Clarification: Implementation of the changes to the component of average salary to calculate employees’ allowances According to the Amendment to the Procedure on Determining Average Salary (“Amendment”) approved by the Minister of Labor and Social Protection which took effect from 1 April 2022
Press Release
7 February 2024
We understand that changes to working hours and pay can be concerning to those who will be impacted.
In connection with the revised Labor Law which came into effect from January 1, 2022, “Oyu Tolgoi” LLC has revised and implemented its internal procedures and other related documents in accordance with the Law.
In order to mitigate the impact to employees, Oyu Tolgoi maintained base salaries despite a 25% reduction in the standard roster. This decision was to designed to insulate against cost-of-living pressures in Mongolia, and full implementation was delayed in order to appropriately work through the implications on our workforce.
According to the Amendment to the Procedure on Determining Average Salary (“Amendment”) approved by the Minister of Labor and Social Protection which took effect from 1 April 2022, Oyu Tolgoi LLC is working to implement the changes to the component of average salary to calculate employees’ allowances from 25 February 2024.
We have made every effort to minimise the impact of these changes to our employees, considering the increase in the cost of living in Mongolia and other factors. Thus, we have not made any changes to the base salary, long roster allowance, working condