND ......................................................................................................................7

Table 3. Number of insured under the social insurance scheme (in thousands) .....................................12

Table 4. Insured under the social insurance scheme as a percentage of the economically ac ve popula on .....................................................................................................................................13

Table 5. Objec ves and strategies for developing health insurance in Mongolia (2013–22) ..................18

Table 6. Number of insured under the SHI scheme (in thousands) .........................................................21

Table 7. Recommenda ons for expanding access to health care adopted by the ABND ........................24

Table 8. Programmes aimed at suppor ng educa on of vulnerable children .........................................29

Table 9. Summary of social protec on programmes for children ...........................................................32

Table 10. Recommenda ons for improving the quality of social protec on for all children

adopted by the ABND ..............................................................................................................................34

Table 11. Comparison between the provisions of laws adopted in 1994 and 1999 for disability and survivor pension ...............................................................................................................................40

Table 12. Other social welfare cash supports (2013) ...............................................................................41

Table 13. Summary of social protec on programmes for the working age group ..................................48

Table 14. Recommenda ons adopted by the ABND for ensuring income security of the working age group.................................................................................................................................................52

Table 15. Two parallel pension schemes of Mongolia .............................................................................56

Table 16. Other social welfare cash supports ..........................................................................................58

Table 17. Summary of social protec on programmes for older persons ................................................59

Table 18. Recommenda ons adopted by the ABND for securing social

protec on to older persons .....................................................................................................................60

Table 19. Life expectancy in Mongolia 2007-13 ......................................................................................62

Table 20. Sources of household income per month, na onal and sub-na onal averages

(Q4 2012, in MNT) ...................................................................................................................................64

Table 21. Health care scenarios ...............................................................................................................66

Table 22. Results of cos ng SHI scenarios ...............................................................................................68

Table 23. Children scenarios ....................................................................................................................70

Table 24. Results of cos ng child income security and nutri on ............................................................73

Table 25.Working age scenarios related to social insurance ...................................................................75

Table 26. Working age scenarios related to ac ve labour market policies ..............................................76

Table 27. Results of cos ng: Increasing social insurance coverage and promo ng

employment of the working age group ...................................................................................................80

Table 28. Older persons scenarios ...........................................................................................................84

Table 29. Results of cos ng: Increasing old age pension coverage among herders

and self-employed workers .....................................................................................................................86

xi

Table 30. Proposed combined low and high es mates ...........................................................................87

Table 31. Regional average (weighted by total popula on) of public social protec on

expenditure by guarantee, latest available year (percentage of GDP) ....................................................91

Table 32. Defi ni on of a social protec on fl oor for Mongolia .................................................................91

xiii

Acknowledgement by the Ministry of Popula on Development and Social Protec on

The Project on social protec on and employment promo on in Mongolia is an extension of technical assistance the Interna onal Labour Organiza on (ILO) provided to ASEAN Member States with fi nancial support from the Government of Japan.

Through the assessment based na onal dialogue, organized with the support of the United Na ons and in par cular the ILO project on social protec on and employment promo on in Mongolia, the current social security systems of Mongolia were assessed to determine whether they ensured the four basic guarantees of a social protec on fl oor in accordance with the ILO Social Protec on Floors Recommenda on, 2012 (No. 202).

At a cri cal moment in Mongolia’s history as the popula on of the country reached 3 million, it is a great achievement to successfully conduct the assessment of a na onally defi ned social protec on fl oor and reach a consensus among all par es in order to ensure that 1) all residents have access to a na onally defi ned set of aff ordable essen al health care services; 2) all children enjoy income security through transfers in kind or in cash ensuring access to nutri on, educa on and care; 3) all those in ac ve age groups who cannot earn a suffi cient income enjoy a minimum income security through social transfers in cash or in kind or employment guaranteed schemes ; and 4) all residents in old age have income security at least at the level of the na onally defi ned poverty line through pensions for old age or transfers in kind.

The results of this project include projec ons of the cost of ensuring medium and long term social protec on to the popula on and reducing poverty and unemployment. It is expected that the projec ons will make a signifi cant contribu on to the development of evidence-based social protec on policies in the future.

I would like to thank the members of the United Na ons and Government joint Social Protec on Working Group, and par cularly the ILO project steering commi ee which consisted of representa ves of the Ministry of Popula on Development and Social Protec on, the Ministry of Labour, the Mongolian Employers’ Federa on, the Confedera on of Mongolian Trade Unions and other stakeholders for their coopera on in this eff ort to summarize the current situa on of social security and defi ne the social protec on fl oor in Mongolia.

Sincerely,

H.E. Sodnomzundui Erdene Member of Parliament, Minister for Popula on Development and Social Protec on

xiv

Acknowledgement by the Ministry of Labour

Since September 2013 the Government of Mongolia has been organizing the assessment based na onal dialogue on social protec on and employment promo on with the assistance of the United Na ons. I would like to thank the United Na ons and Government joint Social Protec on Working Group for their coopera on in the na onal consulta ons and for providing valuable recommenda ons to expand social protec on and social protec on fl oor in Mongolia.

The Government, notably the Ministry of Labour, is working to involve the working age popula on and vulnerable ci zens in the employment promo on programmes and provide employment services for them. The Ministry of Labour is also working to provide the elderly and the disabled with social pensions and benefi ts, thus increasing the level of income, ensuring social protec on fl oor and improving the level of guaranteed income.

Over the past ten years successive policy reforms to increase decent employment and promote employment opportuni es for target popula ons have been implemented in the labour sector and clear posi ve outcomes are emerging. Some notable examples include programmes and measures to support the self-employed to start coopera ves; promote employment opportuni es for herders, people with disabili es and young people; and provide income support for senior consultants.

Furthermore, a greater degree of a en on is needed for measures to implement the social protec on fl oor recommenda ons, which were defi ned through the assessment based na onal dialogue in Mongolia. Of par cular importance are employment promo on measures for young herders, the provision of voca onal educa on for young people and workplaces that off er permanent income sources, and measures to increase social insurance coverage.

I do believe that enthusias c coopera on will bring be er results as we establish eff ec ve and systema c linkages between social protec on measures and ac ve labour market policies and programmes.

Respec ully,

H.E. Sodnom Chinzorig

Minister for Labour

xv

Acknowledgement by the authors

The authors used the ILO Assessment Based Na onal Dialogue (ABND) Good Prac ces Guide (2013) as a reference for the ABND exercise in Mongolia.

The authors gratefully acknowledge support received from all par cipants during the exercise, in par cular the Ministry of Popula on Development and Social Protec on (MPDSP), Ministry of Labour (MOL), and Social Insurance General Offi ce (SIGO), Ministry of Health and Sports (MOHS), Ministry of Educa on, Culture and Science (MOECS), Ministry of Finance (MOF), Ministry of Food and Agriculture (MOFA), Labour Research Ins tute (LRI), the Na onal Sta s cal Offi ce (NSO), Mongolian Employers’ Federa on (MONEF), Confedera on of Mongolian Trade Unions (CMTU), civil society organiza ons and representa ves of and colleagues from United Na ons (UN) agencies involved in the social protec on fl oor ini a ve.

The authors would like to thank the MPDSP and par cularly its Department of Social Protec on Policy Implementa on and Coordina on and Employment Policy Implementa on and Coordina on Department of the MOL for their leadership in conduc ng the ABND and providing valuable comments on this report.

The authors also wish to express their apprecia on to Ms B. Otgonjargal, State Secretary of MPDSP, Ms Sezin Sinanoglu, UN Resident Coordinator and United Na ons Development Programme (UNDP) Resident Representa ve of Mongolia, and Mr Tim de Meyer, ILO Country Director, for providing constant support throughout the process.

Moreover, the authors would like to thank the following individuals for their technical inputs, policy orienta ons, supports and feedbacks:

• Ms L. Munkhzul, Director of Social Protec on Policy Implementa on and Coordina on Department, MPDSP;

• Mr G. Adiya, Secretary General of CMTU;

• Mr Kh. Ganbaatar, CEO and Vice-President of MONEF;

• Mr D. Narmandakh, Advisor to the President of MONEF;

• Ms Ch. Erdenechimeg, Senior Offi cer of Employment Policy and Coordina on Department, MOL; and

• Mr Ts. Urtnasan, Director-General of SIGO.

The authors would like to thank all the members of the UN/G Social Protec on Working Group in Mongolia for their ac ve par cipa on in, co-facilita on of and technical inputs into this exercise:

• Mr Saurabh Sinha, UNDP;

• Dr Soe Nyunt-U and Ms Tsogzolmaa Buyandorj, World Health Organiza on (WHO);

• Ms Enkhnasan Nasan-Ulzii and Ms Victoria Colamarco, United Na ons Children’s Fund (UNICEF); and

• Ms Bolormaa Purevsuren, ILO.

Finally the authors are exceedingly thankful to the Ministry of Health, Labour and Welfare of Japan for fi nancing the ABND through the ILO/Japan Mul -bilateral Programme and in par cular the ILO Technical coopera on project “Extending social security and promo ng employment in Mongolia, learning from ASEAN experiences” (2014–15).

xvi

Execu ve summaryHas Mongolia achieved a social protec on fl oor?

Extending social security and establishing a minimum social protec on fl oor has become a priority in Mongolia.

The social protec on fl oor is a basic set of rights and transfers that enables and empowers all members of a society to access a minimum of goods and services at all mes. It promotes income security through a basic set of guarantees: (i) all residents have access to a na onally defi ned set of aff ordable essen al health-care services; (ii) all children enjoy income security through transfers in kind or in cash ensuring access to nutri on, educa on and care; (iii) all those in ac ve age groups who cannot (or should not, in case of pregnancy) earn a suffi cient income enjoy a minimum income security through social transfers in cash or in kind, or employment guaranteed schemes ; and (iv) all residents in old age have income security at least at a na onally defi ned minimum level through old-age pensions or transfers in kind.

The ini a ve to establish a social protec on fl oor invites all United Na ons (UN) agencies together with the Interna onal Financial Ins tu ons and non-government organiza ons (NGOs) to jointly support government, social partners and other stakeholders in their eff orts to extend social protec on in a coordinated manner. The assessment based na onal dialogue (ABND) on social protec on and employment promo on off ers a framework to engage all stakeholders on social protec on, iden fy policy gaps and implementa on issues, and reach a consensus on recommenda ons for extending social protec on provisions in order to guarantee the social protec on fl oor as a minimum to all residents.

The cost of the proposed provisions to complete a social protec on fl oor was es mated and projected over a fi ve-year period using the ILO Rapid Assessment Protocol (RAP). This cos ng exercise can serve as a basis for discussions on fi scal space and government budget realloca ons, and in turn help priori ze diff erent social protec on policy op ons.

From July 2013 to December 2014, the Government, notably the Ministry of Popula on Development and Social Protec on (MPDSP) and UN Country Team for Mongolia facilitated the ABND on social protec on and employment promo on.

The na onal dialogue par cipants concluded that Mongolia is not yet equipped with a complete social protec on fl oor, i.e. a set of policies and measures that guarantee income security and access to essen al social services by everyone in the country. In order to achieve a na onally defi ned social protec on fl oor, par cipants in the na onal dialogue emphasized the importance of maintaining the principle of universality already applied to certain guarantees (access to health, maternity benefi ts and children protec on among others) and pursue eff orts to extend universal coverage of other benefi ts (old-age pension for instance), arguing against some considera ons for limi ng benefi ts to only certain groups as an approach to contain social protec on expenditures. The par cipants concluded that introducing means-tested eligibility criteria on certain social protec on benefi ts would be detrimental to the level of protec on off ered to people and would jeopardize recent progress in reducing poverty.

The ABND par cipants reached a consensus on the following key recommenda ons to shape the social protec on fl oor of Mongolia.

Guarantee 1 on health: Social health insurance coverage is mandatory and nearly universal; however eff ec ve access to quality health care remains a challenge for many in rural areas. For instance, a recent drop by 6 per cent in social health insurance coverage (compared to 2011 when the Government

xvii

subsidized all contribu ons) may indicate customer dissa sfac on with services lowering the incen ve to contribute. High out-of-pocket (OOP) expenses and ineffi cient services provided by public hospitals discourage voluntary par cipa on in social health insurance and prevent par cipants from accessing adequate health care. The main recommenda on is to improve quality, accessibility and availability of health services.

Guarantee 2 for children: General educa on (up to upper secondary or 12 years of educa on) and health care are provided free of charge to all children. Eff ec ve access to educa on is guaranteed by suffi cient and free-of-charge boarding schools. The Child Money Programme (CMP), universal since 2012, ensures that all children from age 0 –18 years receive a minimum income guarantee. The main recommenda ons of the child guarantee are to maintain subsidies on social health insurance contribu ons for all children and universality of the child allowance, rather than introducing means-tested eligibility criteria that would not bring signifi cant saving to jus fy excluding the large majority of children, including those poor due to exclusion errors a cost comparison is available in the second part of the report). Further recommenda ons include safeguarding the universality of the CMP in legisla on and indexing the allowances to the cost of living; increasing the quality of nutri on in preschools; and improving access to quality social services by promo ng social workers services especially among children with special needs.

Guarantee 3 for people of working age: Par cipa on in the voluntary social insurance system remains low and integra on between income support programmes (e.g. social welfare programmes and unemployment benefi ts) and employment promo on measures is weak. To complete the social protec on fl oor for the working age popula on, the main recommenda ons are: introducing incen ve mechanisms (e.g. subsidies on contribu ons) to increase social insurance coverage among herders and self-employed workers; increasing the replacement rate of maternity benefi ts for women covered under the voluntary social insurance scheme; and establishing eff ec ve and systema c linkages between social insurance and ac ve labour market programmes (e.g. skills training).

Guarantee 4 for older persons: While the par cipa on of private and public employees to the old-age social insurance pension is high, only 23.4 per cent of herders, self-employed and informal economy workers contribute to the voluntary social insurance scheme, despite repeated eff orts to increase coverage. Therefore, the ABND recommends introducing a subsidy on the contribu on (50 per cent was proposed) of herders, self-employed and informal economy workers to contribute and conver ng the scheme into a mandatory one that would require improved enforcement mechanisms. The development of a more holis c approach to long-term care should also be considered.

Defi ni on of a social protec on fl oor for Mongolia

The UN/G Social Protec on Working Group es mated the cost of diff erent scenarios for the social protec on fl oor in Mongolia. The exercise only considered the cost of the cash benefi ts and certain social services such as the cost of subsidies on social insurance, tax-funded social protec on programmes (social welfare benefi ts and services, and CMP for instance), indexa on of exis ng benefi ts, among others. Those benefi ts cons tute the social protec on expenditures of the State budget of Mongolia. In addi on, the cost es mate included the cost of new ac ve labour market policies for target groups, namely young herders, benefi ciaries of unemployment insurance and those receiving a disability pension for the employment injury insurance.

The diff erent scenarios nourished discussions on what would be a recommendable and aff ordable defi ni on of the social protec on fl oor for Mongolia, during a na onal dialogue in September 2014.

xviii

Table 1. Defi ni on of a social protec on fl oor for Mongolia

Guarantee Component of the social protec on fl oor Already in place, to be improved

New programme

Health Universal health insurance coverage, with a full subsidy of the contribu on for vulnerable group and herders

Quality, available and aff ordable health care for all throughout the country, with eff orts to improve supply and services in rural areas

Children Universal and free general educa on, including free boarding schools

Universal CMP, safeguarded by a law and automa cally indexed to the cost of living

Improved early-child nutri on through a higher meal allowance indexed to the cost of living for all children a ending kindergarten (2–5 years old)

Improved environment to ensure the development and fundamental rights of children of herder families

Working age Universal social insurance coverage for sickness, maternity and working injury, with subsidized contribu on for herders, self-employed and informal economy workers (50 per cent subsidized by the State budget)

Replacement rate of maternity benefi ts at 100 per cent for all workers, including herders, self-employed and informal economy workers.

Reinforced Employment Promo on Programmes (EPPs) and introduc on of a specifi c programme for young herders

Return to work and retraining programmes for vic ms of working accident and occupa onal disease, and unemployment insurance.

Guarantee Component of the social protec on fl oor Already in place, to be improved

New programme

Older persons

Three pillar pension system composed of:

- Universal basic pension indexed to the cost of living

-Mandatory social insurance old-age pension coverage, with subsidized contribu on for herders, self-employed and informal economy workers (50 per cent subsidized by the State budget)-Supplementary pension plans.

Create an integrated benefi ts and services package, including a long term care system for older persons, based on exis ng social welfare programmes to provide cash or in-kind assistance to poor older persons

Source: UN/G Social Protec on Working Group, 2014.

xix

Cost of a social protec on fl oor in Mongolia

It would cost an addi onal 0.94 per cent of GPD to achieve the agreed social protec on fl oor in Mongolia in 2015 rising annually to 1.68 per cent by 2020, on top of the already allocated social protec on expenditures (fi gure 1). Because universal social health insurance has almost been achieved already, addi onal investment would mainly reinforce social protec on and nutri on of children, enhance income security and employability of the working age group and ensure old-age protec on. By 2020, the addi onal cost to complete a social protec on fl oor will be spread as follows: 0.60 per cent for achieving the children guarantee, 0.60 per cent for the working age guarantee, and 0.48 per cent for the older persons guarantee.

The con nued increase in the cost of a social protec on fl oor in Mongolia is mainly due to the assump on that in the next fi ve years the coverage under social insurance would become universal, 100 per cent of all labour force, with a large share of the popula on receiving subsidies on their contribu ons. The cost tends to remain constant once the full coverage has been reached. Increase in the social protec on fl oor cost is mainly due to assump ons on infl a on that have been including in salary projec ons.

The cost of a social protec on fl oor in Mongolia would be around 4.7 per cent of GDP in 2020, which s ll falls below the global average public social protec on expenditure rate of 6.0 per cent (fi gure 2).1

1 ILO: World Social Security Report 2014-2015 (Geneva, 2014) Table B.13.

Figure 1. Results of the addi onal cost es mate for comple ng a social protec on fl oor in Mongolia, per guarantee

0.67%

0.94%

1.05%

1.22%

1.48% 1.58%

1.68%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2014 2015 2016 2017 2018 2019 2020

Health Children Working Age Old-Age Total for "Agreed Scenario" (in % GDP)

Source: ILO RAP calcula ons, 2015.

xx

Figure 2. Projected cost of a social protec on fl oor compared to the projected cost of social expenditures as percentage of GDP (2014-20)


In comparison, between 2007 and 2011, social protec on expenditures in Mongolia oscillated between 6.6 and 9.5 per cent of GDP, when the government introduced a number of cash transfers to all ci zens of Mongolia. The addi onal cost to complete the social protec on fl oor by 2020 would represent 1.7 per cent of GDP above the status quo of social expenditures. In other words, a social protec on fl oor would cost 44,650 tugrik (MNT) per month per capita in 2020, or US$22.50,2 which would represent an addi onal expenditure of $8 per month per capita to achieve a social protec on fl oor in Mongolia by 2020.

This cost includes all social protec on expenditures already commi ed, the indexa on of social welfare benefi ts to the cost of living, subsidies on social insurance contribu ons and some addi onal programmes that would complete the social protec on fl oor in Mongolia.

The addi onal social protec on spending could be fi nanced either by using revenues of the Human Development Fund or by increasing the fi scal space. In parallel, the increase in social insurance contribu ons (covering all herders, self-employed and informal economy workers) should reduce the recurrent defi cit of the social insurance fund, now fi nanced by the State’s budget.

Conclusions of the ABND in Mongolia

The addi onal cost in terms of social expenditures to ensure that everyone in Mongolia has access to income security and basic social services would be only 1.68 per cent of GDP by 2020, bringing social expenditures to 4.72 per cent of GDP. The social protec on fl oor would guarantee universal health insurance with subsidies for all vulnerable groups and herders to ensure eff ec ve access to health care; improve nutri on at preschool; maintain and index the current universal child allowance, in

4.27%

3.81% 3.53% 3.37%

3.27% 3.10% 3.07% 3.04%

4.48% 4.47% 4.42% 4.49% 4.57% 4.65%

4.72%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

2013 2014 2015 2016 2017 2018 2019 2020

Projections of social expenditures as percentage of GDP

social expenditures as percentage of GDP at current prices (status quo) Cost of the agreed SPF

2 Exchange rate of 16 Mar. 2015: US$1 = MNT1985.6

xxi

addi on to already exis ng free general educa on (un l upper secondary school); introduce universal social insurance coverage, including old-age pension, with subsidized contribu on for all herders, self-employed and informal economy workers; and fi nally establish targeted and eff ec ve employment promo on programmes, par cularly for young herders. Nevertheless, an eff ec ve social protec on fl oor for all will also require strong commitment by the government to improve coordina on, quality and delivery of social protec on benefi ts and social services. Those recommenda ons are part of the defi ni on of a social protec on fl oor for Mongolia although es ma ng the cost of improving social services infrastructures would require more in-depth feasibility and actuarial studies.

Methodological note

The main func on of the assessment based na onal dialogue is to discuss social protec on with all key stakeholders in the country – the Mongolian Government, social partners, civil society organiza ons, academia, the United Na ons (UN) Country Team and other development partners. The primary objec ve is to iden fy priority areas for government interven on in the fi eld of social protec on and to support informed decision-making towards the development of the na onal social protec on fl oor.

The assessment, which is the fi rst step of the exercise, includes an inventory of exis ng schemes and iden fi es some design gaps and implementa on issues for each scheme. The analysis, however, is cursory and cannot replace a comprehensive study of the management and the governance of these schemes.

The assessment generates quan ta ve and qualita ve recommenda ons for fi lling in the gaps. For the fi rst type (“Addi onal provisions to complete the social protec on fl oor in Mongolia and guarantee income security across the life cycle”) the joint United Na ons and Government Social Protec on Working Group was able to calculate and project the cost of the proposed addi onal provisions. For the second and the third types (“Structural reforms of the social security system” and “Improved opera ons of exis ng schemes and quality of services”), addi onal in-depth feasibility studies are needed to provide solid recommenda ons to the Government. These studies will be part of subsequent policy and technical support ac vi es by the ILO and other UN agencies.

The cos ng part, which is the second step of the exercise, uses the ILO Rapid Assessment Protocol (RAP) which follows a logical analy cal sequence and allows for: 1) fl exibility in the design of benefi ts; 2) adaptable projec ons depending on the data available; and 3) es mates of future costs of cash transfer elements.

However, the RAP only considers the cost of the cash benefi ts and certain social services such as the cost of subsidies on social insurance, tax-funded social protec on programmes (social welfare benefi ts and services, and CMP for instance), indexa on of exis ng benefi ts, among others. Those benefi ts cons tute the social protec on expenditures of the State’s budget. In addi on, the RAP used to es mate the social protec on fl oor in Mongolia includes cost of new ac ve labour market policies for target groups, namely young herders, benefi ciaries of unemployment insurance and those receiving a disability pension for the employment injury insurance.

Nevertheless, some of the cash en tlements of the social protec on fl oor in Mongolia can be implemented only if there are adequate social services infrastructure and staff . For example, guaranteeing eff ec ve access to essen al health care would require both universal social health insurance coverage, as well as suffi cient and quality health care facili es and personnel throughout the country. Such infrastructure is, however, by interna onal standards, not part of current social protec on expenditures on cash

xxii

benefi ts and certain social services, and has not been included in the cost calcula ons related to the social protec on fl oor in Mongolia.

The results of the RAP cos ng exercise do not replace in-depth feasibility and actuarial studies that will be required to project more accurately and over a longer period of me the cost of cash benefi ts and social services, as well as the infrastructure and staff needed to implement a social protec on fl oor in Mongolia.

xxiii

Abbrevia ons

ABND assessment based na onal dialogueALMPCMP

Ac ve Labour Market PoliciesChild Money Programme

CMTU Confedera on of Mongolian Trade Unions CPI Consumer Price IndexDB defi ned benefi tEPP employment promo on programmesGDP gross domes c productHDF Human Development FundHIO Health Insurance Organiza onILO Interna onal Labour Organiza onIMF Interna onal Monetary FundMED Ministry of Economic DevelopmentMNT Mongolian tugrikMOECS Ministry of Educa on, Culture and ScienceMOF Ministry of FinanceMOL Ministry of LabourMONEF Mongolian Employers’ Federa onMPDSP Ministry of Popula on Development and Social Protec onMSL minimum subsistence levelMTFF Medium Term Fiscal Framework NAC Na onal Authority for ChildrenNDC no onally defi ned contribu onsNGO non-governmental organiza onNSO Na onal Sta s cal Offi ceOOP out-of-pocket (payments for health care)RAP Rapid Assessment ProtocolPAYG pay-as-you-goPWD people with disabili esSHI Social Health InsuranceSIGO Social Insurance General Offi ceSPF Social Protec on FloorSWGO Social Welfare General Offi ceWHO World Health Organiza onUN United Na onsUNDP United Na ons Development ProgrammeUNICEF United Na ons Children’s FundWHO World Health Organiza on

1

1. Introduc onMongolia is a land locked country in Central Asia bordering China in the south, and Russia in the north. In 2013, it has a popula on of nearly 2.9 million and is divided into 21 aimags (provinces) and the capital city, Ulaanbaatar. Over 60 per cent of the popula on resides in urban areas. The capital city houses over one million residents, leaving the rest of the country with a popula on density of fewer than two inhabitants per squared kilometre.

Aimag popula ons range between 14,500 and 118,000. Each aimag is subdivided into soums, including the aimag centre, and soums are subdivided into baghs. There are 330 soums in Mongolia and 1,592 baghs. Bagh residents mainly lead a nomadic lifestyle migra ng seasonally with their herds in extremely severe weather. Ulaanbaatar is divided into nine districts which are further subdivided into 152 khoroos.3

The country con nues to experience cycles of socio-economic and poli cal transi on. The system of government changed from socialism to mul party democra c rule following a revolu on in 1990 and Mongolia began a transi on from State ownership to a free market economy. While herding and agriculture remain the backbone of the rural economy with about 30 per cent of the popula on herding livestock, the mining industry now cons tutes over one fi h of the gross domes c product (GDP). The sale of cashmere and wool provides a link between rural economies and manufacturing and export industries.

In recent years Mongolia has witnessed signifi cant economic progress. GDP growth averaged nearly 9.0 per cent annually in 2004–08 largely backed by high copper price and new gold produc on. Recovering quickly from the global fi nancial crisis in 2008–09, the economy recorded double digit growth in the last

3 Report of the Capital city Sta s cs Department, 2013.

2

three years.4 This remarkable growth record has contributed to poverty allevia on, reducing the poor (living below the poverty line) from 38.7 per cent of the popula on in 2010 to 27.4 per cent in 2012.5

The economy is s ll concentrated in only few sectors. Mineral commodi es account for about 80 per cent of na onal exports and mining provides around 40 per cent of total government revenue. High dependence on mining revenues exposes the country to fl uctua ons in the external environment and the benefi ts of economic growth have not been equitably distributed across the popula on; the urban centre of Ulaanbaatar benefi ng the most from the recent double digit GDP growth.

Adequate social protec on is important for improving produc vity and fostering the transi on to a market economy. Before the transi on, social services such as medical care, pensions and disability insurance and maternity benefi ts were fully State-funded and provided to everyone. During the transi on period the vulnerable groups of the society such as the elderly, people with disabili es, orphans and individuals with low educa on and skills were the most aff ected by the adverse eff ects of transi onal reforms. In the process of priva za on many workers, including herders, found employment opportuni es only in the informal economy.

Since 1995, a new social security system was ini ated in Mongolia. The current social protec on system consists of three key elements: social welfare services and assistance, employment promo on programmes and social insurance. Social protec on expenditures6 in Mongolia accounted for 9.5 per cent of GDP in 2009, but accounted for 4.3 per cent of GDP in 2013.

The social protec on fl oor concept promoted by the United Na ons (UN) provides a relevant framework for describing social security, social protec on and poverty allevia on programmes in Mongolia, coordina ng interven ons and iden fying the necessary measures to establish a more holis c, rights-based and systemic social protec on. The assessment based na onal dialogue (ABND) on social protec on and employment promo on measures is a relevant tool for mapping the situa on, drawing recommenda ons for the further development of social protec on provisions to establish a minimum social protec on fl oor for all the popula on. The ABND is also completed by a rapid cos ng exercise to es mate the cost of introducing addi onal social protec on provisions. Stakeholders involved in the ABND exercise include line ministries, social partners, civil society, academia, UN agencies, other development partners and relevant bilateral donors engaged in social protec on.

Recognizing the importance of ensuring at least a social protec on fl oor, the Government of Mongolia sought support from the UN Country Team to embark on the ABND. In July 2013, a joint United Na ons and Government Social Protec on Working Group, chaired by the ILO, was formed to support the process which was offi cially launched by the Ministry of Popula on Development and Social Protec on (MPDSP) and the UN Country Team in September 2013.

The present report off ers the results of the ABND. The fi rst part recalls the concept and methodology adopted in Mongolia. The second part shares the results of the mapping of the social protec on situa on in Mongolia and agreed recommenda ons to realize the social protec on fl oor. Finally, the third part informs on the cost es mate of a social protec on fl oor for Mongolia, using the ILO Rapid Assessment Protocol (RAP), before concluding with steps for the eff ec ve implementa on of the recommenda ons and the achievement of a social protec on fl oor in Mongolia.

4 Na onal Sta s cal Offi ce of Mongolia: Sta s cal Yearbook, 2008–2013 edi ons (Ulaanbaatar, 2013).5 Na onal Sta s cal Offi ce of Mongolia: Mongolia Yearbook 2013 (Ulaanbaatar, 2013).6 Social expenditures include social welfare expenditures, subsidies to the social insurance, and social transfers from

the Human Development Fund.

3

2. Context and processIn April 2009, the High Level Commi ee on Programmes of the United Na ons (UN) Chief Execu ves Board adopted the social protec on fl oor as one of its joint ini a ves to face the fi nancial and economic crisis and accelerate recovery. This ini a ve supports countries in planning and implemen ng sustainable social protec on strategies that include social benefi ts and essen al social services. As this objec ve transcends the mandate of any single body or agency, the ini a ve built a global coali on of UN agencies (the Food and Agriculture Organiza on of the United Na ons, Offi ce of the High Commissioner for Human Rights, United Na ons Programme against HIV/AIDS, United Na ons Department of Economic and Social Aff airs, United Na ons Development Programme (UNDP), United Na ons Educa on, Science and Cultural Organiza on, United Na ons Educa on, Science and Cultural Organiza on, United Na ons Human Se lements Programme, Offi ce of the United Na ons High Commissioner for Refugees, United Na ons Children’s Fund (UNICEF), United Na ons Offi ce on Drugs and Crime, UN Regional Commissions, United Na ons Relief and Work Agency for Pales ne Refugees in the Near East, World Food Programme and World Meteorological Organiza on), the Interna onal Monetary Fund (IMF) and the World Bank, as well as development partners and leading non-governmental organiza ons (NGO). Establishing a social protec on fl oor is part of Target 1.3 of the forthcoming Sustainable Development Goals.7

At its 101st session, the Interna onal Labour Conference adopted the Social Protec on Floors Recommenda on, 2012 (No. 202) which reaffi rms the role of social security as a human right and a social and economic necessity, and provides guidance on building social protec on fl oors within progressively comprehensive social security systems. Recommenda on No. 202 was adopted almost unanimously (453 votes in favour and one absten on) reaffi rming the commitment by all ILO member States to extend social protec on. Recognizing the crucial role of social protec on in social and economic development and notably in comba ng poverty, vulnerability and social exclusion, and realizing decent work for all, the Conference also adopted the “Resolu on concerning eff orts to make social protec on fl oors a na onal reality worldwide,”8 which invites governments, employers, and workers to jointly give full eff ect to Recommenda on No. 202 as soon as na onal circumstances permit.

Social protec on fl oors are na onally defi ned sets of rights and transfers that enable and empower all members of a society to access a minimum of goods and services at all mes. They can be composed of:

• essen al services, which refer to geographical and fi nancial access to services such as water and sanita on, adequate nutri on, health, educa on, and housing; and

• essen al transfers, which refer to cash and in-kind transfers to the poor and the vulnerable to provide a minimum income and health security.

The social protec on fl oor takes a holis c approach, calling for access to a minimum set of goods and services for all age groups, but with par cular a en on to marginalized and vulnerable groups (such as ethnic minori es and people with disabili es). Once a social protec on fl oor has been established, countries may then choose to progressively extend to their popula ons higher levels of social protec on (e.g. by expanding free primary educa on to include free secondary and pre-primary educa on or by increasing levels of benefi ts through a mix of non-contributory and contributory schemes.)

7 h p://www.socialprotec onfl oor-gateway.org/216.htm8 ILO: “Resolu on concerning eff orts to make social protec on fl oors a na onal reality worldwide”, in Provisional Record No. 14, Interna onal Labour Conference, 101st Session (Geneva, 2012).

4

The social protec on fl oor promotes income security through a basic set of guarantees that aim to create a situa on in which:

• a na onally defi ned set of goods and services, cons tu ng essen al health care, including maternity care, meet the criteria of availability, accessibility, acceptability and quality;

• all children enjoy basic income security at least at the level of the na onally defi ned poverty line, ensuring access to nutri on, educa on, care and any other necessary goods and services;

• all those in ac ve age groups who are unable to earn suffi cient income, in par cular in cases of sickness, unemployment, maternity and disability, enjoy basic income security at least at the level of the na onally defi ned poverty line; and

• all residents in old age enjoy basic income security at least at the level of the na onally defi ned poverty line.

Defi ning the components as guarantees gives fl exibility to defi ne the social protec on fl oors based on na onal contexts and exis ng social protec on systems. The four guarantees set minimum performance or outcome standards with respect to the access, scope and level of income security and health care in na onal social protec on systems rather than prescribing a specifi c architecture of na onal social protec on systems. While not all countries will be able to immediately put in place all components for the whole popula on, the social protec on fl oor provides a framework to plan a progressive implementa on that ensures a holis c vision of the social protec on system and that exploits synergies and complementari es between diff erent components.

The social protec on fl oor also serves as a tool for gender empowerment. Globally, women are dispropor onately represented among the poor and the vulnerable. They face many legal and social constraints that limit their access to formal employment, produc ve assets and be er-remunerated work or to equal remunera on with male counterparts. Women tend to be confi ned to more casual, insecure, and hazardous forms of work and self-employment, par cularly in the informal economy, with no or only limited access to social protec on. The social protec on fl oor, which aims at extending basic social protec on to those who are currently excluded, has great poten al to redress exis ng gender imbalances. In socie es where women are expected to take on caring roles, social transfers are also found to be par cularly important supports.

While Asia and the Pacifi c have made considerable economic progress in the last two decades and have li ed millions out of poverty, not all popula ons have benefi ed from these gains. Millions of people are s ll poor, le in vulnerable employment, deprived of basic rights and exposed to increased risks due to changing domes c economic pa erns, global economic crises and climate change. This threatens to reverse hard-won human development gains of the past decade. Given this context, it is not surprising that social protec on, which refers to a range of policy instruments for ensuring that the rights of all people to income security and access to a minimum level of social services are realized, is high on the policy agenda in the region. Recently, at the sixty-seventh session of the UN Economic and Social Commission for Asia and the Pacifi c in May 2011, Member States passed a resolu on on “Strengthening social protec on systems in Asia and the Pacifi c”.

5

3. Assessment based na onal dialogue: Objec ves, methodology and process

3.1. Objec ves

To support the implementa on of social protec on fl oors in Asia, the ILO has elaborated methodological guidelines to undertake a par cipatory process to design na onal social protec on fl oors. The methodology of the assessment based na onal dialogue (ABND) methodology consist on:

• assessing the social protec on fl oor’s elements already in place and the coverage gaps in a country;

• iden fying the policy op ons to fi ll the gaps to complete a social protec on fl oor, and es ma ng the cost of its implementa on; and

• endorsing the iden fi ed policy op ons at the na onal level.

The ABND methodology, process and tools were tested in Cambodia, Indonesia, Thailand and Viet Nam from 2011 to 2013. Based on the Asian experience, the Assessment based na onal on social protec on: A good prac ces guide has been developed.9 Together with Mongolia, Lao PDR, Myanmar and the Philippines are currently conduc ng a similar exercise, as well as Kyrgyzstan and Mozambique.

The main objec ves of the ABND on social protec on are:1. to contribute to the na onal dialogue on social protec on with all key stakeholders in the country,

including the Government of Mongolia, social partners, civil society organiza ons, academia, and the UN Country Team, while raising awareness on the social protec on fl oor concept and increasing capaci es in policy formula on and planning;

2. to iden fy priority areas for government interven on in the fi eld of social protec on and the necessary measures for the establishment of a more comprehensive, rights-based and systemic social protec on fl oor in Mongolia;

3. to support informed decision-making towards the future development of the na onal social protec on fl oor while ensuring that the proposed new schemes and benefi ts do not threaten the fi nancial sustainability of the social security system as a whole;

4. to defi ne the partnership and ac on plan on social protec on between the Government of Mongolia and the UN system; and

5. to serve as a baseline informa on against which the future and progressive realiza on of the social protec on fl oor in Mongolia can be monitored in the framework of the Na onal Economic and Social Development Plan.

9 V. Schmi and L. De: Assessment based na onal dialogue: Good prac ces guide (ILO, 2013).

6

3.2. Generic methodology and process

The assessment describes exis ng social security schemes and social protec on programmes, and iden fi es policy gaps and implementa on issues for each of the four basic guarantees men oned above. This assessment helps to draw recommenda ons for the further design and implementa on of social protec on provisions to reach a minimum social protec on fl oor for all the popula on. The subsequent rapid cos ng exercise es mates the cost of introducing these addi onal social protec on provisions. The assessment based na onal dialogue (ABND) on social protec on and employment promo on consist of three steps outlined below.

STEP 1 – Development of the assessment matrix – An assessment matrix containing an inventory of exis ng social security, social protec on, ac ve labour market and poverty allevia on programmes for each of the four guarantees is developed and validated by all stakeholders engaged in social protec on, e.g. line-ministries, social partners, civil society and development partners. The matrix helps to iden fy policy gaps, implementa on issues and recommenda ons for the design and implementa on of further social protec on provisions with the aim of guaranteeing the social protec on fl oor to the whole popula on.

STEP 2 – Cost es mate – The cost of the proposed social protec on provisions are es mated and projected over a ten-year period (depending on na onal sta s cs available) using the ILO RAP, depicted in fi gure 3. This cos ng exercise can serve as a basis for discussions on available fi scal space, government budget realloca ons and the priori za on of diff erent social protec on policy op ons.

STEP 3 – Finaliza on and endorsement – The fi nal recommenda ons, supported by their cost es mate, for extending social protec on and establishing at least a social protec on fl oor in the country are shared at higher levels of the government for na onal endorsement. The report approved by the government will serve to prepare for the next steps, which may include feasibility studies for the design of new schemes, expansion of exis ng schemes and establishment of coordina on mechanisms.

Figure 3. RAP model structure

Source: Schmi and De, 2013.

Table 2 provides an overview of the informa on provided by the ABND process, and the steps that can be taken based as a result.

7

Table 2. Scope of the ABND

Ques ons answered by ABND

What is the situa on? Descrip ons of exis ng schemes, laws, and regula ons for each of the four guarantees.

How far are we from the full realiza on of the social protec on fl oor?

A comparison of exis ng schemes with the social protec on fl oor framework – Does the en re popula on have access to health care and income security? Are the benefi ts adequate?

What should we do to complete the social protec on fl oor?

Recommenda ons for new or extension of exis ng social protec on provisions.

How much will it cost to implement a social protec on fl oor?

Cost calcula ons of the addi onal social protec on provisions using the RAP protocol, cost es mates rela ve to GDP and government revenues and expenditures, and the incorpora on of es mated costs into government budget projec ons, providing preliminary indica ons of the aff ordability of proposed social protec on provisions.

Implementa on guidance provided by ABND

How to fi nance the new social protec on provisions?

Recommenda ons on how to fi nance the new provisions through realloca on of government expenditures, increases in the fi scal space, or other means.

What will the return on investment be?

Analysis of the impact of social protec on provisions to reduce poverty and inequality, increase employability, produc vity and economic growth; and eventually an assessment of the rate of return on investments in the social protec on fl oor.

How to advocate for the recommenda ons?

Development of social marke ng and communica on strategies to advocate for the implementa on of the recommenda ons among the general public, civil society organiza ons, workers and employers, the parliament and the Government.

Source: Schmi and De, 2013

The ABND process in MongoliaFrom July 2013 to December 2014, the UN/Government (UN/G) Social Protec on Working Group engaged line ministries, government agencies, UN agencies, social partners, civil society organiza ons, academia, and other relevant stakeholders in the assessment of the social protec on situa on in Mongolia, to iden fy policy gaps and implementa on issues, and draw appropriate policy recommenda ons for the achievement of a comprehensive social protec on fl oor in Mongolia.

The ABND process in Mongolia was based on:

• literature review of studies, reports, laws, regula ons and sta s cal reports;• bilateral consulta ons, technical workshops and a wide range of na onal consulta ons to share

the results at each step, gather inputs and seek feedback, as well as enhance a na onal dialogue among the Government, social partners, civil society organiza ons and academia;

• policy consulta ons and training workshops to develop capaci es;

• establishment of the UN/G Social Protec on Working Group; and

• reinforcement of policy dialogue and coordina on between the UN system, line ministries, academia and civil society organiza ons.

This sec on summarizes the ac vi es conducted under each of the three steps of the assessment process.

8

STEP 1 – Development of the assessment matrix

Desk review: From July 2013 to September 2013, the ILO compiled a comprehensive inventory of exis ng social security, social protec on programmes for each of the four guarantees, mainly through mainly desk review. The UN/G Social Protec on Working Group reviewed and endorsed the preliminary assessment matrix to be presented during the fi rst na onal dialogue of the ABND process.

Na onal dialogue No. 1: The preliminary assessment matrix was presented and reviewed at the Launch Workshop of the ABND on 5 September 2013,10 which was a ended by more than 50 representa ves from the ministries, social partners, civil society organiza ons, academia, and the UN Country Team. Some of the key points of policy gaps and implementa on issues were raised from this workshop to further design and implement social protec on provisions with a view to close gaps in the social protec on fl oor.

Bilateral consulta ons: From September to November 2013, the UN/G Social Protec on Working Group, led by the ILO, conducted bilateral consulta ons for stock-taking of exis ng social protec on schemes and related laws and regula ons for each of the four guarantees and valida on of the matrix by the Ministry of Popula on Development and Social Protec on (MPDSP), the Ministry of Labour (MOL), Ministry of Health (MOH) (at the me of the consulta ons), Ministry of Finance (MOF), the Social Insurance General Offi ce (SIGO), Social Welfare Services General Offi ce, state and local organiza ons at the aimag and soum levels (in Uvurkhangai and Bayankhongor), Mongolian Na onal University, Academy of Public Management, the Mongolian Employers Federa on, and the Confedera on of Mongolian Trade Unions.

Na onal dialogue No. 2: The revised assessment matrix including a number of key fi ndings of policy gaps and implementa ons issues, as well as recommenda ons was presented and validated at the Assessment Matrix Valida on Workshop on 5 December 2013.11 More than 60 representa ves from the ministries, social partners, civil society organiza ons, academia and the UN Country Team a ended the second dialogue. Concrete policy recommenda ons emerged from this mee ng to further design and implement social protec on provisions with a view to close gaps in the social protec on fl oor.

Finaliza on of the matrix: Based on the inputs from the two na onal dialogues, the assessment matrix and the legal framework were fi nalized.

STEP 2 – Cos ng using the ILO RAPScenarios: The priority recommenda ons were discussed and translated into “costable” scenarios, namely specifi c social protec on provisions that need to be introduced or further expanded to fi ll the gaps during the UN/G Social Protec on Working Group mee ng on 13 March 2014. Par cipants included 13 experts from MPDSP, MOL and UN (ILO, UNICEF, UNDP, WHO).

Cos ng: On behalf of the UN/G Social Protec on Working Group, the ILO consultant gathered all informa on and data such as popula on data, labour par cipa on rates, economic indicators, and government budgets necessary to conduct the cost calcula on of the proposed scenarios. The MAPS project undertook the cost calcula ons and projec ons over the 2015–20 period for the proposed provisions using the ILO RAP.

Na onal dialogue No. 3: The scenarios were presented and reviewed at the third na onal dialogue Assessing the cost of SPF: Methodology and Preliminary Results on 2 May 2014.12 In addi on an introduc on to the RAP methodology and the preliminary results were shared with the stakeholders.

12 Mee ng content is available at h p://www.social-protec on.org/gimi/gess/ShowProjectWiki.ac on?wiki.wikiId=2419.

10 Mee ng content is available at h p://www.social-protec on.org/gimi/gess/ShowProjectPage.do?pid=2287.2013).11 Mee ng content is available at h p://www.social-protec on.org/gimi/gess/ShowProjectWiki.ac on?wiki.wikiId=2202.2013).

9

The feedback and comments of the workshop were used for fi nal calcula ons of the social protec on fl oor using the ILO RAP.

Training on the RAP: In addi on, the ILO organized a hands-on training course on 30 April 2014 called How to Cost and Finance Social Protec on Schemes. About 25 par cipants from the Government, representa ves of workers and employers, civil society and academia were familiarized with the ILO RAP developed for Mongolia.

STEP 3 – Finaliza on and endorsement

Endorsement of RAP results: The fi nal results of RAP cos ng were consolidated by the UN/G Social Protec on Working Group on 9 September 2014, which was a ended by representa ves of ILO, UNICEF, WHO and UNDP.

Na onal dialogue No. 4: On 11 September 2014, the UN/G Social Protec on Working Group organized the fourth dialogue Assessment Based Na onal Dialogue Workshop: Final Results and Recommenda ons to the Government,13 gathering representa ves from the Government, social partners, civil society organiza ons, academia, and the UN Country Team shared the results of the cos ng exercise and discussed the next steps, e.g. iden fi ca on of possible measures to increase the fi scal space for fi nancing social protec on, improved integra on of policies on the social protec on fl oor and its delivery, and further steps for obtaining endorsement of the fi nal report by the UN Country Team, Government and social partners. Among other follow-up ac ons, the fourth dialogue decided on preparing a campaign video “Why social protec on is important to me?” and a possible monitoring framework for measuring the eff ec ve implementa on of the ABND recommenda ons and realiza on of the social protec on fl oor.

Dra ing of the report: The ILO, in its posi on of chair of the UN/G Social Protec on Working Group dra ed the full report during the period from September to December 2014. Early December 2014, the report was circulated among the UN/G Social Protec on Working Group for review and comments. Publica on of the report is expected by March 2015.

Advocacy: A er the launch of the report (tenta vely April 2015), the advocacy work should be con nued to seek for the inclusion of some recommenda ons in na onal development plans and social protec on policies and eff ec ve implementa on.

Figure 4 provides a pictorial representa on of the ABND process in Mongolia.

The recommenda ons agreed through the na onal dialogue were discussed against the principles and parameters of the interna onal labour standards related to social security, and in par cular:

• Social Protec on Floors Recommenda on, 2012 (No. 202);

• Social Security (minimum standards) Conven on, 1952 (No. 102);

• Employment Injury Benefi ts Conven on, 1964 (No. 121);

• Invalidity, Old-age and Survivors Benefi ts Conven on, 1967 (No. 128);

• Maternity Protec on Conven on, 2000 (No. 183); and

• Equality of Treatment (Social Security) Conven on, 1962 (No. 118).

13 Mee ng content is available at h p://www.social-protec on.org/gimi/gess/ShowProjectWiki.ac on?wiki.wikiId=1569.

10

Figure 4. The ABND process in Mongolia


3.3. Overview of the na onal social protec on context

Fast economic growth

Mongolia has experienced remarkable economic growth over the last decade. A er the 2008–09 global fi nancial crisis, na onal GDP grew by double-digit percentages and economic growth was perceived as the main poverty reduc on instrument. The impressive overall economic performance contributed to a sharp decline in poverty levels, and the na onal sta s cs offi ce reported that the total poverty rate fell from 38.7 per cent of the total popula on in 2010 to 27.4 per cent in 2012.

The main economic and poli cal challenges in Mongolia are linked to ensuring steady growth through the boom and bust cycles likely to impact this resource-dependent economy. Double-digit economic growth over the past few years — 2011 witnessed 17.3 per cent GDP growth — was based on investment in and produc on and export of minerals. Mongolia is a major producer of several minerals including copper, gold, zinc, fl uorspar and coal. With extensive reserves, it has the poten al to increase produc on considerably.

However, Mongolia has suff ered ongoing setbacks to its economic advancement. Indeed, growth steadily slowed from 17.3 per cent in 2011 to 11.7 per cent in 2013. Both the Interna onal Monetary Fund (IMF) and World Bank (WB) es mate GDP will decline to 9.5 per cent in 2014; and, depending on Mongolian policy decisions, forecasts for 2015 range from a high of 12 per cent to as low as 2 per cent. The IMF cites loose fi scal and monetary policies as likely causes for nega ve economic adjustment.

The poverty rate is unacceptably high for a country undergoing rapid economic growth. Insuffi cient access to health and other basic services, natural disasters, lack of employment opportuni es, inequali es in regional development and a mismatch between educa on and the demand of the labour market have been iden fi ed as some of the underlying causes of poverty.

11

Social protec on, a recognized priority in MongoliaMongolia already has in place a well-ramifi ed social security system, with a compulsory social insurance scheme extended to herders, self-employed and informal workers on a voluntary basis. The country is also equipped with mandatory social health insurance, universal child allowance and a number of social welfare programmes, as well as recent laws to expand employment promo on and local development programmes. However, current development in Mongolia and over-dependence on the mining sector may pose a threat to sustained economic growth and con nuity of social policies. In addi on, the administra on and delivery of social security benefi ts and employment services across a very sparsely populated country remains challenging, leaving more than 75 per cent of herders, self-employed and informal economy workers with insuffi cient income security.

In this context, the government of Mongolia has measured the cri cal importance of strengthening social policies and establishing a minimum social protec on fl oor to close urban and rural development dispari es.

Overview of the social protec on system in Mongolia

The current social protec on system of Mongolia consists of three key elements: social welfare scheme (both targeted and universal); social insurance; and employment promo on services, as shown in fi gure 5.

Figure 5. Overall structure of the social protec on system in Mongolia

Source: Ministry of Social Welfare and Labour, Social security sector strategy paper, 2003.

The Mongolian social insurance system is based on contributory payments by insured workers and their employers and provides for a number of benefi ts. The social insurance consists of fi ve schemes and is depicted in fi gure 6.

12

Figure 6. The social insurance schemes of Mongolia

Social health insurance

Social insurance schemes

Pension insurance

Allowance insurance

Work injury and occupational

disease

Unemployment insurance

Medical care and services

Refunding of medicines

Old age

Disability

Survivors

Maternity

Sickness

Funeral

Unemploy-ment benefit

Training and retraining

Disability

Survivors

Loss of employability

Rehabilitation employability

Prevention activities

Rehabilitation services

Source: SIGO, The package law on social insurance, 1994.

Government offi cials, Mongolian and foreign ci zens and stateless people employed on the basis of labour contract are required to contribute to the social insurance on a mandatory basis while herders, informal economy and self-employed shall be insured voluntarily. Recent data on the size of the economically ac ve popula on and par cipa on in mandatory and voluntary insurance schemes are provided in table 3.

Table 3. Number of insured under the social insurance scheme (in thousands)

2010 2011 2012 2013Male Female Male Female Male Female Male Female

Economically ac ve popula on

628 870 531 085 635 034 567 732 654 144 597 080 668 590 608 115

Social insurance categories

Insured under mandatory scheme

270 183 278 279 315 963 310 241 357 526 348 959 387 235 379 580

Insured under voluntary scheme

22 777 39 906 29 096 52 240 34 800 66 172 52 115 94 987

Herders 2 787 3 954 4 652 6 548 5 298 7 201 10 527 13 196Self-Employed 6 853 12 539 7 463 13 935 9 630 19 286 15 818 30 656Others (informal economy workers)

13 139 23 415 16 995 31 775 19 945 39 759 26 398 51 447

Source: SIGO, adjusted economically ac ve popula on with RAP assump ons, 2015.

13

As of the end of 2013, some 766,815 people were insured under the mandatory social insurance scheme while only 147,100 people joined the scheme on a voluntary basis. A total of 71.6 per cent of the economically ac ve popula on is insured under the social insurance system (table 4). However, those contribu ng to the voluntary scheme represent only 23.3 per cent of those who are eligible to par cipate, i.e. herders, self-employed, informal economy workers and unemployed.

Table 4. Insured under the social insurance scheme as a percentage of the economically ac ve popula on

Social insurance categories 2010 2011 2012 2013Insured under mandatory scheme 47.3 52.1 56.5 60.1Insured under voluntary scheme, of which 5.4 6.8 8.1 11.5Herders 0.6 0.9 1.0 1.9Self-Employed 1.7 1.8 2.3 3.6Others (informal economy workers) 3.2 4.1 4.8 6.1

Total 52.7 58.9 64.6 71.6Source: SIGO, adjusted economically ac ve popula on with RAP assump ons, 2015.

Coverage under the mandatory social health insurance scheme is nearly universal, extending to more than 90.0 per cent of the popula on in formal employment.

The tax-funded social welfare system plays an important role in providing public support to members of vulnerable groups such as older people and people with disabili es, orphans, infants, women during maternity or single mothers with many children who are unable to live independently. There are 29 programmes stated by law targe ng specifi c groups of the popula on accoun ng for 1.0 per cent of GDP.14 Social welfare expenditure more than doubled, increasing from MNT99.3 billion to MNT237.1 billion between 2010 and 2014, resul ng in one out of four people being in receipt of some social welfare benefi t, impac ng posi vely on poverty levels. During the period 2010 to 2012, the na onal poverty headcount index decreased from 38.7 per cent to 27.4 per cent, and in rural areas from 49.0 per cent to 35.5 per cent.15

One important fi nancing source of non-contributory social protec on schemes is a Human Development Fund (HDF), established in accordance with the Law on Human Development Fund approved by the Parliament in November 2009. The HDF builds on revenues from the mineral and mining sectors and has an objec ve of redistribu ng wealth equally among all ci zens of Mongolia. The redistribu on shall be made in forms of payment for pension and health insurance contribu ons, payment for housing, cash transfers, payment of tui on fees and health services and child support benefi ts. The Child Money Programme is one of the fl agship programmes funded by the HDF.

Main form of employment is herding, self-employment and informal employment (55.7 per cent of the economically ac ve popula on in 2013). The unemployment rate was 7.8 per cent in 2013 (NSO). However, there is a persistent high underemployment and hidden unemployment in the informal economy and livestock husbandry sector characterized by low produc vity and income, and poor working condi ons. Due to underdeveloped infrastructure and small popula on, the labour market outside livestock husbandry remains limited in rural areas, resul ng in a growing labour mobility from rural to urban areas.

On the ins tu onal side, in 2012, the Ministry of Social Welfare and Labour was divided into two ministries, Ministry of Labour (MOL) and Ministry of Popula on Development and Social Protec on (MPDSP). Such restructura on intended to increase employment, alleviate poverty and promote human development by expanding social protec on and upda ng ac ve labour market policies (ALMPs). MOL is commi ed to reinforce the applica on of the Law on Employment Promo on, fi rst adopted in 2001 and revised in 2011, notably with the reinforcement of the Employment Promo on Programmes launched in 2011.

14 Programmes implemented by the Social Welfare Agency of the MPDSP and included under the Law on Social Welfare, 2012; the Law on Social Security for People with Disabili es, 2005; Law on Social Security of Senior Ci zens, 2005; and Law on Supplementary Allowance for Honored Senior Ci zens, 2008.

15 NSO, 2014.

15

4. Step 1. Development of the assessment matrix and the results of the ABND on social protec on and employment promo on in Mongolia

The assessment matrix is a tool to analyse to what extent exis ng and planned social protec on provisions fulfi l the four guarantees of the social protec on fl oor framework. Na onal Stakeholders can use the social protec on fl oor matrix to iden fy policy priori es towards achieving complete social protec on. For each of the four guarantees, the matrix lists exis ng social protec on provisions, their legal and eff ec ve coverage, design gaps and implementa on issues, and iden fi es opportuni es for improvement.

Structure of the assessment matrix

Figure 7. Structure of the assessment matrix

Source: Schmi and De, 2013.

Figure 7 illustrates the structure of the assessment matrix. The fi nal assessment matrix is annexed to this report.

The sec ons below provide a detailed descrip on of the informa on contained in the matrix for each of the four guarantees.

16

4.1. Health care

“A na onally defi ned set of goods and services, cons tu ng essen al health care, including maternity care that meets the criteria of availability, accessibility, acceptability and quality.”

Exis ng provisions

The Cons tu on of Mongolia en tles each resident to health protec on and medical care. Before 1990, the provision of health-care services to the whole popula on in Mongolia was the responsibility of the government, which ensured equitable services through full government budget fi nancing. During the transi on to a market economy and an economic downturn that reduced State resources, the Government dras cally cut budget alloca ons for health. Social health insurance (SHI) aimed to maintain the already achieved level of health care, ensure the popula on was protected from health-related fi nancial risks and deliver services equitably and with suffi cient quality. One of fi ve types of social insurance based on the social solidarity principle, the universal SHI aims to cover all Mongolian ci zens on a mandatory basis and off ers voluntary enrolment for foreign residents or stateless person living in Mongolia as well. It is based on the Law on Ci zens Health insurance, 1994.

The introduc on of the SHI scheme created a stable fi nancing source for the health sector. Currently, health sector fi nancing relies on several sources, including the na onal budget, SHI Fund, fees for health-care services and foreign loans and aid. The goal of the health sector in Mongolia has been to reach universal health coverage through a sustainable fi nancing mechanism. The SHI scheme provides fi nancial support for in-pa ent and out-pa ent services in hospitals at all levels. It also covers expenses related to family group prac ces and ambulatory care, and subsidizes drugs according to the list of fi xed charges. Primary health-care services, pregnancy and delivery care, tuberculosis and pallia ve cancer treatment are directly fi nanced through the government budget and are not charged to the SHI Fund.

17

The MPDSP supervises the management of SHI Fund opera ons through its implemen ng agency, the Social Insurance General Offi ce (SIGO). The Ministry of Health and Sports (MOHS) determines the main policy orienta ons that defi ne service and benefi ts packages, tariff s and drug discounts.

Box 1

Towards universal health coverage

In 2013, the MPDSP, together with the MOH, the German Society for Interna onal Coopera on (GIZ), WHO and Providing for Health (P4H), launched the Long Term Strategy for the Development of the Health Insurance of Mongolia (2013–22).16 This document describes the following key challenges for achieving universal health coverage:

1. The low understanding and knowledge of the signifi cance of health insurance among poten al par cipants means they are less willing to make contribu on payments and the monthly contribu ons amount is not set at an op mal level.

2. Health insurance enrolment is declining par cularly among self-employed workers, herders, and unemployed workers and students. The health insurance system is not eff ec ve in collec ng contribu ons from these groups. According to SIGO es mates, health insurance coverage was 90.4 percent in 2012.

3. Although the health needs of the popula on are not fully met, the SHI Fund presents a signifi cant posi ve balance (equal to 95.3 per cent of the annual SHI Fund revenue in 2012). The health insurance benefi t package does not completely cover services, so the insured must pay if he or she receives services that are omi ed from the benefi t package. No considera on is given to out-of-pocket (OOP) payments when defi ning the benefi t package, and OOP expenses have increased year-on-year. The Na onal Health Sector Financing Strategy specifi ed the goal of keeping OOP payments within 25 per cent of total health expenditures, but they have increased by 26.6 per cent since 2008 and reached 41.0 per cent in 2013, according to WHO sta s cs.

4. There is no legal environment for the Health Insurance Organiza on (HIO)17 to carry out responsibili es of an ac ve purchaser such as assessing the needs of the insured, defi ning the health-care services, selec ng health-care providers and nego a ng prices and tariff s of health-care services; the purchasing ac vity is carried out by HIO through contrac ng health organiza ons. However, the absence of tools or guidelines to monitor the implementa on of the contract leads to some negligence from certain providers resul ng in poor quality of care.

5. The func ons and responsibili es of SHI stakeholders are stated by the Ci zens’ Health Insurance Law with considerable fragmenta on and overlapping. Par cipa on of non-government stakeholders, namely employers and workers in the decision making process is not sa sfying while their capacity to engage in an eff ec ve social dialogue in this area is weak.

1 The Long-term strategy for the Development of the Health Insurance was approved by the Government resolu on No. 143 (13 Apr. 2013).

2 Under the current law on Ci zens’ Health Insurance, HIO is part of SIGO. Source: UN/G Social Protec on Working Group, 2015.

The Long Term Strategy for the Development of the Health Insurance of Mongolia (2013–22) aims at achieving universal health care in Mongolia. The document has iden fi ed the following key interven on areas: health insurance coverage and revenue, benefi t package, health-care quality and purchasing, health insurance system governance, health insurance organiza onal capacity and private health insurance (PHI). The objec ve and strategies associated with each key area are outlined in table 5.

18

Table 5. Objec ves and strategies for developing health insurance in Mongolia (2013–22)

Key areas Objec ves StrategiesHeath insurance coverage and revenue

Increase the health insurance coverage and ensure stability of the SHI Fund so to establish it as a sustainable fi nancial mechanism to ensure universal health care.

Fully enrol the whole popula on by extending eff ec ve coverage among residents not yet par cipa ng in the health insurance;Introduce a contribu on based on the minimum wage for those par ally subsidized by the government;Improve management and policy planning of SHI Fund to balance revenue and expenditures; andReduce OOP payments to 25 per cent of total health expenditures.

Health insurance benefi t package

Defi ne the benefi t package of the health insurance so that the en re popula on is provided with health-care services in line with all their essen al health needs

Expand the benefi t package funded by SHI Fund to progressively include health-care services currently funded by the government budget into the package;Assess economic, social protec on and health impacts of including primary health care into the SHI Fund benefi t package (currently State funded) and make an appropriate decision to ensure accessibility to services in remote areas;Set the co-payment amount according to the level of health care in order to deliver the benefi t package in an effi cient manner; andEstablish an appropriate organiza onal structure and process to discuss and make decisions on the benefi t package to be purchased by the SHI Fund.

Quality of health care and purchasing

Improve quality assurance of health-care servicesSet up an ac ve strategic purchasing system for health-care services

Use contrac ng arrangement between HIO and health-care providers as the tool to purchase quality health-care services; and specifi cally include into the contract the du es of the par es involved and the details for monitoring the fulfi lment of these du es;Set up an ac ve health-care service purchasing system with capaci es to select and contract health-care providers; set the health-care benefi t package and tariff s in line with the needs of the insured; andIntroduce quality management instruments such as accredita on, peer review and sa sfac on survey of the insured in order to improve the quality management system required for purchasing quality health-care services based on evidence.

Governance Introduce good governance principles into the health insurance system and increase confi dence and trust in SHI

Create a good governance system which considers and unites the interests of the stakeholders by working based on the principles of accountability, transparency, jus ce and effi ciency;Ensure equal par cipa on of SHI Fund stakeholders in the governance structure of the SHI scheme; andEnsure that HIO autonomously plans and distributes resources of the health insurance fund independently from any party.

Private health insurance

Ensure coherency of the health insurance system by enabling private health insurances to provide complementary services covering health-care services not yet included in SHI benefi t package

Establish private health insurance as a complementary tool for fi nancial protec on of the popula on and for expansion of the scope of health-care services provided in order to reach universal health care;

Clarify the legal environment that allows residents to obtain dual insurance membership on voluntary basis as an addi onal and complementary insurance scheme in order to get coverage for the health-care services not included into the benefi t package; and

Establish a regular mechanism of collabora on between private health insurance and health insurance organiza on.

Source: MPDSP, MOH, 2013.

19

The new Law on Health Insurance was adopted on 29 January 2015. The law will come into force on 1 July 2015, with certain provisions being enforced only from 1 January 2016. Major changes include:

• contribu ons of those subsidized by the government except for children (Category III: children 0–18 years old and certain vulnerable groups- see below) and other non-subsidized groups except for students of the voca onal training centres (Category II: Herders and unemployed; and Category IV: Self-employed) are increased (formerly, monthly contribu on per subsidized person – MNT670 a month, or MNT8,040 a year) to at least 2.0 per cent of monthly minimum wage (MNT3,840 a month or MNT46,080 a year) (rate annually adjustable by Government’s decision);

• contribu ons of students of the voca onal training centres (part of Category II) and children 0–18 years old who are subsidized by the government (part of Category III) are increased (formerly, monthly contribu on per subsidized person – MNT670 a month, or MNT8,040 a year) to at least 1.0 per cent of minimum wage or MNT1,920 per month (MNT23,040 annually);

• university students, who are formerly fully subsidized by the government, are now forming a new category: they will contribute to the scheme at the level of 1.0 per cent of minimum wage (MNT23,040 a year) star ng from 1 January 2016. For the year 2015, the Government will bear the full cost of student contribu on;

• insured individuals (excluding those subsidized by the government) whose payments for health-care services have exceeded their en tled threshold to purchase health-care services can use the unused por on of their family members once a year;

• according to a decision at the na onal level, drugs prescribed by out-pa ent doctors of aimag and district hospitals are now included in the list of insured drugs, and are therefore subject to discounts (the discount was previously applicable only at the primary health-care level); and

• the benefi t package covered by the SHI is extended to some expensive care, prosthe c devices, and cancer and pallia ve care.

16 The informa on in this sec on refl ects the Law on Ci zens Health Insurance, 2002.

Legal framework

Law on Ci zens Health Insurance (25 April 2002); Law on Health (25 May 2011), Ar cles 15.1, 23 and 24; Law on Health Insurance adopted on 29 January 2015, entering into force on 1 July 2015.16

Target group All Mongolian ci zens and foreign residents or stateless person. The scheme is mandatory for all Mongolian ci zens (Ar cles 6.1.1–6.1.11). Foreign residents can be insured on a voluntary basis (Ar cle 6.2).

Benefi t Benefi t package: Out-pa ent and in-pa ent care services (provided by primary and secondary level hospitals), day care service (secondary level), in-pa ent service of tradi onal medicine clinics, rehabilitee care provided by sanatoria and pallia ve and drug discount; free check-up tes ng and diagnos c service for any case at the request of the insured, not exceeding MNT56.000 in each case.

Bonus: In case an insured did not receive any benefi t from SHI Fund during last 36 months, s/he is eligible for free check-up tes ng of MNT80,000 each year.

Benefi t ceiling: MNT1,380,000 per insured person per year.Payment mechanism

The SHI Department of SIGO proceeds payments based on invoices issued by service providers.

Excluded services

Primary health-care service, pregnancy and delivery care, tuberculosis and cancer treatment are directly fi nanced by Government budget.

20

17 The sta s cs may include double coun ng. The system counts every insured registered with the scheme throughout the year and treats data at the end of that year, which means that those who shi ed between categories, e.g. from formal employee to self-employed, or from employment to re rement are counted twice during that specifi c year.

Financing This scheme is fi nanced on a tripar te basis (employers, employees and the Government).

Category I: Employees of the Government and business en es are required to pay 4 per cent of their monthly wage and salary (2 per cent by employer, 2 per cent by the employee);

Category II: Herders, unemployed workers and students of the voca onal training centres pay MNT670 per month;

Category III: Children of age 0–18, people without income except for those receiving old-age, disability and survivor pension either from SIGO and/or social welfare department, students (universi es and colleges), parents looking a er their babies un l 2 years old, personnel of military service (defence, border security, police and emergency), and ci zens involved in community based welfare services whose contribu on is en rely funded by the State. Other targeted groups, i.e. older persons, people with disabili es, children with chronic condi on, people aff ected by domes c violence, convicts released from correc onal service, alcohol and drug addicts, homeless, single mother/father family, people aff ected by cureless disease, poor family members, ci zens migrated locally, and parents of children with disabili es, are also required to pay MNT670, which is currently being fully subsidized and fi nanced by the Human Development Fund (HDF);

Category IV: Self-employed who pay 1 per cent of their reference income on the basis of their tax statement to tax authority; and

Category V: Foreign na onals and stateless people who are requested to pay 6 per cent of minimum wage (MNT8,424 monthly).

Health service delivery

Primary level: fi nanced by the State budget: a) 1,588 bagh feldsher (rural); b) 271 soum hospitals and 39 inter-soum hospitals (15–30 beds per soums); and c) 221 family health centres (urban, private prac ces);

Secondary level: 10 per cent co-payment system: 12 district hospitals (200–300 beds) and 17 aimag hospitals (100–500 beds) and three maternity homes;

Ter ary level: 15 per cent co-payment system: Four regional diagnos c and treatment centres (at aimags), three central hospitals, and 11 specialized hospitals.

Popula on covered

In 2013, in total of 2.7617 million people17 (97.8 per cent of the resident popula on) were covered; and the share of popula on with subsidized contribu ons to the total popula on was 57.9 per cent (1.6582 million people). Because of a double coun ng of those insured, SIGO es mates coverage at 90.4 per cent in 2012.

21

Table 6 presents data on the number of people insured under diff erent SHI schemes in Mongolia.

Table 6. Number of insured under the SHI scheme (in thousands)

2006 2007 2008 2009 2010 2011 2012 2013Total resident popula on 2 583.3 2 620.4 2 666.0 2 716.3 2 653.9 2 704.5 2 760.4 2 823.0

Total insured 1 905.7 2 101.7 2 233.7 2 123.0 2 267.6 2 704.5 2 593.6 2 761.7CompulsoryCategory I: Formal sector 456.7 484.8 539.7 546.0 580.8 659.3 742.0Category II: Herders 102.4 98.1 90.8 94.2 101.5 250.1 100.6Category II: Voca onal Students 44.9 48 51.5 75.2 81.9 81.1 87.0

Category IV: Self-Employed 149.3 175.3 198.3 172.4 196.7 370.4 194.0

VoluntaryCategory V: Foreigners 0.1 0.1 0.2 0.2 0.2 0.2 0.3Subsidized popula onCategory III: Children, older people, other vulnerable groups

1 152.5 1 295.5 1 353.2 1 235.0 1 306.5 1 354.0 1 469.7 1 658.2

Percentage of total resident popula on 73.7 80.4 83.8 76.9 85.4 100.0 93.9 97.8

Source: SIGO, Sta s cal Yearbook 2012.

Policy gaps and implementa on issues

Policy gaps

Service Package

Health-care services are divided into two packages: 1) SHI Fund (only 25.1 per cent of the total health expenditures in 2013);18 and 2) Tax funded (state budget) package.Health insurance package does not completely cover all services needed by insured, leading to a situa on where the insured has to pay for the services that are omi ed.

Extra payment The insured s ll pay a signifi cant part of health expenses OOP (41.0 per cent of total health expenditures in 2013)19 and drugs represent the major share of OPP expenses (drugs prescribed by secondary and ter ary health-care levels and specialized clinics are not reimbursed).

Targe ng Government subsidies are not targeted enough. The amount of contribu on for vulnerable groups, herders, self-employed, unemployed and informal economy workers is not properly se led and not risk-adjusted.

Governance Func ons and responsibili es of health insurance stakeholders are fragmented and overlapping.

Ins tu onal capacity

The legal environment for the SHI offi ce to carry out responsibili es as an ac ve purchaser such as assessing needs of the insured, defi ning health-care services, selec ng health-care providers and nego a ng prices and tariff s of health-care services does not exist.

18 SIGO, 2014.19 WHO, 2014.

22

Equality of treatment

There was a signifi cant diff erence of monthly contribu ons between Mongolian na onals (MNT670) and non-na onals (MNT8,424). This distor on might be addressed by the newly adopted Law on Health Insurance, entering into force on 1 July 2015: non-na onal will now contribute at the rate of at least 2 per cent of monthly minimum wage.

Implementa on issues

Coverage The coverage of health insurance dropped from 100 per cent to 94 per cent between 2011 and 2012, and coverage is es mated by SIGO to be even lower due to a double coun ng. The excellent record in SHI coverage in 2011 was achieved through government subsidies provided by the Human Development Fund on the contribu ons of herders, voca onal students and unemployed workers.

Collec on of contribu ons

The current social insurance ins tu onal set up does not eff ec vely support collec on of health insurance contribu ons from the informal sector and herders where people are obliged to pay their contribu ons on a voluntary basis.

Ins tu onal capacity

SHI ac vi es are not ins tu onalized as an autonomously from MPDSP and SIGO.

Benefi ts Free diagnos c services and check-up tes ng benefi t (MNT56,000 per case in addi on to MNT80,000 bonus once a year) is adequate, but the number of benefi ciaries is too low due to insuffi cient service capacity and poor accessibility of public hospitals. Private hospital diagnose centres are not contracted by the SHI Fund.

Quality Insuffi cient investments in public health-care facili es that results in decreasing quality of health-care services and lack of well-equipped infrastructures.

Service quality control

Health-care complaint system does not work properly and grievances are not addressed in a way to sa sfy a customer.

State funded health care

In parallel, there are a number of challenges to be addressed in rela on to health-care services which are solely or par ally fi nanced by the State budget. The State budget is allocated by budget line item rather than programme, as a result budget alloca ons tends to fund only capital and opera on costs of health facili es rather than services. This situa on aff ects the quan ty and quality of services including high impact, low cost interven ons for maternal and child health care. There is no planning methodology with realis c cost available for services paid from the State budget. The absence of proper cos ng and associated fi nancing is a main contributor to low quality of services at public medical and health-care facili es. Moreover, the current state budget alloca on formula for public health-care facili es does not consider distance, poverty rate and environmental factors, and baseline tariff s for calcula on are quite low with li le considera on of infl a on rates in real terms. This is a key factor in persistent dispari es in under-5 child mortality between rural and urban, poor and rich.

Service provision, quality, and adequate health spending, needed to achieve universal health care

The ILO has defi ned fi ve indicators that reveal key defi cits towards universal health coverage, as being one of guarantees of the social protec on fl oor. Defi cit in rights occurs when access to at least essen al health care is not guaranteed by law. In Mongolia, the Law on Health Insurance, 2002 and now amended on 1 January 2015, guarantees that everyone should be covered by the social health insurance. Despite universal social health insurance coverage, as it is nearly the case in Mongolia, defi cits in package of

23

benefi ts, health funding, capaci es and infrastructure, and the quality level of health services and drugs can further hold back the right to health.

Such defi cit in service availability can be indirectly measured by the number of health professionals (physicians, nurses and midwives) per 10,000 popula on. At the same me, quality of service can be measured by proxy indicators such as health spending per capita (excluding OOP payments) and the maternal mortality ra o per 10,000 live births. The fi rst indicator assumes a high correla on between health spending and service quality. In the same way, the overall health service quality is assumed to be refl ected in the quality of obstetric service, especially in reducing the mortality rate of women due to pregnancy-related causes per 10,000 live births. As benchmarks, the number of health professionals per 10,000 popula on and the per capita health spending (excluding OOP payments) can be compared to the respec ve median values of “low vulnerability”, developed economies (for more details on the methodology, see Scheil-Adlung and Bonnet 2011; ILO 2014f, p. 296).

To illustrate, Figure 8 compares the defi cits in access to health services across fi ve dimensions in Mongolia and compared to other groups of countries. The graphic shows that despite rela ve progress in expanding social insurance coverage and quality of health care, as measured by the number of health professional staff and the maternal mortality ra o, the defi cit in health spending is cri cal in Mongolia. Improving health care benefi ts and services may s mulate investments in improved health care infrastructure and staff .

Figure 8. Mul ple dimensions of health coverage in Mongolia compared to other countries (2011)

Source: ILO, World Social Security Report 2014-2015, 2015.

Conclusions and recommenda ons

Social health insurance coverage is mandatory and nearly universal; however eff ec ve access to quality health care remains a challenge for many in rural areas. For instance, a recent drop by 6 per cent in social health insurance coverage (compared to 2011 when the Government subsidized all contribu ons) may indicate customer dissa sfac on with services that results in low incen ve in contribu ng. High

24

OOP expenses and ineffi cient services provided by public hospitals discourage voluntary par cipa on in social health insurance and prevent par cipants from accessing adequate health care. The main recommenda on is to improve quality, accessibility and availability of health services.

Table 7 summarizes the recommenda ons gathered during the ABND process. An asterisk (*) indicates a recommenda on to provide new social protec on provisions or increase the coverage of exis ng provisions. The cost of these addi onal provisions or coverage is calculated using the ILO RAP cos ng tool. A number of recommenda ons would require more in-depth feasibility and/or actuarial studies to assess their costs. These recommenda ons are marked with a delta (Δ).

Table 7. Recommenda ons for expanding access to health care adopted by the ABND

Main recommenda ons * H1. Extend eff ec vely SHI coverage to segments of popula on not yet covered, by

fully subsidizing the SHI contribu on for herders, unemployed workers, students of the voca onal training centres and self-employed.

H2. Allow op on for herders to pay SHI contribu ons twice a year adjus ng be er to the seasonality of their income.

H3. Include drugs in high demand in the list of essen al medicine (those reimbursed at 80 per cent) and increase their reimbursement rate.

H4. Reinforce monitoring and inspec on role of the SHI offi ces in ensuring quality of health-care services at aimag and soum level, by crea ng for instance an independent health-care service complaint bureau.H5. Ensure equality of treatment between na onals and non-na onals in terms of contribu on; they should not be considered under a separate category, as to comply with ILO Conven on No. 118.

Δ H6. Gradually expand the benefi t package funded by SHI and reduce OOP expenses.

H7. Introduce smart card registra on system that could be accepted for all levels of hospitals for any type of services accepted by SHI benefi t package.

Addi onal recommenda ons

H8: Introduce good governance and structural changes into SHI administra on and management.

Δ H9: Increase reimbursement rate for drugs; Increase the list of subsidized medicine, those reimbursed at 80.0 per cent based on current list review.

H10: Promote public-private partnerships for the delivery of health-care services.

Δ H11: Finance prosthe c facili es for disabled and older people from the Social welfare fund also through the SHI Fund.


25

4.2. Children

“Basic income security for children, at least at a na onally defi ned minimum level, providing access to nutri on, educa on, care and any other necessary goods and services”

Mongolia ra fi ed the UN Conven on on the Rights of the Child in 1990 and adopted the Na onal Law on the Protec on of Child Rights in 1996. Over the succeeding decades, Mongolia ra fi ed other UN Conven ons aimed at improving protec on of children. Beside universal and free primary and secondary educa on and free access to health services for children, the main social protec on measure for children is the universal Child Money Programme (CMP) that provides a monthly allowance to all children of age 0–18. In addi on, Mongolia also has a number of social welfare benefi ts targe ng vulnerable children. The Law on Social Insurance, 1994, and the Law on Pension and Benefi ts provided by the Social Insurance Fund, 1994, contain provisions that guarantee income security for survivor children, and the Law on Social Welfare, 2012, prescribes basic guarantees for vulnerable children. Figure 9 illustrates exis ng social protec on programmes in Mongolia.

26

Figure 9. Exis ng social protec on programmes for children in Mongolia

Social protection schemes for children

Contributory Social Insurance

Survivor pension

Non-contributory

Social Welfare

Survivor pension

Social welfare benefits

Cash allowance for care givers

Cash allowance for Emergency Assistance and Livelihood support

Other support to children with special needs: cost reimbursement for prosthetic and

ortophedic devices, rehabilitation, education and care

Social welfare services

Institutional care services

Community based care

services

Social development

services

Food stamp programme

Universal Child Money Programme

Education support

Health support

Source: MPDSP, 2014.

Exis ng universal provisions

Universal Child Money Programme (CMP)

The programme, introduced in October 2012, is fi nanced through the HDF, which is accumulated from mineral resource taxes. All children 0–18 years old are eligible for a benefi t of MNT20,000 per month including children under correc onal service and living abroad.

Two parameters of the programme can explain the success of the CMP: fi rst all children are automa cally eligible as soon as they are recorded at civil registra on department of State Registra on General Offi ce (SRGO) (no addi onal procedure is required), second the monthly benefi t is paid directly through automa c bank transfer to eligible families. As a result, by the end of 2013 a total of 960,300 or nearly 100 per cent of children 0–18 years old received benefi ts.

While the UN/G Social Protec on Working Group was conduc ng the ABND, the Parliament was divided on whether the universality of the CMP should be maintain, because of its high cost and the importance of the State budget defi cit registered in September 2014. Par cipants in the na onal dialogue agreed that introducing a means-tested targe ng criteria on the CMP would be detrimental to the educa on, health, nutri on and personal development of many children who would lose their en tlements resul ng in a nega ve impact on recent progress in reducing child poverty.20 Therefore the ABND par cipants recommended maintaining the universality of the CMP, as well as other social programmes such as the kindergarten meal allowances, free boarding schools, subsidies on SHI for all children age 0–18 years, among others.

20 UNICEF: Analysis of the situa on of children in Mongolia, h p://www.unicef.org/mongolia/unicef_sitan_english_fi nal.pdf [accessed 5 May 2015].

27

Legal framework

Law on Human Development Fund (13 December 2012), Ar cles 17.1.5; Government resolu on No. 49, 2012; and Government resolu on No. 70, 2012

Target group All children 0–18 years old (even children under correc onal service and living abroad are eligible)

Benefi ts MNT20,000 per monthDelivery CMP delivery process goes in a simple way by using bank card and online banking

systemFinancing Mineral resources taxes accumulated in the HDF. The cost of the programme was

MNT232 billion in 2013

Coverage 960,300 children (2013) (nearly 100.0 per cent of the target popula on)

Exis ng provisions: Contributory social protec on benefi ts for children

Children survivor pension benefi t

Legal framework

Law on Pension and Benefi ts provided by the Social Insurance (17 June 1994), Ar cles 12.1.1–12.1.3 and 12.2.3

Target group Target group: 1) born and adopted child (applicable to a child born a er father’s death) under age 16 (19, if a student) regardless of whether there is another person as legal guardian/carer; 2) grandchild and his/her younger sisters and brothers under age 16 who have no other person legally responsible for maintenance; 3) grandchild and his/her younger sister(s) and brother(s), who were born incapacitated or incapacitated prior a aining age 16 (increased to age 19 on 1 July 2015); and 4) a child who doesn’t get any alimony from his/her parents by judicial decision to be treated like his or her own child in the event of death of his or her step father or step mother

Registra on Both mandatory and voluntary registra onFinancing Employers and workers’ contribu ons to the social insurance Pension Fund:

Mandatory scheme: the contribu on rate is included in the 14 per cent of the payroll salary equally shared between employer and employee that fi nances the three benefi ts of the social insurance Pension Fund.Voluntary scheme: the contribu on rate is part of the 10 per cent of the reference income of the individual going to the social insurance Pension fund. Reference income is declared on a voluntary basis: between minimum wage and ten mes the minimum wage.

Benefi ts The number of dependents is taken into considera on in the determina on of the benefi t rate:

• one dependent: 50 per cent of the amount corresponding to a full pension for old age based on the pensionable earnings of the insured;

• two dependents: 75 per cent; or• three or more dependents: 100 per cent

However, the minimum level of pension must be equal to 50–100 per cent of minimum wage (set at MNT192,000 in 2013) depending on the number of dependents

Coverage 766,815 insured under the mandatory scheme (2013); 147,100 insured under the voluntary scheme (2013).

Benefi ciaries 22,500 survivors in 2013 (data are not disaggregated by age of the survivor)

28

Social welfare programmes

According to the Law on Social Welfare, 2012, children are eligible for certain social welfare allowances in the cases described below:

• Children under age 16, who need permanent care are en tled to MNT126,500 per month21 based on non-contributory social welfare allowance;

• A ci zen or a household raising up and taking care of twins (triples and quadruplets) receives the following allowances: for twins, MNT1 million; triples or quadruplets, MNT3 million for each child for one me. The programme covered 4,032 children in 2013;

• A ci zen providing foster care, specifi ed in Ar cle 25.5 of the Law on Family, 1999, to a child-vic m of physiological and physical violence, who is in need for protec on according to Ar cle 74 of the Law on Family. Benefi ts: MNT58,000 per month per child. Training on caretaking and nursing skills is also available for free;

• A ci zen taking care of disabled child under medical control, requiring permanent care. Benefi ts: MNT58,000 per month. Training on caretaking and nursing skills is also available for free;

• Reimbursement for children with disabili es up to age 18, who are not en tled to receive allowance regarding rehabilita on and prosthe c correc on due to industrial accident and occupa onal diseases from the Social Insurance Fund: 100 per cent cost of purchased or custom made special care instruments like orthopaedic tools, wheelchairs and other equipment made in the country, once in three years.

Non-contributory children survivor pension benefi tLegal framework

Law on Social Welfare (19 January 2012), Ar cle 12.1.4

Target group Children below age 18 who lost their breadwinner (one of them or both) who never contribute to the social insurance scheme

Benefi ts MNT126,500 per month from 1 February 2015Financing Social Welfare Fund fi nanced by the government budgetBenefi ciaries 14,072 children22 (2013)

Non-contributory benefi t for single parent headed families

Legal framework

Law on Social Welfare (19 January 2012), Ar cle 12.1.5; Government resolu on No. 81, 2012

Target group Children in a family headed by a single mother age 45 or more (or father age 50 or more) with at least four children below age 18

Benefi ts MNT126,500 per month from 1 February 2015Financing Social Welfare Fund fi nanced by the government budget

Benefi ciaries 52 parents (2013)

Social welfare allowance package for vulnerable children

Legal framework

Law on Social Welfare (19 January 2012), Ar cles 12.1.5, 13, 17.1.1, 17.1.2 and 18.2.3; Law on Social Security of People with Disabili es (8 December 2005), Ar cle 5.1.2 and 5.1.4; Government resolu on No. 153, 2012

21 An amendment to the Law on Social Welfare, 2012 (7 Feb. 2013) specifi ed that this monthly allowance shall be equal to a social welfare pension from 1 Jan. 2014. Therefore, the previous amount of MNT60,000 per month increased to MNT115,000 in 2014 and MNT126,500 in Feb. 2015.

22 MPDSP, Annual Report 2013 (Ulaanbaatar, 2013) p. 42.

29

Target A ci zen who adopted or took legal guardianship of double orphan child; children with specifi c needs; children with disabili es; children with chronic condi ons; single mother/father with at least three children under age 14; twins

Benefi t Seven types of allowances: monthly allowance of MNT58,000 to MNT126,500, one me livelihood support of MNT1.2 million yearly allowance for single parents with children of MNT120,000; Reimbursement of prosthe c correc on and rehabilita on cost (100 per cent) for disabled children

Financing Social Welfare Fund fi nanced by the government budgetBenefi ciaries 18,376 children and their caregivers received monthly allowances and 4,032 children

received twin allowance (2013)

Cash allowance for livelihood improvement Legal framework

Presiden al decree No. 42 (29 March 2013); Government resolu on No. 168 (11 May 2013)

Target Members of reindeer herding families living in Taiga (ethnic minority community)

Benefi t Monthly allowance at 50 per cent of the minimum subsistence level (MSL) to a child, at 100 per cent to an adult (star ng from 1 June 2013)

In 2013 the NSO set the MSL between MNT130,500 and MNT149,900 per month depending on the region23

Financing Government budgetBenefi ciaries 339 people (both children and adults ) of 94 families in 2013

Food stamp programmeLegal framework

Law on Social Welfare (19 January 2012) Ar cle 22, Ministerial Order (MOF and MPDSP) No. A/95/2012

Target Children age 18 or below living in poor and very poor households (iden fi ed through the PMT criteria)24

Benefi t MNT5,000 per month in 2014 and MNT6,500 per month from 1 January 2015Financing Social Welfare Fund fi nanced by the government budgetBenefi ciaries 50,371 children in 201325

Educa on support programmesA summary of educa on support programmes in Mongolia is provided in table 8.

Table 8. Programmes aimed at suppor ng educa on of vulnerable children

Programme Free primary and secondary educa onLegal framework Cons tu on of Mongolia (13 January 1992) Art. 16.7; Law on Educa on (6 June

2002) Art. 6.2Target All children 6–18 years old. Benefi t Primary educa on – 5 years; basic educa on – 9 years; and general educa on

–12 yearsCoverage (2013) 481,000 children1 (plus an addi onal 28,700 enrolled in private schools)Programme Kindergarten with free mealLegal framework Law on Educa on (6 June 2002); Law on Preschool Educa on (23 May 2008)

23 The minimum subsistence levels for 2015: MNT160,800–MNT185,400 per month. The highest is for Ulaanbaatar.24 MPDSP es mates that, approxima vely, the lowest 10.0 per cent of households in terms of consump on will be covered in 2015.25 Data provided by MPDSP.

30

Target Children 2–5 years oldBenefi t Free meal for state kindergartens Coverage (2013) 174,600 children (71.9 per cent of children 2–5 years old)1

Programme Equivalency Educa on Programme (also called Restore Educa on Programme)Legal framework Law on Educa on (6 June 2002) Art. 3.1.7; Non-formal Educa on Na onal

Programme (Government resolu on No. 116, 1997) Ministerial order No. 362 (9 Oct. 2007)

Target Children over age 10 and adults who never had schooling or dropped out of school

Benefi t Free primary and secondary educa on, with curriculum adapted to needs of target groups

Coverage (2013) 1,800 children dropped out of school in 2013-14 (drop-out rate 0.4 per cent).2 In 2014, 10,020 children covered (3,600 for primary, 4,200 basic and 2,300 for complete secondary educa on)3

Programme E-educa on: “One Laptop per Child” 2008–15Legal framework Government resolu on No. 92, 2008Target Students of grades 2–5, inclusive, of secondary school Benefi t Free laptops Coverage (2013) 15,000 childrenProgramme School dormitoryLegal framework Law on Educa on (6 June 2002) Art. 43.2.1Target Orphans, poor students or students unable to a end school because of the

distance issue (public schools) (for primary and secondary) Benefi t Free dormitory room with mealCoverage (2013) 34,704 children in 2013-14 school year; Dormitory coverage index: 94.8% of the

submi ed requests are fulfi lled; All children in rural and peri-urban areas.Programme School lunch Legal framework Government resolu on No. 194, 2006Target Students grade 1–5 of general secondary schools (both public and private)Benefi t Free lunch Coverage (2013) 239,300 childrenProgramme School textbooks Legal framework Government resolu on No. 192 on Master plan to develop Educa on of

Mongolia for 2006–15 (16 August 2006); Ministerial Order (MECS) No. 131 (2009), Cabinet Mee ng Minute No. 28 (2009)

Target Vulnerable children of general secondary schoolsBenefi t free textbooks for all children in primary educa on; and vulnerable children in

secondary and upper secondary educa onCoverage (2013) 343,700 childrenProgramme Voca onal educa onLegal framework Law on Educa on (3 May 2002) Art. 43.2.2 and Art.43.2.10; Law on Voca onal

Educa on and Training (13 Feb. 2009) Target Children and young people who completed basic educa on Benefi t Free voca onal educa on with monthly s pend of MNT70,000 for all students

(public and private) and free boarding for those in need.Coverage (2013) 42,798 studentsProgramme Free public transporta on Legal framework Law on Educa on (6 June 2002) Art. 43.2.3;Target Students of Colleges and Universi es

31

Benefi t Free public transporta on with student card during days of school.Coverage (2013) 103,000 studentsProgramme Na onal student grantLegal framework Law on Financing Higher educa on and Students Social guarantee (9 July 2011),

Art. 8.1; Government resolu on No. 71 (7 Mar. 2014)Target Students enrolled in regular courses of all public and private colleges and

universi es, provided that both applying students and universi es have sa sfi ed the specifi ed criteria.4

Benefi t Monthly grant of MNT70,000 for ten monthsCoverage (2013) 122,000 students

1 Dra budget statement (2015) for Ministry of Educa on, Culture and Science. 2 Mongolian Sta s cal Yearbook 2013, NSO.3 Annual report 2014 of the Na onal Centre for Life-long educa on under the Ministry of Educa on, Culture and Science.4 Un l mid-2014, the scholarship grant was a universal s pend. Following an amendment to the Law on Financing Higher Educa on and Students Social Guarantee in Nov. 2013, Government resolu on No. 71 (7 Mar. 2014) introduced the following eligibility criteria: being a regular course student of an accredited university or college (both public and private); having completed courses of at least 12 credits with at least a grade point average of 2.0 in the preceding semester. The criteria have been further ghtened by Government resolu on Nos. 214 (4 July 2014) and 26 (26 Jan. 2015), requiring a grade point average of at least 3.0.

Source: SIGO, Social Welfare General Offi ce (SWG), MOECS, NAC (Na onal Authority for Children), 2015.

Child social protec on reforms currently being discussed

The following amendments concerning social protec on of children are now being discussed but had not yet been proposed at the me of the ABND. For this reason the recommenda ons for achieving the social protec on fl oor guarantee for children do not refl ect these new developments.

1. MPDSP developed a new dra law on providing benefi ts and assistance to mothers. The dra law, which has been endorsed by the Cabinet, provides: a) monthly cash benefi t and monthly food support to pregnant women from the fi h month of pregnancy to childbirth; b) monthly cash benefi t to a mother who is looking a er her child up to age 2 (in case of twins age 3 and the amount of benefi t will be 50 per cent higher for third baby); c) one- me cash allowance to a mother of twins under age 4; d) subsidized pension insurance coverage (at 50 per cent of monthly minimum wage) for voluntary insured mothers/fathers who are looking a er their biological or adopted child up to the age 2 (in case of twins age 3); and e) 100 per cent of personal income tax refund for a mother with four or more children 2–18 years old. The level/amount of benefi ts, assistance and support will be decided by the Government.

2. Parliament is discussing the dra law on child care. The dra law is intended to target children 2–5 years old who are out of kindergartens. Private child care centres enrolling up to 20 children and mee ng the standards specifi ed by the law can are eligible for subsidies for every child enrolled, not exceeding the level of public kindergartens. Because opera onal and quality standards will be set at a rela vely low level, it is expected that over 6,000 centres would be established, thus resolving the issue of the lack of kindergartens.

3. According to the new policy on Educa on for 2014–24, adopted by Parliament Resolu on No. 12 dated 29 January 2015 (Provision 6.7), a principle of sharing kindergarten meal costs with parents and guardians will be applied.

4. Child and family development centres will be built in Bayangol and Bayanzurkh districts of Ulaanbaatar city and Arkhangai aimag, Khairkhan soum in 2015 funded by the HDF.

Social protec on programmes for children and along with informa on on coverage rates for 2013 are provided in table 9.

32

Table 9. Summary of social protec on programmes for children

Scheme Coverage (2013)

Universal CMP 960,300 children, nearly 100 per cent of all children age 0–18

Contributory survivor pension benefi t 22,500 children

Non-contributory survivor pension benefi t 14,072 children

Single parent headed families with children 52 families

Non-contributory social welfare allowance package

18,376 children and their caregivers received monthly allowances and 4,032 children received twin allowance

Kindergarten with free meal 193,672 children or 79.9 per cent of children age 2–6

Free educa on, primary and secondary 498,600 children

Restore educa on programme 10,020 childrenE-educa on “One laptop per child 2008–15” 15,000 childrenSchool dormitory Dormitory coverage index is 94.8School lunch 239,300 childrenSchool textbooks 343, 700 childrenFree voca onal educa on 42,798 studentsFree public transporta on 103,000 students of colleges and universi esNa onal student grant 122,000 students of colleges and universi es Food coupon 50,371 childrenSource: SIGO, SWG, MOECS, NSO, NAC.


Policy gaps

CMP The CMP is embedded in the Human Development Fund Law, 2012. However the con nuity of its features, notably its universality which is a fundamental principle of the social protec on fl oor, are not safeguarded by law and o en depends on poli cal decisions. The level of benefi t is s ll too low for allowing to cover all expenses related to school a endance, such as uniform and textbooks. There is no automa c indexa on to the cost of living of the level of the CMP allowance.

Survivor benefi ts

There is no automa c indexa on to the cost of living of the level of social insurance survivor pension benefi ts; the level is rather adjusted on an ad-hoc decision.

Preschool accessibility

Enrolment to kindergartens has increased; however such increments were not no ceable among children from low-income households, those who presumably would benefi t the most from kindergarten educa on and meal provided free of cost.

Nutri on quality

Quality of kindergarten meals is low.

33

Social service accessibility

Despite a number of social welfare programmes, children are facing barriers, mostly distances, to access basic social services, including for health and educa on. Quality of these services s ll need to be improved in rural areas, notably for children with special needs and children with disabili es. The defi ni on of children with disabili es does not allow for proper inclusion of all children with special needs. Therefore, many of them are s ll excluded from services and benefi ts provided by the social protec on.Children enrolled in monasteries’ educa onal system do not follow the formal educa on curriculum.Water sanita on and hygiene and adequate sanitary installa on for children is also considered an issue. Employment policies should take more into account needs of workers with family responsibili es.

Parenthood Most parents lack informa on and capacity to properly access social protec on services for their children. Some parents s ll ask their children to help at work, notably in husbandry ac vi es. There is no proper legisla on that will penalize the parents and protect the children in situa on of negligence of parental obliga ons.

Implementa on issuesCMP The list of required suppor ng documents (such as birth cer fi ca on and parent

iden fi ca on documents) is a major obstacle in accessing social services in rural areas.

Quality of services

The standards of quality in social services and infrastructures delivery are well determined; however implementa on and enforcement of these standards are weak.

Quality of school dormitory services is poor.

The number of social workers and care givers, in par cular for psychological care is insuffi cient.There is no facili es for children during school holidays.

Targe ng There are s ll some errors in iden fying households and persons most in need who should be benefi ng from social welfare services.

Informa on There is no coherent informa on system to monitor delivery of social protec on services and benefi ciaries.


General educa on (up to upper secondary or 12 years of educa on) and health care are provided free of charge to all children. Eff ec ve access to educa on is guaranteed by suffi cient and free-of-charge boarding schools. The CMP, universal since 2012, ensures that all children age 0–18 years receive a minimum income guarantee. The main recommenda ons of the child guarantee are to maintain subsidies on social health insurance contribu ons for all children and the universality of the child allowance, rather than introducing a means-tested eligibility criteria that would not bring signifi cant saving to jus fy excluding the large majority of children, including those poor due to exclusion errors a cost comparison is available in the second part of the report).. Further recommenda ons include safeguarding the universality of the CMP through legisla on; indexing the allowance to the cost of living; increasing the quality of nutri on in preschools; and improving access to quality social services by promo ng social work especially among children with special needs.

Table 10 summarizes the recommenda ons gathered during the na onal dialogue process. Items marked with an asterisk (*) indicate a recommenda on to provide new social protec on provisions or increase

34

of coverage of exis ng provisions. The cost of these addi onal provisions or coverage is calculated using the ILO RAP cos ng tool. A number of recommenda ons would require more in-depth feasibility and/or actuarial studies to assess their costs. These recommenda ons are marked with a delta (Δ) in table 10.

Table 10. Recommenda ons for improving the quality of social protec on for all children adopted by the ABND

Main recommenda ons* C1. Keep the CMP amount as it is, but introduce an automa c indexa on to the consumer price

index. Safeguard the universality of the CMP with a legisla on.

Δ C2. Improve social inclusion objec ves of programmes for children with disabili es, for instance such as renova on of facili es to ensure access to social services in par cular kindergarten and school educa on, and expand alterna ve preschool programmes for children with special needs.

C3. Introduce supervisory mechanisms for be er safety and quality of meals in kindergarten and schools.

* C4. Improve the quality of nutri on in preschools/kindergartens for half- and full-board children. A new government policy recommends to limit subsidies on the meal allowance to 50 per cent only.

C5. Increase the number of kindergartens to ensure that the remaining children (likely among the vulnerable groups) can also access to these educa on services.

Addi onal recommenda ons

* C6: Increase the level of CMP benefi ts for young children (however, the UN/G Social Protec on Working Group agreed not to include this recommenda on in the list of scenarios to be es mated, for the moment focusing advocacy eff orts on preserving the universality of the CMP).

C7: Ease qualifying condi ons for benefi ts targe ng single mothers or fathers with several children.

Δ C8: Expand services targe ng children with chronic illness condi ons.

Δ C9: For youth of working age (above age 16), establish programmes that would facilitate the transi on school to work. (See recommenda ons under Guarantee 3.)

C10: Provide decent jobs to parents whose children are involved in worst forms of child labour.

C11: Improve enabling environments for guaranteeing the right to educa on and personal development of children of herders’ families.


35

4.3. Working age popula on

“Basic income security, at least at a na onally defi ned minimum level, for people in ac ve age who are unable to earn suffi cient income, in par cular in cases of sickness, unemployment, maternity and disability”

Working age social protec on consists of contributory and non-contributory benefi t schemes and ac ve labour market employment programmes. Figure 10 depicts the exis ng social protec on and employment promo on programmes for people of working age.

Figure 10. Exis ng social protec on and employment promo on programmes for people of working age in Mongolia

Source: MPDPS, MOL.

36

Exis ng provisions: Contributory social protec on schemes for the working age

Working injury and occupa onal disease insurance

The working injury and occupa onal disease insurance is one of fi ve branches of the Social insurance system and it is administered by the Social Insurance General Offi ce (SIGO).

Legal framework

Law on Social Insurance (31 May 1994), Law on Pension, Benefi ts and Payments provided by Social Insurance Fund against Work Injury and Occupa onal Disease (7 June 1994)

Target group Workers (Mongolians and foreigners or stateless people) employed in Mongolian business en es, NGOs and other organiza ons (Art 4.2.1); workers (Mongolians and foreigners or stateless people) employed in foreign business en es, NGOs, project management units and Interna onal organiza ons in Mongolian territory (Ar cle 4.2.2); civil servants and public workers (Ar cle 4.2.3); labour contracted Mongolian workers deployed abroad (Ar cle 4.2.4); individuals other than the ones specifi ed in Ar cle 4.2 who do not work in formal economy and unemployed workers.

Registra on Mandatory and voluntary

Financing Employers contribu on and individual voluntary contributors to Working Injury, Occupa onal Disease Insurance Fund:

Mandatory scheme: contribu on rate is borne solely by employers at the level of 1 per cent, 2 per cent and 3 per cent (depending on occupa onal hardship) of the payroll salary (between minimum wage and 10 mes the minimum wage).

Voluntary scheme: contribu on rate is 1 per cent of the reference income, paid by insured only. Reference income is declared on a voluntary basis and ranges from the minimum wage (set at MNT192,000 in 2013) to 10 mes of minimum wage.

Benefi ts Disability and survivor pension, sickness benefi ts, compensa on for rehabilita ons: prosthe c facili es, sanatorium treatment caused by a working accident and occupa onal disease.

Coverage Insured under the mandatory scheme: 766,815 insured under the voluntary scheme: 147,100 in 2013

In 2013, 5,800 people received a disability pension, 600 received a survivor pension while 1,000 received sickness benefi ts for temporary loss of working capacity.

Maternity, sickness and funeral benefi ts Contracted employment and public service workers (on a mandatory basis), self-employed, herders and unemployed workers (on a voluntary basis) contribute to the Social Insurance Fund for maternity and sickness benefi ts, and funeral grant. These three benefi ts are grouped under the Allowance Fund. Maternity and sickness benefi ts, as well as funeral grants are administered and delivered through Social Insurance Offi ces.

Legal framework

Law on Social Insurance (31 May 1994,) Ar cles 4.2 and 4.3; Law on Pension and Benefi ts provided by the Social Insurance Fund (7 June 1994)

Target group Ar cle 4.2 (contracted employees and civil service workers), Ar cle 4.3 (informal sector and unemployed workers, and herders)

Registra on Mandatory and voluntary

Financing Employer and workers’ contribu on to the social insurance Allowance Fund:Mandatory scheme: contribu on rate is of 1.6 per cent of wages equally shared between workers and employers. Voluntary scheme: contribu on rate is 1 per cent of the reference income (reference income shall not be below minimum wage).

37

Eligibility Maternity benefi t: At least 12 months of contribu ons, of which six con nuous prior to maternity leave.Sickness benefi t and Funeral grant: At least three months of contribu on prior to a sickness leave due to ordinary disease and non-occupa onal accidents.

Benefi ts Maternity benefi t: the replacement rate is 100 per cent of last 12 month average wage for a period of four months for mandatory insured mothers (Ar cle 4.2); and 70 per cent of last 12 month average income for a period of four months for voluntary insured mothers (Ar cle 4.3).

Sickness benefi t: The insured period is taken into considera on in the determina on of the benefi t rate, which is applied on the average past three months wages:

• up to 5 years old: 50 per cent;• 5–14 years old: 55 per cent; • 15 years and above: 75 per cent.

The maximum 66 working days in case of ordinary disease in a year. This dura on can be extended to 132 days in a year in case of extraordinary disease (both Ar cles 4.2 and 4.3).For example, in case the insured person has paid contribu ons for fi ve con nuous years based on the minimum wage, the benefi t will amount MNT314,160 (US$185) for a maximum of 66 days of sickness.Funeral grant: MNT620,000 (both Ar cles 4.2 and 4.3).

Coverage Insured under the mandatory scheme: 766,815 insured under the voluntary scheme: 147,100 in 2013.In 2013, a total of 45,700 mothers received maternity benefi ts and a total of 104,400 workers received benefi ts under the sickness insurance scheme. Funeral grants were paid to 12,400 people in 2013.

Unemployment insuranceThe mandatory social insurance scheme also provides support in case of loss of employment for formal employees in the private and public sectors. The package of voluntary social insurance scheme provided for herders, self-employed and informal economy workers does not include unemployment benefi ts. The unemployment benefi ts are calculated, approved and delivered through Social Insurance Offi ces. 26

Legal framework

Law on Social Insurance (31 May 1994), Ar cle 4.2; Law on Unemployment Benefi ts Provided by the Social Insurance Fund (5 July 1994)

Target group Ar cle 4.2 (contracted employees and civil service employees)

Registra on Mandatory

Financing Employers and employees’ contribu ons to the social insurance Unemployment Insurance Fund: The contribu on rate is of 0.4 per cent of wages equally shared between workers and employers.

Eligibility A worker must have a minimum of 24 months of insurable employment including con nuous employment in the last nine months to qualify for unemployment insurance benefi ts. From July 2015, in a case of a subsequent claim, the qualifying period will be increased from 6 months to 12 months, the other eligibility criteria remaining the same (Law amendment of 30 January 2015).

26 For more details see also: J. Carter, M. Bedard and C.P. Bista: A compara ve review of unemployment and employment insurance systems in Asia and Worldwide (Bangkok, ILO, 2013).

38

Benefi ts Unemployment insurance benefi ts can last 76 days, irrespec ve of the dura on of insured employment. The insured period is taken into considera on in the determina on of the benefi t rate, which is applied on the average past three wages:

• up to 5 years of insured employment: 45 per cent;

• 5 to 10 years: 50 per cent;

• 10 to 15 years: 60 per cent;

• 15 and above: 70 per cent.

The minimum unemployment benefi t shall not be less than 75 per cent of the minimum wage established by the Na onal Tripar te Commi ee on Labour and Social Consensus at MNT192,000 per month according to the last update in April 2013.

Under the current law, if a worker terminates the employment contract voluntarily or the employment rela onship has been terminated by the employer due to serious and repeated breaches of the labour code, 36 days of benefi ts are deducted from due benefi ts. From 1 July 2015, however, with the new legal amendment adopted 30 January 2015, this provision will be removed.

Coverage Insured: 766,815 in 2013. In 2013, 15,800 employees received unemployment insurance benefi ts.

Disability and survivor pension The disability and survivor pensions are part of the three benefi ts provided by the Pension Fund of the Social Insurance System, together with the old-age pension. The pension benefi ts are calculated and administered by Social Insurance offi ces at aimag levels, and delivered at soum levels.

Legal frameworkLaw on Social Insurance (31 May 1994), Ar cles 4.2 and 4.3; Law on Pension and Benefi ts Provided by the Social Insurance Fund (7 June 1994)

Target group Ar cle 4.2 (contracted employees and public service workers), Ar cle 4.3 (informal sector and unemployed workers, and herders)

Registra on Both mandatory and voluntary

Financing Employers and workers’ contribu ons to the social insurance Pension Fund:Mandatory scheme: the contribu on rate is included in the 14 per cent of the payroll salary equally shared between employer and employee that fi nances the three benefi ts of the social insurance pension Fund.

Voluntary scheme: the contribu on rate is part of the 10 per cent of the reference income of the insured going to the social insurance pension fund. Reference income is declared on a voluntary basis: between minimum wage and 10 mes the minimum wage.

39

Benefi ts Disability pension: in case of loss of capacity to a level of at least 50 per cent, the benefi t rate is 45 per cent of his/her reference wage. A er 20 years of service, the benefi t rate increases by 1.5 per cent for each addi onal year. A person is eligible for a par al pension if s/he contributed for a period of three years out of fi ve immediately preceding the date of commencement of disability. In any circumstances, both fully and par al disability pensions must not be lower than the minimum social insurance old-age pension (set at MNT195,000 for a par al pension or MNT230,000 for a full pension). Survivor pension: the number of dependents is taken into considera on in the determina on of the benefi t rate:


• two dependent: 75 per cent;

• three or more dependent: 100 per cent.

However the minimum level of pension must be equal to 50–100 per cent of minimum wage (set at MNT192,000 in 2013) depending on the number of dependents.

Eligibility Disability pension: An insured person who has lost his/her capacity for work permanently or for a long dura on due to a non-occupa onal disease or accident, provided that he/ she has paid contribu ons for not less than 20 years, or for a period of three years out of fi ve, immediately preceding the date of commencement of invalidity.Survivor pension: Family dependents (spouse and children below age 16) where an insured person, who has paid contribu ons for not less than 20 years, or for a period of three years out of fi ve before the death, dies due to a non-occupa onal disease or accident.

Coverage 766,815 insured under the mandatory scheme; 147,100 insured under the voluntary scheme in 2013.

Benefi ciaries 22,500 survivors in 2013 (no disaggregated fi gures by age).

Military service scheme

Legal framework Law on Pension and Benefi ts of Military Service Personnel (13 June 1994), Ar cle 4.1

Target group Cadet, soldiers, sergeants, fi rst-sergeants, offi cers, commissaries, generals of armed forces, offi cials of Defence, Police, Border Security, Correc onal Service, Intelligence, Emergency Service and Criminali es.

40

Benefi ts The scheme include the following benefi ts delivered through Social Insurance offi ces: old-age pension (see more details under guarantee 4), disability pension, survivor pension, maternity benefi t, sickness benefi t and funeral grant.Maternity benefi ts: 100 per cent of last 12 months average wage for a period of four months.Sickness benefi ts: The benefi ts are calculated according to the years of services as follows:

• up to fi ve years of services: 50 per cent of the reference wage;• from 5 to 14 years: 60 per cent; • 15 years and above: 80 per cent.

Funeral grant: MNT620,000 in 2014. Disability pension: the level of benefi ts varies from 10 to 60 per cent of the average of the fi ve con nuous years’ salaries out of the past 20 years of service depending on the level of invalidity. Survivor pension: The calcula on of the level of survivor pension takes into considera on the number of dependents, as a percentage of the average of the fi ve con nuous years’ salaries out of the past 20 years of service. Dependents can be spouse and/or children:

• 3 or more dependents: 100 per cent of past earnings; • 2 dependents: 75 per cent; and• 1 dependent: 50 per cent and plus 10–15 per cent complementary benefi t.

Eligibility Men military offi cial should have completed at least 25 years of service and women 20 years of service.

Financing Government budget A comparison of the provisions of the 1994 and 1999 laws on disability and survivor pensions is provided in table 11.

Table 11. Comparison between the provisions of laws adopted in 1994 and 1999 for disability and survivor pensions

Defi ned benefi ts (DB) scheme (for ci zens born before 1960)

No onal defi ned contribu on (NDC) scheme (for ci zens born a er 1960)

Disability pensionBenefi t rate Invalidity of 75 per cent or more = 45 per

cent of income reference, increased by 1.5 per cent of wages for every addi onal year.

Invalidity of 50 per cent or less = pension calculated at propor onal rate of the wages as 45 per cent or more.

Both full and par al disability pension shall not be less than the old-age minimum pension.

If old-age pension is below disability pension, the person will be en tled to disability pension at re rement age.

If disability is not the result of an occupa onal accident or disease, the person will be eligible for a social pension provided by the Social Welfare Agency.

Total invalidity = monthly average wage in the last three years* 60 per centPar al invalidity = (monthly average wage in the last three years*60 per cent)

* percentage of capacity for work lost;

Minimum disability pension must be equal to minimum old-age pension.

41

Qualifying condi ons

Invalidity of not less than 50 per cent due to a non-occupa onal disease or accident with contribu ons for not less than 20 years of service or at least three years out of fi ve immediately preceding the date of invalidity commencement.

Survivors pensionBenefi t rate Three or more dependents = 100 per cent of

the amount corresponding to a full pension for old age based on the pensionable earnings of the insured, Two dependents =75 per cent, and one dependent = 50 per cent.Minimum survivor pension must be equal to 50–100 per cent of the minimum wage (set at MNT192,000 in 2013) depending on the number of dependents.

40 per cent monthly average wage in the last three years for one dependent, increased by 10 per cent for each addi onal family member. Pension should not exceed 60 per cent monthly average wage of the last three years. Minimum pension must be equal to minimum old-age pension

Qualifying condi ons

Not less than 20 years insured service, or three years out of fi ve, immediately preceding the death of the breadwinner due to non-occupa onal disease or accident.

Exis ng provisions: Non-contributory social protec on schemes for the working age

The following benefi ts are delivered through Social Welfare Offi ces.

Social welfare disability pension benefi t

Legal framework

Law on Social Welfare (19 January 2012) Ar cles 12.1.3 and 12.1.2; Government resolu on No. 81, 2012

Target group Ci zens age 16 and older who lost his/her working capacity equivalent to at least 50 per cent and more and dwarf individuals age 16 and older

Eligibility Being not en tled to receive pension under the social insurance legisla on (never contributed (or less than three years) to the social insurance scheme).

Benefi ts The level of disability pension is fi xed on ad-hoc basis, and not indexed to the cost of living. On 1 February 2015, the amount was increased from MNT115,000 to MNT126,500 per month.

Financing Social Welfare Fund fi nanced by the government budget.

Coverage 44,209 people with disabili es and 164 dwarf people in 2013.27

Table 12 provides a summary of other social welfare cash supports for the working age popula on.

Table 12. Other social welfare cash supports (2013)

Support Legal framework Target/eligibility Benefi t Coverage

Cash allowance for poor

Law on Social Welfare (19 January 2012), Art. 13.3

A ci zen-member of household selected from households with living standard lower than a specifi ed threshold who are registered in a central database of households (proxy-means tested database)

MNT48,000 per month

Proxy-means tes ng programme, not yet implemented

27 Annual Report of MPDSP for 2013.

42

Emergency assistance

Law on Social Welfare (19 Jan. 2012), Art. 13.5.1

Homeless or whose home became unsuitable for living or lost livelihood due to sudden accident, disaster-dzuds (harsh winters) or other unforeseen reasons

MNT1,200,000 one me

815 people of 602 households

Livelihood support

Law on Social Welfare (19 Jan. 2012), Ar cles 13.5.2–13.5.5

Ci zen, age 18–24 who became a double orphan before he/she turned 18; homeless ci zen released from prison; homeless and wandering ci zen or household

MNT1,200,000 one me. 403 people

Allowance and assistance

Law on Social Security of People with Disability (8 Dec. 2005), Ar cles 5.1.3 and 5.1.4; Government resolu on No. 153, 2012

People with disabili es

15 types of allowances, reimbursements and assistance services

37,300 people1

Allowance for permanent care


A ci zen taking care of elder or disabled person under medical control, requiring permanent care.

MNT48,000 per month (the amount was increased to MNT58,000 from 1 Feb. 2015) 1 Feb. 2015

16,800 people with disabili es (plus 16,800 older persons)2

Allowance for permanent care-givers


A ci zen taking care of single elder or disabled person in their family, who has no children or rela ves to take care of him\her;

MNT48,000 per month (the amount was increased to MNT58,000 from 1 Feb. 2015)

239 people with disabili es and 154 older people

Food and nutri on support

Law on Social Welfare (19 Jan. 2012), Art. 22

A member of poor household as requiring necessary food supply; homeless people

Food coupon – MNT10,000 for every month in 2014 (MNT13,000 per month from 1 Jan. 2015)

47,548 adults of 97,919 total benefi ciaries

Cash allowance for livelihood improve-ment(star ng 1 June 2013)

Presiden al decree No. 42 (29 Mar. 2013); Government resolu on No. 168 (11 May 2013)

Members of Reindeer herding families living in Taiga (ethnic minority)

Monthly allowance, 50 per cent of minimum subsistence level (MSL) for a child, 100 per cent for an adult3

339 people of 94 families

1Mongolian Sta s cal Yearbook 2013, NSO. 2 Annual report of MPDSP for 2013. 3 MSL for 2015: MNT160,800–MNT185,400 per month. The highest is for Ulaanbaatar.Source: SWGO, 2015.

43

Other in-kind social welfare: Community-based service for the working age

Target group People with disabili es; vic ms of violence; ci zens released from a prison; alcohol and drug addicted ci zens; ci zens with incurable disease; Homeless and wandering households and ci zens; migrated ci zens or ci zen-members of poor households; Single mothers/fathers.

Services Support to homeless ci zens and their family members in socializing, civil registra on, and accommoda on in a temporary shelter; Socialize ci zens and households requiring social welfare assistance, to help form a community group, implement income genera ng projects and provide life skills training; Counselling; Rehabilita on; Temporary accommoda on and care; Day care service; Home based care and service.

Financing Local government budget (from 2013)Funding process

Service costs es mated by the Social welfare unit at the aimag level, district and capital city on the basis of proposal issued by Livelihood Support Council of respec ve soum and khoroo and be submi ed to the Local Governor Offi ce.

Coverage 8,700 people in 2014

Ac ve labour market programmes Ac ve labour market measures comprise programmes with a twofold objec ve: 1) enhancing employability; and 2) promo ng employment. All programmes, as well as func ons and services of employment services, are designed and funded by the Ministry of Labour (MOL) and implemented by the local government at aimag and soum levels. From 2012 to 2014, MOL implemented two programmes under the fi rst category and eight under the second, as described herea er.

In February 2015, the Na onal Employment Council (tripar te body) reviewed the employment promo on programmes (EPP) and adopted the fi ve following programmes:

44

1. support to self-employed people to start coopera ves or partnerships;2. employment skills and reten on of jobs;3. promo on of employment of people with disabili es;4. promo on of herders’ employment; and 5. promo on of employment among youth, graduates of voca onal schools and training. For the year 2015, MNT80.3 billion have been allocated to these programmes through the Employment Promo on Fund.The report describes the ten EPPs that were been reviewed during the na onal dialogue from December 2013 to September 2014.

Enhancing employability

Public employment services provide support for occupa onal and voca onal orienta on, career and job counselling and analysis and collec on of labour market informa on, including supply and demand for jobs and skills. In addi on, employment services are also accredited to deliver their own voca onal training programmes. Current programmes and ac vi es are outlined below.

Programme on prepara on of professional workers28

Key ac vity Registra on of trainees (a four-way contract is established between the unemployed person, Government, training provider and employer); voca onal training at voca onal training centres and produc on centres, 20 per cent of training shall cover the theory and 80 per cent shall be the prac cal appliance of theore cal knowledge; and evalua on and assessment of graduates and job placements

Benefi t Trainee is provided with:• a monthly fellowship of MNT190,000; • monthly accommoda on cost of MNT75,000;• working cloths of MNT60,000.Addi onal cost for a prac cal session MNT312,000 per a mentor (mentor and trainee ra o 1:15) for 3 months.Employer that provided a job place receives MNT65,000 per trainee. In total MNT7.215 billion spent in 2014.

Coverage 4,182 people trained; 3,085 jobs created, of which 2,695 regular and 390 temporary

Programmes on employment prepara onKey ac vity Counselling and orienta on: review of career, prepara on for interviews

Benefi t Reimbursement of costs for obtaining necessary documents and medical check-up.

Maximum of reimbursement cost per person is fi xed by Minister of Labour. In total MNT144.2 million spent in 2014

Coverage 5,695 people benefi ed

Key ac vity Employment training

Cost MNT1.6182 billion spent in 2014Coverage 6,399 people

Key ac vity Measures to support employers; reimbursement of prac cal training cost of up to three months per full me worker trained through on job training

28 2014 data provided by Ministry of Labour.

45

Cost 12 mes the minimum wage for each newly created job that qualifi es for benefi ts under the programme. The employee must have worked for more than 12 months.

Salary support:• One year’s salary to an employer if the employee reached working age while in the

children’s welfare campus or was released from a prison and was placed in a full- me job through on-the-job training. The employee must have worked for more than one year.

• 50 per cent of one year’s salary to an employer if the employee reached working age while in the children’s welfare campus or was released from prison and placed in a full- me job through on-the-job training. The employee must have worked for 8–12 months.

In total MNT1.1491 billion spent in 2014Coverage 487 employers

Employment promo on programmesSince January 2012, the MOL has been implemen ng a number of employment promo on programmes, targe ng: i) vulnerable workers such as people with disabili es, self-employed, herders, coopera ves and those star ng their own-business; ii) employers; and iii) inhabited regions of Mongolia.

Eight employment promo on programmes have been implemented in 2014.

Employment promo on programme for workers over 40 and seniors Key ac vity Project on plan ng potato, vegetables and fruitsCost MNT527.1 million spent in 2014Coverage 1,286 peopleKey ac vity Projects on group work to protect and rehabilitate the environment and prevent

injuries and accidentsCost A group with 1–3 people, dura on 4 months per group, incen ve is MNT200,000 per

month per group; MNT539.6 million spent in 2014Coverage 2,097 peopleKey ac vity Project on regula ng traffi c crosses around primary and secondary schools

Cost Only in a capital city Ulaanbaatar, a group with 1–3 people, dura on is not more than eight months, incen ve MNT200,000 per month per group; MNT84.3 million spent in 2014

Coverage 458 people

Employment promo on programme for herders Key ac vity Restocking of animals for young herdersCost MNT5 million, one me per household; 50 per cent of the loan shall be paid back within

three years; MNT2.906 billion spent in 2014Coverage 1,492 young herdersKey ac vity Financial Support to herder-employers

Herder-employer who hire proba oner-herders with few animals or those herders who lost their animals because of natural disasters; employers must pay at least for 12 months not less than the na onal minimum wage and must teach them herding techniques; employers receive up to ten livestock annually

Cost Up to MNT1 million grant, for one me; MNT40 million spent in 2014

46

Coverage 40 herder-employersKey ac vity Training and study tours, fair exhibi onsCost MNT442.4 million spent in 2014Coverage 1,101 herders

Programme for entrepreneur development Key ac vity Providing fi nancial support to entrepreneurs as follows:

• ci zens over age 40• ci zens that have diffi cul es of fi nding a job• self-employers and ci zens that start a business or move from the informal sector

to formalCost MNT1 million per person; MNT1.5649 billion spent in 2014Coverage 1,417 peopleKey ac vity Providing business and incuba on servicesCost MNT1.0526 billion spent in 2014Coverage 8,658 people

Employment promo on programme for people with disabili es (PWD) Key ac vity Skills trainingsCost MNT83.3 million spent in 2014Coverage 1,022 peopleKey ac vity Financial support to people with disabili es for their entrepreneur developmentCost Up to MNT1 million per posi on; in total MNT5 million will be provided to PWDs based

on a business proposal compe on bid; MNT1.2443 billion spent in 2014Coverage 1,455 peopleKey ac vity Support to employers that provide job places for PWD (1)Cost Incen ve: One me incen ve equal to 12 mes the minimum wage for each person with

disabili es employed for more than 12 monthsFinancial support: MNT5 million per job place (up to MNT50 million) if more than eight permanent posi ons are created especially for the skills and features of PWDs, based on a compe ve bid for the project; MNT97.8 million spent in 2014

Coverage 45 employers provided job places for 129 PWDKey ac vity Support to employers that provide job places for PWD (2)Cost Financial support: MNT5 million per job place (up to MNT50 million) if more than eight

permanent posi ons are created specially designed for skills and features of PWDs, based on a compe ve bid for the project; MNT300 million spent in 2014

Coverage 100 employers

Youth employment promo on programmeKey ac vity “Soum youth” project with an objec ve to provide public services to ci zens in remote

soums and towns and to contribute into ac vi es for local development.Cost One me incen ve of MNT200,000 shall be paid to each par cipant, if s/he worked for

more than 21 working days; MNT403.6 million spent in 2014Coverage 1,978 peopleKey ac vity “Start of work” project suppor ng youth par cipa on in ac vi es such as winter

prepara on, building model winter shelter, delivering new baby animal, making hay and cropping ac vi es by fi nancing of local authori es and ci zens.

Cost One me incen ve of MNT200,000 shall be paid to each par cipant, if s/he worked for more than 21 working days; MNT1.4857 billion spent in 2014

47

Coverage 7,311 people

Key ac vity Support to youth income genera on through summer works in mining, road building, constric on and other sectors during students’ summer vaca on.

Cost One me incen ve of MNT200,000 shall be paid to each member of a team with 10–15 members, if s/he worked in the abovemen oned economic sectors for more than 21 working days; MNT198.8 million spent in 2014

Coverage 914 people

“Inhabited Mongolia” programme Key ac vity 10 working days paid to employees of local public work programmes

Cost MNT14,000 per person per day as salary and a lump-sum of MNT10,000 for working equipment per person; MNT2.2516 billion spent in 2014


Key ac vity 10 working days paid to employees of green work provided by local government

Cost MNT14,000 per person per day as salary and MNT10,000 lump-sum per person for working equipment; MNT2.0803 billion spent in 2014


Senior specialist’s consulta on service project Key ac vity Consul ng services on necessary fi eld of work to aimag, soum, district and sub-district

by elder people’s team (a team at least of three members, at least three months service and 56 working hour per month)

Cost MNT1 million per team; MNT984.7 million spent in 2014Coverage 3,030 peopleKey ac vity Consul ng service, based on a contract, by elder people through NGO (implemented

by Employment Service Center in Ulaanbataar only, based on project bid, 70 per cent of budget shall be paid in advance and 30 per cent upon accomplished ac vi es)

Cost No dataCoverage 272 people

Loans from SME promo on fund, employment promo on fund and soum development fund Key ac vity Small and medium enterprises loans; Employment promo on loans; Loans from Soum

developmentCost According to bid regula ons

Coverage 440 people small and medium enterprises loans; 5,729 people received employment promo on loans, MNT17.4 billion spent, 12,915 jobs created, of which 10,193 regular and 2,722 temporary jobs; 3,386 people received loans from Soum development, MNT5.8 billion spent

48

Social protec on programmes for the working age group are summarized in table 13.

Table 13. Summary of social protec on programmes for the working age group

Type of scheme Benefi ts Coverage (by the end of 2014)

Social insurance schemesWorking Injury and Occupa onal Disease Insurance

Disability pension, Survivor pension, Sickness benefi ts, Compensa on for rehabilita ons: prosthe cs facili es, sanatorium treatment

71.6 per cent of labour force

Allowance Insurance

Maternity benefi t, Sickness benefi tand Funeral Grant

71.6 per cent of labour force

Unemployment Insurance

Unemployment benefi ts 766,815 people or 60.1 per cent of total labour force

Pension Insurance

Disability pension, Survivor pension 71.6 per cent of labour force

Military benefi t scheme

Disability pension, Survivor pension, Maternity benefi ts, Sickness benefi ts, Funeral grant

n/a

Social welfare benefi tsNon-contributory Social Welfare Pension Benefi t

Disability pension 44,373 people received MNT115,000 per month (the amount was increased to MNT126,500 from 1 Feb. 2015)

Universal Maternity Benefi t

Universal maternity benefi t 94,882 people received MNT40,000 a month for 12 months

Cash support Cash allowance for poor n/a

Cash support Emergency assistance 815 people received MNT1,200,000 one me

Cash support Livelihood support for orphans age 18–24, homeless

403 people received MNT1,200,000 one me

Cash support Allowance and assistance for people with disabili es

37,300 people

Cash support Allowance for permanent medical care 33,600 people received MNT48,000 per month (the amount was increased to MNT58,000 from 1 Feb. 2015)

Cash support Allowance for permanent home care 393 people received MNT48,000 per month (the amount was increased to MNT58,000 from 1 Feb. 2015)

Support in kind Food and nutri on support 47,548 adults received food coupon of MNT10,000 a month (the amount was increased to MNT13,000 from 1 Jan. 2015)

49

Social welfare services

Community based service for WA 8,700 people

Employability programmes

Programme on prepara on of professional workers

4,182 people

Preparing for Employment 12,581 people

Employment promo on programmes

Employment promo on programme for people over age 40

3,841 people

Employment promo on for herders 2,633 people

Programme for entrepreneur development 10,075 people

Employment promo on for PWD 2,622 people

Youth employment promo on 10,203 people

“Inhabited Mongolia” programme 25,329 people

Senior Experts consulta on services 3,302 people

Loan through specialized funds 9,555 people

Source: SIGO, SWGO and MOL.

Policy gaps and implementa on issuesPolicy gaps

Insurance policy Contribu ons are collected on a monthly basis, which is not adapted to the seasonality of herders’ incomes (This gap was addressed by a policy amendment during the ABND process, in January 2014; now contribu ons can be collected monthly, quarterly or twice a year depending on how the social insurance agency and the insured agree in the contract).

Social insurance benefi ts

The level of benefi ts rela vely low for all con ngencies, par cularly in terms of dura on. The qualifying condi ons are o en hard to meet. Both gaps create disincen ves for par cipa ng to the social insurance scheme.

Working injury and occupa onal disease insurance

Weak inves ga on mechanisms and absence of criteria to assess whether the disease is work related, as well as the ambiguity concerning accidents occurring on the way to/from work aff ect the eff ec veness of the scheme.

Employer representa ves also noted the absence of penal es or provisions to reduce benefi ts if a working accident occurs by fault of the worker.

The disability benefi t off ered for temporary incapacity is too low, i.e. nearly three mes lower than standards prescribed by the ILO Conven on No. 121, Schedule II: 60

per cent of past earnings for a man with a wife and two children as dependents).

The number of claims to the employment injury and occupa onal disease fund could be reduced by enforcing more eff ec ve preven on policies.

50

Maternity Voluntary social insurance off ers lower benefi ts (replacement rate set at 70 per cent of past earnings) although the contribu on rate is the same as the mandatory social insurance maternity benefi t (replacement rate at 100 per cent of past earnings).

Unemployment benefi t eligibility

The eligibility condi on requiring workers to contribute for at least two years, and notably the nine con nuous months immediately preceding their job loss, is too restric ve and causes many who lose their jobs to fail to qualify for an unemployment insurance benefi ts.

Unemployment insurance en tlements do not link with return to work and employment promo on programmes.

Contributory disability pension

The level of benefi ts is low and adjusted in ad-hoc manner, therefore it does not allow for automa c indexa on to the cost of living.

Focus is on providing cash benefi ts, but the benefi ts do not link with some employment promo on and rehabilita on programmes that could reinforce employability of people with disabili es.

EPP: Preparing for Employment

One of the criteria for an individual to be enrolled in the employment promo on programme (EPP) is the period already spent searching a job (over six months), which should be decreased to two–three months.

EPP for herders The demand for this programme in rural area is high. However, limited funding and restric ve eligibility criteria may aff ect its successful implementa on.

Herders o en lack informa on concerning social insurance schemes. For instance, par cipa on in EPPs do not link to promo ng social insurance registra on. Herders are exempted from most taxes; therefore they may not be familiar with and/or willing to contribute to the social insurance system. Special a en on should be given to young herders.

EPP for people over 40 and senior ci zens

MOL should consider improving the design of this programme, notably by including enhanced voca onal training that supports senior workers to adapt their working methods.

EPPs suppor ng employers

The programme includes restric ve qualifying condi ons, which discourages poten al benefi ciaries from accessing the fi nancial grant. For instance, one of the criteria is that the applicant should have worked for the same employer con nuously for the past 12 months; or the employer can guarantee that the applicant will stay for at least six months in the job.

EPPs providing fi nancial support

The fi nancial support such as loans granted by the EPPs for entrepreneurship development, people with disabili es, and herders does not include a component of business skills development.

Implementa on issues

Coverage Although the level of contribu on seems aff ordable for herders (according to market price of livestock the minimum wage equals to price of one sheep), their par cipa on to the voluntary social insurance is very low among herders. The very low coverage, especially among young people, herders and self-employed may denote a lack of interest and awareness on the benefi ts of social security.

Evasion The na onal average wage as reported by the NSO is signifi cantly higher than the average wage declared for paying mandatory social insurance contribu ons, which suggests prac ces of social evasion by employers and employees.

51

Accessibility Herders hardly visit the soum centre due to remoteness, and animal husbandry care (maybe once a month).

Contribu on schedule

The contribu on payment schedule is not appropriate or does not meet the income cycle and life style of rural popula on. Herders’ income depends on highly seasonal events like cashmere, milk and live animal sales, and their demand for cash is also dictated by seasonal needs. Herders hold cash only twice a year, at spring during cashmere sale and early December during meat prepara on. (This gap was addressed by a policy amendment during the ABND process, in January 2014; now contribu ons can be collected monthly, quarterly or twice a year depending on how the social insurance agency and the insured agree in the contract).

Awareness There is a signifi cant lack of informa on on procedures and benefi ts from contribu ng to social security systems, especially among the young people.

Targe ng There is no clear defi ni on for a homeless person neither clear procedure of providing a shelter (ger) to them.

Adequacy People with disabili es cannot access services due to inadequate facili es for people with prostheses and orthopaedics and absence of service providers in rural area.

EPPs: General comment

Informa on and awareness on these programmes is low among popula on. Four of the EPPs, notably those for herders, entrepreneur development, people with disabili es and training of professional workers have been more successful according to the MOL annual review for 2014.29 Further improvements to the design all of the programmes are needed. The report highlights poor coordina on, overlapping and contradic ons between the diff erent employment programmes. Funds and capaci es are lacking for the effi cient implementa on of the programmes. EPPs lack funds and good capaci es of labour offi cers in rural areas, where levels of unemployment and poverty are higher than the na onal average.

EPPs to promote voca onal training

The dura on of voca onal training is too short, which hinders the proper acquisi on of professional skills needed to increase compe veness on the labour market.

The selec on process for obtaining an authoriza on to open a training ins tute tends to favour Ulaanbaatar training providers, leaving behind voca onal training supply for seasonal jobs in the rural area, in par cular training facili es/programmes aimed at promo ng rural coopera ves and seasonal job placement.

Conclusions and recommenda onsPar cipa on in the voluntary social insurance system remains low, integra on between income support programmes (e.g. social welfare programmes, unemployment benefi ts) and employment promo on measures is weak. To complete the social protec on fl oor for the working age popula on, the main recommenda ons are: introduce incen ve mechanisms (e.g. subsidies on contribu ons) to increase social insurance coverage among herders and self-employed workers; increase the replacement rate of maternity benefi ts for women covered under the voluntary social insurance scheme; and establish eff ec ve and systema c linkages between social insurance and ac ve labour market programmes.

Table 14 summarizes the recommenda ons gathered during the na onal dialogue process. Items marked with an asterisk (*) indicate a recommenda on to provide new social protec on provisions or increase

29 Report of the Annual review on Implementa on of EPPs for 2014, MOL.

52

of coverage of exis ng provisions. The cost of these addi onal provisions or coverage is calculated using the ILO RAP cos ng tool. A number of recommenda ons would require more in-depth feasibility and/or actuarial studies to assess their costs. These recommenda ons are marked with a delta (Δ) in table 14.

Table 14. Recommenda ons adopted by the ABND for ensuring income security of the working age group

Main recommenda ons* WA1. Increase the replacement rate for maternity benefi ts under voluntary social insurance

scheme to 100 per cent at the same level as for mandatory social insurance scheme.

Δ WA2. Bring more fl exibility in qualifying condi ons to the unemployment insurance benefi ts: nine months qualifying period in the last 24 months in order to improve protec on of workers holding short term contracts; Increase the level of benefi ts at minimum 50 per cent.

* WA3. Create incen ves to join the voluntary social insurance contribu on by subsidizing the contribu on. WA4. Provide more fl exibility in paying voluntary contribu ons (applies also to the social insurance pension fund), especially for herders by revising the contribu on payment schedule (twice a year) and allowing paying back unpaid contribu ons within a determined period of me (Reform introduced in January 2014).

* WA5. Establish systemic linkages between social insurance and EPPs by entailing social insurance registra on as a condi on to access the EPPs.

* WA6. Develop EPPs linking with voca onal training and registra on to social insurance, targe ng specifi cally young herders (most of benefi ciaries of the eight EPP are living in urban areas).

* WA7. Increase linkages of unemployment insurance benefi ts with ALMPS, by designing for instance training responding to the needs of benefi ciaries (EPP target vulnerable workers who require skills upgrading)

Δ WA8. Reinforce public employment services, in par cular career/employment/training counselling, voca onal training and entrepreneurship counselling, rather than focusing only loan programmes, notably services adapted to young people.

* WA9: Develop a comprehensive programme (that combines training and retraining, counselling for entrepreneurship, career counselling) for reinser on of people with disabili es due to working injury and occupa onal diseases.

WA10. Implement awareness and informa on campaigns about new EPPs especially in rural areas.

Addi onal recommenda onsΔ WA11: Use new informa on technologies and fl exible systems, such as telephone-based

contribu on payment services, e-fi le and informa on technology connec vity between aimag and soum social insurance offi ces, mobile offi ces and insurance products linked to herders’ seasonal cash fl ows.

Δ WA12: Implement workplace improvement and injury preven on ac vi es, e.g. public awareness aimed at both workers and employers, arranging consul ng services and dissemina on of good experiences.


53

4.4. Older persons

“Basic income security, at least at a na onally defi ned minimum level, for older persons.”

The Mongolian pension system comprises both a social insurance and a social welfare pension schemes. Each respec ve pension scheme off ers income support for all those not capable to work and for survivors of an insured person. Reasons for incapacity to work can be old age, child care responsibili es and disability. For the purpose of this report we have separated the old-age, disability and survivor pensions (the disability pension is addressed under guarantee for the working age group and survivor pension is men oned for each guarantee along the life cycle), although in laws and prac ce the three con ngencies are merged into either contributory or non-contributory schemes.

Exis ng provisions: Disability, old-age and survivor social insurance pensions

Mongolia inherited a defi ned benefi ts (DB) pension system, based on a pay-as-you-go (PAYG) fi nancing method that provided universal coverage and high levels of benefi ts. The pension system was fully funded by the State budget based on some fi nancial redistribu on mechanisms. In 1995, the Government reformed the system and introduced a contributory pension among other new social insurance branches. To date, the system s ll remains largely dependent on State budget transfers. The reforms improved the exis ng scheme but failed to achieve fi nancial sustainability or address a number of gaps in the scheme’s design. As a result, the reform weakened incen ves for contribu ng to the system, notably to the voluntary scheme, and created benefi t inequi es between diff erent groups of workers/popula on cohorts.

In 1999 a No onal Defi ned Contribu on (NDC) scheme was established for workers born a er 1960, with the inten on of gradually moving from no onal to par al funding accounts. The NDC scheme did not alter the parameters of the defi ned benefi ts scheme for those born prior to 1960 and resulted as an abrupt benefi t reduc on for those born a er 1960. Also, the NDC system did not reform key qualifying condi ons such as the re rement age, while it s ll guarantees a minimum pension provision at a level that will con nue requiring substan al fi scal subsidies over the long run. Finally the NDC reform did not address the issue of universal coverage that the voluntary scheme failed to achieve.

54

Besides the old-age, disability and survivor benefi ts provided by the contributory (mandatory and voluntary) Pension Fund, the MPDSP also implements a number of non-contributory social welfare programmes targe ng vulnerable groups.

Currently, the Mongolian contributory pension system has two parallel schemes: one is a DB scheme covering cohorts born before 1 January 1960 and the other is a NDC scheme, namely the Individual Account Re rement System, for those born since 1960.

By 2013, 56,500 people or 5.8 per cent of total insured were s ll contribu ng to the pre-1960 system and not yet re red, and 913,900 people or 71.6 per cent of economically ac ve popula on were contribu ng under the NDC scheme.By the end of 2013, there were 232,100 old-age pensioners,30 equivalent to the en re popula on above the pensionable age, receiving benefi ts from the Pension Insurance Fund of the Social Insurance Fund. A er January 2015, the fi rst pensioners will be eligible to claim benefi ts under the NDC scheme (7,000 people will be eligible for the pension in 2015).

Besides the contributory pension scheme Mongolia has a military service pension and a number of non-contributory pension schemes for military and several social welfare pension benefi t programmes.

DB old-age pension insuranceLegal framework Law on Social Insurance (31 May 1994) Ar cles 4.2, 4.3 and 4.7; Law on Pension and

Benefi ts provided by the Social Insurance Fund (7 June 1994) Ar cle 4Target Ar cle 4.2 (Contracted employment and public offi cials), Ar cle 4.3 (informal sector

and unemployed workers, and herders) born before 1 January 1960

Ar cle 4.7: All reindeer herders living in taiga shall be insured by the State under the pension and benefi t (some say allowance) insurance schemes. For this group the contribu on will be fully subsidized and they will covered under the voluntary scheme (amended on 30 January 2015).

Registra on Both mandatory and voluntary registra onFinancing This contribu on is part of the social insurance Pension Fund that also provides

disability and survivor pension benefi ts. The pension fund is fi nanced following the PAYG model.

Mandatory scheme: the contribu on rate is 14 per cent of the payroll salary (between minimum wage and 10 mes the minimum wage), equally shared between employers and employees.

Voluntary scheme: the contribu on rate is set at 10 per cent of the reference income of the individual. Reference income is declared on a voluntary basis, between the minimum wage and 10 mes the minimum wage.

In addi on, the government transfers part of its budget in order to balance the Fund and contain the defi cit level.

Eligibility Years of service: Not less than 20 years of contribu on to be en tled to a full old-age pension; and at least 10–19 years of contribu on for par al pension, for both voluntary and mandatory schemes. Re rement Age: 55 for women (but if they wish so) and 50 for women who have four and more born or adopted children under age 3 up to age 6; and 60 for men who were born before 1 January 1960. Both men and women engaged in hardship work can also opt for early re rement, from 45 to 55 years old depending on working condi ons.

30 SIGO data provided in Apr. 2014.

55

Benefi ts Old-age pension is calculated based on a DB formula.

At the end of 2013, the monthly average pension benefi t was MNT225,600. The minimum social insurance old-age pension varied from MNT195,000 for a par al pension to MNT230,000 for a full pension from 1 February 2015.

Replacement rate45 per cent of the monthly average wage of the best con nuing fi ve years’ salary and increased by 0.125 per cent of wage for each month addi onal to 20 years or 1.5 per cent per each addi onal year (amendment adopted on 30 January 2015 to enter into force on 1 July 2015). For example, 60 per cent replacement rate a er 30 years. The minimum guarantee, if at least 20 years of contribu on is 75 per cent of minimum wage.

Ac ve contributors

In 2013, 52,100 people were insured under the mandatory DB scheme and 6,400 people under the voluntary DB scheme.

Coverage 232,100 in 2013, which corresponds to a universal coverage.

NDC old-age pension insuranceDue to abrupt reduc on of the replacement rate under the NDC scheme, in February 2015, the Government dra ed an amendment to the Law on Individual Account of Pension Insurance contribu ons. The dra provides alterna ve choice for par cipants born between 1960 and 1979 expected to receive an old-age pension under the current NDC scheme to opt for a pension benefi t under either the ini al DB or NDC, choosing the higher pension. The dra law will be discussed at the Parliament at the fall 2015 sessions.

Legal framework Law on Social Insurance (31 May 1994) Ar cles 4.2 and 4.3; Law on Individual Pension Insurance Contribu on Account (1 July 1999)

Target Ar cle 4.2 (Contracted employment and public offi cials), Ar cle 4.3 (informal sector and unemployed workers, and herders) born a er 1 January 1960

Registra on Both mandatory and voluntary registra on.Financing This contribu on is part of the social insurance Pension Fund that also provides

disability and survivor pension benefi ts. The pension fund is fi nanced following the PAYG model. Mandatory scheme: the contribu on rate is 14 per cent of the payroll salary (between minimum wage and ten mes the minimum wage), equally shared between employers and employees. Voluntary scheme: the contribu on rate is set at 10 per cent of the reference income of the individual. Reference income is declared on a voluntary basis, between the minimum wage and ten mes the minimum wage.

Benefi ts Old age pension is calculated based on a NDC formula. Minimum standard: 20 per cent of the na onal average wage, plus an addi onal 0.5 per cent of the average wage for each addi onal service year beyond the minimum of 15 years.

Eligibility Years of service: 15 years of service and contribu ons

Re rement age: 55 for women (if they wish so) and 50 for women who raised four or more born or adopted children under age 3 up to age of 6; and 60 for men who were born a er 1 January 1960. Both men and women engaged in hardship work can also opt for early re rement, from 45 to 55 years old depending on working condi ons.

Replacement rate

The replacement rate is calcula ng based on years of contribu ons to the no onal account balance, accrued no onal returns for each year (average growth in the last three years’ average wages), and the average life expectancy a er re rement.

Ac ve contributors

In 2013, 714,700 insured under the mandatory scheme, and 140,700 insured under the voluntary scheme, or in total 75.5 per cent of the labour force.

Coverage First pensioner will be eligible in January 2015 (es mated at around 7,000 applicants).

56

In total, 766,815 are insured under the mandatory scheme (DB for those born before 1960 and NDC for those born a er 1960) and 147,100 are insured under the voluntary scheme (DB and NDC), which corresponds to 71.6 per cent of the economically ac ve popula on. The DB and NDC schemes are explained in table 15. Under the voluntary branch, only 23.3 per cent of herders, self-employed and informal economy workers contributed to the social insurance scheme, which was nevertheless higher than the coverage rate of 9.3 per cent in 2010. However, only 8.4 per cent of herders contribute to the voluntary scheme in 2013.31

Table 15. Two parallel pension schemes of MongoliaOld age pension

DB wage-based pension scheme(for those born before 1960)

NDC scheme(for those born a er 1960)

Regulatory Law Law on Pensions and Benefi ts provided by the Social Insurance Fund (1995)

Law on Individual Pension Insurance Contribu on Accounts (1999)

Years of contribu on

At least 20 years for a full pension, 10–20 years for a reduced pension

At least 15 years for a minimum pension

Re rement age 60 for men and 55 for women 60 for men and 55 for women

Contribu on rates

Mandatory insurance: Employee and employer each pay 7 per cent of reference salary

Voluntary insurance: Unemployed and self-employed workers, and herders pay 10 per cent of reference income

Range of pensionable incomes/ earnings: between minimum wage and ten mes minimum wage

Mandatory insurance: Employee and employer each pay 7 per cent of reference salary

Voluntary insurance: Unemployed and self-employed workers, and herders pay 10 per cent of reference income.

Range of pensionable incomes/earnings: between minimum wage and ten mes minimum wage

Pension rates (45 per cent + 1.5 per cent for each addi onal year of contribu on over 20 years) mul plied by the highest salary for any fi ve con nuous years

No onal account accumula on

(contribu ons earmarked for old age + no onal interest calculated according to average growth in covered wages over the past three years) / (annuity factor or life expectancy at re rement)

Source: Law on Pension and Benefi ts provided by the Social Insurance, 1994; Law on Individual Pension Insurance Contribu on Account, 1999.

Survivor pension

Legal framework

Law on Social Insurance (31 May 1994), Ar cles 4.2 and 4.3; Law on Pension and Benefi ts Provided by the Social Insurance Fund (7 June 1994)

Target group Ar cle 4.2 (contracted employees and public service workers), Ar cle 4.3 (informal sector and unemployed workers, and herders)

Registra on Both mandatory and voluntary registra ons.

Financing Employers and workers’ contribu ons to the social insurance Pension Fund:Mandatory scheme: the contribu on rate is included in the 14 per cent of the payroll salary equally shared between employer and employee that fi nances the three benefi ts of the social insurance Pension Fund. Voluntary scheme: the contribu on rate is part of the 10 per cent of the reference income of the individual going to the social insurance Pension fund. Reference income is declared on a voluntary basis: between minimum wage and ten mes the minimum wage.

31 Labour Force Survey and SIGO data provided in Apr. 2014.

57

Benefi ts The number of dependents is taken into considera on in the determina on of the benefi t rate:


• two dependent: 75 per cent;• three or more dependent: 100 per cent.

The minimum level of pension must be equal to 50–100 per cent of minimum wage (set at MNT192,000 in 2013) depending on the number of dependents.

Eligibility Family dependents (spouse and children below 16 years old) where an insured person, who has paid contribu ons for not less than 20 years, or for a period of three years out of fi ve years before the death, dies due to a non-occupa onal disease or accident.

Coverage (2013) 766,815 insured under the mandatory scheme; 147,100 insured under the voluntary scheme

Benefi ciaries 22,500 survivor pensioners in 2013 (data are not disaggregated by age).

Military old age pension schemeLegal framework

Law on Pension and Benefi ts of Military Service Personnel (13 June 1994), Ar cle 4.1

Target Members of the Defence Forces, Police, Border Security, Correc onal service, Intelligence, and Emergency Services are eligible for military old age pension.

Eligibility The system requires 25 years of service for men and 20 years of service for womenThere is no legal re rement age.

Replacement rate

The level of benefi t correspond to 80 per cent of the monthly average wage increased by 1.5 per cent of wages for each year addi onal up to 20–25 years.

Benefi t The minimum pension is aligned with the minimum social insurance old age pension that varied from MNT195,000 for a par al pension to MNT230,000 for a full pension from 1 February 2015.

Financing The military pension fund is fi nanced by the government budget

Coverage 15,600 people in 2013

Exis ng social welfare old-age benefi ts The Social Protec on Policy Coordina on and Implementa on Department is the social welfare services division of the MPDSP, and is responsible for designing and planning the non-contributory pensions. Social Welfare Offi ces confi rm the eligibility of the applicants and pay the pension.

Non-contributory social pension

Legal framework

Law on Social Welfare (19 January 2012), Art 12.1.1

Target All men of age 60 and above, all women of age 55 and above; single mothers age 45 or fathers age 50 heading a family of at least four children under age 18.

Benefi ts Pension increased from MNT115,000 to MNT126,500 on 1 February 2015.

Eligibility The person must have never worked or have less than 10 years of contribu on to the mandatory and voluntary social insurance schemes, and therefore be ineligible for a pension under the Social Insurance Pension Fund.

58

Financing Social Welfare Fund fi nanced by the government budget

Coverage 1,693 older persons in 201332

Addi onal cash supports for senior ci zens and for mothers with children are outlined in table 16.

Table16. Other social welfare cash supports

Support Legal framework Target/Eligibility Benefi t Coverage

Addi onal allowance for senior ci zens

Law on Supplementary Allowance for Honoured Senior Ci zens /HSC/ (2008); Government resolu on No. 70, 2012

Senior ci zens who rewarded with a medal of Hero of Mongolia, Hero of Labour, holder of People’s and Honoured tles

MNT150,000–MNT200,000 per month

4,800 people in 2013, with a budget of MNT4.9 billion spent in 2013

Allowance for Mothers with many children

Law on Social Welfare (19 January 2012); Art. 13.5.9

Mothers who were honoured with the fi rst and second rank State medal of “Mother’s Glory”

First rank MNT200,000 and second rank MNT100,000 once a year

202,500 people covered and MNT29 billion spent in 2013

Reimburse-ments and assistance services for older persons

Law on Social Security of Senior Ci zens (2005); Art. 5.1.1–5.1.11

Senior ci zens over 55–60 years old

11 types of reimburse-ments and assistance services

126,000 people covered and MNT14.3 billion spent in 2013

Source: SWGO.

Care services for older persons

Community-based service for older persons

The services provided include counselling, rehabilita on, temporary accommoda on and care, day care home based care and services. The programme is regulated by the Ar cles 17.1.1, 18.1 and 18.2.12 of the Law on Social Welfare.

Since 2013, the services are fi nanced through the local government budgets. The service costs are es mated by Social welfare units at the aimag, soum, district and capital city on the basis of proposals submi ed by the Livelihood Support Council of each respec ve soums and khoroo (district of Ulaanbaatar). The selected proposals are subject to the approval by the local governor’s offi ce.

In 2014 in total 28,300 older people received services from this programme.

Ins tu onal care service for older personsThe programme aims at assis ng single older persons iden fi ed as incapable of living independently with no child to support him or her or with a child who became incapable of providing care due to disability or old age. The iden fi ed benefi ciaries were senior ci zens who were benefi ng from the community based services programme. The programme was introduced and is regulated by the Ar cle 17.1.2 of the Law on Social Welfare.

Since 2013 the programme has been fi nanced through local government budgets. The governors of aimags, districts and the capital city are responsible for approving the applica ons of senior ci zens to

32 Annual report of MPDSP, 2013.

59

the care service programme. In 2013 there were 320 older persons and people with disabili es living in nine specialised care centres.33

Social protec on programmes for older persons in Mongolia are summarized in table 17.

Table 17. Summary of social protec on programmes for older persons

Scheme Number of benefi ciariesDefi ned benefi t old age pension insurance

232,147 people or over 100 per cent of the male popula on over 60, and female popula on over 55 years old (due to early re rement pensions) in 2013.

Defi ned contribu on old age pension insurance

The fi rst pensioner will be eligible from 2015.

Non-contributory military pension benefi t scheme

15,600 people benefi ed in 2013

Non-contributory social welfare old-age benefi t

1,693 older persons in 2013

Social welfare cash supports for older persons

333,300 (double coun ng) people in 2013.

Source: SIGO, SWGO, 2015.


Policy gaps

Coverage The coverage rate of the voluntary scheme remains very low, especially among young people, herders and self-employed workers. This can be explained by a lack of awareness and interest in contribu ng for their old-age pension.

Funding The defi ned benefi t (DB) pension system currently operates on a PAYG basis; however the fund is largely in defi cit and projec ons show that these defi cits are likely to grow in the future, even a er considering the impact of the 1999 individual Pension Account or no onal defi ned contribu on (NDC) reform.

Benefi ts There is no automa c indexa on to the cost of living of the levels of the social insurance old-age and survivor pension and the social welfare old-age pension; the level being rather adjusted on an ad-hoc decision.

Confl ict of DB and NDC schemes

The current scheme will provide a lower pension to workers born a er 1960 than those born before 1960; it is also expected that the level of benefi ts under the NDC scheme will be lower than standards recommended by ILO Conven on No. 102.

Re rement age The re rement age is too low to allow for adequate level of benefi ts, in par cular for women, and sustainability of the fund.

Equality of treatment

The re rement age for women is lower than for men which leads to a lower pension for women due to shorter period of contribu ons, in addi on to wages that tend to be lower among female employed for similar jobs and level of qualifi ca ons.

Implementa on issuesMilitary pension

The generous military pension is managed by the Social Insurance Fund, which creates confusion among insured with the other pension funds.

Governance Absence of periodical actuarial reviews, low administra ve capacity and insuffi cient infrastructures are all elements that might jeopardize the fund effi ciency and sustainability.

33 2013 MPDSP Annual Report.

60


While the par cipa on of private and public employees to the old-age social insurance pension is high, only 23.3 per cent of herders, self-employed and informal economy workers contribute to the voluntary social insurance scheme despite repeated eff orts to increase par cipa on. Therefore, the ABND recommends introducing a subsidy on the contribu on (50 per cent was proposed) of herders, self-employed and informal economy workers to contribute and conver ng the scheme into a mandatory one that would require improved enforcement mechanisms. The development of a more holis c approach to long-term care should also be considered.

Table 18 summarizes the recommenda ons gathered during the na onal dialogue process. Items marked with an asterisk (*) indicate a recommenda on to provide new social protec on provisions or increase of coverage of exis ng provisions. The cost of these addi onal provisions or coverage is calculated using the ILO RAP cos ng tool. A number of recommenda ons would require more in-depth feasibility and/or actuarial studies to assess their costs. These recommenda ons are marked with a delta (Δ) in table 18.

Table 18. Recommenda ons adopted by the ABND for securing social protec on to older persons

Main recommenda ons

E1. Introduce equal re rement age between female and male workers. Δ E2. Introduce a three pillar pension system: Pillar 0: universal minimum pension; Pillar 1:

Contributory social insurance pension; Pillar 2: Supplementary individual saving accounts. * E3: Improve old-age income security of herders and other self-employed individuals by

encouraging their par cipa on in the social insurance scheme. Introduce government subsidies on the contribu ons of the target popula on as an incen ve to increase coverage. Consider reforming the scheme to require the par cipa on of all workers.

Δ E4. Develop a long term care and support system for older persons: nursing homes and programmes promo ng older persons’ par cipa on in social work (e.g child care) and short term assignment (e.g. doctors).

* E5: Automa cally index the amount of the social welfare pension benefi t to the consumer price index (CPI).E6. Open op on to pay the voluntary social insurance contribu on twice a year to follow seasonality of herders’ income (or to allow more fl exibility, pay once a year) (reform introduced in January 2014); provide more fl exibility in paying back unpaid contribu ons (applies also to social insurance Pension Fund and SHI contribu ons. linked to recommenda ons WA4 and H2).

Addi onal recommenda onsΔ E7: Revise the social insurance pension parameters, including automa c indexa on to the CPI,

to address the low level of benefi ts under the NDC scheme. Δ E8: Introduce new scheme of supplemental benefi ts for insured born a er 1960 in case of early

re rement provisions. Δ E9. Based on exis ng social welfare programmes to provide cash or in-kind assistance to poor

older persons, create a more coordinated integrated package that will con nue applying the same qualifying condi ons. E10: In addi on to indexing the pension benefi t, increase minimum pension level but at a reasonable level so it does not create disincen ves to contribute to the social insurance scheme.

Δ E11: Provide an integrated social welfare benefi ts package for poor older persons (age and means targeted): housing benefi ts, fuel allowance, increased health-care package and the minimum pension provide by the new old-age pension system.

Δ E12: Streamline procedures for registra on and introduce e-fi les available at the soum level; introduce IT systems through mobile phone for payment of contribu ons.


61

5. Step 2: Cos ng methodology, descrip on of the policy op ons (‘scenarios’) to complete the social protec on fl oor and cost projec ons

The cos ng methodology using the RAP protocol

The Rapid Assessment Protocol (RAP), developed by the ILO on the basis of an earlier UNICEF/ILO cos ng tool, was used for this cos ng exercise.

The outcomes of the cos ng exercise include:

• Policy op ons (addi onal social protec on provisions) that could be introduced to complete the social protec on fl oor in Mongolia, in line with the recommenda ons of the assessment.

• Projected costs of policy op ons in Mongolian tugrik (MNT), comparisons of the cos ng results with the GDP and government revenues and expenditures, and es mated costs in reference to government budget projec ons in order to provide preliminary indica ons of the aff ordability of the proposed social protec on provisions.

The results of this cos ng exercise can be used to support discussions with diff erent government agencies on social protec on policy priori es, fi scal space and budget realloca ons.

The RAP uses a simple methodology that builds on single age popula on projec ons, single age es mates of labour force par cipa on rates. The RAP does not aim at producing its own projec ons, therefore projected costs rely on projec ons of demographic, labour market and economic indicators available in the country. For this reason, the cost of the social protec on fl oor is projected to 2020 in this exercise. The sources of data, main assump ons and background calcula ons are listed below.

62

Territorial and administra ve units

Mongolia ranks eighteenth by the size of its territory, bordered by China and Russia. Mongolia is divided into 21 aimags (provinces) and the capital, Ulaanbaatar. Since 2006, Mongolia has had 331 soums (districts).

Historical popula on data and projec ons

The RAP uses the demographic actual and projected data produced by the Na onal Sta s cs Offi ce (NSO). The RAP took into considera on the popula on resident in Mongolia, i.e. including the popula on who resides for at least six months or 183 days in a determined year and are registered in administra ve units of Mongolia. Such account of the popula on excludes Mongolian ci zens who have reside abroad for at least six months in a determined year.

The NSO dataset is based on the 2010 popula on census incorpora ng regular updates based on surveys conducted by NSO.

The cos ng exercise u lizes popula on projec ons for the years 2011 to 2020 produced by NSO. The projec ons are based on na onal level mortality assump ons and medium fer lity rate assump ons. In addi on, it is assumed that net migra on is equal to zero.

In 2013, life expectancy at birth in Mongolia was 65.42 for men and 75.01 for women (table 19).

Table 19. Life expectancy in Mongolia 2007-13

Life expectancy at birth 2007 2009 2011 2013 Total 66.54 67.96 68.32 69.11

Male 63.13 64.33 64.68 65.42Female 70.23 71.79 73.76 75.01

Source: NSO, Mongolian Sta s cal Yearbook, 2013.

Figure 11. Overall popula on and revised popula on over age 15 in 2012, (a) male and (b) female

Labour force par cipa on rates

- 20,000 40,000 60,000 80,000

100,000 120,000 140,000 160,000

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 +

(a) Overall male population (medium scenarios) and the revised population over 15 years old in 2012

Male population over 15 years old projected from medium scenario

Revised male population over 15 years old

63

- 20,000 40,000 60,000 80,000

100,000 120,000 140,000 160,000

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 +

(b) Overall female population (medium scenarios) and the revised population over 15 years old in 2012

Female population over 15 years old projected from medium scenario

Revised female population over 15 years old

Source: NSO.

The historical labour force par cipa on rates come from the NSO Labour Force Survey 2006–12 for people 15 years old and above, which is also the set of data published by ILO (ILO STAT). NSO does not project labour force par cipa on rates. Based on NSO historical datasets of labour force par cipa on rates, RAP uses rates constructed by the ILO-LAB model34 for the years 2013 to 2020. The ILO-LAB model assumes a rela vely stable labour force par cipa on across the age groups over the next fi ve years.

For its historical and projected data of labour force par cipa on, the NSO used a popula on over age 15 that diff ered from the real popula on over age 15. Diff erences are no ceable at younger ages as illustrated in fi gure 11 The NSO was not able to provide an explana on of the diff erences. Therefore the historical and projected labour force par cipa on rates were applied in the RAP to the real popula on over age 15 (NSO medium scenario projec on) which is more representa ve of the whole popula on especially among youth. The RAP uses the blue set of demographic data throughout the calcula ons, including to es mate the labour force par cipa on.

Minimum and average wagesIn Mongolia, minimum wage increases are decided by the Na onal Tripar te Commi ee on Labour and Social Consensus, according to the 2010 Law on Minimum Wage. The 2014 level was iden cal to 2013, at MNT192,000 per month. The RAP assumes that the minimum wage will increase with infl a on and labour produc vity a er 2014, as though it was indexed to infl a on and labour produc vity since 2005.

The average wages (historical data and projec ons) are provided by the Labour Force Survey (LFS) for the period 2005–12. From 2013, the average is adjusted based on labour produc vity and infl a on rates increase.

34 An ILO-LAB model was developed in 2014 for a parallel actuarial study to design an extension of the pension system to herders, self-employed and informal workers, commissioned by MPDSP.

64

Table 20. Sources of household income per month, na onal and sub-na onal averages (Q4 2012, in MNT)

Household income Na onal average

Capital city

Provincial centres

Soum centres

Rural

Total Income 852 267 1 021 938 828 034 719 301 651 785 1. Cash income 780 769 988 080 780 932 654 014 490 012

Wage and salaries 391 244 560 887 401 311 355 994 109 161 Pension, benefi ts and other transfers 163 052 183 343 172 053 146 049 128 623 Income from animal husbandry 58 377 3 725 20 133 37 386 198 177 Income from agriculture (crop, harves ng, etc.) 2 192 574 4 754 3 956 2 579 Income for non-agriculture entrepreneurial ac vi es 100 189 165 773 97 096 46 996 17 805 Other income 65 714 74 297 85 586 63 633 33 667

2. Value food and non-food products received free of charge 28 004 29 487 26 399 17 392 32 365

3. Value of food products consumed from own domes c economic ac vi es (animal husbandry and vegetable growing) 43 495 4 371 20 702 47 894 129 408 Source: NSO, 2014, Household Socio-economic Survey.

The NSO has conducted a Households Income and Expenditure Survey (HIES) since 1966 and a Household Socio-economic Survey since 2007, by combining the HIES and Living Standards Measurement Survey. Every year, the survey samples 11,232 households to compile data on age, sex, employment, income, expenditure and consump on. For instance, the results of the survey provide data on household income disaggregated by place of residence which also corresponds to categories of professions. The category ‘rural’ can be equated to income earned by herders (table 20). The NSO defi nes the urban popula on as those who reside in Ulaanbaatar, aimag centres and towns. The rural popula on includes those who reside in soum centres and rural areas.

Poverty indicatorsNSO has determined the minimum subsistence level or na onal poverty line at the regional level since 1998. The minimum subsistence level refers to a minimum consump on level expressed in monetary value. The minimum consump on level refers to a scien fi cally set quan ty of consump on to meet basic needs as defi ned in the food and non-food consump on baskets. The minimum subsistence level was set between MNT130,500 and MNT149,900 per month in 2013.

The poverty headcount index is the share of popula on whose consump on is below the poverty line or minimum subsistence level. The poverty headcount index (or poverty rate) was 27.5 per cent in 2012, the latest data available. NSO an cipates a poverty rate of 25.0 per cent for 2013. The RAP assumes that progress in poverty reduc on will con nue over the coming fi ve years, and will bring down the poverty headcount index to 20.0 per cent by 2020.

Nominal and real GDP and GDP defl ator

The 2005–12 historical GDP data are extracted from the Mongolian Sta s cal Yearbook of the NSO. The Medium Term Fiscal Framework (MTFF) of the Ministry of Finance (MOF) contains a number of macro-economic indicators, including some projec ons to fi ve years. The RAP used historical and projected data from the latest MTFF released in September 2014.

65

From 2017 onwards (latest data available), the GDP growth and GDP defl ator are assumed constant at, respec vely, 5.9 per cent annual increase and fi xed at 3.6 defl ator.

The RAP expresses the cost of introducing new social protec on benefi ts as a percentage of projected GDP at current prices.

Headline infl a on For the headline infl a on, the RAP used the annual average of infl a on rate. It compared it to the annual infl a on rate by end of period, which uses the na onal consumer price index (CPI) (base period 2010). The 2005–13 historical data come from NSO. For 2013–17 projec ons, the RAP used projected data from MOF released in the September 2014 MTFF. A er 2017, the RAP assumed headline infl a on will be constant at 6.0 per cent.

Employment and unemployment rateAs a consequence of above, the RAP recalculated the employment/unemployment number and rates, based on the overall popula on age 15 and above. The RAP used the unemployment rate published by MOF in the September 2014 MTFF. From 2017 and onwards, the RAP assumed a constant unemployment rate at 5.9 per cent. It is assumed that the trends of unemployment rate for all ages applies also to the projected unemployment rate of the 15–29 age group a er 2013. There are no data available concerning the projected sex-disaggregated employment and unemployment rates.

Health expendituresThe Health Development Center under the Ministry of Health and Sports compiles health sta s cs and sends to NSO its monthly report on health sta s cs on a monthly basis and its annual report by March every year.

The RAP assumes that health expenditures will increase based on infl a on and demographic growth. However, this assump on might underes mate the real increase in health expenditures, as majority of these expenditures are imputable to u liza on of health services by the popula on residing in Ulaanbaatar

Government total revenues, grants and expendituresTotal government revenues, grants, and expenditures used in the cos ng exercise are based on historical data and projec ons produced by the MTFF of the MOF. The government expenditures and revenues corresponds to a situa on of policy status quo, i.e. if no policy changes are introduced. The RAP expresses the cost of introducing new social protec on benefi ts as a percentage of projected revenue and grants and as a percentage of government expenditures. The revenues and expenditures listed are those of the central government and the Human Development Funds (HDF). In that case, government revenues and expenditures may be underes mated since it does not include the local government budgets and the Social Insurance General Offi ce revenues and expenditures.

66

5.1. Health care

“A na onally defi ned set of goods and services, cons tu ng essen al health care, including maternity care that meets the criteria of availability, accessibility, acceptability and quality”

SHI coverage is nearly universal; however eff ec ve access to quality health care remains a challenge for many in rural areas. For instance, the fact that the coverage has dropped by 6 per cent in recent years may indicate customers are dissa sfi ed with the services. A number of surveys showed that the insured are losing trust in the SHI and its benefi ts as they have to pay out of pocket for various diagnos c and tes ng services as well as medical devices, even though they pay insurance contribu ons. To ensure universal and permanent social insurance coverage among the whole popula on, while securing the sustainability of the fund, a number of scenarios are compared to the status quo. The last scenario is built to compare the cost between subsidized contribu ons for categories I and II and a means-tested approach (table 21).

Table 21. Health care scenarios

Scenario H1-0 Status quo: Maintain monthly SHI contribu on for Category II (herders, unemployed workers and voca onal students) at MNT670.

Scenario H1-1 Increase the SHI contribu on of Category II to 1 per cent of the minimum wageScenario H1-2 Fully subsidize the SHI contribu on for Category II.Scenario H1-3 Introduce a proxy-means-tested scheme: Full subsidize the SHI contribu on of the

poor of Category II; for non-poor of Category II, increase contribu on to 1 per cent of the minimum wage.


67

Scenario H1-1: Increase the SHI contribu on of Category II to 1 per cent of the minimum wage

Assump ons

• Category II of the SHI scheme comprises herders, unemployed workers and students enrolled in voca onal training courses. They represented 324,500 insured in 2011, reaching full coverage based on a government subsidy on all contribu ons. It is assumed that not all unemployed workers registered as Category II insured and contributed to the SHI Fund; some are also registered under Category IV corresponding to the self-employed.

• In 2011, when the Government subsidized all SHI Fund contribu ons using the Human Development Fund (HDF), the insured popula on overpassed the total resident popula on by 3 per cent. It is assumed that the diff erence was due to a double coun ng of voca onal students under Category II and Category III.

• The number of insured in 2011 is used as a reference year, assuming that the scheme reached full coverage thanks to HDF subsidies. The split of insured by category as a percentage of the total popula on in 2011 is used for projec ng universal SHI coverage. The division among the categories is assumed to be constant over the years.

• It is assumed that na onal demographic growth applies similarly across all categories of the popula on, including herders, unemployed workers and voca onal students.

• Health expenditure diff erence between rural and urban popula ons is es mated by the diff erence in number of physicians per 10,000 people between rural and urban areas: 18.8 for in rural areas, 43.4 for Ulaanbaatar. This proxy for health-care expenditure gives a rough ra o of 2.3 in 2008 (source: WHO Country Coopera on Strategy Mongolia, 2010–15). The ra o of 2.3 is assumed to be constant over the next 12 years.

• Rural health expenditure proxies for Category II health expenditures, as students' health expenditures are limited. It is also assumed that heath expenditures of those unemployed will be limited (those unemployed represent a minority of this group, most of the unemployed being unregistered and counted under the category of self-employed, together with the informal economy workers). Herders' households tend to consume less due to the under-provision of health services and lack of facili es in rural areas, while services and facili es in Ulaanbaatar are overprovided.

• It is assumed that health expenditures will increase based on infl a on, labour produc vity (wage increases) and demographic growth. However, this assump on might underes mate real increases in health expenditures, as the majority of these expenditures concern the popula on in Ulaanbaatar.

• Finally, the level of minimum wage is not indexed to infl a on and labour produc vity, but rather adjusted on a policy-based decision. The RAP assumes that the level will increase with labour produc vity and infl a on a er 2016.

ResultsThis scenario intends to compare the extent of savings that could be made on the SHI Fund if contribu ons of Category II (herders, unemployed workers and voca onal students) were less subsidized. Considering the above assump ons, the savings would bring a saving of 0.02 per cent of GPD in 2014 up to 0.05 per cent of GDP in 2020 in comparison to the status quo situa on.

68

Scenario H1-2: Fully subsidize the SHI contribu on for Category II

Assump ons• All the above assump ons concerning the health scenario 1-1 remain valid.

• As it was the case in 2011, for such scenario, it is believed that government will use resources of the Human Development Fund.

ResultsThis second scenario aims at comparing the cost of fully subsidizing the contribu ons of Category II (herders, unemployed workers and voca onal students), which would secure universal SHI coverage, with the status quo (contribu on set at MNT670 per month) and a lower subsidy (contribu on set at 1 per cent of the minimum wage). Considering the above assump ons, results show that providing a full subsidy on the contribu on of insured under Category II would increase the cost of the SHI scheme by only 0.06 per cent in 2014 and 0.01 per cent of GDP a er 2017 onwards in addi on to the costs of the status quo scenario.

Scenario H1-3: Introduce a proxy-means-tested scheme: Full subsidize SHI contribu on of poor of Category II; for non-poor of Category II, increase contribu on to 1 per cent of the minimum wage

Assump ons• All the above assump ons concerning the health scenario H1-1 remain valid.

• For comparison purpose, par cipants in the na onal dialogue decided to es mate the cost of a means-tested SHI scheme that would fully subsidized the contribu on of the poor of Category II and enforce a contribu on at 1 per cent of the minimum wage for the non-poor of Category II.

• To iden fy the poor, the RAP uses the poverty headcount index. The poverty headcount index is the share of popula on whose consump on is below the poverty line or minimum subsistence level.

• The administra on cost for a proxy-means-tested scheme is assumed to be at 15 per cent of the programme cost.

Results

The cos ng exercise of this third scenario does not bring signifi cant conclusion concerning poten al savings if a proxy-means tested SHI scheme were to be introduced. Introducing a means tested scheme that would fully subsidize the contribu on of the 25.0 per cent iden fi ed as poor would not allow any savings un l 2016, and the savings will be quite insignifi cant at 0.04 per cent by 2020. Such results fi nd their explana on in the very limited targeted non-poor popula on under such measure (6.0 per cent of the popula on in 2014) and the high administra ve cost induced by a proxy-means tested system.

A summary of the scenarios and results of the cos ng exercise are provided in table 22.

Table 22. Results of cos ng SHI scenarios

2014 2016 2018 2020Scenario H1-0: Status quo (monthly contribu on for Category II at MNT670)Target group = Category II of SHI (000s) 352 364 375 386Take-up rate (per cent) 67 83 100 100Group covered by this scenario (000s) 235 303 375 386Cost of scenario (in million MNT) 20 952 34 657 54 740 72 542Cost, percentage of GDP (current) 0.10 0.13 0.17 0.20

69

Cost, percentage of Gov. Revenues and grants 0.34 0.47 0.54 0.57

Scenario H1-1: Increased contribu on of Category II to 1 per cent of minimum wage

Target group = Category II of SHI (000s) 352 364 375 386

Take-up rate (per cent) 67 83 100 100Group covered by this scenario (000s) 235 303 375 386Cost of scenario (in million MNT) 17 255 27 872 43 168 56 246

Cost, percentage of GDP (current) 0.08 0.10 0.13 0.15

Cost, percentage of Gov. Revenues and grants 0.28 0.38 0.43 0.44

Scenario H1-2: Contribu on for Category II fully subsidized by the governmentTarget group (000s)= Category II of SHI 352 364 375 386Take-up rate (per cent) 100 100 100 100Group covered by this scenario (000s) 352 364 375 386Cost of scenario (in million MNT) 34 402 44 659 57 907 75 800Cost, percentage of GDP (current) 0.16 0.16 0.18 0.21

Cost, percentage of Gov. Revenues and grants 0.55 0.61 0.57 0.60Scenario H1-3: Means-tested scheme: Fully subsidized contribu on for poor of Category II, for non-poor at 1 per cent of the minimum wage

Target group= Poor Category II of SHI (000s) 88 84 75 77Take-up rate (per cent) 100 100 100 100Group covered by this scenario (000s) 88 84 75 77Target group= Non-poor Category II of SHI (000s) 264 280 300 309Cost of scenario (in million MNT) 21 744 31 689 45 574 59 458Cost, percentage of GDP (current) 0.10 0.11 0.14 0.16Cost, percentage of Gov. Revenues and grants 0.35 0.43 0.45 0.47


ConclusionPar cipants in the na onal dialogue concluded that the cost-opportunity of introducing a 1 per cent contribu on or a means tested system for Category II of SHI would not jus fy to amend the subsidy on Category II contribu on; the risk of reducing SHI coverage being too high. Therefore the status quo is kept at part of the low package scenario for implemen ng a social protec on fl oor and the fully subsidized Category II contribu ons being part of the high package scenario, accoun ng for an addi onal 0.01 per cent of GDP by 2020.

70

5.2. Children

“Basic income security for children, at least at a na onally defi ned minimum level, providing access to nutri on, educa on, care and any other necessary goods and services”

To complete the social protec on fl oor for children, the main recommenda ons are to index the allowance of the Child Money Programme (CMP) to infl a on and increased the school meals allowance. The UN/G Social Protec on Working Group protec on translated these two recommenda ons into the following scenarios for payment of the support grant. Scenarios C1-2 and C3-3 were included with the purpose of comparing the cost of a universal scheme with the one of a proxy-means-tested programme (table 23).

Table 23. Children scenarios

Scenario C1-0 Status quo: Maintain the parameters of the CMP, the allowance not being indexed to infl a on.

Scenario C1-1 Index the CMP allowance to infl a on.

Scenario C1-2 Introduce a proxy-means tested CMP allowance indexed to infl a on.Scenario C3-0 Status quo: Maintain the parameters of the school meal programme in kindergarten,

the meal allowance not being indexed to infl a on.Scenario C3-1 Maintain the level of the meal allowance in kindergarten (half-board: MNT1,650 per

day, and full-board: MNT2,400 per day) and indexed it to infl a on.Scenario C3-2 Increase the meal allowance in kindergarten to MNT2,000 per day for half-board

children and MNT4,000 per day for full-board children (indexed to infl a on).Scenario C3-3 Introduce a targeted scheme with the following parameters: MNT2,000 per day for half-

board poor children, and MNT4,000 per day for full-board poor children (indexed to infl a on); for those not eligible, the meal allowance being subsidized at 50 per cent.


71

The ILO Social Protec on Floors Recommenda on, 2012 (No. 202) prescribes the indexa on of benefi ts on infl a on and/or wage increase. Therefore this scenario will be included in the minimum package of social protec on. Following fi rst dialogues of the ABND, the Government started discussing amendment to the CMP to introduce an indexa on to the CPI.

Scenario C1-1: Index CMP allowance on infl a on

The recommenda on of the na onal dialogue was to maintain the allowance of the CMP at its current level of MNT20,000 per child per month, however, the CMP allowance should be indexed to the CPI to align the programme with Recommenda on No. 202.

Assump ons• The RAP assumes that a er 2014 (latest projected data available) the annual infl a on rate by

end of period will be similar to the annual average infl a on rate. For calcula ng the cost of indexa on of the CMP allowance to infl a on, we use the annual average infl a on rate.

• The addi onal cost will be covered by the Human Development Fund.

• The MPDSP es mates the administra ve cost of the non-means-tested CMP to be no more than 2 per cent.

• All other parameters of the CMP, notably its universality, remain unchanged.

Results

The introduc on of an indexa on of the CMP allowance would comply with interna onal labour standards and add a cost of 0.16 per cent of GDP in 2014 and 0.46 per cent of GDP by 2020.

Scenario C1-2: Introduce a proxy-means tested CMP allowance indexed to infl a on

Assump ons

• The above assump ons iden fi ed for scenario C1-1 remain valid.

• For comparison purpose, par cipants in the na onal dialogue decided to es mate the cost of a proxy-means tested CMP targe ng poor children. To iden fy the poor, the scenario uses the poverty headcount index, the share of popula on whose level of consump on is below the poverty line or minimum subsistence level.

• It is assumed that an addi onal 15.0 per cent of poverty incidence is applied on the top of the annual na onal poverty rate to the ra o of children age 0–18 considered to be poor in Mongolia.

• The administra on cost for a proxy-means tested scheme is assumed to be at 15 per cent of the programme cost.

Results

A proxy-means tested CMP would allow the government to save 1.02 per cent of GPD in 2014 compared to an indexed CMP; however such savings will gradually decrease and amount to 0.92 per cent of GDP by 2020, but leaving three children out of four without income support. A universal child allowance adjusted on the cost of living would only cost 1.19 per cent of GPD.

72

Scenario C3-1: Maintain the level of the meal allowance in kindergarten (half-board: MNT1,650 per day, and full-board: MNT2,400 per day) and index the amount to infl a on

Evidence-based research conducted by UNICEF shows that early child development is crucial for the long-term well-being of children and posi ve outcomes in adulthood. Reaching children in a holis c manner and incorpora ng health, nutri on, water and sanita on, educa on and interven ons that support their full development are essen al to ensure the future of the country. In Mongolia, health and educa on are free of charge and accessible for all children; nevertheless, nutri on quality remains a major concern. Par cipants in the na onal dialogue decided that eff orts are needed to improve the quality of nutri on among young children (age 2–6) a ending kindergarten. The least interven on would be to index the meal allowance on the CPI. The UN/G Social Protec on Working Group also es mated the overall cost of increasing the meal allowances to what is assumed to be a more adequate level.

Assump ons• The above assump ons iden fi ed for scenario C1-1 remain valid.• Mongolia has six full-board kindergartens (with as an average 150 children each). The exercise

assume that 10 per cent more children will enrol in a full-board kindergarten every year.• It is assumed that the enrolment of children age 2–6 in kindergartens is ed to female labour

force par cipa on.• It is assumed that children will a end kindergarten 45 weeks per year (from September to

June).• It is assumed that the na onal poverty rate also applies to the ra o of children age 2–6 considered

to be poor in Mongolia.• Children enrolled in full-board kindergartens are most likely from vulnerable families, e.g. parents

with disabili es, single mothers, and so on (UNICEF).• Reducing by half the subsidy on kindergartens meals will not impact the enrolment rate.• It is assumed that households where both parents are working are those who require to enrol

their child in a kindergarten. For this reason, the take-up rate is aligned to projected female labour par cipa on rates.

ResultsThe indexing of the school meals allowance to infl a on, consistent with Recommenda on No. 202, would increase the cost of the programme by 0.04 per cent of the GDP in 2014 and 0.12 per cent by 2020. However, the level of the allowance does not allow suffi cient quality of the meals to improve child nutri on.

Scenario C3-2: Increase the meal allowance in kindergarten to MNT2,000 per day for half-board children and MNT4,000 per day for full-board children and index to infl a on

The na onal dialogue par cipants agreed that the current amount allocated for the school meals allowance might not off er suffi cient nutri on. Therefore, it was proposed to es mate the cost of increasing the school meals allowance to MNT2,000 per day for all half-board children and MNT4,000 per day for full-board children. The school meals allowance should be indexed to infl a on to align with Recommenda on No. 202.

Assump ons• The above assump ons iden fi ed for scenario C3-1 all apply for scenario C3-2.

ResultsIncreasing the kindergarten meals allowance, as a priority to improve nutri on among children at early ages, would raise the cost of the programme by a constant 0.03 per cent of GDP compared to the cost when indexed to infl a on. The cost is contained as the number of benefi ciaries children would be limited (180,000 children in 2020).

73

Scenario C3-3: Introduce a targeted scheme for kindergarten meals with the following parameters: MNT2,000 per day for half-board poor children, and MNT4,000 per day for full-board poor children (indexed to infl a on); for those not eligible, the meal allowance is subsidized at 50 per cent.

Assump ons• The above assump ons iden fi ed for scenario C1-1 remain valid.

• For comparison purposes, par cipants in the na onal dialogue decided to es mate the cost of a proxy-means tested school meals allowance targe ng poor children. To iden fy the poor, the scenario uses the poverty headcount index. The poverty headcount index is the share of popula on whose consump on is below the poverty line or minimum subsistence level.

• It is assumed that an addi onal 15.0 per cent of poverty incidence is applied on the top of the annual na onal poverty rate to the ra o of children considered to be poor in Mongolia, so 28.7 per cent of children age 2-6 are considered.

• According to the 2012 Household Socio-economic Survey, on a na onal average, where the head of household is between age 17 and 40, the household will have 1.2 children (0–18 years old). The RAP assumes that the same number applies to households below the poverty line. Because fi gures are not available on the composi on of poor households and in par cular number of young children (0–6 years old) in poor households, this exercise assumes that each poor household has 1.0 child 0–6 years old.

• The administra on cost for a proxy-means tested scheme is assumed to be at 15 per cent of the programme cost.

ResultsThe cos ng exercise of this third scenario that would only benefi t to poor children does not bring signifi cant conclusion concerning poten al savings. The targeted popula on (children 2–6 years old) being limited in number, introducing a means tested scheme would allow savings in limited extent (0.12 per cent of GDP), due to the high administra on cost of a proxy-means tested system. Table 24 summarizes the scenarios of child income security and nutri on and the es mated costs.

Table 24. Results of cos ng child income security and nutri on2014 2016 2018 2020

Scenario C1-0: status quo: no indexa on of CMP allowanceTarget group 0–18 years old (000s) 1 001 1 028 1 059 1 093Take-up rate (per cent) 100 100 100 100Group covered by this scenario (000s) 1 001 1 028 1 059 1 093

Cost of scenario (in million MNT) 244 976 251 766 259 135

267 466

Cost, percentage of GDP 1.15 0.91 0.80 0.73Cost, percentage of government revenues and grants 3.94 3.44 2.55 2.12

Scenario C1-1: CMP allowance indexed to infl a onTarget group 0–18 years old (000s) 1 001 1 028 1 059 1 093Take-up rate (per cent) 100 100 100 100Group covered by this scenario (000s) 1 001 1 028 1 059 1 093Cost of scenario (in million MNT) 277 313 323 246 373

830433 539

Cost, percentage of GDP 1.31 1.17 1.15 1.19Cost, percentage of government revenues and grants 4.46 4.41 3.68 3.43

Scenario C1-2: Proxy-means tested CMP indexed to infl a onTarget group 0–18 years old (under poverty line) (000s) 250 237 212 219Take-up rate (per cent) 80 100 100 100Group covered by this scenario (000s) 200 237 212 219

74

Cost of scenario (in million MNT) 62 531 83 822 84 295 97 759Cost, percentage of GDP 0.29 0.30 0.26 0.27Cost, percentage of government revenues and grants 1.00 1.14 0.83 0.77Scenario C3-0: status quo: half-board meal at MNT1,650 per day, and full-board: MNT2,400 per day (no indexa on)Total popula on 2–6 years (000s) 311 316 318 316Take-up rate (per cent) 56 56 57 57Group covered by this scenario (000s) 173 178 181 180Cost of scenario (in million MNT) 67 613 69 724 70 777 70 477Cost, percentage of GDP 0.32 0.25 0.22 0.19Cost, percentage of government revenues and grants 1.09 0.95 0.70 0.56Scenario C3-1: half-board meal at MNT1,650 per day, and full-board: MNT2,400 per day (indexed to infl a on)Total popula on 2–6 years (000s) 311 316 318 316Take-up rate (per cent) 56 56 57 57Group covered by this scenario (000s) 173 178 181 180Cost of scenario (in million MNT) 76 538 89 519 102

104114 236

Cost, percentage of GDP 0.36 0.32 0.31 0.31Cost, percentage of government revenues and grants 1.23 1.22 1.01 0.90Scenario C3-2: half-board meal at MNT2,000 per day, and full-board: MNT4,000 per day (indexed to infl a on)Total popula on 2–6 years (000s) 311 316 318 316Take-up rate (per cent) 56 56 57 57Group covered by this scenario (000s) 173 178 181 180Cost of scenario (in million MNT) 82 264 96 279 109

906123 105

Cost, percentage of GDP 0.39 0.35 0.34 0.34Cost, percentage of government revenues and grants 1.32 1.31 1.08 0.97Scenario C3-3: Targeted scheme: for poor children, half-board meal at MNT2,000 per day, and full-board: MNT4,000 per day (indexed to infl a on); those non-eligible subsidized at 50%Total popula on 2–6 years (000s) 311 316 318 316Take-up rate (per cent) 56 56 57 57Fully subsidized group covered by this scenario (000s) 43 41 36 36Half-subsidized group covered by this scenario (000s) 130 137 145 144Cost of scenario (in million MNT) 57 164 66 029 73 844 83 099Cost, percentage of GDP 0.27 0.24 0.23 0.23Cost, percentage of government revenues and grants 0.92 0.90 0.73 0.66Source: ILO RAP calcula ons, 2015.

ConclusionThe indexa on of the CMP allowance and the increase of the school meals programme for all children is a priority to improve child income security and increase level of nutri on which is fundamental for their personal development. Both interven on would cost an addi onal 0.72 per cent of GDP by 2020 bringing the cost of both programmes to 1.53 per cent of the GDP in 2020. The cos ng exercise also concludes that the introduc on of a proxy-means tested system to target poor children under the CMP and school meals programme would not lead to signifi cant savings. In the opposite, decrease in kindergarten registra ons, in access to nutri on and drop-off in mee ng basic needs will have a nega ve impact on child development. Inves ng in child nutri on, educa on and access to essen al needs is inves ng in the future of the country.

75

5.3. Working age

“Basic income security, at least at a na onally defi ned minimum level, for people in ac ve age who are unable to earn suffi cient income, in par cular in cases of sickness, unemployment, maternity and disability.”

To complete the social protec on fl oor for the working age popula on, the main recommenda ons are to ensure equal maternity benefi ts for all formal and informal workers, self-employed workers and herders, as well as to expand the coverage of the social insurance scheme among herders, self-employed and informal economy workers, notably those benefi ng from the ten EPPs of the Ministry of Labour (MOL). The cost of these recommenda ons is es mated through the scenarios contained in table 25.

Table 25. Working age scenarios related to social insurance

Scenario WA1-0 Status quo: Maintain voluntary social insurance scheme replacement rate during maternity leave at 70 per cent (current law).

Scenario WA1-1 Increase the replacement rate during maternity leave to 100 per cent under the voluntary scheme.

Scenario WA2-1 Subsidize 50 per cent of the contribu on for voluntary maternity, sickness and working injury insurance.

Scenario WA2-2 Subsidize 70 per cent of the contribu on for voluntary maternity, sickness and working injury insurance.

Scenario WA3-1 Subsidize 100 per cent of the voluntary social insurance contribu on for all benefi ciaries of EPPs (pension and short-term benefi ts).

Scenario WA3-2 Subsidize 100 per cent of the voluntary social insurance contribu on for “vulnerable group” and 70 for the “less vulnerable group” (Pension and short-term benefi ts).



76

Addi onal recommenda ons also aim at promo ng social insurance and employment among youth in rural areas, as well as improving return to wok of the insured unemployed workers and people with disabili es due to a working injury. These recommenda ons were translated into the following scenarios (table 26).

Table 26. Working age scenarios related to ac ve labour market policies

Scenario WA4-1 Introduce a new EPP targe ng young herders that combines counselling for entrepreneurship and subsidy for social insurance young herders for one year.

Scenario WA4-2 Introduce a new EPP targe ng young herders that combines counselling for entrepreneurship and subsidy for social insurance young herders for three years.

Scenario WA4-3 Introduce a new EPP targe ng young herders that provides voca onal training, appren ceships, a s pend and subsidy for social insurance contribu ons (six months).

Scenario WA4-4 Introduce a new EPP targe ng young herders that provides voca onal training, a s pend and subsidy for social insurance contribu ons (three months).

Scenario WA5 Implement an up-skilling training of two months for unemployed skilled workers of formal economy (unemployment insurance benefi ciaries, programme funded by Social Insurance Fund).


Scenario WA6 Implement a re-skilling training for people with disabili es due to working injury and occupa onal diseases (benefi ciaries of disability pension from social insurance working injury fund, funded by the Social Insurance Fund).


Scenario WA1-1: Increase the replacement rate during maternity leave to 100 per cent under the voluntary scheme.

Maternity benefi ts aim at compensa ng women in employment for the loss of income when res ng before and a er birth and taking care of the new born baby. It therefore does not overlap with the social welfare maternity benefi ts that provides an allowance to cover the costs resul ng from pregnancy and child birth. The replacement rate for maternity benefi ts under the mandatory social insurance system is 100 per cent of last 12 month average while the rate is only 70 per cent of last 12 month average income for voluntary insured mothers. In this scenario, the RAP es mates the cost of ensuring equal treatment between female workers in the private sectors and those engaged in herding, self-employment and informal economy, thus li ing up the replacement rate during maternity leave to 100 per cent for both schemes.

Assump ons• The fer lity rate of the target popula on (herders, self-employed) is the same as the na onal

fer lity rate.• The number of births did not take into considera on the mul ple birth per mother and child

mortality at birth. • The number of insured under Categories II (herders, unemployed workers and voca onal

students) and IV (self-employed) in 2011 represent 100 per cent of the target popula on of the voluntary social insurance scheme. The RAP assumes that voca onal students are not part of the target popula on for the voluntary scheme. They either fall under Ar cle 4.2 (mandatory social insurance) or are inac ve.

• All voluntary insured contribute at the level of the minimum wage.• The RAP assumes that the coverage rate of the voluntary insurance scheme will reach 100 per

cent by 2020.

77

ResultsEnsuring equality of treatment between female workers covered under the voluntary and mandatory schemes for maternity benefi ts would not cost more than an addi onal 0.1 per cent of GDP, even in the case that the voluntary scheme reaches full coverage by 2020. The cost will be in any case absorbed by addi onal social insurance contribu ons due to increase in insured popula on, therefore such measure will have a very limited impact on the balance of the Social Insurance Fund.

Scenario WA2: Subsidize 50 per cent or 70 per cent of the contribu on of herders, self-employed and informal economy workers for maternity, sickness and working injury insurance.This scenario introduces a subsidy on the social insurance contribu on of herders, self-employed and informal economy workers, as an incen ve to increment coverage under the social insurance system. It compares the cost between a 50 and 70 per cent subsidy.

This scenario is aligned with the current debate of reforming the old-age pension system to convert the voluntary par cipa on of herders, self-employed and informal economy workers into a mandatory par cipa on with subsidized contribu ons. Such reform would also apply to short-term benefi ts. The RAP has simulated what would be the cost of the scenario if all the target popula on would be contribu ng to the scheme by 2020, i.e. 100 per cent of coverage of the target popula on. Nevertheless, a more in-depth actuarial study is necessary to provide a more accurate cost es mate.

Assump ons• The RAP assumes that voca onal students are not part of the target popula on for the voluntary

scheme. They are registered either under Ar cle 4.2 (mandatory social insurance) or are inac ve.

• Number of insured under Categories II (herders) and IV (self-employed) in 2011 represent 100 per cent of the target popula on of the voluntary social insurance scheme. It is used as the baseline data to project herders and self-employed popula on.

• All voluntary insured contribute at the level of the minimum wage.• The RAP assumes that the voluntary social insurance scheme will cover the full target popula on

by 2020 (100 per cent of coverage).

ResultsThe addi onal cost of introducing a subsidy on the social insurance voluntary contribu on for short term benefi ts would remain limited to 0.02 per cent in 2014 (for both levels of subsidy), up to 0.10 per cent for a 50 per cent subsidy and 0.14 per cent for a 70 per cent subsidy with a simulated full coverage by 2020.

Scenario WA3: Subsidize the social insurance contribu on for benefi ciaries of EPPs (pension and short-term benefi ts): (1) full subsidy for all benefi ciaries; (2) par al subsidy for the “less vulnerable” (50 per cent or 70 per cent).

The scenario 3 of the working age group aims to create incen ves for increasing the social insurance coverage, especially among the benefi ciaries of the ten EPPs implemented by the MOL. Eight EPPs were ini ated in 2012 and were complemented by two addi onal programme in 2014, bringing the number of EPPs to ten.

It is proposed to subsidize social insurance contribu ons of all par cipants in the ten EPPs. The cost would be covered by the budget of the MOL. It compares the cost of diff erent op ons: (1) all benefi ciaries of the ten EPPs benefi t from full subsidies on their social insurance contribu on for the dura on of their programme; (2) only the “vulnerable” group will receive full subsidy, the “less vulnerable” ones benefi t from a 50 per cent or 70 per cent subsidy. It is expected that subsiding the social insurance contribu on would create an incen ve for con nuing par cipa ng in the scheme a er the period of benefi ng from an EPP.

78

Assump ons• The number of benefi ciaries of the EPPs will increase by 10 per cent every year.

• As an average, an EPP lasts for 6.06 months (see 'EPP benefi ciaries').

• EPP design will not change over the next six years.

ResultsThe most expensive op on, i.e. a full subsidy for all benefi ciaries of the EPPs during the period of the programme, would cost 0.05 per cent in 2014 and 0.10 per cent in 2020. The diff erence between fully subsidized and par ally subsidized EPPs remains modest (0.01 per cent of GDP by 2020).

Scenario WA4: Introduce two new EPPs targe ng young herders: (1) one programme that combines counselling for entrepreneurship and subsidy for social insurance for young herders for one or three years, (2) a second programme that provides voca onal training, a s pend and subsidy for social insurance contribu ons: dura on of three months; or six months with appren ceship.

Although the MOL has recently introduced targeted EPPs, the par cipants in the na onal dialogue felt that none fully addressed the needs of young herders. For that reason, the following two programmes were proposed: (1) personalized entrepreneurship counselling for one year (low scenario) or three years (high scenario); and (2) targeted training for herding ac vi es during three months (low scenario) or six months with a three-month appren ceship (high scenario). Because young herders must con nue to meet subsistence costs for themselves and their families during training periods, the training programme will include a monthly s pend. As in the above scenarios, during the whole period of the programme, the young herders receive a subsidy on their social insurance contribu ons as to create incen ves among young workers to par cipate in the social insurance system. Benefi ciaries of the training programme receive a full subsidy and those benefi ng from the entrepreneurship counselling programme receive a par al subsidy (90 per cent). The targeted popula on for this scenario is the youth, age 15–29, engaged in herding produc on, either seeking to improve their husbandry ac vi es and/or exploring new local economic opportuni es and the establishment of small enterprises.

Assump ons• The ra o rural/urban of the overall popula on also applies to the age group 15–29.

• The na onal unemployment rate among youth (age 15–29) applies to youth in rural areas too.

• The cost of running personalized and collec ve con nued entrepreneurship counselling is es mated at MNT15,000 per session, on an average. This costs has been iden fi ed in consulta on with the ILO Community-Based Enterprises Development programme which has a long experience in providing such targeted programmes in rural areas of developing countries.

• One out of fi ve of rural youth is willing to develop and/or reinforce his or her own business and enhance voca onal skills.

• Average training cost per head and per month is es mated at MNT200,000 during the fi rst three months, and then MNT100,000 for the three consecu ve months. The young herder programme uses exis ng training, thus there is no to develop new training curricula. The average dura on of training is three months for the low scenario, and six months including a three months of appren ceship for the high scenario.

• The monthly s pend is fi xed at MNT190,000, aligned with the current s pend of the EPP on Prepara on of Professional Workers.

• During the appren ceship, the employer receives a subsidy from the MOL equivalent to half of the minimum wage to be paid to the benefi ciary and social insurance contribu on.

79

ResultsThe introduc on of an addi onal EPP targe ng young herders would cost, for the high scenario, 0.12 per cent of GDP for three years of personalized entrepreneurship counselling and 0.13 per cent for targeted training that would include appren ceship too by 2020. A low scenario would respec ve cost 0.04 per cent of GDP and 0.03 per cent of GDP by 2020. The cost also includes a subsidy on the social insurance contribu on. Therefore, it is suggested introducing both high scenario programmes in order to be er target the needs of young herders.

Scenario WA5: Implement an up-skilling training of two months for unemployed skilled workers in the formal economy (unemployment insurance benefi ciaries, programme funded by the Social Insurance Fund).

This scheme would complement the exis ng unemployment insurance system by strengthening its link with ac ve labour market policies (ALMPs) and facilitate return to work of those receiving unemployment benefi ts. Par cipants in the na onal dialogue agreed on the introduc on of an up-skilling training programme targe ng unemployment insurance benefi ciaries. Such up-skilling programme will also contribute to smooth economic restructura on by providing training opportuni es to help those most aff ected by these changes gaining new skills in high demand.

Assump ons• The number of unemployment insurance benefi ciaries will follow the trend of the unemployment

rate over the years.

• The unemployment rate is constant at 5.9 per cent a er 2017.

• The cost of re-training course for benefi ciaries is similar to the cost of training under the “Conduct Employment Training Programme” per head, amoun ng to MNT131,000 per month. It is lower than the cost used in the above scenario because we are here considering up-skilling of workers rather than equipping them with new skills. The cost is indexed to labour cost.

• The dura on of the training is two months.

• Benefi ciaries can undergo only one up-skilling training per year.

• In 2014, half of unemployment insurance benefi ciaries undergo the up-skilling programme and the ra o remains constant over the years.

ResultsReinforcing the unemployment insurance scheme would cost 0.03 per cent of government grants and revenues by 2020. During the ABND process, there was a request to explore possible linkages of the unemployment insurance benefi ts with possible ALMPs. Such request should be addressed through a more in-depth study assessing the fi nancial, legal and ins tu onal feasibility of diff erent op ons.

Scenario WA6: Implement a reskilling training for people with disabili es due to working injury and occupa onal diseases (benefi ciaries of disability pension from social insurance working injury fund, funded by the Social Insurance Fund).

This scheme would complement the exis ng disability pension provided by the social insurance scheme and the EPP targe ng people with disabili es. This scenario essen ally targets those receiving a disability pension from the working injury scheme. The new proposed re-skilling programme would off er some adapted training and re-training aimed at maintaining benefi ciaries of the disability pension in some ac vity.

Assump ons• The number of benefi ciaries of the occupa onal disability pension remains constant during the

period 2013–20, at the level of the average number of benefi ciaries for the period 2005–13.

• The programme targets at all the benefi ciaries of the disability pension, assuming that all people with disability can somehow benefi t from being trained for new jobs.

80

• Average training cost per head and per month is es mated at MNT400,000 (and indexed to labour cost). The training curricula need to adapt to the target group, and therefore may also require innova ve methodologies, introduc on of new technologies and more experienced trainers.

• The average dura on of training is six months.

ResultsThe introduc on of a re-training programme for benefi ciaries of the disability pension would cost between 0.08 per cent of GDP in 2014 and 0.09 per cent in 2020. This cost represents 0.24 per cent of government grants and revenues in 2014 and 0.27 per cent in 2020. Here again, more in-depth feasibility studies are needed to eff ec vely target the need of people with disabili es. Nevertheless, the introduc on of the scenario during the ABND demonstrates the shared concern among all stakeholders to improve the integra on of people with disabili es into the labour market and society.

The cost es mates for each scenario are summarized in table 27.

Table 27. Results of cos ng: Increasing social insurance coverage and promo ng employment of the working age group

2014 2016 2018 2020Scenario WA1-0: Status quo: Replacement rate during maternity leave at 70%, voluntary scheme

Target group (Number of births by female workers under Art. 4.3 of social insurance Law: herders, self-employed and informal eco-workers) (000s) 32 32 31 31Take-up rate (per cent) (Insured under voluntary social insurance as a percentage of target workers) 19 25 33 44Group covered by this scenario (000s) 6 8 10 14Cost of scenario (in million MNT) 3 462 5 761 9 589 16 089Cost, percentage of GDP 0.02 0.02 0.03 0.04Cost, percentage of government revenues and grants 0.06 0.08 0.09 0.13

Scenario WA1-1: Replacement rate during maternity leave at 100%, voluntary schemeTarget group (number of births by female workers under Art. 4.3 of Social Insurance Law: Herders, self-employed workers) (000s) 32 32 31 31Take-up rate (per cent) 20 60 100 100Group covered by this scenario (000s) 6 19 31 31Cost of scenario (in million MNT) 5 186 19 575 40 983 51 789Cost, percentage of GDP 0.02 0.07 0.13 0.14Cost, percentage of government revenues and grants 0.08 0.27 0.40 0.41

Scenario WA2-1: Contribu on to maternity, sickness, employment injury is 2% of minimum wage, 50% of contribu on subsidized by the government, for voluntary scheme

Target group (number of herders, self-employed workers) (000s) 675 697 719 740Take-up rate (per cent) 20 60 100 100Target group covered by this scenario (000s) 135 418 719 740Cost of scenario (in million MNT) 3 266 12 895 28 249 37 478 Cost, percentage of current GDP 0.02 0.05 0.09 0.10Cost, percentage of government revenues and grants 0.05 0.18 0.28 0.30

Scenario WA2-2: Contribu on to maternity, sickness, employment injury is 2% of minimum wage, 70% of contribu on subsidized by the government, for voluntary scheme

81

Target group (number of herders, self-employed workers) (000s) 675 698 719 740Take-up rate (per cent) 20 60 100 100Group covered by this scenario (000s) 135 419 719 740Cost of scenario (in million MNT) 4 574 18 061 39 549 52 469 Cost, percentage of current GDP 0.02 0.07 0.12 0.14Cost, percentage of government revenues and grants 0.07 0.25 0.39 0.42Scenario WA3-1: Voluntary social insurance Contribu on subsidized by the government at 100% (Pension and short-term benefi ts) for all benefi ciaries of EPPsNumber of benefi ciaries of 4 “Vulnerable Group” EPPs (000s) 38 46 56 68Number of benefi ciaries of 2 “Less vulnerable Group” EPPs (000s) 30 36 44 53

Cost of Scenario (in million MNT) 9 993 15 406 23 762 37 073 Cost, percentage of current GDP 0.05 0.06 0.07 0.10Cost, percentage of government revenues and grants 0.16 0.21 0.23 0.29Scenario WA3-2: Voluntary social insurance Contribu on subsidized by the government at 100% for “vulnerable group” and at 70% for “less vulnerable group” (pension and short-term benefi ts)Number of benefi ciaries of 4 “Vulnerable Group” EPPs (000s) 38 46 56 68

Number of benefi ciaries of 2 “Less vulnerable Group” EPPs (000s) 30 36 44 53

Cost of scenario (in million MNT) 8 640 13 319 20 543 32 052 Cost, percentage of current GDP 0.04 0.05 0.06 0.09Cost, percentage of government revenues and grants 0.14 0.18 0.20 0.25

Scenario WA3-3: Voluntary social insurance Contribu on subsidized by the government at 100% for “vulnerable group” and at 50% for “less vulnerable group” (pension and short-term benefi ts)Number of benefi ciaries of 4 “Vulnerable Group” EPPs (000s) 38 46 56 68

Number of benefi ciaries to the 2 “Less vulnerable Group” EPPs (000s) 30 36 44 53

Cost of scenario (in million MNT) 7 737 11 928 18 398 28 704 Cost, percentage of current GDP 0.04 0.04 0.06 0.08Cost, percentage of government revenues and grants 0.12 0.16 0.18 0.23Scenario WA4-1: Low: EPPs linked to social security for young herders – Entrepreneurship counselling + social insurance subsidy during one yearTarget popula on 1 (15–29 years old, unemployed people in rural areas) (000s) 7 6 5 4

Target popula on 2 (15–29 years old in rural areas, willing to develop their own business) 15 14 12 11

Take up rate 50 70 100 100

Number of benefi ciaries (000s) 11 14 17 15


Scenario WA4-2: High: EPPs linked to social security for young herders – Entrepreneurship counselling + social insurance subsidy during three years

Target popula on 1 (15–29 years old, unemployed people in rural areas) (000s) 7 6 5 4

Target popula on 2 (15–29 years old in rural areas, willing to develop their own business) (000s) 15 14 12 11

82

Take up rate 50 70 100 100



Scenario WA4-3: High: EPPs linked to social security for young herders – voca onal training + s pend + social insurance subsidy during training for six months (three months full- me training; three months appren ceship)Target popula on 1 (15–29 years old unemployed people in rural areas) (000s) 7 6 5 4

Target popula on 2 (15–29 years old in rural areas, willing to develop their skills) (000s) 15 14 12 11

Take up rate 50 70 100 100



Scenario WA4-4: Low: EPPs linked to social security for young herders – voca onal training + s pend + social insurance subsidy during training (3 months)Target popula on 1 (15–29 years old, unemployed people in rural areas) (000s) 7 6 5 4

Target popula on 2 (15–29 years old in rural areas, willing to develop their skills) 15 14 12 11

Take up rate 50 70 100 100


Cost of scenario (in million MNT) 4 573 6 172 8 948 9 567 Cost, percentage of current GDP 0.02 0.02 0.03 0.03Cost, percentage of government revenues and grants 0.07 0.08 0.09 0.08Scenario WA5: Up-skilling training of two months for unemployed skilled formal economy workers (unemployment insurance benefi ts funded by social insurance) Number of unemployment insurance benefi ciaries funded by social insurance (000s) 9 5 5 5

Take up rate 80 100 100 100

Benefi ciaries par cipa ng in upskilling course (000s) 7 5 5 5

Cost of Scenario (in million MNT) 2 459 2 198 2 866 3 261 Cost, percentage of current GDP 0.01 0.01 0.01 0.01Cost, percentage of government revenues and grants 0.04 0.03 0.03 0.03

Scenario WA6: Reskilling training for people with disabili es due to working injury and occupa onal diseases (benefi ciaries of disability pension from social insurance working injury fund)

Number of benefi ciaries of disability pension from social insurance working injury fund (000s) 6 6 6 6

Cost of Scenario (in million MNT)15 344 20 675 26 355 33 982

Cost, percentage of current GDP0.08 0.08 0.08 0.09

Cost, percentage of government revenues and grants 0.24 0.28 0.26 0.27


83

ConclusionIncreasing the level of social insurance benefi ts for herders, self-employed and informal workers appears to be a policy necessity to ensure equality of treatment between the two schemes; the cost would be capped at 0.10 per cent of GDP even in the eventuality of reaching a full coverage. Par cipants in the na onal dialogue opted for a subsidized contribu on of the short-term benefi ts at 50 per cent, more for an equity concern towards the formal workers than a cost issue. The es mated cost of introducing a subsidy on the short-term benefi ts contribu ons, its feasibility and sustainability should in any case be further assessed by an in-depth actuarial study.

An upgraded package of ALMPs targe ng vulnerable groups such as young herders, unemployed workers and people with disabili es, as proposed through the na onal dialogue process would cost less than 1 per cent of GDP. Further design and feasibility study would be necessary to refi ne the parameters of such programmes.

84

5.4. Older persons

“Basic income security, at least at a na onally defi ned minimum level, for older persons.”

To complete the social protec on fl oor for the old-age group, the main recommenda ons are to introduce incen ve mechanisms for increasing par cipa on of herders, self-employed and informal workers, and to adjust the exis ng social welfare allowance for older people in order to guarantee a certain level of income security (e.g. the amount of benefi ts should be indexed to infl a on).

In line with the exis ng policy, the target group includes all women over age 55 and all men over age 60.

Furthermore, par cipants in the na onal dialogue agreed on the introduc on of the subsidy on the voluntary social insurance contribu on as to create an incen ve among herders and self-employed workers to par cipate in the old-age pension scheme. The UN/G Social Protec on Working Group translated the above recommenda ons into the scenarios contained in table 28.

Table 28. Older persons scenarios

Scenario E1-0 Status quo: Maintain the social welfare pension at the same level (MNT115,000), and do not index to infl a on.

Scenario E1-1 Index the social welfare pension (MNT115,000) to infl a on.Scenario E2-1 Subsidize the contribu on of herders, self-employed and informal workers to the

old-age pension scheme by 50 per cent.

Scenario E2-2 Subsidize the contribu on of herders, self-employed and informal workers to the old-age pension scheme by 70 per cent.


85

Scenario E1-1: Index the social welfare pension (MNT115,000) to infl a on

This social welfare programme provides a minimum income guarantee to all women (55 years) and men (60 years) who have never worked, or have less than ten years of contribu on to the social insurance scheme. The social welfare old-age pension is not indexed to infl a on. Par cipants in the na onal dialogue felt this was weakness in the social welfare system, as infl a on has fl uctuated signifi cantly in the past few years.

Assump ons• Sex-disaggregated data on social welfare benefi ciaries are not available. The average growth

rate of the target popula on (male over 60 years old, women over 55 years old) on both male and female groups was applied in the RAP cos ng exercise.

• The number of benefi ciaries of the social welfare old-age pension grows in parallel with the demographic growth of this age group.

• In the status quo scenario, it is assumed that the MPDSP will not increase the pension over the next six years.

ResultsBecause the number of benefi ciaries is very limited (around 3,000–4,000 individuals), indexing the social welfare old-age pension to infl a on would not have any major impact in terms of cost. The addi onal cost represents only 0.01 per cent of GDP or 0.03 per cent of government grants and revenues by 2020.

Scenario E2: Subsidize the contribu on of herders, self-employed and informal economy workers to the old-age pension scheme by 50 per cent or 70 per cent.The second scenario for the old-age protec on assesses the cost of introducing a subsidy on the contribu on to the social insurance pension fund as an incen ve to increase par cipa on in the social insurance system. The measure aims to extend old-age pensions to herders and self-employed workers and will also increase protec on against fi ve other risks since the par cipa on to the social insurance scheme gives access to a package of six benefi ts: sickness, maternity, working injury, old-age, disability and survivors. The monthly contribu on to the pension fund (long-term benefi ts) is 10 per cent of the reference wage, and the monthly contribu on to the allowance fund (short-term benefi ts) is 2 per cent of the reference wage.

The scenario compares the cost of a subsidy for the contribu on of herders, self-employed and informal economy workers set at 50 per cent of the reference wage and one at 70 per cent.

This scenario is aligned with the current debate on reforming the old-age pension system to convert the voluntary par cipa on of herders, self-employed and informal economy workers into mandatory par cipa on. The RAP has roughly simulated the cost of the scenario if the en re target popula on contributed to the scheme by 2020. Nevertheless, a more in-depth actuarial study is necessary to provide a more accurate es mate of the cost, feasibility and sustainability of such proposal.

Assump ons• The RAP assumes that voca onal students are not part of the target popula on for the voluntary

scheme. They are either registered under Ar cle 4.2 (mandatory social insurance) or are inac ve.

• The number of insured under categories II (herders) and IV (self-employed) in 2011 represent 100 per cent of the target popula on of the voluntary social insurance scheme.

• All voluntary insured contribute at the level of the minimum wage.• The RAP assumes that the coverage rate of the voluntary insurance scheme will reach 100 per

cent by 2020. The take up rate is similar to the one used for scenarios WA2.

86

ResultsIntroducing a subsidy of 50 per cent of the contribu on based on the reference wage would cost 0.51 per cent of GDP by 2020 once the social insurance voluntary scheme achieves full coverage of the herders and self-employed popula on, and 0.72 per cent if the subsidy is set at 70 per cent. In terms of government revenues and grants, it represents respec vely 1.48 per cent and 2.08 per cent for full coverage of the target popula on.

The scenarios and costs of increasing old-age pension coverage for herders and self-employed workers are summarized in table 29.

Table 29. Results of cos ng: Increasing old age pension coverage among herders and self-employed workers

2014 2016 2018 2020Scenario E1-0: Status quo: No indexa on of the social welfare pensionTarget popula on (male over 60, female over 55) (000s) 231 292 328Cost of scenario (in million MNT) 2 793 3 135 3 536 3 974Cost, percentage of GDP 0.01 0.01 0.01 0.01Cost, percentage of government revenues and grants 0.04 0.04 0.03 0.03Scenario E1-1: Social welfare pension indexed to infl a onTarget popula on (male over 60, female over 55) (000s) 231 259 292 328Cost of scenario (in million MNT) 3 162 4 025 5 100 6 442Cost, percentage of GDP 0.01 0.01 0.02 0.02Cost, percentage of government revenues and grants 0.05 0.05 0.05 0.05Scenario E2-1: Subsidize old-age contribu on of herders, self-employed and informal economy workers at 50%. Target popula on (herders and self-employed) (000s) 675 697 719 740Take-up rate (per cent) 20 60 100 100Target group covered by this scenario (000s) 135 418 719 740Cost of scenario (in million MNT) 16 329 64 477 141

246187 388

Cost, percentage of current GDP 0.08 0.23 0.43 0.51Cost, percentage of government revenues and grants 0.24 0.88 1.39 1.48Scenario E2-2: Subsidize old-age contribu on of herders, self-employed and informal economy workers at 70%. Target popula on (herders and self-employed) (000s) 675 697 719 740Take-up rate (per cent) 20 60 100 100Target group covered by this scenario (000s) 135 418 719 740Cost of scenario (in million MNT) 22 861 90 268 197

745262 344

Cost, percentage of current GDP 0.11 0.33 0.61 0.72Cost, percentage of government revenues and grants 0.33 1.23 1.95 2.08Source: ILO RAP calcula ons, 2015.

ConclusionPar cipants in the na onal dialogue opted for a subsidized contribu on of old-age pension benefi ts at 50 per cent. The es mated cost of introducing a subsidy on the short-term benefi ts contribu ons, its feasibility and sustainability should be further assessed in any case by an in-depth actuarial study. Indexing the social pension appears to be an immediate necessity.

87

6. A Na onally Defi ned Social Protec on Floor for Mongolia 6.1. Consolidated package to close gaps in the social protec on fl oor in Mongolia

To close gaps in the social protec on fl oor in Mongolia, the UN/G Social Protec on Working Group proposed two possible schemes, a ‘low scenario’ and a ‘high scenario’, outlined in table 30.

Table 30. Proposed combined low and high es mates

Low HighHealth

Scenario H1-0: Maintain SHI contribu on fully subsidized for Category II and par ally for Category II (status quo)Scenario H1-2: Fully subsidize the SHI contribu on for Category II

Children

Scenario C1-1: Index the Child Money Programme (CMP) allowance to infl a onScenario C3-1: Maintain the school meal allowance at current level (for half-board children, MNT1,650 per day, and for full-board children MNT2,400 per day) and index the amounts on infl a onScenario C3-2: Increase food allowance: half-board meals MNT2,000 per day, full-board meals MNT4,000 per day (indexed on infl a on)

Working age

Scenario WA1-1: Increase the replacement rate during maternity leave to 100 per cent under the voluntary schemeScenario WA2-1: Subsidize maternity, sickness, employment injury contribu on of herders, self-employed and informal economy workers at 50%.

88

Scenario WA2-2: Subsidize maternity, sickness, employment injury contribu on of herders, self-employed and informal economy workers at 70%.

Scenario WA3-1: Subsidize 100 per cent of the social insurance contribu on for all benefi ciaries of EPPs (Pension and short-term benefi ts).

Scenario WA3-3: Subsidize 100 per cent of the voluntary social insurance contribu on for “vulnerable group” and 50 per cent for the “less vulnerable group” (Pension and short-term benefi ts).

Scenario WA4-1: Introduce a new EPP targe ng young herders that combines counselling for entrepreneurship and subsidy for social insurance young herders for one year.Scenario WA4-2: Introduce a new EPP targe ng young herders that combines counselling for entrepreneurship and subsidy for social insurance young herders for three years.Scenario WA4-3: Introduce a new EPP targe ng young herders that provides voca onal training, appren ceships, a s pend and subsidy for social insurance contribu ons (six months).Scenario WA4-4: Introduce a new EPP targe ng young herders that provides voca onal training, a s pend and subsidy for social insurance contribu ons (three months).Scenario WA5: Implement an up-skilling training of two months for unemployed skilled workers of formal economy (unemployment insurance benefi ciaries, programme funded by Social Insurance Fund).Scenario WA6: Implement a reskilling training for people with disabili es due to working injury and occupa onal diseases (benefi ciaries of disability pension from social insurance working injury fund, funded by the Social Insurance Fund).

Older persons

Scenario E1-1: Index the social welfare pension (MNT115,000) on infl a on

Scenario E2-1: Subsidize the contribu on to the old-age pension scheme by 50 per cent for herders, self-employed and informal economy workers.Scenario E2-2: Subsidize the contribu on to the old-age pension scheme by 70 per cent for herders, self-employed and informal economy workers.


89

6.2. Cost comparison of diff erent op ons for social protec on fl oor in Mongolia

Figure 12. Addi onal cost to complete the social protec on fl oor for the combined low and high scenarios, per programme, as a percentage of GDP (2014–20)

Low scenario 1.42%

High scenario 1.91%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2014 2015 2016 2017 2018 2019 2020

Pension (Subsidized herders, self-employed and informal workers contirbutioncontribution)Working age ALMP (PWD & UI)

Working Age ALMP (youth support)

Working Age ALMP (subsidized contribution for EPP beneficiaries)

Working Age SI (subsidized herders, self-employed and informal workers contirbution formaternity+sickness+injury)Working age SI (Maternity)

Children (Meal allowance)

Pension (Subsidized herders, self-employed and informal workers contribu on)

Working age ALMP (PWD & UI)

Working Age ALMP (youth support)

Working Age ALMP (Subsidized contribu on for EPP benefi ciaries)

Working Age SI (Subsidized herders, self-employed and informal workers contribu on for maternity+sickness+injury)

Working age SI (Maternity)

Children (Meal allowance)

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

-0.50%

Children (CMP)

Health (Subsidy cat. II)


It would cost an addi onal 1.91 per cent of GPD to achieve the high scenario of a social protec on fl oor in Mongolia and 1.42 per cent of GDP in the case of the low scenario, on the top of the already projected social protec on expenditures by 2020 (fi gures 12 and 13). Because universal SHI has already been achieved, expenses would mainly reinforce social protec on of and nutri on for children, income security and employability of the working age group, as well as old-age protec on. To complete the higher social protec on fl oor scenario, the addi onal cost as a percentage of GDP by 2020 will be spread as follows: 0.60 per cent for the children guarantee, 0.63 per cent for the working age guarantee, and 0.66 per cent for the older persons guarantee.

90

Figure 13. Results of the addi onal cost es mates for the combined low and high scenarios per guarantee


Comple ng a social protec on fl oor in Mongolia would bring the social expenditures into a range from 4.23 per cent to 4.56 per cent of GDP in 2015 (fi gure 14). If projected to six years, total social protec on expenditures to realize a social protec on fl oor could range from 4.46 per cent rising annually to 4.95 per cent of GDP by 2020, which corresponds to an addi onal 0.91 per cent of GDP in the most expansionist case.

This level remains much lower than the social protec on expenditures engaged by the Government in 2010-12 when introducing a temporary cash transfer to every ci zen. In 2011, the social protec on expenditures peaked at 9.5 per cent of GDP and then fell back to its levels prior to 2007.

Figure 14. Projec ons of social expenditures as a percentage of GDP, comparing the cost of the status quo, low and high scenarios for a social protec on fl oor


91

Table 31. Regional average (weighted by total popula on) of public social protec on expenditure by guarantee, latest available year (percentage of GDP)

Major area, region or country

Total social protection expenditure

Public health care expenditure

Public social protection expenditure for older persons

Public social protection expenditure for persons of active age 1

General social assistance

Public social protection expenditure for children

Africa 4.3 2.6 1.3 0.4 0.2 0.2 North Africa 10.0 3.2 5.0 1.1 0.3 0.4 Sub-saharan Africa 4.3 2.6 1.1 0.3 0.2 0.1 Asia and the Pacific 4.6 1.5 2.0 0.4 0.4 0.2 Western Europe 27.1 7.9 11.1 5.0 0.9 2.2 Central and Eastern Europe 17.8 4.4 8.3 3.0 1.3 0.8 Latin America and the Caribbean 13.9 4.0 4.6 2.0 2.6 0.7 North America 17.0 8.5 6.6 2.8 1.1 0.7 Middle East 11.0 2.0 3.3 1.5 3.4 0.8 World 8.8 2.8 3.3 1.5 0.7 0.4 1 Social benefits for persons of active age (excluding general social assistance). Source: ILO, World Social Protection Report 2014–15 (ILO, 2015).

As shown in table 31, the share of social protec on expenditures to GDP in Mongolia is lower compared to the world average share of public social protec on expenditures (without public health-care expenditures) to GDP (6.0 per cent), even in the situa on of a high social protec on fl oor scenario; however, higher than the Asia-Pacifi c average (3.1 per cent).

6.3. Defi ni on and cost of a social protec on fl oor for MongoliaA er a review of the cost es mates of the diff erent op ons aimed at providing at least a minimum guarantee to all people in Mongolia, par cipants in the na onal dialogue agreed on a defi ni on of a social protec on fl oor. Table 32 presents the defi ni on established through that process.

Table 32. Defi ni on of a social protec on fl oor for Mongolia

Guarantee Components of the social protec on fl oorAlready in place, to be improved

New programme

Health Universal health insurance coverage, with a full subsidy of the contribu on for vulnerable group and herders

Quality, available and aff ordable health care for all throughout the country, with eff orts to improve supply and services in rural areas

Children Universal and free general educa on, including free boarding schools

Universal CMP, safeguarded by a law and automa cally indexed to the cost of living

92

Children Improved early-child nutri on through a higher meal allowance indexed to the cost of living for all children a ending kindergarten (2–6 years old)

Improved environment to ensure the development and fundamental rights of children of herder families

Working age Universal social insurance coverage for sickness, maternity and working injury, with subsidized contribu on for herders, self-employed and informal economy workers (50 per cent subsidized by the State budget)

Replacement rate of maternity benefi ts at 100 per cent for all workers, including herders, self-employed and informal economy workers.

Reinforced Employment Promo on Programmes (EPPs) and introduc on of a specifi c programme for young herders

Return to work and retraining programmes for vic ms of working accident and occupa onal disease, and unemployment insurance.

Older persons

Three pillar pension system composed of: - Universal basic pension indexed to the cost of living - Mandatory social insurance old-age pension coverage, with subsidized contribu on for herders, self-employed and informal economy workers (50 per cent subsidized by the State budget)- Supplementary pension plans. Create an integrated benefi ts and services package, including a long term care system for older persons, based on exis ng social welfare programmes to provide cash or in-kind assistance to poor older persons

Source: Un/G Social Protec on Working Group, 2014.

Figure 15. Projec ons of social expenditures as a percentage of GDP, comparing the status quo and comple on of a social protec on fl oor (2014-20)

4.27%

3.81%

3.53% 3.37%

3.27% 3.10% 3.07% 3.04%

4.48% 4.47% 4.42% 4.49% 4.57% 4.65%

4.72%

4.24% 4.21% 4.15% 4.21% 4.25% 4.32% 4.40%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

2013 2014 2015 2016 2017 2018 2019 2020

social expenditures as percentage of GDP at current prices (status quo)

Cost of the agreed SPF in terms of social expenditures

Cost of the agreed SPF in terms of social expenditures, ALMPs being funded by other budget


93

The cost of a social protec on fl oor in Mongolia would be around 4.7 per cent of GDP in 2020 and the por on would fall to 4.4 per cent if new EPPs are included under other budget lines, as per the na onal defi ni on of social expenditures (fi gure 15). The addi onal cost to complete the social protec on fl oor by 2020 would represent 1.7 per cent of GDP above the status quo of social expenditures. In other words, a social protec on fl oor would cost 44,650 tugrik (MNT) per month per capita in 2020, or US$22.50,35 which would represent an addi onal expenditure of US$8 per month per capita to achieve a social protec on fl oor in Mongolia by 2020.

This cost includes all social protec on expenditures already commi ed, indexa on of social welfare benefi ts to the cost of living, subsidies on social insurance contribu ons and some addi onal programmes that would complete the social protec on fl oor in Mongolia.

To conclude, in Mongolia, the addi onal long-term cost to ensure universal access to income security and basic social services would be only 1.7 per cent of GDP by 2020, bringing social expenditures to 4.7 per cent to GDP. The social protec on fl oor would guarantee universal health insurance with subsidies for all vulnerable groups and herders to ensure their eff ec ve access to health care; maintain and index the current universal child allowance, in addi on to already exis ng free general educa on (un l upper secondary school); introduce universal social insurance coverage, including old-age pension, with subsidized contribu on for all herders, self-employed and informal economy workers; and fi nally establish targeted and eff ec ve EPPs, notably for young herders.

6.4. Fiscal space for fi nancing the na onally defi ned social protec on fl oor of Mongolia

The Government budget on a high defi cit in 2014

The Mongolian na onal budget is strongly dependent on the economic growth. The dynamics of the consolidated revenue and expenditure of the Mongolian budget shows highly cyclical revenue fl uctua ons. Figure 16 was developed based on data provided by the NSO, MOF and Ministry of Economic Development (MED), following fi scal requirements set forth in the Law on Fiscal Stability.

Figure 16. Consolidated budget, share of social expenditures and growth rate of revenues and expenditures compared to previous year (billion MNT)

Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement.

During the years of fast economic growth, State revenues expanded signifi cantly, due mainly to the increase in commodity prices. In parallel, the Government invested those revenues in social policies.

35 Exchange rate of 16 Mar. 2015: US$1 = MNT1985.6

94

The cash transfer programme to every ci zen in 2010–12 for a total amount of MNT1,704 billion was one such investment. During those years, the country did not manage to build suffi cient savings for future ‘bad’ years. The budget is overly dependent on mining and is unable to withstand a decline in mineral prices, thus public debt has increased substan ally in recent years. In 2011 and 2012 budget expenditure grew by 62.2 per cent and 19.9 per cent, which was higher than the revenue growth in those years of 35.4 per cent and 15.5 per cent. It was in 2013 that the Government reduced social and other expenditures.

Due to lower than an cipated State revenues in 2014, the budget defi cit exceeded the limits of the special fi scal requirements and is likely to reach 10 per cent of GDP. Moreover, public debt as a percentage of GDP exceeded fi scal requirements and reached 57.0 per cent. The current fi scal situa on of Mongolia suggests it will ghten budget expenditures, so the 2015 State budget was approved with signifi cant cuts in spending, including social spending.

Financing a social protec on fl oorMongolia fi nances its social protec on programmes from three diff erent sources (fi gure 17). First, the Social Welfare Fund fi nances social pensions, allowances and specifi ed social services. Second, the Human Development Fund (HDF) partly replaced the former Development Fund of Mongolia in 2010 and covers the CMP, tui on fees, housing subsidies, special allowances for medical services and government subsidies on social insurance contribu ons, notably the SHI contribu on of vulnerable groups. Thirdly, the State budget also covers the defi cit of the pension social insurance.

Figure 17. Total social protec on expenditures in Mongolia by source (billion MNT)

218.7 244.2 99.3 131.9

233.6 233.3 264.8 272.8 285.8 298.8 309 320 334

139 145.9

170.6 189.1

272.4 294.6 320 341 348.2 372 396 422 446

89.9 89.7 277.6

733.1

693.7

269 252 268 274

289 302

315 330

0

200

400

600

800

1000

1200

1400

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2. Social Welfare Expenditure 3. Subsides to social insurance fund 4. Social transfers from human development fund

Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement, calculated according to the needs of the budget.

In 2011 and 2012 when the economy was favourable, expenditures of the social protec on system increased sharply due to cash transfers from the HDF. However, from 2013 many of these cash transfers, notably the cash transfers to every ci zen, stopped as the HDF could not build suffi cient resources to support those expansive programmes. As a result the share of social protec on expenditure to GDP dropped from 8.6 per cent to 3.8 per cent in 2014. If no addi onal social protec on measures are included (thus maintaining the status quo) this share will drop to 3.0 per cent of GDP by 2020 (fi gure 18).

95

Figure 18. Projec ons of social expenditures as percentages of GDP and State revenues

Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement, calculated according to the needs of the budget.

Comple ng a social protec on fl oor in Mongolia would bring social expenditures to 15.3 per cent of State revenues and grants in 2014 to slowly decrease to 13.6 per cent by 2020. It corresponds to an addi onal 4.8 per cent of revenues and grants by 2020 (fi gure 19).

Figure 19. Social protec on expenditures and cost of a social protec on fl oor as percentages of revenues and grants, actual and projected

12.99% 12.99% 12.71% 12.76%

9.92% 9.04%

8.78%

15.28% 16.43% 16.67% 17.51%

14.65% 13.68% 13.63%

14.45%

12.71%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

2013 2014 2015 2016 2017 2018 2019 2020

Status quo as % of Revenues Agreed SPF scenario as % of Revenues

Agreed SPF scenario as % of Revenues-ALMPs

Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement, forecast calculated according to the needs of the budget, ILO RAP calcula ons, 2015.

It must be noted that for the purpose of the RAP exercise in Mongolia, the cost of EPPs has been included under the revised projec on of social protec on expenditures, if a social protec on fl oor was to be implemented. If the cost of addi onal employment promo on measures is assumed, then the cost of social expenditures needed to reach a social protec on fl oor as a percentage of State revenues and grants would be 12.7 per cent instead of 13.6 per cent by 2020. Increasing social expenditures to complete a social protec on fl oor in Mongolia would have an

unavoidable cost on the already exis ng fi scal defi cit (fi gure 20). Projec ons of the MOF es mate a fi scal defi cit maintained below 3.0 per cent of GPD by 2020. Introducing a social protec on fl oor in Mongolia may entail a defi cit in the government budget reaching 4.2 per cent of GDP at current prices by 2020.

Several measures can be envisaged to resolve such a defi cit, for instance, budget realloca ons, changes in the tax structure, enforcement of tax collec on, revision of the parameters of the social insurance system, among other measures. In parallel to higher State’s spending on social protec on, the increase in social insurance contribu ons (covering all herders, self-employed and informal economy workers) would allow to resorb the recurrent defi cit of the social insurance fund, now fi nanced by the State’s budget.

Figure 20. Fiscal defi cit as a percentage of GDP at current prices, comparison between status quo in terms of social expenditures and the establishment of a social protec on fl oor


As illustrated in fi gure 21, the cost of a social protec on fl oor would s ll represent a minor expense compared to the total expenditures of the State.

Figure 21. Cost of a social protec on fl oor compared to State revenues and expenditures (2005-20)

0

2000

4000

6000

8000

10000

12000

14000

16000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Total State revenue and grant Social expenditures if status quo

Total State expenditure Cost of a SPF


96

Nevertheless, the Government together with social partners and key stakeholders, notably representa ves of the benefi ciaries may consider reviewing which programmes would become redundant. For instance, introducing a universal old-age pension may overlap with certain social welfare benefi ts. Such arbitra on on the suspension of certain social benefi ts, services and subsidies will only result from an informed and eff ec ve dialogue with par es represen ng the benefi ciaries, and would require further analysis of the impact and the costs and benefi ts.

6.5. The need for coordina on and effi cient delivery of servicesEngagement in produc ve, remunerated and protected employment, including par cipa on to social insurance, is key to improve income security and access to social services. Missing links in these important dimensions of decent work prevent people from enjoying adequate employment protec on and social protec on provided by both na onal and interna onal instruments. This is par cularly relevant among vulnerable groups who o en must overcome challenges to realize their right to decent work and social protec on.

Achieving a social protec on fl oor in a country is essen al to mend the missing links and close gaps and thereby prevent people from falling into the vicious cycle of poverty. In 2012, the Government restructura on divided the por olio of social protec on and labour issues into two ministries, MOL and MPDSP. The reform aims at reinforcing policy planning and implementa on with the goal of providing every Mongolian with a decent job and fostering popula on development as priori es of the government agenda. Consequently, a number of specialized agencies and centres were established under each Ministry to implement policies and deliver services following a strict ver cal hierarchical structure. With such mul plica on of ins tu ons and ver cal repor ng, there is a strong need to foster coordina on mechanisms to be er integrate social protec on interven ons, notably social welfare programmes, with employment strategies. However, the exis ng coordina on mechanisms, par cularly horizontal ones among diff erent Ministries and agencies are s ll weak resul ng in low integra on across strategies that are complementary, nevertheless necessary to achieve a broader development objec ve. The same pa ern is observed at lower levels as well where the local administra on acts as coordinator of decentralized offi ces working under ver cal management of line ministries.

Due to the lack of coordina on or ineff ec ve coordina on, programmes are fragmented resul ng in overlapping and duplica on of benefi ts in the areas of social insurance and welfare while ins tu ons remain focused only on their jurisdic ons. Eff ec ve coordina on and building systema c linkages within and beyond the social protec on sector is needed to ensure that people are able to get social services and assistance in an integrated and inclusive manner.

There are a number of challenges for eff ec ve delivery of social services to diff erent groups in need in the unique environment of Mongolia with vast territory and dispersed popula on. In addi on to the exis ng ins tu onal se ngs, the establishment of one stop shops in aimag and certain soum centers since 200736, which is by nature a horizontal structure bringing together diff erent service lines in one place, has signifi cantly improved access to services, especially at soum levels. However, services, decision-making power and responsibili es could yet be more decentralized, with more decision-making power transferred from aimag to soum levels. In addi on, the one stop shops should be recognized as the single pla orm to deliver coordinated social and employment protec on services to the people by building clear and eff ec ve linkages among the implemen ng agencies and local administra on layers in terms of both ver cal and horizontal structures (van Langenhove, 2015).37

Finally, another area that requires further development and improvement is monitoring and evalua on, par cularly impact evalua on. Assessment of each social protec on programme impact is needed, to ensure that they contribute to poverty reduc on.

97

36 ILO, 2015: The one stop shop – The Mongolian experience for delivering social protec on and employment services (Ulaanbaatar, 2015) (video).

37 Thibault van Langenhove: Fact-fi ndings, local assessment report and recommenda ons for the further development of the OSS (working document Feb. 2015).

98

Annexes

99

Sche

me/

prog

ram

me

(Leg

al fr

amew

ork)

Ove

rvie

w o

f exi

s n

g pr

ovis

ions

An c

ipat

ed p

olic

y ch

ange

s/la

w re

form

s Ex

is n

g co

vera

ge

Uni

vers

al S

ocia

l Hea

lth In

sura

nce

(SHI

)1

(Law

on

Ci z

ens H

ealth

Insu

ranc

e (2

5 Ap

ril

2002

); La

w o

n He

alth

(25

May

201

1), A

r cl

es

15.1

, 23

and

24; L

aw o

n He

alth

Insu

ranc

e ad

opte

d on

29

Janu

ary

2015

, ent

erin

g in

to

forc

e on

1 Ju

ly 2

015)

Targ

et: A

ll M

ongo

lian

ci z

ens a

nd fo

reig

n re

siden

ts o

r sta

tele

ss p

erso

n.

The

sche

me

is m

anda

tory

for a

ll M

ongo

lian

ci z

ens (

Ar c

les 6

.1.1

–6.1

.11)

. Fo

reig

n re

siden

ts c

an b

e in

sure

d on

a v

olun

tary

bas

is (A

r cl

e 6.

2).

Leve

l of c

ontr

ibu

on:

Ca

tego

ry I:

Em

ploy

ees o

f the

Gov

ernm

ent a

nd b

usin

ess e

n

es a

re re

quire

d to

pay

4 p

er c

ent o

f the

ir m

onth

ly w

age

and

sala

ry (2

per

cen

t by

empl

oyer

, 2

per c

ent b

y th

e em

ploy

ee);

Cate

gory

II: H

erde

rs, u

nem

ploy

ed w

orke

rs a

nd st

uden

ts o

f the

voc

a o

nal

trai

ning

cen

tres

pay

MN

T670

per

mon

th;

Cate

gory

III:

Chi

ldre

n of

age

0–1

8, p

eopl

e w

ithou

t inc

ome

exce

pt fo

r tho

se

rece

ivin

g ol

d-ag

e, d

isabi

lity

and

surv

ivor

pen

sion

eith

er fr

om S

IGO

and

/or

soci

al w

elfa

re d

epar

tmen

t, st

uden

ts (u

nive

rsi

es a

nd c

olle

ges)

, par

ents

lo

okin

g a

er t

heir

babi

es u

n l

2 ye

ars o

ld, p

erso

nnel

of m

ilita

ry se

rvic

e (d

efen

ce, b

orde

r sec

urity

, pol

ice

and

emer

genc

y), a

nd c

i ze

ns in

volv

ed in

co

mm

unity

bas

ed w

elfa

re se

rvic

es w

hose

con

trib

u o

n is

en re

ly fu

nded

by

the

Stat

e. O

ther

targ

eted

gro

ups,

i.e.

old

er p

erso

ns, p

eopl

e w

ith d

isabi

li e

s,

child

ren

with

chr

onic

con

di o

n, p

eopl

e aff

ect

ed b

y do

mes

c v

iole

nce,

co

nvic

ts re

leas

ed fr

om c

orre

c o

nal s

ervi

ce, a

lcoh

ol a

nd d

rug

addi

cts,

ho

mel

ess,

sing

le m

othe

r/fa

ther

fam

ily, p

eopl

e aff

ect

ed b

y cu

rele

ss d

iseas

e,

poor

fam

ily m

embe

rs, c

i ze

ns m

igra

ted

loca

lly, a

nd p

aren

ts o

f chi

ldre

n w

ith

disa

bili

es,

are

also

requ

ired

to p

ay M

NT6

70, w

hich

is c

urre

ntly

bei

ng fu

lly

subs

idize

d an

d fi n

ance

d by

the

Hum

an D

evel

opm

ent F

und

(HDF

);

Cate

gory

IV:

Self-

empl

oyed

who

pay

1 p

er c

ent o

f the

ir re

fere

nce

inco

me

on

the

basis

of t

heir

tax

stat

emen

t to

tax

auth

ority

; and

Ca

tego

ry V

: For

eign

na

ona

ls an

d st

atel

ess p

eopl

e w

ho a

re re

ques

ted

to p

ay

6 pe

r cen

t of m

inim

um w

age

(MN

T8,4

24 m

onth

ly).

Bene

fi t p

acka

ge: O

ut-p

a e

nt a

nd in

-pa

ent

car

e se

rvic

es (p

rovi

ded

by

prim

ary

and

seco

ndar

y le

vel h

ospi

tals)

, day

car

e se

rvic

e (s

econ

dary

leve

l),

in-p

a e

nt se

rvic

e of

trad

i on

al m

edic

ine

clin

ics,

reha

bilit

ee c

are

prov

ided

by

sana

toria

and

pal

lia v

e an

d dr

ug d

iscou

nt; f

ree

chec

k-up

tes

ng

and

diag

nos

c se

rvic

e fo

r any

cas

e at

the

requ

est o

f the

insu

red,

not

exc

eedi

ng

MN

T56.

000

in e

ach

case

. Bo

nus:

In c

ase

an in

sure

d di

d no

t rec

eive

any

ben

efi t

from

SHI

Fun

d du

ring

last

36

mon

ths,

s/he

is e

ligib

le fo

r fre

e ch

eck-

up te

s n

g of

MN

T80,

000

each

ye

ar.

Bene

fi t c

eilin

g: M

NT1

,380

,000

per

insu

red

pers

on p

er y

ear.

Paym

ent m

echa

nism

s: S

HI D

epar

tmen

t of S

IGO

bas

ed o

n in

voic

es is

sued

by

serv

ice

prov

ider

s

Excl

uded

serv

ices

: prim

ary

heal

th c

are

serv

ice,

pre

gnan

cy a

nd d

eliv

ery

care

, tu

berc

ulos

is an

d ca

ncer

trea

tmen

t (di

rect

ly fi

nanc

ed b

y Go

vern

men

t bud

get)

1. M

PDSP

(also

invo

lved

MO

H, W

HO, G

IZ,

P4H)

laun

ched

the

long

term

stra

tegy

for

the

deve

lopm

ent o

f the

hea

lth in

sura

nce

of

Mon

golia

, 201

3-20

22, i

nclu

ding

: Cov

erag

e; H

I be

nefi t

pac

kage

; Qua

lity

of c

are

and

purc

hasin

g;

Gove

rnan

ce; H

I Org

aniza

on;

and

Priv

ate

Heal

th

Insu

ranc

e.

Sinc

e 19

95, A

DB h

as b

een

the

maj

or p

artn

er in

su

ppor

ng

the

Mon

golia

n he

alth

sect

or re

form

as

Hea

lth se

ctor

Dev

elop

men

t Pro

gram

me

(I, II

, III

and

IV).1

2. T

he L

aw o

n M

anda

tory

Hea

lth In

sura

nce

was

ad

opte

d on

29

Jan.

201

5. T

he la

w w

ill c

ome

into

fo

rce

from

1 Ju

ly 2

015

with

cer

tain

pro

visio

ns

from

1 Ja

nuar

y 20

16. M

ajor

cha

nges

incl

ude:

-The

am

ount

of g

over

nmen

t sub

sidize

d co

ntrib

u o

ns h

as in

crea

sed

(cur

rent

ly, m

onth

ly

cont

ribu

on

per s

ubsid

ized

pers

on -

MN

T670

a

mon

th, M

NT8

,040

a y

ear)

to 2

% o

f mon

thly

m

inim

um w

age

(MN

T3,8

40 a

mon

th o

r M

NT4

6,00

0 a

year

) -S

tude

nts h

ave

been

exc

lude

d fr

om th

e st

ate

subs

idy:

The

y w

ill m

ake

cont

ribu

ons

them

selv

es

at 1

% o

f min

imum

wag

e or

MN

T23,

000

a ye

ar

from

1 Ja

n. 2

016.

Thi

s yea

r’s c

ontr

ibu

ons

for

stud

ents

will

be

born

e by

the

gove

rnm

ent.

-Tra

nsfe

r of e

n tl

emen

ts to

fam

ily m

embe

rs: T

he

insu

red

who

did

not

use

his/

her e

n tl

ed a

mou

nt

of m

oney

to p

urch

ase

heal

th c

are

serv

ices

per

ye

ar c

an tr

ansf

er it

to o

ther

mem

bers

of h

is/he

r fa

mily

-Dru

gs p

resc

ribed

by

outp

a e

nt d

octo

rs o

f aim

ag

and

dist

rict h

ospi

tals

have

bec

ome

subj

ect t

o HI

di

scou

nts (

prev

ious

ly it

was

app

licab

le o

nly

at th

e pr

imar

y he

alth

car

e le

vel)

-The

ben

efi t

pack

age

to b

e pu

rcha

sed

by h

ealth

in

sura

nce

has e

xten

ded:

e.g

. can

cer a

nd p

allia

ve

care

, and

som

e ex

pens

ive

care

and

pro

sthe

c

appl

ianc

es.

Shar

e of

Insu

red

popu

la o

n to

th

e to

tal p

opul

a o

n: 9

7.8

per

cent

(2,7

61,7

00 p

eopl

e) a

t the

en

d of

201

3

Shar

e of

pop

ula

on

subs

idize

d co

ntrib

u o

n to

the

tota

l po

pula

on:

58.

7 pe

r cen

t (1

,658

,200

peo

ple)

in 2

013

Anne

x: so

cial

pro

tec

on fl o

or a

sses

smen

t mat

rixSo

cial

pro

tec

on fl o

or a

sses

smen

t mat

rix: G

uara

ntee

1- H

ealth

care

for a

ll re

side

nts

100

Heal

th c

are

serv

ice

deliv

ery1

(Law

on

Heal

th (5

May

201

1) A

rt. 1

5.1)

Prim

ary

leve

l: fi n

ance

d by

the

Stat

e bu

dget

: a) 1

,588

bag

h fe

ldsh

er (r

ural

); b)

271

soum

hos

pita

ls an

d 39

inte

r-sou

m h

ospi

tals

(15–

30 b

eds p

er so

ums)

; an

d c)

221

fam

ily h

ealth

cen

tres

(urb

an, p

rivat

e pr

ac c

es);

Seco

ndar

y le

vel:

10 p

er c

ent c

o-pa

ymen

t sys

tem

: 12

dist

rict h

ospi

tals

(200

–300

bed

s) a

nd 1

7 ai

mag

hos

pita

ls (1

00–5

00 b

eds)

and

thre

e m

ater

nity

ho

mes

;Te

r a

ry le

vel:

15 p

er c

ent c

o-pa

ymen

t sys

tem

: Fou

r reg

iona

l dia

gnos

c a

nd

trea

tmen

t cen

tres

(at a

imag

s), t

hree

cen

tral

hos

pita

ls, a

nd 1

1 sp

ecia

lized

ho

spita

ls

737,

500

peop

le re

ceiv

ed in

-pa

ent

serv

ice

of w

hich

374

,100

pa

id fr

om th

e he

alth

insu

ranc

e fu

nd fo

r MN

T72.

2 bi

llion

(201

3).

Heal

th e

xpen

ditu

re 3

% o

f GDP

an

d 6.

9% o

f the

tota

l Gen

eral

Go

vern

men

t Exp

endi

ture

Non

-con

trib

utor

y So

cial

Wel

fare

Allo

wan

ce

(per

man

ent c

are)

2 (L

aw o

n So

cial

Wel

fare

(19

Jan.

201

2) A

rt.

13.5

.7)

Qua

lifyi

ng c

ondi

ons

: A c

i ze

n ag

ed 1

6 an

d m

ore,

who

nee

ds p

erm

anen

t ca

re p

rovi

ded

by c

are

give

rs

Bene

fi ts:

MN

T60,

000

once

a q

uart

er

26,1

00 p

eopl

e in

201

2

Polic

y ga

psIm

plem

enta

on

issu

es

Heal

th ca

re se

rvic

es a

re d

ivid

ed in

to tw

o pa

ckag

es:

1. S

HI F

und

(onl

y 25

.1%

of t

he to

tal h

ealth

exp

endi

ture

s) a

nd;

2. Ta

x fu

nded

(sta

te b

udge

t) p

acka

geEx

tra

Paym

ent:

Cust

omer

’s ou

t-of-p

ocke

t (O

OP)

pay

men

ts h

as b

ecom

e a

maj

or p

robl

em w

hich

has

re

ache

d 41

% to

tal h

ealth

exp

endi

ture

and

95%

of O

OP

cons

ist o

f dru

g ex

pens

es a

mon

g po

or p

opul

a o

n.Ta

rge

ng:

The

Gov

ernm

ent s

ubsid

es n

ot ta

rget

ed e

noug

h. T

he a

mou

nt o

f con

trib

u o

n fo

r Hum

an

Deve

lopm

ent F

und

depe

nden

ts, h

erde

rs, s

elf-e

mpl

oyed

, une

mpl

oyed

and

info

rmal

eco

nom

y w

orke

rs is

no

t pro

perly

se le

d or

not

risk

adj

uste

d.Go

vern

ance

: Fun

c o

ns a

nd re

spon

sibili

es o

f HI s

take

hold

ers a

re fr

agm

ente

d an

d ov

erla

ppin

g.

Ins

tu o

n: T

here

is n

o le

gal e

nviro

nmen

t for

the

HI offi

ce to

car

ry o

ut re

spon

sibili

es o

f an

ac v

e pu

rcha

ser s

uch

as st

udyi

ng th

e ne

eds o

f the

insu

red,

defi

nin

g th

e he

alth

car

e se

rvic

es, s

elec

ng

heal

th

care

pro

vide

rs a

nd n

ego

a n

g pr

ices

and

tariff

s o

f hea

lth c

are

serv

ices

. Pa

ckag

e of

Ser

vice

: Hea

lth in

sura

nce

pack

age

does

not

com

plet

ely

cove

r ser

vice

nee

ded

by in

sure

d le

adin

g to

situ

a o

n w

here

the

insu

red

need

to p

ay fo

r the

serv

ice

that

are

om

i ed

.Eq

ualit

y of

trea

tmen

t: Th

ere

is sig

nifi c

ant d

iff er

ence

of m

onth

ly c

ontr

ibu

on

betw

een

Mon

golia

n na

ona

ls (M

NT6

70) a

nd n

on-n

a o

nals

(MN

T8,4

24)

Cove

rage

: The

cov

erag

e of

HI d

ecre

asin

g fr

om 1

00%

to 9

4% b

etw

een

2011

and

201

2 du

e to

the

fact

that

he

rder

s, st

uden

ts a

nd u

nem

ploy

ed w

ere

subs

idize

d by

the

Hum

an D

evel

opm

ent F

und

(HDF

) by

one

me

mea

sure

for t

heir

cont

ribu

on

fulfi

lmen

t. Co

llect

con

trib

u o

n: th

e cu

rren

t SI s

yste

m is

not

eff e

c v

e in

col

lec

ng

HI c

ontr

ibu

ons

from

the

info

rmal

se

ctor

and

her

ders

whe

re p

eopl

e ar

e ob

liged

to p

ay th

eir c

ontr

ibu

ons

by

them

selv

es.

Capa

city

: Soc

ial h

ealth

insu

ranc

e ac

vi

es a

re n

ot in

s tu

ona

lized

in a

n au

tono

mou

s ins

tu o

n an

d ha

ving

wea

k ca

paci

ty.

Bene

fi ts:

Fre

e Di

agno

s c

serv

ices

and

che

ck-u

p te

s n

g be

nefi t

(MN

T56,

000

each

cas

e an

d M

NT8

0,00

0 fo

r bon

us o

nce

in a

yea

r) is

ade

quat

e, b

ut th

ere

is ve

ry li

mite

d be

nefi c

iarie

s due

to in

suffi

cien

t ser

vice

de

liver

y an

d po

or a

cces

sibili

ty o

f pub

lic h

ospi

tals.

Priv

ate

hosp

ital d

iagn

osis

cent

res h

ave

not b

een

cont

acte

d w

ith S

HI F

und.

Q

ualit

y: In

suffi

cien

t inv

estm

ents

in p

ublic

hea

lth c

are

faci

li e

s tha

t res

ults

in d

ecre

asin

g he

alth

car

e se

rvic

es q

ualit

y an

d la

ck o

f wel

l-equ

ippe

d in

frast

ruct

ure

Serv

ice

qual

ity c

ontr

ol: H

ealth

car

e co

mpl

aint

syst

em d

oes n

ot w

ork

prop

erly

If th

e gr

ieva

nce

is no

t ad

dres

sed

in a

way

whi

ch sa

sfi e

s a c

onsu

mer

.SH

I Fun

d: H

uge

posi

ve

bala

nce

(equ

al to

95.

3% o

f the

ann

ual h

ealth

insu

ranc

e fu

nd re

venu

e in

201

2)

betw

een

the

heal

th in

sura

nce

fund

reve

nue

and

expe

nditu

res,

but

the

heal

th n

eeds

of t

he p

opul

a o

n ar

e no

t ful

ly m

et.

Key

reco

mm

enda

ons

Cos

ng

scen

ario

s

H1: E

xten

d eff

ec

vel

y he

alth

insu

ranc

e co

vera

ge to

segm

ents

of p

opul

a o

n no

t yet

cov

ered

by

the

heal

th in

sura

nce

sche

me,

by

subs

idizi

ng c

ontr

ibu

ons

.H2

: Inc

reas

e SH

I con

trib

u o

n fo

r cat

egor

y II

and

IV.

H3: D

evel

op m

etho

ds to

det

erm

inin

g SH

I con

trib

u o

n ra

te fo

r Cat

egor

ies I

I, III

and

IV.

H4: A

llow

op

on

for h

erde

rs to

pay

SHI

con

trib

u o

ns tw

ice

a ye

ar a

djus

ng

be e

r to

the

seas

onal

ity o

f the

ir in

com

e. P

rovi

de a

n in

cen

ve

to u

se th

e po

wer

of l

ocal

N

GO’s,

smal

l bus

ines

ses a

nd m

obili

zed

mer

chan

ts th

ose

who

col

lect

/buy

cash

mer

e, w

ool a

nd m

eat i

n ru

ral a

reas

. H5

: Gra

dual

ly e

xpan

d th

e be

nefi t

pac

kage

fund

ed b

y SH

I and

redu

ce th

e O

OP

expe

nses

.H6

: Tra

nsfe

r prim

ary

heal

th-c

are

serv

ices

, esp

ecia

lly so

um h

ospi

tal a

nd fa

mily

hea

lth c

entr

es fu

nded

by

the

Gove

rnm

ent b

udge

t int

o SH

I ben

efi t

pack

age

in o

rder

to

expa

nd S

HI c

over

age.

H7

: Int

rodu

ce g

ood

SHI g

over

nanc

e st

ruct

ural

cha

nge

plan

.H8

: Dev

elop

SHI

org

aniza

on

as a

c v

e pu

rcha

ser o

f hea

lth-c

are

serv

ice.

H9: R

einf

orce

mon

itorin

g ro

le o

f the

SHI

offi

ces i

n en

surin

g th

e qu

ality

of h

ealth

-car

e se

rvic

es.

H10:

Cre

ate

a he

alth

-car

e se

rvic

e co

ntro

l sys

tem

with

the

par

cipa

on

of th

e in

sure

d.H1

1: In

crea

se re

imbu

rsem

ent r

ate

for d

rugs

.

H1_1

: Inc

reas

e th

e co

ntrib

u o

n ra

te o

f Ca

tego

ry II

to M

NT1

,920

(1%

of m

inim

um

wag

e)H1

_2: F

ully

subs

idize

the

cont

ribu

on

rate

of

Cat

egor

y II

H1_3

(ADB

): Su

bsid

ize th

e co

ntrib

u o

n ra

te

for 1

5% o

f the

hou

seho

lds (

iden

fi ed

as

poor

thro

ugh

the

PMT

data

base

)H1

_4: S

tatu

s quo

H3

_1: I

ncre

ase

reim

burs

emen

t rat

e fo

r cu

rren

tly li

st o

f ess

en a

l dru

gs to

100

% fo

r al

l

101

H12:

Incr

ease

the

num

ber o

f sub

sidi

zed

med

icin

e, re

imbu

rsed

at 8

0% b

ased

on

curr

ent l

ist re

view

. H1

3: C

reat

e in

depe

nden

t hea

lth-c

are

serv

ice

com

plai

nt b

urea

u w

ith g

ood

proc

edur

es a

nd fo

rms.

H14:

Intr

oduc

e a

smar

t car

d re

gist

ra o

n sy

stem

that

cou

ld b

e ac

cept

ed a

t all

hosp

itals

for a

ny ty

pe o

f car

e co

vere

d by

the

SHI s

ervi

ce p

acka

ge.

H15.

Dev

elop

pub

lic-p

rivat

e pa

rtne

rshi

ps to

del

iver

hea

lth-c

are

serv

ices

, and

intr

oduc

e su

pple

men

tary

insu

ranc

es to

cov

er O

OP

expe

nses

. H1

6: Im

prov

e qu

ality

of h

ealth

-car

e se

rvic

es.

H17:

Incr

ease

yea

rly c

eilin

g of

hea

lth-c

are

pack

age

for p

eopl

e ov

er a

ge 7

0.

H18:

Ac

vat

e Su

b-N

a o

nal S

HI C

omm

i ee

s fun

c o

nali

es a

t all

leve

ls (e

ach

aim

ag a

lso h

as S

HI su

bcom

mi

ee u

nder

the

Sub

Na

ona

l SHI

) whi

ch h

as in

eff e

c v

e ac

vi

es.

H19:

Fin

ance

priv

ate

diag

nos

c la

bora

torie

s fro

m S

HI fu

nd in

ord

er to

dec

entr

alize

dia

gnos

c se

rvic

es in

pub

lic h

ospi

tals

and

impr

ove

acce

ssib

ility

of s

ervi

ces t

o th

e be

nefi c

iarie

s.

H20:

Som

e ex

pens

ive

heal

th-c

are

serv

ices

, for

inst

ance

, sur

gerie

s, d

iagn

os c

tes

ng

and

pros

the

cs,

shou

ld b

e fi n

ance

d by

SHI

Fun

d.

H21:

Est

ablis

h m

inim

um g

uara

ntee

of h

ealth

car

e se

rvic

e by

the

Stat

e bu

t not

onl

y lim

ited

prim

ary

heal

th c

are

serv

ices

as f

amily

hea

lth c

entr

es.

H22:

Pro

sthe

c fa

cili

es f

or d

isabl

ed a

nd e

lder

ly fr

om th

e So

cial

wel

fare

fund

also

shou

ld fi

nanc

e by

SHI

fund

. H2

3: E

nsur

e eq

ualit

y of

trea

tmen

t bet

wee

n na

ona

ls a

nd n

on-n

a o

nals

in te

rms o

f con

trib

u o

n

H3_2

: Int

rodu

ce n

ew e

ssen

al d

rugs

ap

plyi

ng c

urre

nt re

imbu

rsem

ent r

ate

betw

een

50 a

nd 8

0% fo

r all

H3_3

: Int

rodu

ce n

ew e

ssen

al d

rugs

and

in

crea

se re

imbu

rsem

ent r

ate

to 1

00%

for a

ll H6

_1: D

ecre

ase

OO

P ex

pens

es to

25%

H6

_1: D

ecre

ase

OPP

exp

ense

s to

30%

H6

_2: S

tatu

s quo

1 Ac

tors

invo

lved

incl

ude

MO

H, M

PDSP

, SIG

O a

nd S

ocia

l Hea

lth In

sura

nce

Sub-

Com

mi

ee; t

he re

spon

sible

bod

y is

MO

H.2

Invo

lves

MO

H, H

ealth

Dev

elop

men

t Cen

tre,

and

aim

ag le

vel h

ealth

dep

artm

ents

, MO

F, M

PDSP

, SIG

O; t

he re

spon

sible

bod

y is

MO

H. 2

Invo

lves

the

Soci

al W

elfa

re D

epar

tmen

t, M

PDSP

.3

h p

://p

4h-n

etw

ork.

net/

wp-

cont

ent/

uplo

ads/

2014

/01/

2013

_09_

03_M

ongo

lia_S

HI_

deve

lopm

ent_

long

-term

_str

ateg

y.pd

f

102

Sche

me/

prog

ram

me

(Leg

al fr

amew

ork)

Ove

rvie

w o

f exi

s n

g pr

ovis

ions

Exis

ng

cove

rage

Uni

vers

al C

hild

Mon

ey P

rogr

amm

e (C

MP)

1

(Law

on

Hum

an D

evel

opm

ent F

und

13 D

ec. 2

012)

, Ar

t.17.

1.5;

Gov

ernm

ent r

esol

u o

n N

o. 4

9, 2

012

and

Gove

rnm

ent r

esol

u o

n N

o. 7

0, 2

012)

Targ

et g

roup

: MN

T20,

000

($12

) per

mon

th to

all

child

ren

age

0-18

(eve

n ch

ildre

n un

der c

orre

c o

nal s

ervi

ce a

nd li

ving

abr

oad

are

elig

ible

to a

pply

) sin

ce O

ct. 2

012

Fina

ncin

g: M

iner

al re

sour

ce ta

x ac

cum

ulat

ed in

Hum

an D

evel

opm

ent F

und

(HDF

)2 . De

liver

y: C

MP

are

paid

to th

e fa

mili

es th

roug

h ba

nk tr

ansf

ers.

960,

300

child

ren

(nea

rly 1

00%

) co

vere

d an

d M

NT2

29.0

mill

ion

spen

t in

2013

Cont

ribut

ory

Surv

ivor

Ben

efi t3

(SI S

urvi

vor p

ensio

n)

(Law

on

Pens

ion

and

Bene

fi ts

prov

ided

by

the

Soci

al

insu

ranc

e (1

7 Ju

ne 1

994)

Ar

cles

12.

1.1,

12.

1.2,

12

.1.3

and

12.

2.3)

Targ

et g

roup

: 1) b

orn

and

adop

ted

child

ren(

appl

icab

le t

o a

child

bor

n a

er

fath

er’s

deat

h) u

nder

age

16

(19,

if a

stu

dent

) reg

ardl

ess

whe

ther

the

re is

ano

ther

per

son

as le

gal g

uard

ian/

care

r; 2)

gra

ndch

ildre

n an

d hi

s/he

r yo

unge

r sis

ters

and

bro

ther

s un

der

age

16

who

hav

e no

oth

er p

erso

n le

gally

res

pons

ible

for

mai

nten

ance

; 3)

gra

ndch

ildre

n an

d hi

s/he

r yo

unge

r sis

ters

and

bro

ther

s, w

ho

wer

e de

ceas

ed,

born

inca

paci

tate

d or

inca

paci

tate

d pr

ior

a a

inin

g ag

e 16

; an

d 4)

a c

hild

who

doe

sn’t

get

any

alim

ony

from

his/

her

pare

nts

by ju

dici

al d

ecisi

on b

e tr

eate

d lik

e hi

s or

her

ow

n ch

ild in

the

eve

nt o

f de

ath

of h

is or

her

ste

p fa

ther

or

step

mot

her

Fina

ncin

g:

Man

dato

ry:

Soci

al

Insu

ranc

e Pe

nsio

n Fu

nd

(incl

uded

in

th

e 14

%

cont

ribu

on

for

bene

fi ts

of

the

soci

al

insu

ranc

e Pe

nsio

n Fu

nd);

Vo

lunt

ary:

10

%

of

the

refe

renc

e in

com

e go

ing

to

the

soci

al

insu

ranc

e Pe

nsio

n fu

ndBe

nefi t

: 1)

one

dep

ende

nt: 5

0% o

f the

am

ount

cor

resp

ondi

ng to

a fu

ll pe

nsio

n fo

r ol

d ag

e ba

sed

on th

e pe

nsio

nabl

e ea

rnin

gs o

f the

in

sure

d; 2

) tw

o de

pend

ents

: 75%

; or

3) t

hree

or

mor

e de

pend

ents

: 100

%. H

owev

er, t

he m

inim

um le

vel o

f pen

sion

mus

t be

equ

al t

o 50

–100

% o

f min

imum

wag

e (s

et a

t MN

T192

,000

in 2

013)

dep

endi

ng o

n th

e nu

mbe

r of d

epen

dent

s

22,5

00 c

hild

ren

in

2013

Non

-con

trib

utor

y Su

rviv

or B

enefi

t4

(Soc

ial w

elfa

re S

urvi

vor p

ensio

n)

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 12.

1.4)

Qua

lifyi

ng c

ondi

ons

: Chi

ldre

n ag

e 0–

18 w

ho lo

st th

eir b

read

-win

ner (

one

or b

oth)

who

nev

er c

ontr

ibut

ed to

the

SI.

Bene

fi ts:

MN

T126

,500

per

mon

th.

14,0

72 c

hild

ren

in

2013

Non

-con

trib

utor

y So

cial

Wel

fare

Allo

wan

ces (

twin

ba

by c

are)

5

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 13.

5.5)

Qua

lifyi

ng c

ondi

ons

: a c

i ze

n or

hou

seho

ld ra

ising

up

and

taki

ng c

are

of tw

ins (

trip

les a

nd q

uadr

uple

ts).

Bene

fi ts:

twin

= M

NT1

,000

,000

; and

trip

les o

r qua

drup

lets

= M

NT3

,000

,000

for e

ach

child

one

m

e 30

0 ch

ildre

n in

201

3

Non

-con

trib

utor

y So

cial

Wel

fare

Allo

wan

ces (

singl

e pa

rent

hea

ded

fam

ily) 5

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 12.

1.5

and

Gove

rnm

ent R

esol

u o

n N

o. 8

1, 2

012)

Qua

lifyi

ng c

ondi

ons

: Chi

ldre

n in

a fa

mily

hea

ded

by a

sing

le m

othe

r age

45

or m

ore

(or f

athe

r age

50

or m

ore)

with

at l

east

four

ch

ildre

n be

low

age

18.

Be

nefi t

s: M

NT1

26,5

00 p

er m

onth

.

52 in

201

3

Non

-con

trib

utor

y So

cial

Wel

fare

Allo

wan

ce (f

amily

su

ppor

t)5

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

, Art

. 13.

5.8)

Qua

lifyi

ng c

ondi

ons

: sin

gle

mot

hers

/fat

hers

with

3 o

r mor

e ch

ildre

n un

der a

ge 1

4;

Bene

fi ts:

MN

T120

,000

onc

e a

year

1,20

0 pe

rson

s in

2012

Non

-con

trib

utor

y So

cial

Wel

fare

Allo

wan

ces (

child

ad

op o

n) 5

(Law

on

Soci

al W

elfa

re (J

an 1

9 20

12) A

rt. 1

3.2.

1)

Qua

lifyi

ng c

ondi

ons

: A c

i ze

n w

ho a

dopt

ed o

r too

k le

gal g

uard

ians

hip

of d

oubl

e or

phan

chi

ld.

Bene

fi ts:

MN

T48,

000

per m

onth

un

l ag

e 16

(age

18

if th

e ch

ild is

a st

uden

t in

high

scho

ol).

Trai

ning

on

care

taki

ng a

nd n

ursin

g sk

ills

1,70

0 in

201

3

Soci

al p

rote

c o

n fl o

or a

sses

smen

t mat

rix: G

uara

ntee

2-C

hild

ren

103

Non

-con

trib

utor

y So

cial

Wel

fare

Allo

wan

ces

(per

man

ent c

are)

5

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 13.

5.6)

Qua

lifyi

ng c

ondi

ons

: A c

hild

und

er a

ge 1

6 w

ho n

eeds

per

man

ent c

are

Bene

fi ts:

MN

T60,

000

per m

onth

.N

A

Non

-con

trib

utor

y So

cial

Wel

fare

Allo

wan

ces (c

hild

ca

re) 5

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 13.

2.2)

Qua

lifyi

ng c

ondi

ons

: A c

i ze

n pr

ovid

ing

fam

ily c

are,

spec

ifi ed

in A

rt. 2

5.5

of th

e Fa

mily

Law

, to

a ch

ild v

ic m

of p

hysio

logi

cal a

nd

phys

ical

vio

lenc

e, w

ho is

in n

eed

for p

rote

c o

n ac

cord

ing

to th

e Ar

t. 74

of t

he F

amily

Law

. Be

nefi t

s: M

NT4

8,00

0 pe

r mon

th u

n l

age

16 (a

ge 1

8 if

the

child

is a

stud

ent i

n hi

gh sc

hool

). Tr

aini

ng o

n ca

reta

king

and

nur

sing

skill

s

88 p

eopl

e

Non

-con

trib

utor

y So

cial

Wel

fare

Allo

wan

ces

(disa

bled

chi

ld c

are)

5

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 13.

2.4)

Qua

lifyi

ng c

ondi

ons

: A c

i ze

n ta

king

car

e of

disa

bled

chi

ld u

nder

med

ical

con

trol

, req

uirin

g pe

rman

ent c

are,

and

such

Be

nefi t

s: M

NT4

8,00

0 pe

r mon

th. T

rain

ing

on c

aret

akin

g an

d nu

rsin

g sk

ills

6,30

0 ch

ildre

n in

20

12

Non

-con

trib

utor

y So

cial

Wel

fare

Allo

wan

ces

(allo

wan

ces a

nd a

ssist

ance

) 5

(Law

on

Soci

al S

ecur

ity o

f Peo

ple

with

Disa

bilit

y (8

Dec

. 200

5), A

rt. 5

.1.2

and

5.1

.4; G

over

nmen

t Re

solu

on

No.

153

, 201

2)

Qua

lifyi

ng c

ondi

ons

: Rei

mbu

rsem

ent o

f pro

sthe

c c

orre

c o

n an

d re

habi

lita

on

cost

for c

hild

ren

with

disa

bili

es,

up

to a

ge 1

8 Be

nefi t

s: 1

00%

cos

t of p

rost

he c

cor

rec

on

in th

e co

untr

y, on

ce in

a th

ree

year

s;

1,80

0 ch

ildre

n in

20

13

Qua

lifyi

ng c

ondi

ons

: Fin

anci

al su

ppor

t for

chi

ldre

n w

ith d

isabi

li e

s up

to a

ge 1

8, w

ho is

not

en

tled

to re

ceiv

e al

low

ance

from

the

soci

al in

sura

nce

Fund

, Be

nefi t

s: 1

00%

cos

t of p

urch

ased

or m

ade

spec

ial c

are

inst

rum

ents

like

ort

hopa

edic

tool

s, w

heel

chai

rs a

nd o

ther

equ

ipm

ent m

ade

in

the

coun

try,

onc

e in

thre

e ye

ars

9,00

0 ch

ildre

n in

20

13

Soci

al W

elfa

re S

ervi

ce (c

omm

unity

bas

ed se

rvic

e fo

r ch

ildre

n) 5

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Ar

cles

17.

1.1,

18

.1 a

nd 1

8.2.

3)

Targ

et g

roup

: Chi

ldre

n w

ith c

hron

ic c

ondi

on

Serv

ices

: Cou

nsel

ling;

Reh

abili

ta o

n; Te

mpo

rary

acc

omm

oda

on

and

care

; Day

car

e se

rvic

e; H

ome

base

d ca

re a

nd se

rvic

e;

Fina

ncin

g: L

ocal

Gov

ernm

ent b

udge

t (sin

ce 2

013)

Fund

ing

proc

ess:

Ser

vice

cos

ts a

re e

s m

ated

by

Soci

al w

elfa

re u

nit o

f aim

ag, d

istric

t and

cap

ital c

ity o

n th

e ba

sis o

f pro

posa

l iss

ued

by

Live

lihoo

d Su

ppor

t Cou

ncil

of re

spec

ve

soum

and

kho

roo

and

be su

bmi

ed to

the

Loca

l Gov

erno

r Offi

ce.

830

child

ren

Soci

al W

elfa

re S

ervi

ce (i

ns tu

ona

l car

e se

rvic

e) 5

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 17.

1.2)

Scop

e: C

hild

ren

with

chr

onic

con

di o

n, a

chi

ld sp

ecifi

ed in

par

agra

ph 2

5.5

of F

amily

Law

, and

a d

isabl

ed c

hild

und

er a

ge 1

8 re

quiri

ng

perm

anen

t car

e an

d; T

riple

ts a

nd q

uadr

uple

ts (e

tc.)

up to

age

4, w

ith a

par

enta

l per

miss

ion

to b

e ca

red

in sp

ecia

lized

car

e ho

me

at th

e st

ate

expe

nses

;Fi

nanc

ing:

Loc

al G

over

nmen

t bud

get (

since

201

3)Th

e Go

vern

or o

f the

aim

ag, d

istric

t and

cap

ital c

ity m

akes

a d

ecisi

on to

enr

ol a

chi

ld in

car

e se

rvic

e.

NA

Cash

allo

wan

ce fo

r liv

elih

ood

impr

ovem

ent

(Pre

siden

al d

ecre

e N

o. 4

2 (2

9 M

arch

201

3);

Gove

rnm

ent r

esol

u o

n N

o. 1

68 (1

1 M

ay 2

013)

)

Targ

et g

roup

: Mem

bers

of r

eind

eer h

erdi

ng fa

mili

es li

ving

in Ta

iga

(eth

nic

min

ority

com

mun

ity)

Bene

fi t: M

onth

ly a

llow

ance

at 5

0% o

f the

min

imum

subs

isten

ce le

vel (

MSL

) to

a ch

ild, a

t 100

%to

an

adul

t (st

ar n

g fr

om 1

June

201

3)

339

peop

le (b

oth

child

ren

and

adul

ts )

of 9

4 fa

mili

es in

201

3

Kind

erga

rten

with

free

mea

l6

(Law

on

Educ

a o

n (6

June

200

2); L

aw o

n Pr

esch

ool

Educ

a o

n (2

3 M

ay 2

008)

)

Targ

et g

roup

: Chi

ldre

n ag

e 2–

5 ye

ars.

In 2

013/

14 1

93,7

00 c

hild

ren

wer

e in

volv

ed in

pre

scho

ol e

duca

on,

90.

1% o

f who

m a

re in

pub

lic

free

of c

harg

e ki

nder

gart

ens.

Pre

scho

ol c

over

age

incr

ease

d by

4.5

% in

201

2 an

d by

5.5

% in

201

3.

Mea

l: Th

e Go

vern

men

t pro

vide

s a m

eal a

llow

ance

of M

NT1

,650

($0.

90) f

or d

ay c

are

and

MN

T2,4

00 ($

1.40

) for

full

boar

d ch

ild p

er d

ay

in p

ublic

kin

derg

arte

ns.

Pres

choo

l cov

erag

e 77

.7%

in 2

013/

14

scho

ol y

ear.

In

2013

/14

scho

ol y

ear

193,

700

child

ren

of w

hom

174

,600

co

vere

d by

764

stat

e-ow

ned

kind

erga

rten

s

104

Free

edu

ca o

n, p

rimar

y an

d se

cond

ary6

(Con

s tu

on

of M

ongo

lia (1

3 Ja

n 19

92) A

rt. 1

6.7;

La

w o

n Ed

uca

on

(6 Ju

ne 2

002)

Art

. 6.2

)

Targ

et g

roup

: Prim

ary

and

seco

ndar

y ed

uca

on

and

boar

ding

for a

ll ch

ildre

n. P

rimar

y ed

uca

on-

5 ye

ars,

bas

ic e

duca

on-

9 ye

ars a

nd

basic

gen

eral

-12

year

s, a

nd th

e st

ate

prov

ide

it fr

ee o

f cha

rge

In 2

013/

14 sc

hool

ye

ar 5

10,2

00

stud

ents

in 7

56

seco

ndar

y sc

hool

s,

481,

500

of w

hom

w

ere

in 6

28 p

ublic

fr

ee sc

hool

s..E

quiv

alen

cy e

duca

on

prog

ram

me7

Law

on

Educ

a o

n (6

June

200

2) A

rt. 3

.1.7

; Non

-fo

rmal

Edu

ca o

n N

a o

nal P

rogr

amm

e (G

over

nmen

t re

solu

on

No.

116

, 199

7) M

inist

eria

l ord

er N

o. 3

62

(9 O

ct. 2

007)

Targ

et g

roup

: Chi

ldre

n ov

er a

ge 1

0 an

d ad

ults

who

nev

er h

ad sc

hool

ing

or d

ropp

ed o

ut o

f sch

ool

, Be

nefi t

s: F

ree

prim

ary

and

seco

ndar

y ed

uca

on,

with

cur

ricul

um a

dapt

ed to

nee

ds o

f tar

get g

roup

s 1

,800

chi

ldre

n dr

oppe

d ou

t of

scho

ol in

201

3-14

(d

rop-

out r

ate

is 0.

4 ) I

n 20

14, 1

0,02

0 co

vere

d (3

,600

pr

imar

y, 4,

200

basic

an

d 2,

300

com

plet

e se

cond

ary

educ

a o

n) A

llow

ance

for p

aren

ts re

sidin

g at

soum

cen

ter8

Pare

nts c

an re

ceiv

e an

allo

wan

ce fo

r res

idin

g at

the

soum

cen

tre

to st

ay n

ext t

o th

eir c

hild

ren

at th

e ki

nder

gart

en o

r sch

ool.

E-

educ

a o

n “O

ne L

apto

p pe

r Chi

ld”

2008

–201

5 Pr

ogra

mm

e7

(Gov

ernm

ent r

esol

u o

n N

o. 9

2, 2

008)

Targ

et g

roup

: all

Stud

ents

of g

rade

s 2–5

of s

econ

dary

scho

ol w

ill h

ave

a co

nnec

ted

lapt

op b

y en

d of

201

515

000

stud

ents

Scho

ol d

orm

itory

9

(Law

on

Educ

a o

n (6

June

200

2) A

rt. 4

3.2.

1)

Targ

et g

roup

: Orp

hans

, poo

r stu

dent

s or s

tude

nts u

nabl

e to

a e

nd sc

hool

bec

ause

of t

he d

istan

ce is

sue

(pub

lic sc

hool

s) (f

or p

rimar

y an

d se

cond

ary)

. Be

nefi t

s: S

tude

nts p

rovi

ded

with

supp

ort t

o re

side

in th

e do

rmito

ries o

f sec

onda

ry sc

hool

or v

oca

ona

l tra

inin

g ce

ntre

free

of c

harg

e.

In 2

013,

514

dor

mito

ries.

Fo

od: T

he G

over

nmen

t is r

espo

nsib

le fo

r mea

l exp

ense

s of M

NT2

,315

per

chi

ld p

er d

ay

34,7

04 c

hild

ren

in

2013

-14

scho

ol y

ear;

Dorm

itory

cov

erag

e in

dex:

94.

8 pe

r cen

t of

the

subm

i ed

re

ques

ts a

re fu

lfi lle

d;

All c

hild

ren

in ru

ral

and

peri-

urba

n ar

eas.

Scho

ol lu

nch

prog

ram

me9

(Gov

ernm

ent r

esol

u o

n N

o. 1

94, 2

006)

Targ

et G

roup

: St

uden

ts o

f gra

des 1

–5 o

f pub

lic g

ener

al se

cond

ary

scho

ols,

MN

T1,5

00 fo

r dai

ly c

ost o

f lun

ch23

9,30

0 ch

ildre

n in

20

13-1

4

Scho

ol te

xtbo

oks

Gove

rnm

ent r

esol

u o

n N

o. 1

92 o

n M

aste

r pla

n to

de

velo

p Ed

uca

on

of M

ongo

lia fo

r 200

6–15

(16

Augu

st 2

006)

; Min

ister

ial O

rder

(MEC

S) N

o. 1

31

(200

9), C

abin

et M

ee n

g M

inut

e N

o. 2

8 (2

009)

Targ

et g

roup

: Vul

nera

ble

child

ren

of g

ener

al se

cond

ary

scho

ols.

Bene

fi t: f

ree

text

book

s for

all

child

ren

in p

rimar

y ed

uca

on;

and

vul

nera

ble

chi

ldre

n in

seco

ndar

y an

d up

per s

econ

dary

edu

ca o

n.34

3,70

0 ch

ildre

n in

20

13

Com

pens

a o

ns fo

r tra

nspo

rta

on

(Law

on

Educ

a o

n (6

June

200

2) A

rt. 4

3.2.

3;

Gove

rnm

ent R

esol

u o

n

Targ

et g

roup

: The

tran

spor

ta o

n ta

riff f

or st

uden

ts w

ho st

udy

in d

iff er

ent a

imag

and

city

, com

pens

ate

both

side

tariff

tw

ice

a ye

ar.

Colle

ge a

nd u

nive

rsity

stud

ents

can

use

free

of c

harg

e pu

blic

tran

spor

ta o

n w

ith th

eir s

tude

nt v

isa c

ard

durin

g w

orki

ng d

ays o

f stu

dy

sess

ion.

103,

000

child

ren

and

stud

ents

in 2

013

Soci

al D

evel

opm

ent S

ervi

ce10

(Law

on

Soci

al W

elfa

re (2

9 Ja

n. 2

012)

, Art

. 20)

Targ

et g

roup

: Chi

ld o

f a p

oor h

ouse

hold

; chi

ld o

f a d

isabl

ed p

erso

n; d

isabl

ed c

hild

; dou

ble

or h

alf o

rpha

n; a

chi

ld o

f hom

eles

s; c

hild

in a

fo

ster

car

e ho

me;

chi

ld re

leas

ed fr

om p

rison

.Ed

uca

on

Supp

ort S

ervi

ces a

ppro

ved

join

tly b

y th

e M

OE

and

MPD

SP a

nd it

s fun

ding

allo

cate

d in

the

budg

et p

or o

lio o

f the

rele

vant

lin

e m

inist

ries.

Se

rvic

e de

liver

able

: Con

cess

iona

l rat

e fo

r sta

one

ry, t

ext b

ooks

and

scho

ol u

nifo

rm, i

f the

chi

ld is

enr

olle

d in

pre

scho

ol o

r sec

onda

ry

scho

ol;

105

Na

ona

l stu

dent

gra

nt9

(Law

on

Fina

ncin

g Hi

gher

edu

ca o

n an

d St

uden

ts

Soci

al g

uara

ntee

(9 Ju

ly 2

011)

, Art

. 8.1

Gov

ernm

ent

Reso

lu o

n N

o. 7

1 (7

Mar

ch 2

014)

)

Targ

et g

roup

: All

regu

lar c

ours

e st

uden

ts o

f col

lege

s and

uni

vers

i es

of a

ll ow

ners

hip,

pro

vide

d th

at b

oth

appl

ying

stud

ents

and

un

iver

si e

s hav

e sa

sfi e

d th

e sp

ecifi

ed c

riter

ia b

y th

e Go

vern

men

t res

olu

on

No.

71

of 2

014.

S p

end

was

uni

vers

al u

n l

the

seco

nd

half

of 2

014.

The

cha

nge

was

intr

oduc

ed b

y an

am

endm

ent t

o th

e La

w o

n Fi

nanc

ing

High

er E

duca

on

and

Stud

ents

Soc

ial g

uara

ntee

in

Nov

embe

r 201

3.

Bene

fi t: M

NT7

0 00

0 pe

r mon

th fo

r 10

mon

ths

Qua

lifyi

ng c

ondi

ons

: Apa

rt fr

om b

eing

a re

gula

r cou

rse

stud

ent o

f any

type

of u

nive

rsity

or c

olle

ge (b

oth

publ

ic a

nd p

rivat

e) o

ther

cr

iteria

are

hav

ing

com

plet

ed a

t lea

st 1

0–12

cre

dit h

ours

with

a g

rade

poi

nt a

vera

ge a

t lea

st 3

.0–3

.5. U

nive

rsi

es a

lso m

ust m

eet

accr

edita

on

and

othe

r crit

eria

.

122,

000

in 2

014

Voca

ona

l edu

ca o

n(L

aw o

n Ed

uca

on

(3 M

ay 2

002)

Art

. 43.

2.2

and

Art.4

3.2.

10; L

aw o

n Vo

ca o

nal E

duca

on

and

Trai

ning

(13

Feb.

200

9))

Targ

et g

roup

: Chi

ldre

n an

d yo

ung

peop

le w

ho c

ompl

eted

bas

ic e

duca

on

Bene

fi t: F

ree

voca

ona

l edu

ca o

n w

ith m

onth

ly s

pen

d of

MN

T 70

,000

for a

ll st

uden

ts (b

oth

publ

ic a

nd p

rivat

e) a

nd fr

ee b

oard

ing

for

thos

e in

nee

d (p

rivat

e)

42,7

98 st

uden

ts

Food

Sta

mp

Prog

ram

me10

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 22,

M

inist

eria

l Ord

er (M

OF

and

MPD

SP) N

o. A

/95/

2012

)

Targ

et g

roup

: Chi

ldre

n liv

ing

in p

oor a

nd v

ery

poor

hou

seho

lds

Bene

fi t: M

NT5

,000

per

mon

th p

er c

hild

. Fro

m 1

Jan.

201

5 th

e am

ount

was

incr

ease

d to

MN

T6,5

00 p

er m

onth

Q

ualif

ying

con

di o

ns: B

eing

a m

embe

r of p

oor h

ouse

hold

s ide

n fi

ed a

s liv

ing

stan

dard

scor

e of

PM

T ba

sed

data

base

. Aro

und

the

low

est 1

0% o

f hou

seho

lds i

n te

rms o

f con

sum

p o

n w

ill b

e co

vere

d in

201

5.

50,3

71 c

hild

ren

age

0–18

in 2

013

Oth

er p

rogr

amm

es: F

ree

vita

min

A a

nd D

Su

pple

men

t, Fo

ster

car

e an

d Ch

ild p

rote

c o

n N

P et

c.11

Targ

eted

, but

cov

erag

e is

limite

d, m

ostly

impl

emen

ted

in a

n ad

hoc

man

ner

An c

ipat

ed p

olic

y ch

ange

s/la

w re

form

sM

PDSP

has

dra

ed

a ne

w la

w fo

r im

prov

ing

child

soci

al p

rote

c o

n:

1. M

NT8

0,00

0 pe

r mon

th to

mot

her/

fath

er w

ho lo

oks a

er c

hild

ren

up to

age

2, o

r if t

win

s up

to a

ge 3

(110

,000

par

ents

will

be

cove

red

at a

cos

t of M

NT1

05.6

bill

ion

annu

ally

) 2.

MN

T120

,000

per

mon

th to

mot

her/

fath

er w

ho lo

oks a

er h

is/he

r thi

rd b

aby

up to

age

2 (2

5,00

0 pa

rent

s).

3. Ta

x re

lief f

or M

NT5

00,0

00 o

nce

a ye

ar fo

r tho

se p

aren

ts;

4. 5

0% o

f the

soci

al in

sura

nce

cont

ribu

on

for m

othe

rs; a

nd

5. F

ood

coup

on fo

r MN

T15,

000

Dra

Chi

ld ca

re la

w: T

he d

ra l

aw o

n Ch

ild c

are

is be

ing

disc

usse

d at

the

Parli

amen

t. It

is in

tend

ed to

targ

et c

hild

ren

age

2–6

who

are

ou

t of k

inde

rgar

tens

(Cur

rent

ly 5

6,00

0 ch

ildre

n). C

hild

car

e ce

ntre

s up

to 2

0 ch

ildre

n m

ee n

g th

e st

anda

rds s

pecifi e

d by

the

law

can

ha

ve v

aria

ble

cost

for e

very

chi

ld, a

t the

leve

l of p

ublic

kin

derg

arte

ns, f

rom

the

publ

ic b

udge

t. It

is as

sum

ed th

at o

ver 6

,000

cen

tres

will

be

est

ablis

hed.

Polic

y ga

psIm

plem

enta

on

issu

es1.

CM

P in

i a

ves

are

o e

n ba

sed

on p

oli

cal d

ecisi

ons,

not

evi

denc

e-ba

sed

2. L

evel

of b

enefi

t is

not a

dequ

ate

for s

choo

l a e

ndan

ce: u

nifo

rm a

nd te

xtbo

oks

3. T

he le

vel o

f soc

ial i

nsur

ance

pen

sion

bene

fi ts a

djus

ted

in a

d-ho

c m

anne

r, w

ithou

t ind

exa

on

on infl a

on.

4. A

cces

sibili

ty: E

nrol

men

t inc

reas

ed a

cros

s the

kin

derg

arte

ns b

ut th

ese

enro

lmen

t inc

reas

es g

ener

ally

not

am

ong

child

ren

from

low

-in

com

e ho

useh

olds

thos

e w

ho p

resu

mab

ly w

ould

ben

efi t

the

mos

t fro

m k

inde

rgar

ten

mea

l pro

vide

d fr

ee o

f cos

t.5.

Kin

derg

arte

n m

eal q

ualit

y is

s ll

low

6. C

hild

ren

cann

ot a

cces

s bas

ic so

cial

serv

ices

, and

serv

ice

deliv

ery

is in

suffi

cien

t, fo

r ins

tanc

e, la

ck o

f sch

ools

and

kind

erga

rten

s, a

nd

poor

infra

stru

ctur

e an

d se

rvic

es fo

r chi

ldre

n w

ith sp

ecia

l nee

ds.

7. T

he d

efi n

i on

of i

nval

id c

hild

ren

does

not

mee

t the

requ

irem

ent o

f inc

lusio

ns (m

edic

al, s

ocia

l, an

d so

on)

whe

re c

hild

ren

cann

ot

acce

ss se

rvic

es a

nd b

enefi

ts e

n tl

ed b

y so

cial

pro

tec

on

legi

sla o

ns.

8. C

hild

ren

disc

iple

at t

he m

onas

terie

s are

not

follo

win

g fo

rmal

edu

ca o

n cu

rric

ulum

s.

9. W

ater

sani

ta o

n an

d hy

gien

e (W

ASH)

and

suffi

cien

t san

itary

inst

alla

on

for c

hild

ren

also

bei

ng c

onsid

erab

le is

sue.

Mos

t par

ents

lack

kn

owle

dge

and

skill

s for

acc

essin

g to

serv

ices

and

wor

k w

ith th

eir c

hild

ren.

10

. Pen

al o

f the

lack

resp

onsib

ili e

s are

ver

y lo

w w

hen

pare

nts d

ischa

rge

thei

r par

enta

l obl

iga

ons

. 11

. Lim

ited

empl

oym

ent p

olic

ies f

ocus

ed o

n fa

mili

es a

nd c

hild

-frie

ndly

wor

kpla

ces.

12

. Chi

ldre

n w

ithou

t par

enta

l con

trol

(par

ents

wor

king

abr

oad)

nee

d to

be

cove

red

by th

e so

cial

pro

tec

on

sche

me

as w

ell.

1. R

equi

red

supp

or n

g do

cum

ents

to a

pply

the

CMP

(loss

birt

h ce

r fi c

a o

n an

d pa

rent

s ID)

is th

e m

ain

com

plic

a o

n iss

ue in

rura

l are

a.2.

App

lica

on

at th

e ai

mag

cen

tre.

Nee

d to

intr

oduc

e e-fi l

e.3.

The

re a

re g

ood

infra

stru

ctur

e st

anda

rds f

or p

eopl

e w

ith d

isabi

li e

s, b

ut

impl

emen

ta o

n of

stan

dard

s is w

eak.

4.

Lac

k of

serv

ices

for c

hild

ren’

s spa

re

me

or v

acan

cy.

5. B

udge

t allo

ca o

n fo

r com

mun

ity b

ased

wel

fare

is n

ot d

eliv

erin

g to

the

targ

eted

gro

ups n

or is

it d

eliv

erin

g pr

oper

serv

ices

.6.

The

re is

no

cohe

rent

info

rma

on

deliv

ery

syst

em.

7. S

choo

l soc

ial w

orke

rs a

re n

ot w

orki

ng c

lose

ly w

ith o

r a e

ndin

g to

st

uden

ts’ n

eeds

.8.

Dor

mito

ry se

rvic

es a

re o

f poo

r qua

lity.

9. N

ot su

ffi ci

ent p

rofe

ssio

nal s

ocia

l car

e an

d ps

ycho

logi

cal s

ervi

ces.

106

Reco

mm

enda

ons

/ Ke

y re

com

men

da o

nsCo

s n

g Sc

enar

ios

C1: A

sses

smen

t of t

he p

rogr

amm

e im

pact

is n

eede

d, to

ens

ure

that

it d

oes c

ontr

ibut

e to

pov

erty

redu

c o

n.C2

: Kee

p Ch

ild M

oney

Pro

gram

me

as it

is (e

nsur

e its

uni

vers

ality

by

law

), an

d in

dex

the

bene

fi t (M

NT2

0,00

0 pe

r mon

th) o

n th

e co

nsum

p o

n pr

ice

inde

x (C

PI).

C3: I

ncre

ase

the

leve

l of b

enefi

ts fo

r sm

all c

hild

ren.

C4: I

ncre

ase

the

soci

al in

sura

nce

surv

ivor

ben

efi t

leve

l and

inde

x on

the

CPI.

C5: R

educ

e th

e qu

alifi

ca o

ns fo

r ben

efi ts

focu

sed

on si

ngle

mot

hers

or f

athe

rs w

ith m

any

child

ren.

C6: P

ay m

ore

a e

n o

n to

chi

ldre

n an

d yo

uth

with

disa

bili

es.

The

Gov

ernm

ent r

ecog

nize

s the

nee

d to

ens

ure

an e

nabl

ing

envi

ronm

ent g

uara

ntee

ing

child

ren

with

di

sabi

li e

s the

equ

al ri

ght t

o de

velo

pmen

t and

pro

tec

on.

C7

: Com

bine

and

impr

ove

inco

me

supp

ort a

nd so

cial

incl

usio

n pr

ogra

mm

es fo

r chi

ldre

n w

ith d

isabi

li e

s, th

roug

h th

e de

velo

pmen

t of a

c v

i es

and

serv

ices

ada

pted

to

them

, in

par

cula

r ens

ure

acce

ss to

kin

derg

arte

n an

d pr

e-sc

hool

edu

ca o

n.

C8: I

mpr

ove

soci

al in

clus

ion

obje

c v

es o

f pro

gram

mes

for c

hild

ren

with

dis

abili

ty, f

or in

stan

ce su

ch a

s ren

ova

on

of fa

cili

es t

o en

sure

acc

ess t

o so

cial

serv

ices

in

par

cul

ar k

inde

rgar

ten

and

scho

ol e

duca

on.

C9

: Exp

and

alte

rna

ve

pres

choo

l pro

gram

mes

for c

hild

ren

with

disa

bili

es a

nd c

hild

ren

livin

g an

d w

orki

ng o

n th

e st

reet

. C1

0: In

trod

uce

an a

ddi

onal

inco

me

guar

ante

e fo

r tea

cher

s who

wor

king

with

chi

ldre

n w

ith d

isabi

li e

s.

C11:

Est

ablis

h re

habi

lita

on

cabi

nets

in sc

hool

s whi

ch a

re st

udyi

ng c

hild

ren

with

spec

ifi c

need

s.

C12:

Cre

ate

new

wor

k po

si o

n in

scho

ol a

s an

assis

tanc

e te

ache

r who

abl

e to

wor

k w

ith c

hild

ren

with

disa

bili

es.

C1

3: E

xpan

d se

rvic

es m

ainl

y fo

cuse

d on

chi

ldre

n w

ith c

hron

ic c

ondi

ons

. C1

4: F

or y

outh

in w

orki

ng a

ge (a

bove

age

16)

nee

d to

est

ablis

h pr

ogra

mm

es th

at u

n l

wea

k in

cen

ve

to in

tegr

ate

labo

ur m

arke

t and

be

soci

ally

and

eco

nom

ical

ly in

clud

ed,

whi

le c

on n

uing

rece

ivin

g go

vern

men

ts su

ppor

t (se

e re

com

men

da o

ns u

nder

Gua

rant

ee 3

). C1

5: P

rovi

de jo

bs to

par

ents

who

se c

hild

ren

invo

lved

in w

orst

form

s of c

hild

labo

ur.

C16:

Impr

ove

and

ensu

re e

nviro

nmen

ts fo

r dev

elop

men

t and

righ

t to

educ

a o

n of

the

herd

er-fa

mili

es c

hild

ren.

C17:

Incr

ease

and

inde

x th

e m

eal a

llow

ance

in k

inde

rgar

ten

and

pre-

scho

ol to

the

CPI.

A ne

w g

over

nmen

t pol

icy

reco

mm

ends

to su

bsid

ize it

onl

y at

50%

. C1

8: In

trod

uce

supe

rvis

ory

mec

hani

sms f

or b

e e

r saf

ety

and

qual

ity o

f mea

ls in

kin

derg

arte

n an

d sc

hool

s.C1

9: In

crea

se th

e nu

mbe

r of k

inde

rgar

tens

to e

nsur

e th

at th

e re

mai

ning

25%

(am

ong

vuln

erab

le g

roup

s) ca

n al

so a

cces

s to

thes

e ed

uca

on

serv

ices

. C2

0: P

rovi

de te

xtbo

ok a

nd sc

hool

uni

form

com

pens

a o

ns to

chi

ldre

n of

low

-inco

me

fam

ilies

. C2

1: In

trod

uce

diff e

rent

mea

l tar

iff fo

r dor

mito

ry st

uden

ts d

epen

ding

on

thei

r age

spec

ifi c.

Sc. 1

.1: I

ndex

ed C

MP

on infl a

on

Sc. 1

_1 (A

DB):

CMP

only

for t

he 1

5%

hous

ehol

ds id

en fi

ed a

s poo

r thr

ough

th

e PM

TC3

_1: S

tatu

s-qu

oC3

_2: F

ood

tariff

MN

T1,6

40 a

nd

MN

T2,4

00 in

dexe

d on

infl a

on

C3_3

: Foo

d ta

riff i

ncre

ased

to

MN

T2,0

00 fo

r day

car

e an

d M

NT4

,000

fo

r ful

l boa

rd (a

nd in

dexe

d)C3

_4: F

ood

tariff

inc

reas

ed to

M

NT2

,000

for d

ay c

are

and

MN

T4,0

00

for f

ull b

oard

, and

subs

idize

d on

ly a

t 50

%

1 Ac

tors

invo

lved

incl

ude

MPD

SP, M

OF,

Na

ona

l Reg

istra

on

Auth

ority

and

Gen

eral

Offi

ce fo

r Soc

ial W

elfa

re S

ervi

ces (

GOSW

S).

2 N

ote:

Law

on

2014

Hum

an D

evel

opm

ent F

und

Budg

et, t

otal

exp

endi

ture

is 3

12.0

bill

ion

MN

T of

whi

ch:

Child

mon

ey 2

40.0

bill

ion

MN

T, He

alth

insu

ranc

e co

ntrib

u o

n 12

.0 b

illio

n M

NT,

and

inve

stm

ent f

or n

ew b

uild

ing

of C

hild

ren’

Dev

elop

men

t Cen

tre

for

5 di

stric

t nam

ely,

in S

ongi

nokh

airk

han,

Bay

ango

l, Kh

an-U

ul, C

hing

elte

i and

Bay

anzu

rkh.

3

Invo

lves

SIG

O, M

PDSP

. 4

Invo

lves

Soc

ial W

elfa

re A

genc

y, M

PDSP

.5

Invo

lves

GO

SWS,

MPD

SP.

6 In

volv

es th

e M

inist

ry o

f Edu

ca o

n.

7 In

volv

es th

e M

inist

ry o

f Edu

ca o

n, N

a o

nal C

ente

r Lite

racy

Edu

ca o

n.

8 In

volv

es th

e So

cial

Wel

fare

Dep

artm

ent,

MPD

SP. 9

Invo

lves

the

Min

istry

of E

duca

on.

9 In

volv

es th

e M

inist

ry o

f Edu

ca o

n.

10 In

volv

es M

OE

and

MPD

SP. 1

0 In

volv

es M

PDSP

, MO

F, GO

SWS

and

Food

& N

utri

on

Prog

ram

me

(ADB

). 11

Invo

lves

MPD

SP, M

OH,

MO

E.

107

Soci

al p

rote

c o

n fl o

or A

sses

smen

t mat

rix: G

uara

ntee

3a-

Wor

king

age

(Soc

ial s

ecur

ity)

Sche

me/

prog

ram

me

(Leg

al fr

amew

ork)

Ove

rvie

w o

f exi

s n

g pr

ovis

ions

An c

ipat

ed p

olic

y ch

ange

s/la

w re

form

sEx

is n

g co

vera

ge

Man

dato

ry c

ontr

ibut

ory

wor

king

inju

ry a

nd

occu

pa o

nal d

isea

se in

sura

nce

(Law

on

Soci

al In

sura

nce

(31

May

199

4) A

rt. 4

; Law

on

Wor

king

inju

ry, o

ccup

a o

nal d

iseas

e Pe

nsio

n,

Benefi t

s and

Pay

men

ts p

rovi

ded

by In

sura

nce,

7

June

199

4)

Targ

et g

roup

Art

. 4.2

: Wor

kers

(bot

h M

ongo

lians

and

fore

igne

rs o

r sta

tele

ss p

erso

n) in

Mon

golia

n bu

sines

s en

es

, NGO

s and

oth

er o

rgan

iza o

ns (A

rt. 4

.2.1

); w

orke

rs (b

oth

Mon

golia

ns a

nd fo

reig

ners

or s

tate

less

per

son)

in

fore

ign

busin

ess e

n

es, N

GOs,

PM

Us a

nd in

tern

a o

nal o

rgan

iza o

ns in

Mon

golia

n te

rrito

ry (A

rt. 4

.2.2

); ci

vil

serv

ants

and

pub

lic w

orke

rs (A

rt. 4

.2.3

); an

d la

bour

con

trac

ted

Mon

golia

n w

orke

rs a

broa

d (A

rt. 4

.2.4

) Co

ntrib

u o

n: c

over

ed o

nly

by e

mpl

oyer

s by

1%, 2

% a

nd 3

% (d

epen

ding

on

wor

king

con

di o

n) o

f pay

roll

sala

ry

(bet

wee

n m

inim

um w

age

and

ten

mes

the

min

imum

wag

e)

Bene

fi ts:

disa

bilit

y pe

nsio

n (r

epla

cem

ent r

ate

is eq

ual t

o pe

rcen

tage

of c

apac

ity lo

st),

surv

ivor

pen

sion

(rep

lace

men

t rat

e is

50%

-100

% re

late

d to

the

num

ber o

f dep

ende

nts)

, sic

knes

s ben

efi ts

(100

% fo

r max

imum

180

w

orki

ng d

ays a

yea

r) a

nd c

ompe

nsa

on

for r

ehab

ilita

on

(if in

sure

d lo

st c

apac

ity o

f 30%

and

abo

ve, e

n tl

ed to

co

mpe

nsa

ons

as f

ollo

ws:

1) p

rost

he c

faci

li e

s 100

% fi

rst

me,

50%

seco

nd c

ase;

2) s

anat

oriu

m tr

eatm

ent;

and

3) so

cial

insu

ranc

e pe

nsio

n fu

nd c

ontr

ibu

on)

; Cr

iteria

: No

min

imum

requ

ired

of y

ears

of s

ervi

ce

MPD

SP is

pla

nnin

g to

refo

rm th

e So

cial

In

sura

nce

Pack

age

Law

in 2

015-

2016

766,

815

peop

le

insu

red

in 2

013;

In

201

3, u

nder

bo

th m

anda

tory

an

d vo

lunt

ary

sche

mes

: 5,8

00

peop

le re

ceiv

ed a

di

sabi

lity

pens

ion,

60

0 re

ceiv

ed a

su

rviv

or p

ensio

n w

hile

1,0

00

rece

ived

sick

ness

be

nefi t

s for

te

mpo

rary

loss

of

wor

king

cap

acity

Volu

ntar

y co

ntrib

utor

y w

orki

ng in

jury

and

oc

cupa

ona

l dis

ease

insu

ranc

e

(Law

on

Soci

al In

sura

nce

(31

May

199

4) A

rt. 4

; Law

on

Wor

king

inju

ry, o

ccup

a o

nal d

iseas

e Pe

nsio

n,

Benefi t

s and

Pay

men

ts p

rovi

ded

by In

sura

nce

(7

June

199

4))

Targ

et g

roup

Art

. 4.3

: Ind

ivid

uals

othe

r tha

n Ar

t. 4.

2 no

t wor

king

in th

e fo

rmal

sect

or a

nd u

nem

ploy

ed p

eopl

e.

Cont

ribu

on:

1%

of t

he re

fere

nce

inco

me,

by

insu

red

only.

Ref

eren

ce in

com

e is

decl

ared

on

a vo

lunt

ary

basis

: be

twee

n m

inim

um w

age

and

ten

mes

the

min

imum

wag

e. R

epla

cem

ent r

ate

depe

nds o

n le

vel o

f inc

apac

ity:

10%

inca

paci

ty, 1

0% in

com

e re

plac

emen

t. Be

nefi t

s: D

isabi

lity

pens

ion,

surv

ivor

pen

sion,

com

pens

a o

n du

e to

wor

king

acc

iden

t and

occ

upa

ona

l dise

ases

. Cr

iteria

: Not

dep

ende

nt o

n ye

ars o

f ser

vice

.

147,

100

peop

le

insu

red

in 2

013

Man

dato

ry c

ontr

ibut

ory

allo

wan

ce in

sura

nce:

M

ater

nity

, sic

knes

s and

fune

ral

(Law

on

Pens

ion

and

Bene

fi ts p

rovi

ded

by S

ocia

l in

sura

nce

(7 Ju

ne 1

994)

)

Targ

et g

roup

: Art

. 4.2

(Con

trac

ted

empl

oym

ent a

nd c

ivil

serv

ice

wor

kers

) Co

ntrib

u o

n: E

mpl

oyer

0.5

% a

nd e

mpl

oyee

0.5

% o

f the

pay

roll

sala

ry.

Mat

erni

ty:

Qua

lifyi

ng c

ondi

ons

: At l

east

12

mon

ths o

f con

trib

u o

ns, o

f whi

ch si

x co

n n

uous

ly p

rior t

o ta

ke m

ater

nity

leav

e.

Repl

acem

ent r

ate:

100

% o

f las

t 12

mon

th a

vera

ge w

age

for a

per

iod

of fo

ur m

onth

s. T

he a

llow

ance

shal

l cal

cula

ted

base

d on

the

wor

king

da

ys o

f a c

alen

dar y

ear.

For e

xam

ple,

bef

ore

birt

h M

NT2

80,0

00 a

nd M

NT2

80,0

00 a

er b

irth

(in c

ase

of m

inim

um w

age)

;Si

ckne

ss:

Qua

lifyi

ng c

ondi

ons

: At l

east

thre

e m

onth

s of c

ontr

ibu

on

prio

r to

take

a si

ckne

ss le

ave

due

to o

rdin

ary

dise

ase

and

non-

occu

pa o

nal

acci

dent

s.

Repl

acem

ent r

ate:

the

bene

fi t is

cal

cula

ted

on th

e ba

sis o

f the

ave

rage

wag

e of

last

thre

e m

onth

con

nui

ng e

mpl

oym

ent,

depe

ndin

g on

yea

rs o

f ser

vice

: up

to 5

yea

rs, 5

0%; 5

–14

year

s, 5

5%; a

nd m

ore

than

15

year

s, 7

5% fo

r max

imum

66

wor

king

day

s in

case

of o

rdin

ary

dise

ase

(but

in c

ase

of c

ance

r or t

uber

culo

sis fo

r max

. 136

day

s ). F

or e

xam

ple,

in c

ase

of 5

yea

rs o

f con

trib

u o

n at

min

imum

wag

e an

d 66

da

ys o

f a si

ckne

ss=

MN

T232

,957

or 1

32 d

ays o

f a si

ckne

ss e

qual

to M

NT4

65,9

15;

Fune

ral g

rant

: MN

T620

,000

766,

815

peop

le

insu

red

in 2

013;

In

201

3; fo

r bot

h m

anda

tory

and

vo

lunt

ary:

45,

700

mot

hers

rece

ived

m

ater

nity

ben

efi ts

an

d 10

4,40

0 w

orke

rs re

ceiv

ed

sickn

ess b

enefi

ts,

fune

ral g

rant

s wer

e pa

id to

12,

400

peop

le in

201

3

Volu

ntar

y co

ntrib

utor

y al

low

ance

insu

ranc

e:

Mat

erni

ty, s

ickn

ess a

nd fu

nera

l

(Law

on

Pens

ion

and

Bene

fi ts p

rovi

ded

by th

e So

cial

in

sura

nce

(7 Ju

ne 1

994)

)

Targ

et g

roup

: Art

. 4.3

Con

trib

u o

n: 1

% o

f the

refe

renc

e in

com

e (b

ut in

com

e m

ust n

ot b

e be

low

min

imum

wag

e).

Mat

erni

tyQ

ualif

ying

con

di o

ns: S

ame

as A

rt. 4

.2 a

s abo

ve.

Repl

acem

ent r

ate:

70%

of l

ast 1

2 m

onth

ave

rage

inco

me

for a

per

iod

of fo

ur m

onth

s;

Bene

fi t: F

or e

xam

ple,

bef

ore

birt

h: M

NT1

98,0

00, a

nd a

er b

irth:

MN

T198

,000

. In

case

of m

inim

um w

age

the

bene

fi t p

rovi

ded

for e

ach

day

of w

ork.

Sick

ness

ben

efi t

and

fune

ral g

rant

: Sam

e as

Art

. 4.2

as a

bove

147,

100

peop

le

insu

red

in 2

013

108

Man

dato

ry c

ontr

ibut

ory

Une

mpl

oym

ent I

nsur

ance

(Law

on

Soci

al In

sura

nce

(31

May

199

4), A

r cl

e 4.

2;

Law

on

Une

mpl

oym

ent B

enefi

ts P

rovi

ded

by th

e So

cial

Insu

ranc

e Fu

nd (5

July

199

4))

Targ

et g

roup

: Art

. 4.2

Co

ntrib

u o

n: E

mpl

oyer

s 0.5

% a

nd e

mpl

oyee

0.5

% o

f the

pay

roll

sala

ry.

Repl

acem

ent r

ate:

For

a d

ura

on

of 7

6 w

orki

ng d

ays,

ben

efi t

is ca

lcul

ated

bas

ed o

n th

e av

erag

e w

age

of la

st th

ree

mon

th c

on n

uing

em

ploy

men

t, an

d re

plac

emen

t rat

e va

ries w

ith th

e ye

ars o

f ser

vice

: up

to 5

yea

rs, 4

5%; 5

-10

year

s, 5

0%; 1

0-15

yea

rs, 6

0%; a

nd m

ore

than

15

yea

rs, 7

0%.

Min

imum

ben

efi t:

not

less

than

75%

of t

he m

inim

um w

age;

Cr

iteria

: At l

east

24

mon

ths o

f con

trib

u o

ns, o

f whi

ch n

ine

con

nuo

usly

prio

r to

the

unem

ploy

ed;

Redu

ced

bene

fi t: I

f em

ploy

ee te

rmin

ated

his/

her l

abou

r con

trac

t on

own

ini

a v

e an

d di

smiss

ed fr

om jo

b du

e to

bre

akin

g th

e la

bour

di

scip

line

man

y m

es o

r sev

erel

y th

en b

enefi

t w

ould

be

prov

ided

for 3

6 w

orki

ng d

ays:

Co

ntrib

u o

n di

scou

nt: W

hen

empl

oyer

and

an

empl

oyee

did

not

take

ben

efi ts

from

une

mpl

oym

ent i

nsur

ance

fund

for fi

ve

year

s co

nsist

ently

, the

une

mpl

oym

ent i

nsur

ance

con

trib

u o

n is

decr

ease

d by

10%

in th

e ne

xt y

ear.

766,

815

peop

le

insu

red

in 2

013;

In

201

3, 1

5,80

0 em

ploy

ees

rece

ived

un

empl

oym

ent

insu

ranc

e be

nefi t

s.

Man

dato

ry c

ontr

ibut

ory

disa

bilit

y be

nefi t

insu

ranc

e (D

B)

(Law

on

Pens

ion

and

Bene

fi ts p

rovi

ded

by th

e So

cial

in

sura

nce

(7 Ju

ne 1

994)

)

Targ

et g

roup

: Art

. 4.2

(Con

trac

ted

empl

oym

ent a

nd c

ivil

serv

ice

wor

kers

)

Cont

ribu

on:

Em

ploy

er 7

% a

nd e

mpl

oyee

7%

of t

he p

ayro

ll sa

lary

as p

art o

f the

SI P

ensio

n fu

nd.

Qua

lifyi

ng c

ondi

ons

: The

insu

red

pers

on w

ho h

as lo

st n

ot le

ss th

an 5

0% o

f his

capa

city

for w

ork

perm

anen

tly fo

r not

less

than

20

year

s of

serv

ice

or a

t lea

st 3

yea

rs o

ut o

f fi v

e, im

med

iate

ly p

rece

ding

the

date

of c

omm

ence

men

t of i

nval

id.

Repl

acem

ent r

ate:

if in

sure

d pe

rson

lost

his

capa

city

for 7

5% o

r mor

e, re

plac

emen

t rat

e w

ould

be

45%

(sam

e as

OA

pens

ion)

of p

ayro

ll sa

lary

and

incr

ease

d by

1.5

% o

f wag

es fo

r eac

h ye

ar a

ddi

onal

to 2

0 ye

ars.

If in

sure

d lo

st h

is ca

paci

ty n

ot le

ss th

an 5

0%, p

ensio

n w

ould

ca

lcul

ated

at t

he ra

te o

f pro

por

on to

his

wag

es a

s 45%

or m

ore.

But

bot

h fu

lly a

nd p

ar a

lly d

isabi

lity

pens

ions

shou

ld n

ot b

e le

ss th

an

soci

al in

sura

nce

old

age

min

imum

pen

sion

(as M

NT1

95,0

00 o

r MN

T230

,000

);

Dete

rmin

a o

n of

inva

lidity

: The

per

cent

age

of a

n in

sure

d pe

rson

’s lo

ss o

f cap

acity

and

its l

engt

h ar

e de

term

ined

by

the

Med

ical

labo

ur

Accr

edita

on

Com

miss

ion

766,

815

peop

le

insu

red

in 2

013

Volu

ntar

y co

ntrib

utor

y di

sabi

lity

bene

fi t in

sura

nce

(DB)

(Law

on

Pens

ion

and

Bene

fi ts p

rovi

ded

by th

e So

cial

in

sura

nce

(7 Ju

ne 1

994)

)

Targ

et g

roup

: Art

. 4.3

(her

ders

and

info

rmal

eco

nom

y w

orke

rs a

nd u

nem

ploy

ed p

erso

n)

Cont

ribu

on:

incl

uded

in 1

0% o

f the

indi

vidu

al’s

refe

renc

e in

com

e go

ing

to th

e so

cial

insu

ranc

e pe

nsio

n fu

nd.

Qua

lifyi

ng c

ondi

ons

and

Ben

efi ts

: Sam

e as

abo

ve a

s Art

. 4.2

77,8

00 p

eopl

e in

sure

d in

201

3

Man

dato

ry c

ontr

ibut

ory

surv

ivor

ben

efi t

insu

ranc

e (D

B)

(Law

on

Pens

ion

and

Bene

fi ts p

rovi

ded

by th

e So

cial

in

sura

nce,

7 Ju

ne 1

994)

Targ

et g

roup

: Art

. 4.2

(Con

trac

ted

empl

oym

ent a

nd c

ivil

serv

ice

wor

kers

) Co

ntrib

u o

n: E

mpl

oyer

7%

and

em

ploy

ee 7

% o

f the

pay

roll

sala

ry a

s par

t of t

he S

I Pen

sion

fund

. Be

nefi t

s: if

thre

e or

mor

e de

pend

ents

, 100

% o

f ref

eren

ce in

com

e; tw

o de

pend

ents

= 7

5%, a

nd o

ne d

epen

dent

= 5

0% b

ut m

inim

um

pens

ion

mus

t be

equa

ls to

min

imum

old

age

pen

sion

Crite

ria: N

ot le

ss th

an 2

0 ye

ars f

or th

e se

rvic

e or

insu

red

at le

ast t

hree

yea

rs o

ut o

f fi v

e

77,8

00 p

eopl

e in

sure

d in

201

3

Volu

ntar

y co

ntrib

utor

y su

rviv

or b

enefi

t in

sura

nce

(DB)

(Law

on

Pens

ion

and

Bene

fi ts p

rovi

ded

by th

e So

cial

in

sura

nce

(7 Ju

ne 1

994)

)

Targ

et g

roup

: Art

. 4.3

(her

ders

and

info

rmal

eco

nom

y w

orke

rs o

r une

mpl

oyed

per

son)

Co

ntrib

u o

n: 1

0% o

f the

refe

renc

e in

com

e as

par

t of t

he S

I Pen

sion

fund

. Be

nefi t

s: sa

me

as a

bove

; Min

imum

pen

sion:

fully

230

,000

MN

T, pa

r al

ly 1

95.0

00 M

NT;

Cr

iteria

: sam

e ab

ove

and

at le

ast 3

yea

rs o

ut o

f fi v

e.

77,8

00 p

eopl

e in

sure

d in

201

3

109

Man

dato

ry a

nd v

olun

tary

con

trib

utor

y su

rviv

or a

nd

disa

bilit

y be

nefi t

insu

ranc

e (N

DC)

(Law

On

Indi

vidu

al P

ensio

n In

sura

nce

Cont

ribu

on

Acco

unt (

1 Ju

ly 1

999)

)

Surv

ivor

pen

sion

:Sc

ope:

All

cont

ract

em

ploy

ees b

orn

a e

r Jan

uary

1, 1

960.

Yea

rs o

f ser

vice

: 15

year

s of s

ervi

ce a

nd c

ontr

ibu

ons

Ra

te: 4

0% m

onth

ly a

vera

ge w

age

in th

e la

st th

ree

year

s for

one

dep

ende

nt in

crea

sed

by 1

0% p

er e

ach

mem

ber o

ver t

wo

and

mor

e. B

ut

pens

ion

shou

ld n

ot e

xcee

d 60

% m

onth

ly a

vera

ge w

age.

Fi

nanc

ing:

Incl

uded

in th

e 14

% o

f con

trib

u o

n to

the

soci

al in

sura

nce

pens

ion

fund

.

767,

000

cont

ribut

ors t

o th

e m

anda

tory

sc

hem

e; 1

47,0

00

cont

ribut

ors t

o th

e vo

lunt

ary

sche

me,

in

201

3.

Disa

bilit

y pe

nsio

n:

Scop

e: sa

me

as a

bove

Ra

te: T

otal

inva

lidity

= m

onth

ly a

vera

ge w

age

in th

e la

st th

ree

year

s*60

%; P

ar a

l inv

alid

ity =

(mon

thly

ave

rage

wag

e in

the

last

thre

e ye

ars*

60%

) * (%

of l

oss o

f cap

acity

for w

ork)

Non

-con

trib

utor

y M

ilita

ry P

ensio

n Be

nefi t

Sch

eme:

ol

d-ag

e, d

isabi

lity

and

surv

ivor

s1

(Law

on

Pens

ion

and

Bene

fi ts o

f Mili

tary

Ser

vice

Pe

rson

nel (

13 Ju

ne 1

994)

Art

. 4.1

)

Scop

e: A

rt. 4

.1 c

adet

, priv

ate,

sold

ier,

serg

eant

, fi rs

t-ser

gean

t, offi

cer

, com

miss

ary,

gene

ral o

f Arm

ed fo

rces

, Def

ense

, Pol

ice,

Bor

der

Secu

rity,

Corr

ec o

nal s

ervi

ce, I

ntel

ligen

ce, E

mer

genc

y se

rvic

e an

d Cr

imin

alis

cs

Qua

lifyi

ng c

ondi

ons

: 1)

if p

erso

nnel

lost

his

capa

city

in a

ba

le fi

eld,

pea

ceke

epin

g op

era

on,

a e

ndin

g sp

ecia

l or e

mer

genc

y op

era

ons

etc

.; 2)

ac

vi

es o

ther

than

1);

3) il

lnes

s not

rela

ted

to w

ork

du e

s; a

nd

4) lo

st c

apac

ity d

urin

g de

mob

ilizin

g fr

om a

rmy

Repl

acem

ent r

ate:

Ca

ses 1

and

2) 1

0% lo

ss o

f cap

acity

, 10%

inco

me

repl

acem

ent;

if ov

er 1

0% lo

ss o

f cap

acity

, pro

por

on to

the

degr

ee o

f the

loss

of w

orki

ng

abili

ty a

nd p

lus 1

0%–1

5% a

ddi

onal

ben

efi t

calc

ulat

ed o

f pay

roll

sala

ry;

Case

3) I

f 75%

and

mor

e lo

st c

apac

ity, b

enefi

t w

ould

be

60%

of r

efer

ence

inco

me

and

incr

ease

d by

1.5

% o

f wag

es fo

r eac

h ye

ar a

ddi

onal

to

20

year

s. If

par

al l

oss o

f cap

acity

, rep

lace

men

t rat

e w

ould

be

60%

of i

ncom

e; a

nd

Case

4) R

epla

cem

ent r

ate

10%

–60%

of p

rior i

ncom

e of

an

arm

y or

min

imum

wag

e.Fi

nanc

ing:

Sta

te b

udge

t but

del

iver

ed th

roug

h so

cial

insu

ranc

e fa

cili

es

Guar

ante

e: T

he p

ensio

n sh

ould

not

be

less

than

75%

of m

inim

um w

age

Mili

tary

Pen

sion

Bene

fi t S

chem

e: o

ld-a

ge, d

isabi

lity

and

surv

ivor

s

(Law

on

Pens

ion

and

Bene

fi ts o

f Mili

tary

Ser

vice

Pe

rson

nel (

13 Ju

ne 1

994)

Art

. 4.1

)

Scop

e: A

rt. 4

.1.

Qua

lifyi

ng c

ondi

ons

: Bre

ad-w

inne

r die

d sa

me

abov

e 1,

2, 3

and

4

Rate

: Thr

ee o

r mor

e de

pend

ents

-100

% o

f ref

eren

ce in

com

e; 2

=75

%, a

nd 1

= 5

0% a

nd p

lus 1

0-15

% a

ddi

onal

ben

efi t.

Mili

tary

Ben

efi t

sche

me:

Sic

knes

s, M

ater

nity

and

Fu

nera

l

(Law

on

Pens

ion

and

Bene

fi ts o

f Mili

tary

Ser

vice

Pe

rson

nel (

13 Ju

ne 1

994)

Art

. 4.1

)

Scop

e: A

rt. 4

.1.

Bene

fi ts:

M

ater

nity

: 100

% o

f las

t 12

mon

th a

vera

ge w

age

for a

per

iod

of 4

mon

ths.

Si

ckne

ss: d

epen

ding

on

year

s of s

ervi

ce- u

p to

fi ve

yea

rs-5

0% o

f wag

e, 5

-14

year

s 60%

and

mor

e th

an 1

5 is

80%

; Fu

nera

l gra

nt: M

NT6

20,0

00

Non

-con

trib

utor

y So

cial

Wel

fare

Ben

efi t:

Disa

bilit

y2

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12) A

rt. 1

2.1.

3 an

d Go

vern

men

t res

olu

on

No.

81,

201

2)

Qua

lifyi

ng c

ondi

ons

: Res

iden

ts a

ged

year

s of 1

6 an

d m

ore

who

lost

his/

her w

orki

ng c

apac

ity fo

r 50%

and

ove

r and

who

has

nev

er

cont

ribut

ed to

the

soci

al in

sura

nce

sche

me.

Be

nefi t

s: M

NT1

26,5

00 p

er m

onth

.

44,2

09 p

eopl

e in

20

13

110

Non

-con

trib

utor

y So

cial

Wel

fare

Ben

efi t:

Dw

arf

indi

vidu

al2

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 12.

1.2

and

Gove

rnm

ent r

esol

u o

n N

o. 8

1, 2

012)

Qua

lifyi

ng c

ondi

ons

: A d

war

f ind

ivid

ual a

ged

16 y

ears

and

mor

e Be

nefi t

s: M

NT1

26,5

00 p

er m

onth

.16

4 pe

ople

in 2

013

Non

-con

trib

utor

y So

cial

wel

fare

Allo

wan

ce:

Indi

vidu

al m

embe

r of h

ouse

hold

2

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12) A

rt. 1

3.3)

Qua

lifyi

ng c

ondi

ons

: a c

i ze

n-m

embe

r of h

ouse

hold

sele

cted

from

hou

seho

lds w

ith li

ving

stan

dard

low

er th

an th

e po

vert

y lin

e th

en a

nd

that

are

ent

ered

into

a c

entr

al d

atab

ase

of h

ouse

hold

s

Bene

fi ts:

MN

T48,

000

per m

onth

.

Prox

y m

eans

te

s n

g pr

ogra

mm

e. N

ot

yet i

mpl

emen

ted

Non

-con

trib

utor

y So

cial

wel

fare

Allo

wan

ce:

Emer

genc

y as

sista

nce2

(Law

on

Soci

al W

elfa

re (1

9 Ja

n. 2

012)

Art

. 13.

5.1)

Qua

lifyi

ng c

ondi

ons

: hou

seho

lds b

ecam

e ho

mel

ess o

r who

se h

ome

beca

me

unsu

itabl

e fo

r liv

ing

or lo

st li

velih

ood

due

to su

dden

ac

cide

nt, d

isast

er-d

zuds

(har

sh w

inte

rs) o

r oth

er u

nfor

esee

n re

ason

s;

Bene

fi ts:

MN

T1,2

00,0

00 o

ne

me.

815

peop

le o

f 602

ho

useh

olds

in 2

013

Non

-con

trib

utor

y So

cial

wel

fare

Allo

wan

ce:

Live

lihoo

d su

ppor

t2

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12) A

r cl

es

13.5

.2–1

3.5.

5)

Qua

lifyi

ng c

ondi

ons

: ci

zen

of 1

8-24

yea

rs o

ld w

ho b

ecam

e a

doub

le o

rpha

n be

fore

he/

she

turn

ed 1

8; h

omel

ess c

i ze

n re

leas

ed fr

om

priso

n; h

omel

ess a

nd w

ande

ring

ci z

en o

r hou

seho

ld;

Bene

fi ts:

MN

T1,2

00,0

00 o

ne

me.

403

pers

ons i

n 20

13

Non

-con

trib

utor

y So

cial

wel

fare

Allo

wan

ce:

Allo

wan

ces a

nd a

ssist

ance

2

(Law

on

Soci

al S

ecur

ity o

f Peo

ple

with

Disa

bilit

y (8

Dec

embe

r 200

5) A

r cl

es 5

.1.3

and

5.1

.4;

Gove

rnm

ent r

esol

u o

n N

o. 1

53, 2

012)

Targ

et: D

isabl

ed p

eopl

e;

Bene

fi ts:

Cos

t rei

mbu

rsem

ent o

f 80

type

s of p

rost

he c

and

ort

hopa

edic

dev

ices

3,

737

pers

ons

incl

udin

g ol

der

pers

ons.

MN

T7.6

bill

ion

spen

t in

2013

N

on-c

ontr

ibut

ory

Soci

al w

elfa

re A

llow

ance

2

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12) A

rt. 1

3.2.

4)

Targ

et: A

ci

zen

taki

ng c

are

of e

lder

or d

isabl

ed p

erso

n un

der m

edic

al c

ontr

ol, r

equi

ring

perm

anen

t car

e, a

nd su

ch; B

enefi

ts: M

NT5

8,00

0 pe

r mon

th. P

lus t

rain

ing

on c

aret

akin

g an

d nu

rsin

g sk

ills

16,8

00 o

lder

pe

ople

and

16,

800

peop

le w

ith

disa

bili

es i

n 20

13N

on-c

ontr

ibut

ory

Soci

al w

elfa

re A

llow

ance

2

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12) A

rt. 1

3.2.

3)

Targ

et: A

ci

zen

taki

ng c

are

of si

ngle

eld

er o

r disa

bled

per

son

in th

eir f

amily

, who

has

no

child

ren

or re

la v

es to

take

car

e of

him

/her

; Be

nefi t

s: M

NT5

8,00

0 pe

r mon

th. P

lus t

rain

ing

on c

aret

akin

g an

d nu

rsin

g sk

ills

Care

give

rs o

f 154

ol

der p

eopl

e an

d 23

9 pe

ople

with

di

sabi

li e

s in

2013

Non

-con

trib

utor

y So

cial

wel

fare

Allo

wan

ce2

(Mat

erni

ty )

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12) A

r cl

es

13.1

.4, 1

3.7

and

13.8

; Par

liam

enta

ry D

ecre

e N

o. 1

9,

2012

)

Qua

lifyi

ng c

ondi

ons

: Pre

gnan

t wom

en a

nd m

othe

rs w

ith in

fant

s sta

r ng

from

the

5th

mon

th o

f pre

gnan

cy w

ho h

ave

neve

r con

trib

uted

(o

r les

s tha

n 10

yea

rs) t

o th

e So

cial

insu

ranc

e sc

hem

e;

Bene

fi ts:

MN

T40,

000

per m

onth

for 1

2 m

onth

s. If

a m

othe

r die

d a

er g

ivin

g a

birt

h to

a c

hild

, fat

her o

f the

chi

ld o

r leg

ally

aut

horiz

ed

pers

on, o

r ado

pted

mot

her/

fath

er c

an b

e en

tled

to re

ceiv

e th

e al

low

ance

94,

900

peop

le

cove

red

and

MN

T38.

0 bi

llion

sp

ent i

n 20

13

111

Soci

al W

elfa

re S

ervi

ce2

(Com

mun

ity B

ased

Ser

vice

for W

orki

ng a

ge)

(Law

on

Soci

al W

elfa

re A

r cl

es 1

7.1.

1, 1

8.1,

18.

2.2

and

18.2

.4–1

8.2.

10)

Targ

et g

roup

: Disa

bled

per

son;

Vic

ms o

f vio

lenc

e; c

i ze

ns re

leas

ed fr

om a

pris

on; A

lcoh

ol a

nd d

rug

addi

cted

ci

zen;

ci

zens

with

in

cura

ble

dise

ase;

Hom

eles

s and

wan

derin

g ho

useh

old

and

ci z

en; m

igra

ted

ci z

en o

r ci

zen-

mem

ber o

f poo

r hou

seho

ld; S

ingl

e m

othe

r or

fath

er.

Serv

ices

: Sup

port

to h

omel

ess c

i ze

n an

d he

r/hi

s fam

ily m

embe

r in

soci

alizi

ng, c

ivil

regi

stra

on,

and

acc

omm

oda

ng

in a

tem

pora

ry

shel

ter;

Soci

alize

ci

zen

and

hous

ehol

d re

quiri

ng so

cial

wel

fare

ass

istan

ce, t

o he

lp in

form

ing

of a

com

mun

ity g

roup

, im

plem

en n

g in

com

e ge

nera

on

proj

ect a

nd p

rovi

de li

fe sk

ills t

rain

ing

; Cou

nsel

ling;

Reh

abili

ta o

n; Te

mpo

rary

acc

omm

oda

on

and

care

; Day

car

e se

rvic

e; H

ome

base

d ca

re a

nd se

rvic

e Fi

nanc

ing:

sinc

e 20

13 L

ocal

Gov

ernm

ent b

udge

tFu

ndin

g pr

oces

s: S

ervi

ce c

ots a

re e

s m

ated

by

Soci

al w

elfa

re u

nit o

f aim

ag, d

istric

t and

cap

ital c

ity o

n th

e ba

sis o

f pro

posa

l iss

ued

by

Live

lihoo

d Su

ppor

t Cou

ncil

of re

spec

ve

soum

and

kho

roo

and

be su

bmi

ed to

the

Loca

l Gov

erno

r Offi

ce.

8,7

00 p

eopl

e in

20

14

Soci

al W

elfa

re S

ervi

ce3

(Ins

tu o

nal C

are

Serv

ice)

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12) A

rt. 1

7.1.

2)

Scop

e: S

ingl

e di

sabl

ed c

i ze

n in

capa

ble

to li

ve in

depe

nden

tly, w

ith n

o ch

ild to

supp

ort,

and

requ

iring

pro

fess

iona

l ser

vice

and

spec

ial

cond

i on

sFi

nanc

ing:

Loc

al g

over

nmen

t bud

get s

ince

201

3Th

e go

vern

or o

f the

aim

ag, d

istric

t and

cap

ital c

ity m

ake

a de

cisio

n to

enr

ol a

n el

der i

n th

e ca

re se

rvic

e

320

peop

le w

ere

livin

g in

nin

e ca

re

cent

res i

n 20

13

Soci

al W

elfa

re S

ervi

ce2

(Foo

d an

d N

utri

on

Supp

ort S

ervi

ce)

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12) A

rt. 2

2)

Targ

et g

roup

: A m

embe

r of p

oor h

ouse

hold

as r

equi

ring

nece

ssar

y fo

od su

pply

; Hom

eles

snes

s. Ta

rget

ed h

ouse

hold

s ide

n fi

ed a

s liv

ing

stan

dard

scor

e of

PM

T ba

sed

data

base

. Aro

und

the

low

est 1

0% o

f hou

seho

lds i

n te

rms o

f con

sum

p o

n w

ill b

e co

vere

d in

201

5.

Serv

ice

deliv

erab

le: P

rovi

sion

of fo

od p

rodu

cts o

r pro

visio

n of

vou

cher

s/fo

od st

amps

to p

urch

ase

food

pro

duct

s; a

nd p

rovi

sion

of h

ot

mea

l or t

ea.

Bene

fi t: m

onth

ly M

NT1

0,00

0 pe

r adu

lt. F

rom

1 Ja

n. 2

015

the

amou

nt w

as in

crea

sed

to M

NT1

3,00

0 pe

r mon

th

47,5

48 a

dults

, an

d 97

,919

tota

l be

nefi c

iarie

s (of

16

,410

hou

seho

lds)

co

vere

d in

201

3

Polic

y ga

psIm

plem

enta

on

issu

es

1. In

sura

nce

Polic

y: C

ontr

ibu

on

colle

cted

on

a m

onth

ly b

asis,

whi

ch is

not

ada

pted

to th

e se

ason

ality

of h

erde

rs’ i

ncom

es.

2. B

enefi

ts: R

ela

vel

y lo

w-le

vel o

f ben

efi ts

, sho

rt d

ura

on

and

rest

ric v

e el

igib

ility

crit

eria

cre

ate

disin

cen

ve

to e

nrol

in so

cial

insu

ranc

e sc

hem

e.

3. O

ccup

a o

nal d

iseas

e an

d W

orki

ng in

jury

: -N

o in

ves

ga

on

mec

hani

sm a

nd c

riter

ia to

ass

ess w

heth

er th

e di

seas

e is

wor

k re

late

d;

-No

clea

r pol

icy

on w

heth

er a

ccid

ent d

urin

g co

min

g to

/fro

m w

ork

is co

vere

d; a

nd,

-No

pena

l es

or r

educ

ing

of b

enefi

ts if

wor

king

acc

iden

t is d

ue to

wor

ker’s

ow

n fa

ult

-Disa

bilit

y al

low

ance

for t

empo

rary

inca

paci

ty: t

he a

mou

nt is

ver

y lo

w (a

lmos

t thr

ee

mes

low

er th

an IL

O C

onve

n o

n N

o. 1

21)

Empl

oym

ent i

njur

y an

d oc

cupa

ona

l dise

ase

rate

s s ll

hig

h du

e to

lack

of e

ff ec

ve

prev

en o

n ac

vi

es.

4. M

ater

nity

: Vol

unta

ry so

cial

insu

ranc

e off

ers

low

er b

enefi

ts a

lthou

gh c

ontr

ibu

on

rate

is th

e sa

me

as m

anda

tory

rate

. Mat

erni

ty b

enefi

ts p

erio

d is

four

m

onth

s, c

ompa

red

to so

cial

ass

istan

ce b

enefi

t of

ten

mon

ths.

If th

e in

sure

d do

es n

ot q

ualif

y fo

r mat

erni

ty b

enefi

ts (1

2 m

onth

s con

trib

u o

n), s

he m

ay

seek

soci

al w

elfa

re b

enefi

ts.

5. U

nem

ploy

men

t ben

efi ts

: the

requ

irem

ent t

hat w

orke

rs h

ave

cont

ribut

ed fo

r at l

east

two

year

s (in

clud

ing

the

9 co

n n

uous

ly m

onth

s im

med

iate

ly

prec

edin

g th

eir j

ob lo

ss) t

o be

elig

ible

for b

enefi

ts is

too

stric

t and

cau

ses m

any

who

lose

thei

r job

s to

fail

to q

ualif

y fo

r any

une

mpl

oym

ent i

nsur

ance

be

nefi t

, and

poo

r lin

kage

s with

em

ploy

men

t pro

mo

on

prog

ram

mes

6. D

isabi

lity

pens

ion

- Sho

rtco

min

g in

the

leve

l of b

enefi

ts (l

evel

adj

uste

d in

ad-

hoc

man

ner,

no in

dexa

on)

, how

ever

dur

a o

n is

gene

rous

eno

ugh

- Too

muc

h fo

cus o

n ca

sh b

enefi

ts ra

ther

than

focu

sing

on e

mpl

oym

ent s

uppo

rt (t

urni

ng th

em in

to e

mpl

oyab

le a

nd e

mpl

oyed

ci

zens

)-S

houl

d be

mor

e em

phas

ized

on re

habi

lita

on

prog

ram

mes

. 7.

Cov

erag

e is

very

lim

ited

due

to re

stric

ve

qual

ifyin

g co

ndi

ons a

nd to

cum

bers

ome

appl

ica

on

proc

edur

es: a

pplic

a o

n at

the

soci

al w

elfa

re offi

ce o

f th

e ai

mag

cen

tre

(cos

t of b

us

cket

: aro

und

MN

T10,

000)

.

1. D

eliv

ery:

Soc

ial w

elfa

re b

enefi

ts c

anno

t del

iver

on

me

due

to n

ew B

udge

t pro

cess

Law

in U

vurk

hang

ai a

imag

.2.

Thi

s pro

gram

me

may

be

eff e

c v

e a

er c

ondu

c n

g th

e ho

useh

old

surv

ey th

at c

urre

ntly

ong

oing

3.

Tar

ge n

g: T

here

is n

o cl

ear d

efi n

i on

whi

ch w

ho is

th

e ho

mel

ess p

erso

n ei

ther

unc

lear

pro

cedu

re p

rovi

de a

sh

elte

r (ge

r) to

them

. 4.

Ade

quac

y: D

isabl

e pe

ople

can

not a

cces

s ser

vice

be

caus

e In

adeq

uate

faci

li e

s of p

rost

hese

s and

or

thop

aedi

cs a

nd e

ven

ther

e is

not s

ervi

ce p

rovi

der

espe

cial

ly in

rura

l are

a.

112

Reco

mm

enda

ons

/Key

reco

mm

enda

ons

Cos

ng

scen

ario

s

WA1

: Dev

elop

an

ince

n v

e m

echa

nism

for i

ncre

asin

g SI

cov

erag

e am

ong

herd

ers a

nd se

lf-em

ploy

ed. T

here

fore

, nee

d to

car

ry o

ut a

stud

y to

det

erm

ine

a su

itabl

e co

ntrib

u o

n le

vel

for h

erde

rs a

nd p

oten

al s

hare

of c

ontr

ibu

on

subs

idize

d by

the

Gove

rnm

ent.

WA2

: Ope

n op

on

to p

ay th

e vo

lunt

ary

soci

al in

sura

nce

cont

ribu

on

twic

e a

year

to fo

llow

seas

onal

ity o

f her

ders

’ inc

ome

(or t

o pa

y on

ce a

yea

r); p

rovi

de m

ore fl e

xibi

lity

in p

ayin

g ba

ck u

npai

d co

ntrib

u o

ns (a

pplie

s als

o to

soci

al in

sura

nce

pens

ion

fund

and

SHI

con

trib

u o

ns. L

inke

d to

reco

mm

enda

on

H4).

WA3

: Use

som

e in

form

a o

n te

chno

logy

syst

em c

onne

c n

g ce

ll ph

one

prov

ider

s and

ban

ks sh

ould

be

put i

n pl

ace.

The

reby

, dev

elop

mob

ile b

ased

-con

trib

u o

n ta

king

serv

ice

durin

g th

e po

ten

al i

ncom

e se

ason

s.

WA4

: Mob

ilizin

g so

cial

insu

ranc

e se

rvic

e m

ay g

ive

a br

oade

r and

eff e

c v

e ba

se, a

nd p

erm

its th

em to

exp

and

thei

r out

reac

h. S

ocia

l ins

uran

ce in

s tu

ons

shou

ld h

ave

to d

evel

op n

ew

way

s of w

orki

ng w

ith h

erde

rs, p

ossib

ly in

volv

ing

mob

ile offi

ces i

n so

me

case

s, a

nd in

sura

nce

prod

ucts

link

ed to

her

ders

’ sea

sona

l cas

h fl o

ws.

The

man

agem

ent c

apab

ility

of s

ocia

l in

sura

nce

ins

tu o

ns n

eed

to b

e im

prov

ed.

WA5

: Inc

reas

e re

plac

emen

t rat

e fo

r mat

erni

ty b

enefi

ts u

nder

vol

unta

ry so

cial

insu

ranc

e sc

hem

e to

100

%, a

t the

sam

e le

vel a

s mat

erni

ty b

enefi

ts u

nder

man

dato

ry so

cial

insu

ranc

e sc

hem

e.

WA6

: Inc

reas

e du

ra o

n of

mat

erni

ty b

enefi

ts (s

ix m

onth

s).

WA7

: Est

ablis

h sy

stem

ic li

nkag

es b

etw

een

soci

al in

sura

nce

and

ac v

e la

bour

mar

ket p

rogr

amm

es. N

ew e

mpl

oym

ent i

nsur

ance

sche

me

for i

nfor

mal

sect

or w

orke

rs/h

erde

rs m

ay b

e on

e of

goo

d lin

k be

twee

n em

ploy

men

t ser

vice

and

soci

al se

curit

y w

hich

con

sist o

f com

mon

type

s of i

nsur

ance

pro

duct

s.

WA8

: Inc

reas

e re

sour

ces a

lloca

ted

to p

ublic

aw

aren

ess a

nd c

ampa

igns

on

soci

al in

sura

nce

bene

fi ts a

nd w

orth

ines

s.

WA9

: Im

prov

e co

ordi

na o

n be

twee

n th

e so

cial

insu

ranc

e an

d ta

x au

thor

i es

, inc

ludi

ng in

form

a o

n ex

chan

ge a

bout

pay

men

t dec

lara

ons

to th

e tw

o ag

enci

es.

WA1

0: S

trea

mlin

e th

e pr

oces

s for

regi

stra

on

and

soci

al in

sura

nce

bene

fi ts c

laim

s. In

trod

uce

e-fi l

e an

d in

form

a o

n te

chno

logy

con

nec

vity

bet

wee

n ai

mag

and

soum

cen

tres

. W

A11:

Une

mpl

oym

ent b

enefi

ts fo

r tho

se w

ith le

ss th

an fi

ve y

ears

of c

ontr

ibu

on

shou

ld b

e in

crea

sed

to 5

0% (o

r at l

east

45%

) of p

rior w

ages

and

ben

efi ts

also

shou

ld b

e av

aila

ble

for

up to

six

mon

ths (

126

wor

king

day

or 1

82 c

alen

dar d

ays)

. The

se c

hang

es w

ill b

ring

the

Mon

golia

n pr

ogra

m in

agr

eem

ent w

ith th

e re

leva

nt IL

O c

onve

n o

ns.

WA1

2: U

nem

ploy

men

t ben

efi ts

: Brin

g m

ore fl e

xibi

lity

in q

ualif

ying

con

di o

ns: 9

mon

ths i

n th

e la

st 2

4 m

onth

s, to

impr

ove

prot

ec o

n of

wor

kers

hol

ding

shor

t ter

m c

ontr

acts

; in

crea

se th

e du

ra o

n of

ben

efi ts

up

to 6

mon

ths i

n th

e la

st 1

8 m

onth

s; im

prov

e lin

kage

s with

em

ploy

men

t pro

mo

on

prog

ram

mes

(EPP

).W

A13:

Fin

ance

wor

kpla

ce im

prov

emen

t and

inju

ry p

reve

n o

n ac

vi

es fr

om th

e W

ork

Inju

ry a

nd O

ccup

a o

nal D

iseas

e Fu

nd, e

.g. p

ublic

aw

aren

ess a

imed

at b

oth

wor

kers

and

em

ploy

ers,

arr

angi

ng c

onsu

l ng

serv

ices

and

diss

emin

a o

n of

goo

d ex

perie

nces

.W

A14:

Adj

ust t

he fo

rmul

a us

ed in

the

calc

ula

on

of d

isabi

lity

and

surv

ivor

ben

efi ts

und

er th

e N

DC sc

hem

e. If

the

form

ula

is no

t cha

nged

, disa

bilit

y an

d su

rviv

or b

enefi

ts w

ould

be

out

of li

ne w

ith O

ld a

ge p

ensio

n be

nefi t

s.

WA1

5: In

trod

uce

soci

al in

sura

nce

regi

stra

on

as a

con

di o

n to

ben

efi t

from

the

eigh

t EPP

. W

A16:

Car

ry o

ut a

stud

y fo

r the

pos

sibili

es t

o se

lect

the

type

of s

ocia

l ins

uran

ce b

y m

anda

tory

bas

ed in

sure

d pe

rson

. W

A17:

Gov

ernm

ent (

or e

mpl

oyer

) sho

uld

pay

soci

al in

sura

nce

cont

ribu

ons

(exc

ludi

ng H

I) fo

r mot

hers

thos

e w

ho lo

okin

g a

er h

er b

aby

un l

3 ye

ars o

ld.

WA1

8: T

he c

ompe

nsa

ons

by

empl

oyer

s to

the

empl

oyee

s’ d

amag

e ca

used

by

wor

k in

jury

and

occ

upa

ona

l dise

ases

in a

ccor

danc

e to

the

Labo

ur C

ode

(Art

. 97)

shou

ld b

e al

low

ed

ever

y ye

ar (c

urre

nt la

w sa

ys o

ne o

r mor

e m

es th

at is

not

cle

ar).

WA1

9: M

odify

cur

rent

une

mpl

oym

ent a

pplic

a o

n pr

oced

ure.

Une

mpl

oym

ent b

enefi

t ap

plic

a o

n pe

riod

shou

ld b

e m

axim

um o

ne m

onth

(cur

rent

ly, 1

4 w

orki

ng d

ays)

.W

A20:

If b

usin

ess e

n

es a

nd o

rgan

iza o

ns d

o no

t em

ploy

disa

bled

per

sons

at t

he le

vel s

pecifi e

d in

Lab

our C

ode

(Art

. 111

: disa

bled

per

sons

shal

l be

empl

oyed

not

less

than

3%

of

its to

tal s

taff

by c

ompa

nies

hav

ing

mor

e th

an 5

0 em

ploy

ees)

, the

y sh

ould

pay

a m

onth

ly p

aym

ent n

ot le

ss th

an e

qual

to th

ree

mes

of m

inim

um w

age

stan

dard

for e

ach

vaca

ncy

they

sh

ould

hav

e em

ploy

ed.

WA1

-1: I

ncre

ase

the

repl

acem

ent r

ate

for

mat

erni

ty b

enefi

ts o

f w

omen

regi

ster

ed u

nder

vo

lunt

ary

soci

al in

sura

nce

sche

me

to 1

00%

.

WA1

-2: S

tatu

s quo

WA2

: Inc

reas

e un

empl

oym

ent i

nsur

ance

re

plac

emen

t rat

e to

50%

(in

sure

d le

ss th

an fi

ve

year

s).

WA3

-1: S

ubsid

ize v

olun

tary

co

ntrib

u o

n (in

jury

+

sickn

ess +

mat

erni

ty =

2%

) at 5

0% o

f its

leve

l (c

ontr

ibu

on

paid

by

wor

ker =

1%

or M

NT1

,920

if

at m

inim

um w

age)

. W

A3-2

: Sub

sidize

vol

unta

ry

cont

ribu

on

(inju

ry +

sic

knes

s + m

ater

nity

=

2%) a

t 70%

of i

ts le

vel

(con

trib

u o

n pa

id b

y w

orke

r = 0

.6%

or M

NT1

,152

if

at m

inim

um w

age)

.

1 In

volv

es S

IGO

, MPD

SP.

2 In

volv

es S

ocia

l Wel

fare

Dep

artm

ent,

MPD

SP

113

Soci

al p

rote

c o

n fl o

or a

sses

smen

t mat

rix: G

uara

ntee

3b-

Wor

king

age

(Ac

ve

Labo

ur M

arke

t Pol

icie

s)Sc

hem

e/Pr

ogra

mm

eO

verv

iew

of e

xis

ng

prov

isio

nsAn

cip

ated

pol

icy

chan

ges/

law

refo

rms

Exis

ng

cove

rage

Prog

ram

me

on p

repa

ra o

n of

pro

fess

iona

l w

orke

rsKe

y ac

vity

: Reg

istra

on

of tr

aine

es (a

four

-way

con

trac

t is e

stab

lishe

d be

twee

n th

e un

empl

oyed

per

son,

Gov

ernm

ent,

trai

ning

pro

vide

r and

em

ploy

er);

voca

ona

l tra

inin

g at

voc

a o

nal t

rain

ing

cent

res a

nd p

rodu

c o

n ce

ntre

s, 2

0 pe

r cen

t of t

rain

ing

shal

l cov

er th

e th

eory

and

80

per

cent

shal

l be

the

prac

cal

app

lianc

e of

theo

re c

al k

now

ledg

e; a

nd e

valu

a o

n an

d as

sess

men

t of g

radu

ates

and

job

plac

emen

ts.

Fina

ncin

g: E

mpl

oym

ent P

rom

o o

n Fu

nd (E

PF)

Proc

ess:

Fun

d to

dev

elop

voc

a o

nal t

rain

ing

curr

icul

a on

job-

seek

ers’

dem

and.

A m

inim

um n

umbe

r par

cip

ants

of f

orm

s a g

roup

for t

rain

ing

in e

.g. e

lect

ricity

, kin

derg

arte

n ca

re g

iver

s, b

us

cket

selle

rs. S

ome

40%

of t

rain

ing

is ba

sed

on e

mpl

oyer

s’ re

ques

t, 60

% o

n pe

rson

al in

tere

st.

Cost

: Tra

inee

is p

rovi

ded

with

:•

a m

onth

ly fe

llow

ship

of M

NT1

90,0

00;

• m

onth

ly a

ccom

mod

a o

n co

st o

f MN

T75,

000;

• w

orki

ng c

loth

s of M

NT6

0,00

0.Ad

di o

nal c

ost f

or a

pra

c c

al se

ssio

n M

NT3

12,0

00 p

er a

men

tor (

men

tor a

nd tr

aine

e ra

o 1

:15)

for 3

mon

ths.

Empl

oyer

that

pro

vide

d a

job

plac

e re

ceiv

es M

NT6

5,00

0 pe

r tra

inee

. In

tota

l MN

T7.2

15 b

illio

n sp

ent i

n 20

14.

Fina

ncin

g: E

PF

4,18

2 pe

ople

tr

aine

d; 3

,085

jobs

cr

eate

d, o

f whi

ch

2,69

5 re

gula

r and

39

0 te

mpo

rary

Prog

ram

mes

on

empl

oym

ent p

repa

ra o

n 1

Key

ac v

i es

: Cou

nsel

ling

and

orie

nta

on:

revi

ew o

f car

eer,

prep

ara

on

for i

nter

view

s (Re

imbu

rsem

ent o

f cos

ts fo

r obt

aini

ng n

eces

sary

do

cum

ents

and

med

ical

che

ck-u

p. M

axim

um o

f rei

mbu

rsem

ent c

ost p

er p

erso

n is fi x

ed b

y M

inist

er o

f Lab

our;

MN

T144

.2 m

illio

n in

201

4);

Empl

oym

ent t

rain

ing

(MN

T1.6

182

billi

on sp

ent i

n 20

14);

mea

sure

s to

supp

ort e

mpl

oyer

s; re

imbu

rsem

ent o

f pra

c c

al tr

aini

ng c

ost o

f up

to th

ree

mon

ths p

er fu

ll m

e w

orke

r tra

ined

thro

ugh

on jo

b tr

aini

ng (1

2 m

es th

e m

inim

um w

age

for e

ach

new

ly c

reat

ed jo

b th

at q

ualifi

es

for b

enefi

ts u

nder

the

prog

ram

me.

The

em

ploy

ee m

ust h

ave

wor

ked

for m

ore

than

12

mon

ths;

sala

ry su

ppor

t: 1)

One

yea

r’s sa

lary

to a

n em

ploy

er if

the

empl

oyee

reac

hed

wor

king

age

whi

le in

the

child

ren’

s wel

fare

cam

pus o

r was

rele

ased

from

a p

rison

and

was

pla

ced

in a

fu

ll- m

e jo

b th

roug

h on

-the

-job

trai

ning

. Th

e em

ploy

ee m

ust h

ave

wor

ked

for m

ore

than

one

yea

r; 2)

50

per c

ent o

f one

yea

r’s sa

lary

to a

n em

ploy

er if

the

empl

oyee

reac

hed

wor

king

age

whi

le in

the

child

ren’

s wel

fare

cam

pus o

r was

rele

ased

from

pris

on a

nd p

lace

d; M

NT1

.149

1 bi

llion

in 2

014)

5,69

5 pe

ople

be

nefi

ed

from

co

unse

lling

se

rvic

es; 6

,399

fr

om e

mpl

oym

ent

trai

ning

; and

487

em

ploy

ers f

rom

the

empl

oyer

s’ su

ppor

t.

Empl

oym

ent p

rom

o o

n pr

ogra

mm

e fo

r he

rder

s (EP

P-He

rder

s) 2

Qua

lifyi

ng c

ondi

ons

: her

der f

amily

at l

east

with

2 m

embe

rs a

ged

unde

r 40

year

s old

hav

ing

50-1

50 h

eads

of s

tock

and

faci

li e

s as f

ence

s or

barn

s and

gra

ssla

nd. F

amili

es a

lso sh

ould

hav

e th

eir F

amily

dev

elop

men

t pla

n (F

DP) a

nd A

gree

men

t of p

roba

one

r to

the

qual

ifi ed

her

ders

Ke

y ac

vi

es: r

esto

ckin

g of

ani

mal

s for

you

ng h

erde

rs (M

NT5

mill

ion,

one

m

e pe

r hou

seho

ld; 5

0 pe

r cen

t of t

he lo

an sh

all b

e pa

id b

ack

with

in th

ree

year

s; M

NT2

.906

bill

ion

spen

t in

2014

); fi n

anci

al su

ppor

t to

herd

ers-

empl

oyer

s (He

rder

-em

ploy

er w

ho h

ire p

roba

one

r-her

ders

w

ith fe

w a

nim

als o

r tho

se h

erde

rs w

ho lo

st th

eir a

nim

als b

ecau

se o

f nat

ural

disa

ster

s; e

mpl

oyer

s mus

t pay

at l

east

for 1

2 m

onth

s not

less

th

an th

e na

ona

l min

imum

wag

e an

d m

ust t

each

them

her

ding

tech

niqu

es; e

mpl

oyer

s rec

eive

up

to te

n liv

esto

ck a

nnua

lly, U

p to

MN

T1

mill

ion

gran

t, fo

r one

m

e; M

NT4

0 m

illio

n sp

ent i

n 20

14);

trai

ning

and

stud

y to

urs o

n he

rdin

g, fa

ir ex

hibi

on

(MN

T442

.4 m

illio

n sp

ent i

n 20

14);

, M

anag

emen

t: pr

ogra

mm

e m

anag

ed in

col

labo

ra o

n w

ith th

e Ag

ricul

ture

Ext

ensio

n Ce

ntre

at s

oum

leve

ls an

d so

um h

erde

rs tr

aini

ng c

entr

es

for t

he tr

aini

ng (t

rain

ing

cent

res r

ecei

ve M

NT3

00,0

00 p

er b

enefi

cia

ry tr

aine

d). F

unds

allo

cate

d by

aim

ag g

over

nmen

t to

soum

s. F

und

man

aged

by

the

aim

ag e

mpl

oym

ent d

ivisi

on. S

oum

cen

tres

iden

fi es

goo

d pr

opos

als,

Em

ploy

men

t div

ision

sele

cts b

enefi

cia

ries (

crite

ria: r

easo

n fo

r lo

sing

anim

als)

, the

n bu

ys li

vest

ock

from

a so

um k

now

n fo

r hav

ing

good

ani

mal

s and

gra

nt th

ese

anim

als t

o th

e be

nefi c

iarie

s.

1,49

2 yo

ung

herd

ers;

40

herd

ers-

empl

oyer

s; 1

,101

he

rder

s ben

efi

ed

from

the

trai

ning

s.

Empl

oym

ent p

rom

o o

n pr

ogra

mm

e fo

r w

orke

rs o

ver 4

0 an

d se

nior

s (EP

P-ov

er 4

0) 2

Targ

et g

roup

: per

sons

who

are

hav

ing

diffi

culty

fi nd

ing

a jo

b ag

ed o

ver 4

0 an

d el

derly

per

sons

Sc

ope:

trai

ning

and

retr

aini

ng, c

ouns

ellin

g jo

b m

edia

on

and fi n

anci

al su

ppor

ng

to e

mpl

oyer

s who

recr

uit f

or w

ork

for a

ged

over

40.

Ke

y ac

vi

es: P

roje

ct o

n pl

an n

g po

tato

, veg

etab

les a

nd fr

uits

(MN

T527

.1 m

illio

n sp

ent i

n 20

14);

Proj

ects

on

grou

p w

ork

to p

rote

ct a

nd

reha

bilit

ate

the

envi

ronm

ent a

nd p

reve

nt in

jurie

s and

acc

iden

ts (A

gro

up w

ith 1

–3 p

eopl

e, d

ura

on

4 m

onth

s per

gro

up, i

ncen

ve

is M

NT2

00,0

00 p

er m

onth

per

gro

up; M

NT5

39.6

mill

ion

spen

t in

2014

); an

d Pr

ojec

t on

regu

la n

g tr

affi c

cro

sses

aro

und

prim

ary

and

seco

ndar

y sc

hool

s (M

NT5

mill

ion,

one

m

e pe

r hou

seho

ld; 5

0 pe

r cen

t of t

he lo

an sh

all b

e pa

id b

ack

with

in th

ree

year

s; M

NT2

.906

bill

ion

spen

t in

2014

).

1,28

6 pe

ople

for

the

plan

ta o

n pr

ogra

mm

e; 2

,097

pe

ople

for t

he

wor

king

inju

ry

prev

en o

n pr

ojec

t; 45

8 pe

ople

for

road

safe

ty a

roun

d sc

hool

s.

114

Empl

oym

ent p

rom

o o

n pr

ogra

mm

e fo

r peo

ple

with

disa

bili

es (

PWD)

(EPP

-Disa

bilit

y)2

Targ

et g

roup

: per

sons

with

disa

bilit

y.Ke

y ac

vi

es: 1

) ski

lls tr

aini

ng (M

NT8

3.3

mill

ion

spen

t in

2014

); 2)

Fin

anci

al su

ppor

t to

peop

le w

ith d

isabi

li e

s for

thei

r ent

repr

eneu

r de

velo

pmen

t (O

ne

me

ince

n v

e eq

ual t

o 12

m

es th

e m

inim

um w

age

for e

ach

pers

on w

ith d

isabi

li e

s em

ploy

ed fo

r mor

e th

an 1

2 m

onth

s,

fi nan

cial

supp

ort:

MN

T5 m

illio

n pe

r job

pla

ce (u

p to

MN

T50

mill

ion)

if m

ore

than

eig

ht p

erm

anen

t pos

i on

s are

cre

ated

esp

ecia

lly fo

r the

sk

ills a

nd fe

atur

es o

f PW

Ds, b

ased

on

a co

mpe

ve

bid

for t

he p

roje

ct (M

NT9

7.8

mill

ion

spen

t in

2014

); 3)

Sup

port

to e

mpl

oyer

s tha

t pro

vide

jo

b pl

aces

for P

WD:

(i) O

ne

me fi n

anci

al su

ppor

t for

new

job

plac

emen

t pro

ject

ini

ated

by

PWD,

bas

ed o

n ca

lcul

a o

n as

of o

ne w

orki

ng

plac

e=M

NT1

mill

ion

up to

a m

axim

um o

f MT1

0 m

illio

n fo

r PW

D’s b

usin

ess.

(ii)

Fina

ncia

l sup

port

for n

ew jo

b pl

acem

ent p

roje

ct in

i at

ed b

y en

terp

rises

, bas

ed o

n ca

lcul

a o

n as

of o

ne w

orki

ng p

lace

=MN

T5 m

illio

n up

to a

max

imum

of M

NT5

0 m

illio

n on

e m

e.

1,02

2 pe

ople

be

nefi t

ed fr

om

trai

ning

, 1,4

55

PWD

from

fi na

ncia

l su

ppor

t and

14

5 em

ploy

ers

empl

oyed

PW

D.

“Inh

abite

d M

ongo

lia”

prog

ram

me:

Pub

lic W

ork

(EPP

-PW

P)2

Targ

et g

roup

: une

mpl

oyed

per

son,

per

sons

hav

ing

diffi

culty

fi nd

ing

job,

her

ders

, stu

dent

s, e

lder

ly, a

nd sm

all e

nter

prise

s.Ke

y ac

vi

es: 1

) 10

wor

king

day

s pai

d to

em

ploy

ees o

f loc

al p

ublic

wor

k pr

ogra

mm

es (M

NT1

4,00

0 pe

r per

son

per d

ay a

s sal

ary

and

a lu

mp-

sum

of M

NT1

0,00

0 fo

r wor

king

equ

ipm

ent p

er p

erso

n; M

NT2

.251

6 bi

llion

spen

t in

2014

), 2)

10

wor

king

day

s pai

d to

em

ploy

ees o

f gre

en

wor

k pr

ovid

ed b

y lo

cal g

over

nmen

t (M

NT1

4,00

0 pe

r per

son

per d

ay a

s sal

ary

and

MN

T10,

000

lum

p-su

m p

er p

erso

n fo

r wor

king

equ

ipm

ent;

MN

T2.0

803

billi

on sp

ent i

n 20

14.

17,2

99 p

eopl

e pa

r ci

pate

d in

PW

P,

8,03

0 pe

ople

in

loca

l gov

ernm

ent

proj

ects

. Pr

ogra

mm

e fo

r ent

repr

eneu

r dev

elop

men

t (E

PP-e

ntre

pren

eurs

)Ta

rget

gro

up: b

usin

ess e

nter

prise

s in

all s

izes.

Key

ac v

i es

: 1) P

rovi

ding

fi na

ncia

l sup

port

to e

ntre

pren

eurs

as f

ollo

ws:

i) c

i ze

ns o

ver a

ge 4

0; ii

) cii

zen

s tha

t hav

e diffi

cul

es o

f fi n

ding

a

job;

ii) s

elf-e

mpl

oyer

s and

ci

zens

that

star

t a b

usin

ess o

r mov

e fr

om th

e in

form

al se

ctor

to fo

rmal

(MN

T1 m

illio

n pe

r per

son;

MN

T1.5

649

billi

on sp

ent i

n 20

14);

2) b

usin

ess a

nd in

cuba

on

serv

ices

(MN

T1.0

526

billi

on sp

ent i

n 20

14).

1,41

7 pe

ople

re

ceiv

ed fi

nanc

ial

supp

ort;

8,65

8 be

nefi

ed

from

bu

sines

s ser

vice

sYo

uth

Empl

oym

ent P

rom

o o

n Pr

ogra

mm

e (E

PP-Y

outh

)

(Law

on

Empl

oym

ent P

rom

o o

n (1

7 Ju

ne 2

011)

Ar

t. 6.

3.7)

3

Targ

et g

roup

: uni

vers

ity st

uden

ts, a

nd y

oung

une

mpl

oyed

regi

ster

ed w

ith th

e in

tegr

ated

em

ploy

men

t dat

abas

e;

Key

ac v

i es

: 1)

“So

um y

outh

” pr

ojec

t with

an

obje

c v

e to

pro

vide

pub

lic se

rvic

es to

ci

zens

in re

mot

e so

ums a

nd to

wns

and

to c

ontr

ibut

e in

to a

c v

i es

for l

ocal

dev

elop

men

t (O

ne

me

ince

n v

e of

MN

T200

,000

shal

l be

paid

to e

ach

par

cipa

nt, i

f s/h

e w

orke

d fo

r mor

e th

an

21 w

orki

ng d

ays;

MN

T403

.6 m

illio

n sp

ent i

n 20

14);

2) “

Star

t of w

ork”

pro

ject

supp

or n

g yo

uth

par

cipa

on

in a

c v

i es

such

as w

inte

r pr

epar

a o

n, b

uild

ing

mod

el w

inte

r she

lter,

deliv

erin

g ne

w b

aby

anim

al, m

akin

g ha

y an

d cr

oppi

ng a

c v

i es

by fi n

anci

ng o

f loc

al a

utho

ri e

s an

d ci

zen

s (O

ne

me

ince

n v

e of

MN

T200

,000

shal

l be

paid

to e

ach

par

cipa

nt, i

f s/h

e w

orke

d fo

r mor

e th

an 2

1 w

orki

ng d

ays;

MN

T1.4

857

billi

on sp

ent i

n 20

14),

3) S

uppo

rt to

you

th in

com

e ge

nera

on

thro

ugh

sum

mer

wor

ks in

min

ing,

road

bui

ldin

g, c

onst

ric o

n an

d ot

her s

ecto

rs

durin

g st

uden

ts’ s

umm

er v

aca

on

(One

m

e in

cen

ve

of M

NT2

00,0

00 sh

all b

e pa

id to

eac

h m

embe

r of a

team

with

10–

15 m

embe

rs, i

f s/h

e w

orke

d in

the

abov

emen

one

d ec

onom

ic se

ctor

s for

mor

e th

an 2

1 w

orki

ng d

ays;

MN

T198

.8 m

illio

n sp

ent i

n 20

14).

1,97

8 pe

ople

from

th

e “s

oum

you

th”

proj

ect,

7,31

1 pe

ople

from

the

“sta

rt o

f wor

k”

proj

ect,

914

peop

le

from

the

yout

h in

com

e su

ppor

t.

Seni

or sp

ecia

list’s

con

sulta

on

serv

ice

proj

ect

(EPP

-Sen

ior s

peci

alist

) Ta

rget

gro

up: s

enio

r peo

ple

Key

ac v

i es

: 1) C

onsu

l ng

serv

ices

on

nece

ssar

y fi e

ld o

f wor

k to

aim

ag, s

oum

, dist

rict a

nd su

b-di

stric

t by

elde

r peo

ple’

s tea

m (a

team

at

leas

t of t

hree

mem

bers

, at l

east

thre

e m

onth

s ser

vice

and

56

wor

king

hou

r per

mon

th) (

MN

T1 m

illio

n pe

r per

son;

MN

T984

.7 m

illio

n sp

ent i

n 20

14);

2) C

onsu

l ng

serv

ice,

bas

ed o

n a

cont

ract

, by

elde

r peo

ple

thro

ugh

NGO

(im

plem

ente

d by

Em

ploy

men

t Ser

vice

Cen

ter i

n U

laan

bata

ar

only,

bas

ed o

n pr

ojec

t bid

, 70

per c

ent o

f bud

get s

hall

be p

aid

in a

dvan

ce a

nd 3

0 pe

r cen

t up

on a

ccom

plish

ed a

c v

i es

).

3,03

0 pe

ople

pa

r ci

pate

d in

co

nsul

tanc

ies i

n ai

mag

s and

soum

s,

272

peop

le in

U

laan

baat

ar.

Na

ona

l Qua

lifi e

d W

orke

r Pre

para

on

prog

ram

me

Agre

emen

t bet

wee

n M

ongo

lian

Gove

rnm

ent

(MO

L) a

nd O

yu To

lgoi

LLC

3

Targ

et g

roup

: Ope

n to

all

ac v

e ag

e po

pula

on.

Tw

o st

eps v

oca

ona

l tra

inin

g pr

ogra

mm

e co

nsist

s with

two-

mon

th c

lass

room

trai

ning

and

thre

e-m

onth

pr

ac c

e in

fi el

d an

d M

NT1

90,4

00 m

onth

ly a

llow

ance

incl

uded

soci

al in

sura

nce

(hea

lth in

sura

nce

as w

ell)

pack

age.

Thi

s pro

gram

me

star

ted

Feb.

201

3 an

d fu

ndin

g fr

om O

yu To

lgoi

LLC

(lar

ge m

inin

g pr

ojec

t in

Mon

golia

) ww

w.o

t.mn/

en.

The

Gove

rnm

ent w

ill c

on n

uing

this

prog

ram

me

in 2

014

for a

noth

er 7

,000

trai

nee

and

spen

d M

NT1

3.8

billi

on4,

200

peop

le

trai

ned

and

MN

T7.2

150

billi

on

spen

t in

2014

Scho

lars

hip

Gran

t for

VT

stud

ents

(Law

on

Educ

a o

n (6

June

200

2) A

rt. 4

3.2.

10;

Gove

rnm

ent r

esol

u o

n N

o. 3

0, 2

008)

4

Targ

et g

roup

: Na

ona

l sch

olar

ship

for a

ll st

uden

ts o

f voc

a o

nal t

rain

ing

and

prod

uc o

n ce

ntre

s. M

NT4

5,00

0 fo

r ten

mon

ths.

Q

ualif

ying

con

di o

ns: b

e a

regu

lar c

ours

e st

uden

t

Incr

ease

a le

vel o

f sch

olar

ship

equ

al to

MN

T70,

000

and

MN

T12.

8 bi

llion

alre

ady

appr

oved

in 2

014

budg

et.

39,8

98 st

uden

ts

cove

red,

MN

T28

billi

on sp

ent i

n 20

14

115

Supp

ort f

or S

mal

l and

Med

ium

Ent

erpr

ises

(Pre

fere

n a

l Loa

n Pr

oced

ures

to th

e SM

bu

sines

s)

(Law

on

Gove

rnm

ent S

peci

al F

unds

(29

June

20

09) A

rt. 5

.4.6

and

14;

Lab

our M

inist

eria

l O

rder

No.

A/4

4, 2

013)

5

Loan

s to

supp

ort d

evel

opm

ent a

nd/o

r im

prov

emen

t of S

ME

(pre

fera

bly

impr

ovem

ent)

. Lo

an a

mou

nt a

nd p

erio

d: u

p to

MN

T1.5

bill

ion

(with

na

ona

l com

miss

ion

appr

oval

), up

to M

NT2

00.0

mill

ion

(cap

ital c

ity c

omm

issio

n ap

prov

al) a

nd u

p to

MN

T100

.0 m

illio

n (a

imag

and

dist

rict l

evel

com

miss

ion

appr

oval

) for

up

to fi

ve y

ears

. Q

ualif

ying

con

di o

ns: t

o be

in li

ne w

ith th

e ai

mag

or s

oum

eco

nom

ic a

nd so

cial

dev

elop

men

t str

ateg

y.

Fund

man

aged

by

the

empl

oym

ent d

ivisi

on a

t aim

ag o

r sou

m le

vels,

thro

ugh

bank

for d

eliv

ery

and

reim

burs

emen

t of t

he lo

an. I

nter

est r

ate:

7%

(lea

sing

10.5

%) p

er y

ear.

Agric

ultu

re e

xten

sion

cent

er (s

oum

or d

istric

t) o

r em

ploy

men

t ser

vice

cen

ter (

aim

ag) p

rovi

de fr

ee-o

f-cha

rge

coun

selli

ng se

rvic

es to

dev

elop

the

prop

osal

, but

it d

oes n

ot e

xist

gui

danc

e or

trai

ning

serv

ices

to su

cces

sful

ly im

plem

ent t

he p

roje

ct a

t sou

m

leve

l, (m

arke

ng

stra

tegy

, bus

ines

s pla

n, e

tc.).

Fu

ndin

g: S

ME

fund

(at a

imag

leve

l, bu

t ope

n to

soum

pro

ject

s)

67 S

MEs

ben

efi

ed,

havi

ng M

NT4

6.1

billi

on in

201

3

Supp

ort f

or S

mal

l and

Med

ium

Ent

erpr

ises

(Law

on

Gove

rnm

ent S

peci

al F

unds

(29

June

20

09);

Gove

rnm

ent r

esol

u o

n N

o. 1

34, 2

011,

La

bour

Min

ister

’s or

der N

o. A

/69/

2012

and

A/

38/2

013)

6

Smal

l and

med

ium

ent

erpr

ises l

oans

; Em

ploy

men

t pro

mo

on

loan

s; L

oans

from

So

um d

evel

opm

ent.

Loan

s for

pro

ject

s sub

mi

ed b

y he

rder

s’ a

ssoc

ia o

n, c

oope

ra v

es. I

nter

est r

ate:

3%

. Man

aged

by

soum

gov

erno

r acc

ordi

ng to

bid

regu

la o

ns, n

o in

term

edia

ries

to d

eliv

er a

nd re

cove

r the

loan

. Fu

ndin

g: S

oum

Dev

elop

men

t Fun

d

MO

L pl

anni

ng to

allo

cate

add

i on

al M

NT1

1.0

billi

on

loan

for 1

66 b

enefi

cia

ries e

nd o

f yea

r 201

3, fi

nanc

ed

by re

paym

ent o

f SM

E lo

an a

nd a

ddi

onal

sour

ce o

f the

De

velo

pmen

t ban

k of

Mon

golia

. Law

on

Loan

Gua

rant

ee

Fund

(LGF

) was

ado

pted

by

the

Mon

golia

n Pa

rliam

ent i

n M

arch

, 201

2. T

his f

und

is a

join

t ins

tu o

n be

twee

n th

e pu

blic

and

priv

ate

sect

ors,

and

will

pro

vide

col

late

ral f

or u

p to

60%

on

a lo

an o

f MN

T20

mill

ion

for s

mal

l bus

ines

s.

440

peop

le sm

all

and

med

ium

en

terp

rises

lo

ans;

5,7

29

peop

le re

ceiv

ed

empl

oym

ent

prom

o o

n lo

ans,

M

NT1

7.4

billi

on

spen

t, 12

,915

jobs

cr

eate

d, o

f whi

ch

10,1

93 re

gula

r and

2,

722

tem

pora

ry

jobs

; 3,3

86 p

eopl

e re

ceiv

ed lo

ans f

rom

So

um d

evel

opm

ent,

MN

T5.8

bill

ion

spen

t.Po

licy

gaps

Impl

emen

ta o

n is

sues

1. E

PP-T

rain

ing:

Voc

a o

nal t

rain

ing

is la

ckin

g fo

r th

is pr

ogra

mm

e an

d ca

n re

ason

ably

pro

mot

e it

and

also

, the

crit

eria

of e

nrol

men

t pro

gram

me

that

an

indi

vidu

al w

ho w

as se

ek jo

b ov

er 6

m

onth

s, sh

ould

dec

reas

e to

bet

wee

n 2-

3 m

onth

s”.

2. N

eeds

of t

his E

PP-H

erde

rs w

as h

igh

in

the

rura

l are

a bu

t lim

ited

fund

ing

and

hard

co

nstr

aint

crit

eria

may

slow

dow

n pr

ogra

mm

e im

plem

enta

on.

3.

Lac

k of

info

rma

on

diss

emin

a o

n on

so

cial

insu

ranc

e pr

ogra

mm

e an

d po

or li

nkag

e be

twee

n so

cial

secu

rity

and

empl

oym

ent

prog

ram

mes

. Her

ders

exe

mpt

ed fr

om m

ost

taxa

on

so th

ey m

ay n

ot g

ive

wei

ght t

o so

cial

in

sura

nce.

We

shou

ld ta

ke y

oung

her

ders

into

co

nsid

era

on

thos

e w

ho g

row

ing

up u

nder

this

prog

ram

me.

4. M

OL

shou

ld c

onsid

er h

ow to

impr

ove

the

desig

n of

the

EPP-

Ove

r 40.

Voc

a o

nal t

rain

ing

and

othe

r tra

inin

gs in

tend

ed to

cha

nge

thei

r m

ind

may

be

eff e

c v

e.

1. A

ll th

ese

prog

ram

mes

are

s ll

ver

y ne

w (s

ince

Jan

2013

), so

pop

ula

on

not a

war

e. S

ix o

f the

ALM

Ps h

ave

sa s

fact

ory

impl

emen

ta o

n (6

mon

th re

view

). Ho

wev

er,

ther

e is

a ne

ed to

rein

forc

e ca

paci

ty o

f lab

our o

ffi ce

rs a

t the

loca

l lev

el fo

r the

impl

emen

ta o

n of

thes

e ne

w p

rogr

amm

es.

2. L

ack

of c

oord

ina

on

and

over

lapp

ing,

con

trad

ic o

n. F

unds

and

cap

acity

are

lack

ing

to im

plem

ent e

ff ec

vel

y th

e pr

ogra

mm

es. E

spec

ially

em

ploy

men

t sup

port

and

em

ploy

men

t cre

a o

n in

rura

l are

as, w

here

hig

h le

vel o

f une

mpl

oym

ent a

nd p

over

ty.

3. T

he p

erio

ds o

f voc

a o

nal t

rain

ing

curr

icul

ums i

s too

shor

t, th

e tr

aine

es c

anno

t gai

n pr

ofes

siona

l ski

lls th

at w

ill m

ake

him

or h

er c

ompe

ve

in th

e la

bour

mar

ket.

The

sele

c o

n pr

oces

s to

obta

in a

n au

thor

iza o

n fo

r ope

ning

a tr

aini

ng in

s tu

ons

tend

to fa

vour

Ula

anba

atar

, the

refo

re, l

eavi

ng b

ehin

d vo

ca o

nal t

rain

ing

supp

ly

for s

easo

nal j

ob in

the

rura

l are

a. S

o, th

ere

is a

need

to c

reat

e tr

aini

ng m

echa

nism

/pro

gram

me

that

can

pro

mot

e ru

ral c

oope

ra v

es a

nd se

ason

al jo

b pl

acem

ent.

4. W

eak

impl

emen

ta o

n. T

he m

ain

requ

irem

ents

are

not

real

is c

. For

inst

ance

, act

ually

thos

e po

or p

eopl

e w

ho n

eede

d so

cial

ass

istan

ce a

re n

ot w

ell t

arge

ted

for

this

prog

ram

me

beca

use

they

do

not h

ave

real

asp

ira o

n fo

r em

ploy

men

t and

mos

tly h

ave

relis

h to

dep

end

on so

cial

ass

istan

ce. O

ther

han

d, th

e em

ploy

ers d

o no

t in

tere

st w

orki

ng a

ge p

eopl

e th

ose

who

rele

ased

from

pris

on, i

nval

ids a

nd sc

hool

dro

p-ou

t you

ng p

erso

ns b

ecau

se o

f tho

se jo

b se

eker

s o e

n ge

t out

from

oth

er

empl

oyer

s, a

nd re

cord

ed a

s tru

th le

ss jo

bsee

ker.

5. F

ive

of 2

3 so

ums w

ere

cove

red

unde

r the

EPP

-Her

ders

, for

a to

tal a

mou

nt o

f MN

T110

.5 m

illio

n (7

6% o

f the

targ

eted

spen

ding

) rea

chin

g 25

her

der h

ouse

hold

s.

Pric

e of

ani

mal

stoc

k va

ries a

cros

s reg

ions

and

resu

lted

high

er c

osts

than

es

mat

ed. H

erde

rs w

ere

an in

dole

nt w

here

bus

ines

s inc

uba

on

serv

ice

ongo

ing

unde

r pr

ogra

mm

e. F

inan

cial

gra

nt c

ould

eff e

c v

ely

cont

ribut

e to

mai

ntai

n he

rder

s in

long

term

agr

icul

ture

pro

vidi

ng g

ood

coor

dina

on

and

mon

itorin

g of

the

prog

ram

me.

Th

e ex

pect

a o

ns o

n th

e pr

ogra

mm

e ar

e hi

gh a

mon

g he

rder

s, h

owev

er fu

ndin

g ar

e lim

ited

and

elig

ibili

ty c

riter

ia h

ard

to m

eet w

hich

slow

dow

n th

e pr

ogra

mm

e’s

impl

emen

ta o

n. H

erde

rs a

lread

y be

nefi

ng

from

this

prog

ram

me

wer

e re

luct

ant t

o co

ntrib

ute

to th

e so

cial

insu

ranc

e sy

stem

. Fin

ally,

the

prog

ram

me

shou

ld g

ive

grea

ter a

en

on

to y

oung

her

ders

. 6.

Goo

d pr

ogre

ss u

nder

the

EPP-

Entr

epre

neur

ship

, but

ther

e is

too

smal

l fun

ding

for n

ew w

orkp

lace

(one

wor

kpla

ce-M

NT1

.0 m

illio

n) c

rea

on

rath

er th

an

com

pe

ve c

apac

ity v

alua

on

in a

mar

ket.

It is

risky

that

the

new

job

plac

e m

ay lo

se it

s com

pe

vene

ss a

er a

cer

tain

m

e be

caus

e of

a d

ram

a c

day

-on-

day

incr

ease

in th

e pr

ice

of g

oods

and

serv

ices

.7.

Ver

y w

eak

impl

emen

ta o

n of

the

EPP-

over

40.

Ci

zens

ove

r 40

year

s old

mos

tly lo

st th

eir c

onfi d

ence

due

to lo

ng u

nem

ploy

ed p

erio

d, e

mpl

oyer

’s te

nden

cy o

f age

di

scrim

ina

on

and

obso

lete

d w

orki

ng e

xper

ienc

es. A

lso, m

ost o

f the

m h

avin

g in

tere

st to

do

busin

ess b

y th

emse

lves

, not

to c

oope

rate

to sa

me

othe

rs.

116

5. E

mpl

oyer

s may

be

disc

oura

ged

by th

e diffi

culty

of o

btai

ning

the fi n

anci

al g

rant

from

th

e EP

P-Em

ploy

ers.

Em

ploy

ed in

divi

dual

s mus

t st

ay w

ith th

e sa

me

empl

oyer

for 1

2 m

onth

s; o

r m

ust p

rovi

de n

ew jo

b pl

ace

for j

obse

eker

who

w

as se

ekin

g fo

r ove

r 6 m

onth

s 6.

The

voc

a o

nal t

rain

ing

scho

lars

hip

leve

l is

low

er th

an th

e sc

hola

rshi

p fo

r Uni

vers

ity a

nd

colle

ge st

uden

ts. T

his m

ay n

ega

vel

y infl u

ence

ac

ve

labo

ur m

arke

t pro

gram

mes

.7.

Man

y sm

all a

nd m

ediu

m-s

ize b

usin

ess

hold

ers c

anno

t obt

ain

a lo

an fr

om th

e SM

E Fu

nds d

ue to

lack

of g

uara

ntee

col

late

ral.

8. G

ood

prog

ress

of t

he E

PP-D

isabi

lity.

Fee

dbac

k fr

om p

eopl

e di

sabi

li e

s sho

ws t

hey

pref

er to

star

t the

ir ow

n bu

sines

s rat

her t

han

be e

mpl

oyed

by

othe

r com

pani

es.

Tota

l fun

ds w

ere

inad

equa

te a

nd sh

ould

be

incr

ease

d.

9. G

ood

prog

ress

of t

he E

PP-P

WP.

Mos

t peo

ple

invo

lved

with

pub

lic w

orks

com

plai

n ab

out d

educ

on

for s

ocia

l ins

uran

ce c

ontr

ibu

on

from

thei

r Pub

lic W

ork

sala

ry.

If La

bour

div

ision

did

not

take

ded

uc o

n fr

om th

eir s

alar

ies t

hen

aim

ag so

cial

insu

ranc

e di

visio

n w

ould

impo

se a

pen

alty

. Lac

k of

info

rma

on

diss

emin

a o

n on

soci

al

insu

ranc

e pr

ogra

mm

e an

d po

or li

nkag

e be

twee

n so

cial

secu

rity

and

empl

oym

ent p

rogr

amm

es.

10. C

urre

ntly,

poo

r im

plem

enta

on

of th

e EP

P-Em

ploy

ers a

s of 2

3% c

ompa

red

with

pla

nned

in a

imag

leve

l due

to la

ck o

f inf

orm

a o

n on

this

prog

ram

me

amon

g th

e em

ploy

ers.

Som

e vo

ca o

nal t

rain

ing

cent

res f

alsif

y re

cord

s or d

uplic

ate

thei

r stu

dent

num

bers

to g

ain

extr

a fu

ndin

g fr

om th

e Sc

hola

rshi

p gr

ant f

or V

T.11

. Iss

ues o

f the

SM

E Fu

nds:

1) T

rans

pare

ncy.

Man

y pe

ople

say

they

can

not a

cces

s SM

E lo

ans b

ecau

se o

f unc

lear

pro

cedu

res a

nd g

over

nmen

t bur

eauc

racy

; 2)

Desp

ite LG

F’s l

egal

stat

us a

s a n

on-p

rofi t

lega

l en

ty, i

ts o

pera

ons

star

ted

only

rece

ntly

; 3) H

erde

rs in

the

rura

l are

a ev

en a

imag

ent

repr

eneu

rs s

ll h

ave

limite

d op

port

unity

to ta

ke o

ut a

loan

on

easy

term

s bec

ause

of t

he la

ck o

f inf

orm

a o

n.

Reco

mm

enda

ons

/ Ke

y re

com

men

da o

nsCo

s n

g sc

enar

ios

W21

. Int

rodu

ce S

I reg

istra

on

as a

con

di o

n to

ben

efi t

from

em

ploy

men

t pro

mo

on

prog

ram

mes

.W

A22:

Foc

us sh

ould

be

give

n on

enh

anci

ng c

ouns

ellin

g an

d tr

aini

ng se

rvic

es ra

ther

than

off e

ring

mor

e fi n

anci

al

gran

ts a

nd lo

ans.

Car

eful

ass

essm

ent o

f the

loan

and

fi na

ncia

l gra

nt p

rogr

amm

es im

pact

is n

eede

d, to

ens

ure

that

it d

oes n

ot p

ut a

ddi

onal

bur

den

on h

erde

rs’ h

ouse

hold

s.W

A23:

Aw

aren

ess a

nd in

form

a o

n ca

mpa

ign

abou

t the

new

EPP

s W

A24:

Dev

elop

you

ng h

erde

rs-t

arge

ted

EPP,

link

ing

be e

r with

voc

a o

nal t

rain

ing

and

soci

al in

sura

nce

regi

stra

on

(mos

t of b

enefi

cia

ries o

f the

eig

ht E

EPs a

re li

ving

in u

rban

are

as).

WA2

5: R

einf

orce

em

ploy

men

t pro

mo

on

serv

ices

, in

par

cul

ar ca

reer

(em

ploy

men

t) tr

aini

ng c

ouns

ellin

g,

voca

ona

l tra

inin

g an

d en

trep

rene

ursh

ip c

ouns

ellin

g, n

otab

ly fo

r you

th (t

oo m

uch

focu

s on

deliv

erin

g lo

ans

and fi n

anci

al g

rant

s).

WA2

6: D

evel

op E

PPs f

ocus

ed o

n m

ore

loca

l gov

ernm

ents

’ ini

a v

es o

r fi

ng

thei

r spe

cifi c

nee

ds.

WA2

7: C

reat

e ne

w sc

hem

e w

hich

cou

ld p

rom

ote

grow

th o

f the

targ

eted

gro

ups (

incu

ba o

n) in

via

thos

e EE

Ps

civi

l soc

iety

org

aniza

ons

can

car

ry o

ut (s

uch

as p

sych

olog

ical

cou

nsel

ling

serv

ice

for d

isabl

ed p

erso

ns).

WA2

8. S

uppo

rt a

nd e

ncou

rage

self-

empl

oym

ent a

nd e

ntre

pren

eurs

hips

for p

erso

ns w

ith d

isabl

ed.

WA2

9: D

evel

op a

com

preh

ensi

ve p

rogr

amm

e (v

oca

ona

l tra

inin

g, su

ppor

t to

entr

epre

neur

ship

, am

ong

othe

rs)

for r

eins

er o

n of

peo

ple

with

dis

abili

es d

ue to

wor

king

inju

ry a

nd o

ccup

a o

nal d

isea

sed,

thos

e re

ceiv

ing

the

disa

bilit

y pe

nsio

n fr

om so

cial

insu

ranc

e w

orki

ng in

jury

fund

WA3

0: In

crea

se c

urre

nt le

vel o

f VT

s p

end

to m

inim

um w

age

stan

dard

WA3

1: Im

prov

e cu

rren

t inf

orm

a o

n an

d m

onito

ring

syst

em o

f the

SM

E Fu

nd o

pera

on

WA3

2: P

rovi

de E

PPs a

nd su

ppor

t ser

vice

s at t

he S

oum

leve

lW

A33:

Loa

ns sh

ould

be

incl

uded

in in

tegr

ated

pac

kage

with

cou

nsel

ling

(to ru

n bu

sines

s but

also

alte

rna

ve

empl

oym

ent o

ppor

tuni

es)

, tra

inin

g an

d re

gist

ra o

n to

soci

al in

sura

nce

WA3

4: In

trod

uce

grea

ter fl

exi

bilit

y in

gua

rant

ees r

ules

so lo

an c

an b

e ac

cess

ed b

y m

ore

appl

ican

ts, e

spec

ially

am

ong

youn

g he

rder

s.

WA5

_1: S

ubsid

ize fu

lly so

cial

insu

ranc

e co

ntrib

u o

n fo

r ben

efi c

iarie

s of E

PP-P

repa

ring,

EPP

-ov

er 4

0, E

PP-D

isabi

lity,

EPP-

PWP,

EPP

-Her

ders

, EPP

-Ent

repr

eneu

rshi

p (s

ubsid

y co

vere

d by

Soc

ial

Insu

ranc

e Fu

nd, d

urin

g th

e pe

riod

of th

e EP

P) (s

ubsid

ies c

over

ed b

y HD

F).

WA5

_2: S

ubsid

ize fu

lly S

I con

trib

u o

n fo

r ben

efi c

iarie

s of E

PP-P

repa

ring,

EPP

-ove

r 40,

EPP

-di

sabi

lity,

EPP-

PWP;

subs

idize

d at

70%

vol

unta

ry so

cial

insu

ranc

e co

ntrib

u o

n (p

ensio

n an

d sh

ort-

term

ben

efi ts

) for

ben

efi c

iarie

s of E

PP-H

erde

rs, E

PP-E

ntre

pren

eurs

hip

(sub

sidy

cove

red

by S

ocia

l In

sura

nce

Fund

, dur

ing

the

perio

d of

the

EPP)

(sub

sidie

s cov

ered

by

HDF)

.W

A5_3

: Sub

sidize

fully

SI c

ontr

ibu

on

for b

enefi

cia

ries o

f EPP

-Pre

parin

g, E

PP-o

ver 4

0, E

PP-

disa

bilit

y, EP

P-PW

P; su

bsid

ized

at 5

0% v

olun

tary

soci

al in

sura

nce

cont

ribu

on

(pen

sion

and

shor

t-te

rm b

enefi

ts) f

or b

enefi

cia

ries o

f EPP

-Her

ders

, EPP

-Ent

repr

eneu

rshi

p (s

ubsid

y co

vere

d by

Soc

ial

Insu

ranc

e Fu

nd, d

urin

g th

e pe

riod

of th

e EP

P) (s

ubsid

ies c

over

ed b

y HD

F)W

A6-1

: Ent

repr

eneu

rshi

p su

ppor

t pro

gram

me

(ave

rage

loan

: MN

T5 m

illio

n, re

-pai

d ov

er te

n ye

ars)

, CB

ED tr

aini

ng p

rogr

amm

e (M

NT1

00,0

00 p

er h

ead

per s

essio

n), a

nd su

bsid

ized

SI c

ontr

ibu

on

(12%

) at 1

00%

dur

ing

thre

e ye

ars;

targ

et p

opul

a o

n: a

ge 1

5-24

, rur

al a

reas

.W

A6-2

: Voc

a o

nal t

rain

ing

prog

ram

me

(MN

T200

,000

per

wee

k; 1

2 w

eeks

of t

rain

ing)

, cos

t liv

ing

allo

wan

ce (M

NT4

,000

per

day

; 12

wee

ks) a

nd su

bsid

ized

soci

al in

sura

nce

cont

ribu

on

(12%

, 12

wee

ks);

targ

et p

opul

a o

n: a

ge 1

5-24

, rur

al a

reas

.W

A7: I

ntro

duce

a 2

mon

th u

p-sk

illin

g tr

aini

ng p

rogr

amm

e fo

r une

mpl

oyed

skill

ed w

orke

rs o

f for

mal

ec

onom

y (b

enefi

cia

ries o

f uni

vers

al in

sura

nce,

pro

gram

me fi n

ance

d by

soci

al in

sura

nce

fund

).Sc

. WA9

: Re-

skill

ing

trai

ning

for p

erso

ns o

f disa

bilit

y du

e to

wor

king

inju

ry a

nd o

ccup

a o

nal

dise

ases

(ben

efi c

iarie

s of d

isabi

lity

pens

ion

from

soci

al in

sura

nce

wor

king

inju

ry fu

nd)

117

1. In

volv

es th

e M

inist

ry o

f Lab

our,

empl

oym

ent s

ervi

ce ce

ntre

and

aim

ag, d

istric

t em

ploy

men

t div

ision

s. Le

gal f

ram

ewor

k: La

w o

n Em

ploy

men

t Pro

mo

on

(17

June

201

1) A

rt. 5

.2 (i

) occ

upa

ona

l an

d vo

ca o

nal o

rient

a o

n, c

ouns

ellin

g an

d in

form

a o

n; (i

i) jo

b m

edia

on;

(iii)

voc

a o

nal t

rain

ing

and

retr

aini

ng.

2. In

volv

es th

e M

inist

ry o

f Lab

our,

empl

oym

ent s

ervi

ce ce

ntre

and

aim

ag, d

istric

t em

ploy

men

t div

ision

s. Le

gal f

ram

ewor

k: La

w o

n Em

ploy

men

t Pro

mo

on

(17

June

201

1) A

rt. 5

.3 (i

) pro

mo

on

of

self-

empl

oyed

as w

ell a

s ci

zens

will

ing

to ru

n bu

sines

ses i

n fo

rms o

f par

tner

ship

or c

oope

ra v

es; (

ii) su

ppor

t to

empl

oyer

s; (i

ii) o

rgan

ize p

ublic

wor

ks; D

ecre

e N

o. 0

1, 2

012

of th

e N

a o

nal B

oard

of

Em

ploy

men

t pro

mo

on

3. In

volv

es th

e M

inist

ry o

f Lab

our,

empl

oym

ent s

ervi

ce c

entr

e an

d ai

mag

, dist

rict e

mpl

oym

ent d

ivisi

ons

3. In

volv

es M

OL,

MO

F 5.

Invo

lves

MSE

Dev

elop

men

t Fun

d, L

ocal

Em

ploy

men

t Div

ision

und

er th

e M

OL,

all

leve

ls of

Loa

n co

mm

issio

ns c

ompr

ised

by m

ul p

arts

; 6. I

nvol

ves

the

Empl

oym

ent

Divi

sion.

4. In

volv

es th

e M

inist

ry o

f Lab

our,

empl

oym

ent s

ervi

ce c

entr

e an

d ai

mag

, dist

rict e

mpl

oym

ent d

ivisi

ons.

Leg

al fr

amew

ork:

Law

on

Empl

oym

ent P

rom

o o

n (1

7 Ju

ne 2

011)

Art

. 5.3

(i) p

rom

o o

n of

sel

f-em

ploy

ed a

s w

ell a

s ci

zen

s w

illin

g to

run

busin

esse

s in

form

s of

par

tner

ship

or c

oope

ra v

es; (

ii) s

uppo

rt to

em

ploy

ers;

(iii)

org

anize

pub

lic w

orks

; Dec

ree

No.

01,

201

2 of

the

Na

ona

l Bo

ard

of E

mpl

oym

ent p

rom

o o

n5.

Invo

lves

the

Min

istry

of L

abou

r, em

ploy

men

t ser

vice

cen

tre

and

aim

ag, d

istric

t em

ploy

men

t div

ision

s. L

egal

fram

ewor

k: L

aw o

n Em

ploy

men

t Pro

mo

on

(17

June

201

1) A

rt. 5

.3 (i

) pro

mo

on

of s

elf-e

mpl

oyed

as

wel

l as

ci z

ens

will

ing

to ru

n bu

sines

ses

in fo

rms

of p

artn

ersh

ip o

r coo

pera

ves

; (ii)

sup

port

to e

mpl

oyer

s; (i

ii) p

ublic

wor

ks; D

ecre

e N

o. 0

1, 2

012

of th

e N

a o

nal B

oard

of

Empl

oym

ent p

rom

o o

n. 3

. MO

L, M

OF

4. M

SE D

evel

opm

ent F

und,

Loc

al E

mpl

oym

ent D

ivisi

on u

nder

the

MO

L, a

ll le

vels

of L

oan

com

miss

ions

com

prise

d by

mul

par

ts;

6. M

SE D

evel

opm

ent F

und,

Loc

al E

mpl

oym

ent D

ivisi

on u

nder

the

MO

L, a

ll le

vels

of L

oan

com

miss

ions

com

prise

d by

mul

par

ts.7

. Inv

olve

s th

e M

inist

ry o

f Lab

our,

empl

oym

ent s

ervi

ce c

entr

e an

d ai

mag

, dist

rict e

mpl

oym

ent d

ivisi

ons.

7.

MO

L, M

OF.

118

Sche

me

Ove

rvie

w o

f exi

s n

g pr

ovis

ions

An c

ipat

ed p

olic

y ch

ange

s/la

w re

form

sEx

is n

g co

vera

ge

Rede

mp

on

Pens

ion

Insu

ranc

e Co

ntrib

u o

n

(Law

on

Rede

mp

on

of S

ervi

ce y

ears

and

Pen

sion

Insu

ranc

e co

ntrib

u o

n (3

0 Se

ptem

ber 2

012)

; MPD

SP

Min

ister

ial O

rder

No.

A57

, 201

2)

Targ

et g

roup

: Ind

ivid

uals

unab

le to

wor

k du

e to

reas

ons b

eyon

d th

eir c

ontr

ol o

r who

wer

e un

able

to fi

nd a

job

betw

een

1990

an

d 19

95 (b

efor

e DB

sche

me)

; and

, ind

ivid

uals

who

hav

e m

issed

soci

al in

sura

nce

cont

ribu

on

paym

ent b

etw

een

1995

and

20

00 fo

r the

sam

e re

ason

s.

Ac v

ity: R

edee

m fo

r ser

vice

yea

rs b

etw

een

1990

and

199

5 an

d co

ntrib

u o

n pa

ymen

t bet

wee

n 19

95 a

nd 2

000.

Reg

istra

on

dead

line:

1 O

ct. 2

013

It w

as o

ne

me

mea

sure

whi

ch a

imed

to p

reve

n n

g fu

ture

inco

me

risks

of w

orki

ng a

ge p

opul

a o

n

496,

500

peop

le w

ere

regi

ster

ed, 6

0% o

r 296

,400

bo

ught

bac

k or

rede

emed

5–

11 y

ears

’ ser

vice

Man

dato

ry c

ontr

ibut

ory

old

age

pens

ion

(DB)

1

Law

on

Soci

al In

sura

nce

(31

May

199

4) A

r cl

es 4

.2,

4.3

and

4.7;

Law

on

Pens

ion

and

Bene

fi ts p

rovi

ded

by

the

Soci

al In

sura

nce

Fund

(7 Ju

ne 1

994)

Ar

cle

4

Scop

e: A

r cl

e 4.

2 (C

ontr

acte

d em

ploy

men

t and

pub

lic offi

cial

s), A

r cl

e 4.

3 (in

form

al se

ctor

and

une

mpl

oyed

wor

kers

, and

he

rder

s) b

orn

befo

re 1

Janu

ary

1960

; and

Ar

cle

4.7:

All

rein

deer

her

ders

livi

ng in

taig

a sh

all b

e in

sure

d by

the

Stat

e un

der t

he

pens

ion

and

bene

fi t (s

ome

say

allo

wan

ce) i

nsur

ance

sche

mes

. For

this

grou

p th

e co

ntrib

u o

n w

ill b

e fu

lly su

bsid

ized

and

they

w

ill c

over

ed u

nder

the

volu

ntar

y sc

hem

e (a

men

ded

on 3

0 Ja

nuar

y 20

15).

Cont

ribu

on:

Em

ploy

er 7

% a

nd E

mpl

oyee

7%

of p

ay-r

oll s

alar

y (b

etw

een

min

imum

wag

e an

d te

n m

es th

e m

inim

um w

age)

for

the

Pens

ion

fund

, pai

d to

the

Soci

al In

sura

nce

Fund

. Re

plac

emen

t rat

e: 4

5% o

f the

mon

thly

ave

rage

wag

e of

the

best

con

nui

ng fi

ve y

ears

’ sal

ary

and

incr

ease

d by

1.5

% o

f wag

es

for e

ach

year

add

i on

al to

20

year

s. F

or e

xam

ple,

60%

repl

acem

ent r

ate

a e

r 30

year

s. T

he m

inim

um g

uara

ntee

, if a

t lea

st 2

0 ye

ars o

f con

trib

u o

n is

75%

of m

inim

um w

age.

Q

ualif

ying

con

di o

ns: n

ot le

ss th

an 2

0 ye

ars o

f con

trib

u o

n fo

r ful

ly o

ld-a

ge p

ensio

n; m

inim

um: a

t lea

st fr

om 1

0 ye

ars t

o 19

ye

ars o

f con

trib

u o

n fo

r par

ally

OA

pens

ion.

Re

rem

ent a

ge: 5

5 fo

r wom

en (i

f the

y w

ish so

) and

50

for w

omen

raise

d 4

and

mor

e bo

rn o

r ado

pted

chi

ldre

n un

der 3

yea

rs

old

un l

the

age

of 6

; and

60

for m

en (r

egul

ar la

bour

con

di o

n). B

oth

men

and

wom

en a

lso a

pplic

able

to e

arly

re re

men

t (fr

om

45 to

55

year

s old

dep

endi

ng o

n th

eir l

abou

r con

di o

ns).

Fina

ncin

g: S

ocia

l Ins

uran

ce P

ensio

n Fu

nd;

Bene

fi ts:

Mon

thly

Ave

rage

pen

sion

bene

fi t w

as M

NT2

25,6

00 a

t the

end

of 2

013.

The

min

imum

soci

al in

sura

nce

old-

age

pens

ion

varie

d fr

om M

NT1

95,0

00 fo

r a p

ar a

l pen

sion

to M

NT2

30,0

00 fo

r a fu

ll pe

nsio

n fr

om 1

Feb

ruar

y 20

15.

Ac v

e co

ntrib

utor

s (Pr

e-19

60

coho

rts)

: 52,

100

or 5

.5%

of

tota

l ins

ured

Num

ber o

f Pe

nsio

ners

: 232

,100

in 2

013

Volu

ntar

y co

ntrib

utor

y ol

d ag

e pe

nsio

n (D

B)1

(Law

on

Pens

ion

and

Bene

fi ts p

rovi

ded

by th

e So

cial

in

sura

nce

(7 Ju

ne 1

994)

Art

. 4)

Scop

e: A

rt. 4

(3).

Cont

ribu

on:

10%

of r

efer

ence

sala

ry (b

etw

een

min

imum

wag

e an

d te

n m

es th

e m

inim

um w

age)

for P

ensio

n fu

nd, p

aid

to th

e So

cial

Insu

ranc

e Fu

nd.

Bene

fi ts,

Rep

lace

men

t rat

e, Q

ualif

ying

con

di o

ns a

nd R

e re

men

t age

: Sam

e as

abo

ve

Ac v

e co

ntrib

utor

s (Pr

e-19

60

coho

rt):

6,40

0 in

201

3

Man

dato

ry o

ld a

ge p

ensio

n (N

DC)1

(Law

on

Soci

al In

sura

nce

(31

May

199

4) A

r cl

es

4.2

and

4.3;

Law

on

Indi

vidu

al P

ensio

n In

sura

nce

Cont

ribu

on

Acco

unt (

1 Ju

ly 1

999)

)

Scop

e: A

r cl

e 4.

2 (C

ontr

acte

d em

ploy

men

t and

pub

lic offi

cial

s),

Ar c

le

4.3

(info

rmal

sect

or a

nd u

nem

ploy

ed w

orke

rs, a

nd h

erde

rs) b

orn

a e

r 1

Janu

ary

1960

.Co

ntrib

u o

n ra

te: S

ame

as D

B ol

d-ag

e pe

nsio

n sc

hem

e.

Re re

men

t age

: Sam

e as

DB

old

age

sche

me.

Year

s of s

ervi

ce: 1

5 ye

ars o

f ser

vice

and

con

trib

u o

nsRe

plac

emen

t rat

e: O

ld a

ge p

ensio

n is

calc

ulat

ed b

ased

on

year

s of

cont

ribu

ons

to th

e no

ona

l acc

ount

bal

ance

, acc

rued

no

ona

l ret

urns

fo

r eac

h ye

ar (a

vera

ge g

row

th in

the

last

thre

e ye

ars’

ave

rage

wag

es),

and

the

aver

age

life

expe

ctan

cy a

er r

e re

men

t.M

inim

um st

anda

rd: 2

0% o

f the

na

ona

l ave

rage

wag

e, p

lus a

n ad

di o

nal 0

.5%

of t

he a

vera

ge w

age

for e

ach

addi

ona

l ser

vice

yea

r be

yond

the

min

imum

of 1

5 ye

ars.

Mul

- e

r old

-age

inco

me

prot

ec o

n w

ill b

e in

trod

uced

by

Gove

rnm

ent b

y 20

16:

Pilla

r 0: U

nive

rsal

Old

age

pen

sion

(non

-con

trib

utor

y)

in p

lace

for c

urre

nt S

ocia

l wel

fare

Old

Age

and

Di

sabi

lity

Pens

ion

Pilla

r 1: M

anda

tory

Pen

sion

Insu

ranc

e Sc

hem

e (m

ajor

N

DC S

chem

e pl

us D

B sc

hem

e); a

nd

Pilla

r 2: V

olun

tary

Priv

ate

Pens

ion

Insu

ranc

e (A

ddi

onal

) Sch

eme

- Na

ona

l Age

ing

Stra

tegy

not

yet

ado

pted

(u

pgra

ded)

by

the

Gove

rnm

ent w

ill g

uara

ntee

: (i)

heal

th; (

ii) so

cial

secu

rity

(inco

me)

; (iii

) hou

sing;

(iv)

co

mm

unity

and

soci

al w

ork

for o

lder

per

sons

who

w

ish to

con

nue

wor

king

a e

r re

rem

ent

Ac v

e co

ntrib

utor

s (Po

st-

1960

coh

ort)

: 766

,815

in

2013

Firs

t pen

sione

r will

be

elig

ible

in 2

015

Volu

ntar

y ol

d ag

e pe

nsio

n (N

DC)1

Law

on

Soci

al In

sura

nce

(31

May

199

4) A

r cl

es

4.2

and

4.3;

Law

on

Indi

vidu

al P

ensio

n In

sura

nce

Cont

ribu

on

Acco

unt (

1 Ju

ly 1

999)

)

Ac v

e co

ntrib

utor

s (Po

st-

1960

coh

orts

): 14

7,10

0 in

20

13

Soci

al P

rote

c o

n Fl

oor A

sses

smen

t Mat

rix: G

uara

ntee

4- O

ld a

ge

119

Stat

e Pe

nsio

n Sc

hem

e: M

ilita

ry P

ensio

n2

(Law

on

Pens

ion

and

Bene

fi ts o

f Mili

tary

Ser

vice

Pe

rson

nel (

13 Ju

ne 1

994)

, Ar

cle

4.1)

Scop

e: A

rt. 4

.1: M

embe

rs o

f the

Def

ence

For

ces,

Pol

ice,

Bor

der S

ecur

ity, C

orre

c o

nal s

ervi

ce, I

ntel

ligen

ce, a

nd E

mer

genc

y Se

rvic

es a

re e

ligib

le fo

r mili

tary

old

age

pen

sion.

El

igib

ility

: The

syst

em re

quire

s 25

year

s of s

ervi

ce fo

r men

and

20

year

s of s

ervi

ce fo

r wom

en. T

here

is n

o le

gal r

e re

men

t age

. Re

plac

emen

t rat

e: T

he le

vel o

f ben

efi t

corr

espo

nd to

80%

of t

he m

onth

ly a

vera

ge w

age

incr

ease

d by

1.5

% o

f wag

es fo

r eac

h ye

ar a

ddi

onal

up

to 2

0–25

yea

rs.

Bene

fi ts:

The

min

imum

pen

sion

is al

igne

d w

ith th

e m

inim

um so

cial

insu

ranc

e ol

d ag

e pe

nsio

n th

at v

arie

d fr

om M

NT1

95,0

00 fo

r a

par

al p

ensio

n to

MN

T230

,000

for a

full

pens

ion

from

1 F

ebru

ary

2015

.. Fi

nanc

ing:

The

mili

tary

pen

sion

fund

is fi

nanc

ed b

y th

e go

vern

men

t bud

get.

Num

ber o

f Pen

sione

rs:

15,6

00 a

nd M

NT7

2.6

billi

on

spen

t in

2013

Soci

al w

elfa

re p

ensio

n (o

ld-a

ge a

nd d

isabi

lity)

3

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12),

Art.

12.1

.1)

Targ

et: A

ll m

en o

f age

60

and

abov

e, a

ll w

omen

of a

ge 5

5 an

d ab

ove;

sin

gle

mot

hers

age

45

or fa

ther

s age

50

head

ing

a fa

mily

of a

t lea

st fo

ur

child

ren

unde

r age

18.

.El

igib

ility

: The

per

son

mus

t hav

e ne

ver w

orke

d or

hav

e le

ss th

an 1

0 ye

ars o

f con

trib

u o

n to

the

man

dato

ry a

nd v

olun

tary

soci

al in

sura

nce

sche

mes

, and

ther

efor

e be

inel

igib

le fo

r a p

ensio

n un

der t

he S

ocia

l In

sura

nce

Pens

ion

Fund

. Be

nefi t

s: P

ensio

n in

crea

sed

from

MN

T115

,000

to M

NT1

26,5

00 o

n 1

Febr

uary

201

5.Fi

nanc

ing:

Soc

ial W

elfa

re F

und fi n

ance

d by

the

gove

rnm

ent b

udge

t

Acco

rdin

g to

MPD

SP’s

plan

the,

soci

al w

elfa

re

pens

ion

will

repl

aced

with

the

Pilla

r 0 u

nive

rsal

pe

nsio

n sy

stem

1,69

3 pe

ople

in 2

013

Reim

burs

emen

ts a

nd a

ssist

ance

serv

ices

for o

lder

pe

rson

s

(Law

on

Soci

al S

ecur

ity o

f Sen

ior C

i ze

ns (2

005)

; Art

. 5.

1.1–

5.1.

11)

Targ

et: S

enio

r ci

zens

ove

r 55–

60 y

ears

old

. Be

nefi t

: 11

type

s of r

eim

burs

emen

ts a

nd a

ssist

ance

serv

ices

.Bu

dget

: MN

T14.

3 bi

llion

spen

t in

2013

.

126,

000

peop

le in

201

3

Allo

wan

ce fo

r Mot

hers

with

man

y ch

ildre

n

Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12);

Art.

13.5

.9

Targ

et: M

othe

rs, w

ho w

as h

onou

red fi r

st a

nd se

cont

rank

Sta

te m

edal

of “

Mot

her’s

Glo

ry”.

Bene

fi ts:

1st

rank

MN

T200

,000

and

2nd

rank

MN

T100

,000

onc

e in

a y

ear.

Budg

et: M

NT2

9 bi

llion

spen

t in

2013

202,

500

peop

le in

201

3

Addi

ona

l allo

wan

ce fo

r sen

ior c

i ze

ns

(Law

on

Sup

plem

enta

ry A

llow

ance

for H

onou

red

Seni

or C

i ze

ns /H

SC/ (

2008

); Go

vern

men

t res

olu

on

No.

70,

201

2)

Targ

et: S

enio

r ci

zens

who

rew

arde

d w

ith a

med

al o

f Her

o of

Mon

golia

, Her

o of

Lab

our,

hold

er o

f Peo

ple’

s and

Hon

oure

d tl

es.

Bene

fi ts:

MN

T150

,000

–MN

T200

,000

per

mon

th.

Budg

et: M

NT4

.9 b

illio

n sp

ent i

n 20

13

4,80

0 pe

ople

in 2

013

Soci

al W

elfa

re S

ervi

ce: C

omm

unity

Bas

ed S

ervi

ce fo

r O

lder

per

sons

3

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12),

Ar c

les

17.1

.1, 1

8.1

and

18.2

.1)

Targ

et g

roup

: Old

er p

erso

ns

Serv

ices

: Cou

nsel

ling;

reha

bilit

a o

n; te

mpo

rary

acc

omm

oda

on

and

care

; day

car

e se

rvic

e; h

ome

base

d ca

re a

nd se

rvic

e;

Fina

ncin

g: L

ocal

gov

ernm

ent b

udge

t sin

ce 2

013.

Fund

ing

proc

ess:

Ser

vice

cos

ts a

re e

s m

ated

by

Soci

al w

elfa

re u

nit o

f aim

ag, d

istric

t and

cap

ital c

ity o

n th

e ba

sis o

f pro

posa

l iss

ued

by L

ivel

ihoo

d Su

ppor

t Cou

ncil

of re

spec

ve

soum

and

kho

roo

and

be su

bmi

ed to

the

Loca

l Gov

erno

r Offi

ce.

28,3

00 p

eopl

e in

201

4*

Soci

al W

elfa

re S

ervi

ce: I

ns tu

ona

l Car

e Se

rvic

e fo

r O

lder

per

sons

3

(Law

on

Soci

al W

elfa

re (1

9 Ja

nuar

y 20

12),

Art.

17.1

.2)

Targ

et: S

ingl

e ol

der p

erso

ns, i

den

fi ed

as u

nabl

e to

live

inde

pend

ently

, with

no

child

to su

ppor

t him

or h

er, o

r with

a c

hild

who

be

cam

e in

capa

ble

of c

are

taki

ng d

ue to

disa

bilit

y or

old

age

, and

are

una

ble

to b

enefi

t fr

om C

omm

unity

bas

ed w

elfa

re se

rvic

esFi

nanc

ing:

Loc

al g

over

nmen

t bud

get s

ince

201

3.

The

Gove

rnor

of t

he a

imag

, dist

rict a

nd c

apita

l city

mak

e a

deci

sion

to e

nrol

an

elde

r to

the

care

serv

ice.

120

Polic

y ga

psIm

plem

enta

on

Issu

es

1. C

over

age

unde

r the

vol

unta

ry sc

hem

e: V

ery

low

cov

erag

e, m

ostly

you

ng

peop

le, h

erde

rs a

nd se

lf-em

ploy

ed n

ot in

tere

sted

2.

Fun

ding

: The

DB

pens

ion

syst

em c

urre

ntly

ope

rate

s on

a PA

YG b

asis,

ho

wev

er th

e fu

nd is

cur

rent

ly in

defi

cit

and

proj

ec o

ns sh

ow th

at th

ese

defi c

its a

re li

kely

to g

row

in th

e fu

ture

, eve

n a

er c

onsid

erin

g th

e im

pact

of

the

1999

(Ind

ivid

ual P

ensio

n Ac

coun

t or N

DC) r

efor

m.

3. In

dexa

on:

The

leve

l of p

ensio

n be

nefi t

s adj

uste

d in

ad-

hoc

man

ner,

no

inde

xa o

n 4.

DB

vs. N

DC c

onfl i

ct: P

robl

ems i

n th

e pa

ram

eter

s of t

he D

B an

d N

DC

sche

mes

lead

ing

to a

nec

essa

ry p

ensio

n re

form

: (i)

wor

kers

bor

n po

st-1

960

will

hav

e lo

wer

re re

men

t ben

efi ts

than

wor

kers

bor

n pr

e 19

60; a

nd (i

i) ea

rly

re re

men

t und

er N

DC sc

hem

e th

ose

born

a e

r 196

0 is

also

will

be

low

er

than

the

bene

fi ts o

f tho

se w

ho w

ork

to th

e no

rmal

re re

men

t age

. 5.

Lev

el o

f ben

efi ts

: ina

dequ

ate

leve

l of p

ensio

n to

be

paid

und

er th

e in

divi

dual

acc

ount

syst

em, l

ow re

rem

ent a

ge th

at p

rovi

des l

ow le

vel o

f be

nefi t

s, in

par

cul

ar fo

r wom

en.

6. E

quity

: Ben

efi t

leve

l is h

ighe

r und

er m

anda

tory

Soc

ial i

nsur

ance

then

if th

e pe

rson

has

con

trib

uted

at m

inim

um w

age,

the

min

imum

pen

sion

the

pers

on

will

get

75%

of m

inim

um w

age

(min

imum

pen

sion

is 45

% o

f min

imum

wag

e).

Equa

lity

of tr

eatm

ent:

Une

qual

re re

men

t age

bet

wee

n m

en a

nd w

omen

. 7.

The

mili

tary

per

sonn

el c

an e

asily

get

100

% o

f the

ir po

st e

arni

ngs i

s too

ge

nero

us

1. C

ontr

ibu

on

rate

: The

leve

l of c

ontr

ibu

on

is aff

ord

able

and

min

imum

wag

e re

pres

enta

ve

of h

erde

rs in

com

e (m

inim

um w

age

equa

l to

at l

east

one

shee

p pe

r yea

r for

her

ders

), bu

t low

vol

unta

ry re

gist

ra o

n ow

ing

to th

e fo

llow

ing:

2.

Cov

erag

e: V

ery

low

cov

erag

e, m

ostly

you

ng p

eopl

e, h

erde

rs a

nd se

lf-em

ploy

ed w

orke

rs a

re n

ot in

tere

sted

, alth

ough

it in

clud

es

mat

erni

ty p

rote

c o

n.

3. E

vasi

on: T

he a

vera

ge w

age

repo

rted

by

the

Na

ona

l Sta

s c

al Offi

ce (N

SO) i

s sig

nifi c

antly

hig

her t

han

the

aver

age

wag

e de

clar

ed fo

r th

ose

payi

ng m

anda

tory

con

trib

u o

ns, s

how

ing

that

em

ploy

ers a

re e

vadi

ng th

eir c

ontr

ibu

on

resp

onsib

ili e

s.

4. A

cces

sibi

lity:

Her

ders

har

dly

visit

the

soum

cen

tre

once

per

mon

th d

ue to

rem

oten

ess,

ani

mal

hus

band

ry c

are

and

inco

me

shor

tage

s.

5. C

ontr

ibu

on

sche

dule

: The

sche

dule

shou

ld c

onsid

er ru

ral p

opul

a o

ns’ i

ncom

e cy

cle

and

life

styl

e fe

atur

es. H

erde

rs’ i

ncom

e st

ream

s de

pend

on

high

ly se

ason

al e

vent

s lik

e ca

shm

ere

and

milk

or l

ive

anim

al sa

les,

and

thei

r dem

and

for c

ash

is al

so h

ighl

y se

ason

al. H

erde

rs

only

hav

e op

port

unity

to h

ave

cash

onl

y tw

ice

a ye

ar w

hich

dur

ing

the

sprin

g fo

r cas

hmer

e an

d ea

rly D

ecem

ber f

or m

eat p

repa

ra o

n.

6. L

ack

of in

form

a o

n on

pro

cedu

res,

esp

ecia

lly a

mon

g th

e yo

ung

peop

le.

7. A

cces

sibi

lity:

Her

ders

har

dly

visit

onc

e a

mon

th th

e so

um c

entr

e. F

or th

ose

with

hig

her i

ncom

e, c

ontr

ibu

ng

at th

e m

inim

um w

age

will

pro

vide

them

onl

y a

min

imum

pen

sion.

Firs

t m

e ap

plic

a o

n fo

r pen

sion

at re

rem

ent a

ge a

t the

SI o

ffi ce

of t

he a

imag

cen

tre.

N

eed

to st

ream

line

the

proc

ess a

nd in

trod

uce

e-fi l

es. C

ost o

f bus

ck

et: a

roun

d M

NT1

0,00

0.8.

Mili

tary

pen

sion

: The

mili

tary

pen

sion

(ver

y ge

nero

us) i

s man

aged

by

the

Soci

al In

sura

nce

fund

, whi

ch c

reat

es c

onfu

sion

with

the

othe

r pen

sion

fund

s, n

eed

to se

para

te th

e pe

nsio

n fu

nds a

nd m

anag

emen

t 9.

Gov

erna

nce:

abs

ence

of p

erio

dica

l act

uaria

l rev

iew

s, lo

w a

dmin

istra

ve

capa

city

and

insuffi

cien

t inf

rast

ruct

ures

.10

. Qua

lity

of se

rvic

e: T

he re

imbu

rsem

ent l

ist o

f soc

ial a

ssist

ance

serv

ices

is n

eed

to u

pdat

e. S

ome

pros

thes

es a

nd o

rtho

paed

ics

faci

li e

s and

oth

er g

oods

and

serv

ices

are

not

incl

uded

in th

at li

st.

11. T

arge

ng

crite

ria: F

uel c

ompe

nsa

on

(coa

l and

fi re

woo

d) su

pply

pro

cedu

re is

insuffi

cien

t for

eld

erly

peo

ple

over

age

80.

Reco

mm

enda

ons

Impl

emen

ta o

n is

sues

E1: P

rovi

de a

n ad

equa

te p

ensi

on p

rote

c o

n to

her

ders

and

oth

er se

lf-em

ploy

ed in

divi

dual

s by

enco

urag

ing

cont

ribu

on

to th

e SI

sche

me.

The

co

ntrib

u o

ns sh

ould

be

subs

idize

d by

the

Gove

rnm

ent f

or th

ose

cont

ribu

ng

to th

e vo

lunt

ary

sche

me

as a

n in

cen

ve

to in

crea

se c

over

age.

E2

: Int

rodu

ce a

thre

e pi

llars

pen

sion

syst

em: P

illar

1: U

nive

rsal

min

imum

pen

sion

; Pill

ar 2

: Con

trib

utor

y SI

pen

sion

(vol

unta

ry a

nd m

anda

tory

); Pi

llar 3

: Com

plem

enta

ry in

divi

dual

savi

ng a

ccou

nts.

E3

: Rev

ise

the

soci

al in

sura

nce

pens

ion

para

met

ers t

o ad

just

re re

men

t age

bet

wee

n m

en a

nd w

omen

, DB

pens

ion

calc

ula

on,

and

the

inco

nsist

ency

bet

wee

n th

e be

nefi t

form

ula

of c

ontr

ibut

ed N

DC o

ld-a

ge p

ensi

on a

nd th

at o

f NDC

surv

ivor

s and

dis

abili

ty p

ensi

on.

E4: I

ntro

duce

new

sche

me

of su

pple

men

tal b

enefi

ts fo

r ins

ured

bor

n a

er 1

960

in c

ase

of e

arly

re re

men

t pro

visio

ns.

E5: I

ndex

(bot

h so

cial

insu

ranc

e an

d so

cial

wel

fare

) pen

sion

ben

efi t

amou

nt to

the

CPI e

very

yea

r, no

t ad

hoc

man

ner.

E6: I

ncre

ase

min

imum

pen

sion

leve

l but

at a

reas

onab

le le

vel s

o it

does

not

cre

ate

disin

cen

ves

to c

ontr

ibut

e to

the

soci

al in

sura

nce

sche

me

E7: O

ff er o

lder

peo

ple

an in

tegr

ated

pac

kage

of p

rote

c o

n, c

over

ing

heal

th, i

ncom

e se

curit

y, ho

usin

g an

d so

on.

E8: P

rovi

de a

com

preh

ensi

ve b

enefi

ts p

acka

ge fo

r poo

r eld

erly

(age

and

mea

ns ta

rget

ed):

hous

ing

bene

fi ts,

fuel

allo

wan

ce, i

ncre

ased

hea

lth

care

pac

kage

(see

reco

mm

enda

on

H17)

, and

the

min

imum

pen

sion

pro

vide

by

the

new

old

-age

pen

sion

syst

em.

E9: D

evel

op a

long

term

care

and

supp

ort s

yste

m fo

r eld

erly

(tha

t mig

ht h

ave

a po

si v

e im

pact

on

yout

h em

ploy

men

t cre

a o

n): n

ursi

ng h

ouse

s an

d pr

ogra

mm

es p

rom

o n

g th

e pa

r c

ipa

on

of o

lder

peo

ple

in so

cial

wor

k (e

.g. c

hild

care

) and

shor

t ter

m a

ssig

nmen

t (e.

g. d

octo

rs, h

erde

rs’

know

how

). E1

0: O

pen

op o

n to

pay

the

volu

ntar

y so

cial

insu

ranc

e co

ntrib

u o

n tw

ice

a ye

ar to

follo

w se

ason

ality

of h

erde

rs’ i

ncom

e (o

r to

allo

w m

ore

fl exi

bilit

y, p

ay o

nce

a ye

ar);

prov

ide

mor

e fl e

xibi

lity

in p

ayin

g ba

ck u

npai

d co

ntrib

u o

ns (a

pplie

s als

o to

Soc

ial I

nsur

ance

Pen

sion

Fun

d an

d SH

I co

ntrib

u o

ns. L

inke

d to

reco

mm

enda

on

H4)

E11:

Cre

ate

ince

n v

e m

echa

nism

for s

tabl

e so

cial

insu

ranc

e co

ntrib

u o

ns b

y he

rder

s and

self-

empl

oyed

. For

exa

mpl

e, if

her

der c

on n

uous

ly p

aid

for fi

ve

year

s of c

ontr

ibu

on,

then

sixt

h ye

ar c

ontr

ibu

on

may

be

li e

d.

E2_1

: Int

rodu

ce a

bas

ic p

ensio

n at

MN

T150

,000

(rur

al p

over

ty

line-

RPL)

for 6

0 (m

en)/

55 (w

omen

) not

cov

ered

by

the

soci

al

insu

ranc

e pe

nsio

n (v

olun

tary

and

man

dato

ry) a

nd su

bsid

ize

volu

ntar

y co

ntrib

u o

n at

50%

. E2

_2: I

ntro

duce

a b

asic

pen

sion

at M

NT1

50,0

00 (p

over

ty li

ne)

for a

ll th

ose

over

55

not c

over

ed b

y th

e so

cial

insu

ranc

e pe

nsio

n (v

olun

tary

and

man

dato

ry)a

nd su

bsid

ize v

olun

tary

con

trib

u o

n at

50%

. E2

_3: I

ntro

duce

a b

asic

pen

sion

at M

NT1

15,0

00 (c

urre

nt so

cial

w

elfa

re p

ensio

n) fo

r eve

ry p

erso

n ab

ove

age

60 (m

en)/

55

(wom

en) n

ot c

over

ed b

y th

e m

anda

tory

soci

al in

sura

nce

pens

ion

and

subs

idize

vol

unta

ry c

ontr

ibu

on

at 7

0%.

E2_4

: Int

rodu

ce a

bas

ic p

ensio

n at

MN

T115

,000

(cur

rent

soci

al

wel

fare

pen

sion)

for a

ll th

ose

over

age

55

and

subs

idize

vol

unta

ry

cont

ribu

on

at 7

0%.

E2_5

: Int

rodu

ce a

bas

ic p

ensio

n at

MN

T111

,600

(pov

erty

line

-20

% o

f min

imum

wag

e) fo

r all

thos

e ov

er a

ge 5

5 an

d su

bsid

ize

volu

ntar

y co

ntrib

u o

n at

80%

.

1. In

volv

es M

PDSP

, SIG

O, D

evel

opm

ent p

artn

ers (

ILO

, WB,

ADB

). 2.

Invo

lves

SIG

O, M

PDSP

, MO

F. 3.

Invo

lves

GO

SWS,

MPD

SP.

3. In

volv

es G

OSW

S, M

PDSP

.

121

BibliographyAsian Development Bank (ADB). 2006. Technical assistance for strengthening the pension system (Ma-nila).

Carter, J.; Bedard, M.; Bista, C.P. 2013. Compara ve review of unemployment and employment insur-ances in Asia and worldwide (Bangkok, ILO). Available at: h p://ilo.org/asia/whatwedo/publica ons/WCMS_229985/lang--en/index.htm [30 Apr. 2015].

Government of Mongolia. 2012. Government ac on plan of Mongolia, 2012-2016 (Ulaanbaatar).

Interna onal Labour Organiza on (ILO). 2010. Analyses for 1999 pension reform (ILO/RP/Mongolia/R.1).

—. 2013. Extending old-age pension coverage to herders, the self-employed, informal sector workers and other non-covered working groups, Report to the Government of Mongolia (ILO/TF/Mongolia/R.3).

—; Government of Japan; Ministry of Popula on Development and Social Protec on (MPDSP); United Na ons Social Protec on Team Mongolia. 2014. Assessment matrix of the Mongolian assessment based na onal dialogue on social protec on, 2013-2014 (Ulaanbaatar).

Ministry of Economic Development. 2013. Macroeconomic outlook for Mongolia, 2013-2017 (Ulaan-baatar).

Ministry of Educa on, Culture and Science. 2014. Annual report for 2013: Reform-solu on-success (Ulaanbaatar). Available only in Mongolian at: h p://www.meds.gov.mn/data/02/REPORT2013 [30 Apr. 2015].

—. 2015. Dra budget statement (Ulaanbaatar). Available only in Mongolian at: h p://www.meds.gov.mn/data/1409/Tusul2015.pdf [30 Apr. 2015].

Ministry of Finance. 2013. State budget sta s cs of Mongolia, 2005-2012 (Ulaanbaatar).

—. 2014. Dra state budget of Mongolia for 2015 and forecasts for 2016-2017 (Ulaanbaatar).

Ministry of Popula on Development and Social Protec on (MPDSP). 2014. Dra state policy on pension reform for 2015-2030, Sep. (Ulaanbaatar).

—. 2014. Report of the Ministry of Popula on Development and Social Protec on for 2013 (Ulaan-baatar).

—; Ministry of Health (MOH). 2013. Long-term strategy for the development of social health insurance 2013-2022 (Ulaanbaatar).

— and Social Insurance General Offi ce (SIGO). 2013. Long term strategy for the development of the health insurance of Mongolia 2013-2022 (Ulaanbaatar).

Ministry of Social Welfare and Labour. 2003. Social security sector strategy paper, Nov. (Ulaanbaatar).

Na onal Authority for Children. 2010. Na onal child protec on strategy of Mongolia 2010-2015 (Ulaan-baatar, Government of Mongolia).

Na onal Centre for Lifelong Educa on. 2014. Annual consolidated report for 2014 (Ulaanbaatar, Min-istry of Educa on, Culture and Science). Available only in Mongolian at: h p://www.nfde.mn/images/Pdf/2014.pdf [30 Apr. 2015].

Na onal Council on Employment Promo on. 2013. Employment promo on programmes (Ulaanbaatar, MOL).

Na onal Health Development Centre. 2010. Health Sector Sta s c Yearbook, 2010-2012 (Ulaanbaatar, MOH).

Na onal Sta s cal Offi ce of Mongolia (NSO). 2008. Sta s cal Yearbook (Ulaanbaatar).

—. 2010. Sta s cal Yearbook (Ulaanbaatar).

122




—. 2009. Sta s cal Yearbook (Ulaanbaatar). Schmi , V.; Satriana, S.; Muhamad, T. 2012. Social protec on assessment based na onal dialogue: To-wards a na onally defi ned social protec on fl oor in Indonesia (Jakarta, ILO). Available at: h p://www.ilo.org/jakarta/whatwedo/publica ons/WCMS_195572/lang--en/index.htm [30 Apr. 2015].Schmi , V.; De, L. 2013. Assessment based na onal dialogue: Good prac ces guide (Bangkok, ILO). Avail-able at: h p://www.socialsecurityextension.org/gimi/gess//ShowRessource.ac on?ressource.ressour-ceId=44257 [30 Apr. 2015].Schmi , V.; Thaworn, S.; Orawan, P. 2013. Social protec on assessment based na onal dialogue: To-wards a na onally defi ned social protec on fl oor in Thailand (Bangkok, ILO). Available at: h p://www.ilo.org/secsoc/informa on-resources/publica ons-and-tools/books-and-reports/WCMS_213264/lang--en/index.htm [30 Apr. 2015].Social Health Ins tute. 2008. Assessment of school lunch programme (Ulaanbaatar, MOH). SIGO. 2013. Ac vity report for 2013 (Ulaanbaatar). Available only in Mongolian at: h p://www.ndaatgal.mn/tailan/SIGO-REPORT-2013.pdf [30 Apr. 2015].SIGO Center of Informa on and Technology. 2014. Sta s cal data of contributors and benefi ciaries 2009-2013 (Ulaanbaatar).State Great Hural (Parliament). 1999. Main guidelines for the State on pension reforms to be followed un l 2021 (Ulaanbaatar, Government of Mongolia).—. 2010. Main guidelines of economic and social development of Mongolia, 2010-2013 (Ulaanbaatar, Government of Mongolia). —. 2008. The Millennium Development Goals based comprehensive na onal development strategy (Ulaanbaatar, Government of Mongolia).United Na ons Children’s Fund (UNICEF). 2007. Child benefi ts and poverty reduc on: Evidence from Mongolia’s child money programme (New York).UNICEF Mongolia. 2014. Analysis of the situa on of children in Mongolia (Ulaanbaatar). United Na ons Popula on Fund (UNFPA) Mongolia. 2012. Implica ons of demographic trends for socio-economic development and public policy in Mongolia (Ulaanbaatar).van Langenhove, T. 2015. Fact-fi ndings, local assessment report and recommenda ons for the further development of the OSS, 2015 (working document).Whaind, N.A. 2013. Analysis of the Mongolian pension insurance fund report on the baseline PROST projec ons from 2013 to 2085, Dec. (Washington, DC, World Bank). World Bank. 2006. Mongolia: Assessment of the Child Money Program and proper es of its targe ng methodology (Washington, DC).—. 2011. Mongolia - Policy op ons for pension reform, Report No. 68526-MN, 20 Jan. (Washington, DC). Available at: h p://documents.worldbank.org/curated/en/2011/01/16662950/mongolia-policy-op ons-pension-reform [30 Apr. 2015].World Health Organiza on (WHO) Mongolia. 2010. WHO country coopera on strategy for Mongolia, 2010-2015 (Ulaanbaatar). Available at: h p://www.who.int/countryfocus/coopera on_strategy/ccs_mng_en.pdf [30 Apr. 2015].Websites The State Great Hural (Parliament) of Mongolia: h p://www.parliament.mn/laws/projectsLegal info, a resource for Mongolian law: h p://www.legalinfo.mn

Contact informationUN Resident Coordinator’s Offi ceUnited Na ons Street-14Sukhbaatar DistrictUlaanbaatar-14201, MongoliaPhone: 976 11327585Fax: 976 11329996Website: www.un-mongolia.org

Many governments and the United Na ons (UN) have recognized that improving social protec on is an eff ec ve way for a country to reduce poverty and promote social and economic development, and have called for at least the establishment of social protec on fl oors.

A social protec on fl oor aims to provide a universal minimum level of social benefi ts and services, guaranteeing – at least – access to essen al health-care services; educa on, care and nutri on for children; and income security for those of working age, and older people. The social protec on fl oor framework also provides an opportunity for all UN agencies, development partners and interna onal fi nancial ins tu ons to work together to extend social protec on and improve the delivery of social benefi ts and services.

Many countries in the Asia Pacific region, including Afghanistan, Cambodia, India, Indonesia, Myanmar, Pakistan, Philippines, Solomon Islands, Thailand, Vanuatu and Viet Nam, have adopted the social protec on fl oor concept when designing their na onal social protec on policies and strategies.

Between June 2013 and January 2015, Mongolia conducted an assessment based na onal dialogue on social protec on, with the support of the United Na ons Country Team. This exercise aimed to set common priori es that can defi ne and help es mate the cost of a social protec on fl oor in Mongolia. Those results are shared in this report.

ILO Na onal Coordinator’s Offi ce United Na ons Street-14Sukhbaatar DistrictUlaanbaatar-14201, MongoliaPhone: 976 11320624Fax: 976 11320625Website: www.ilo.org

ILO/JapanMulti-bilateralProgramme

ISBN: 9789221298359

Social protection assessment based national dialogue...нийгмийн хамгааллын...

Documents

Transcript of Social protection assessment based national dialogue...нийгмийн хамгааллын...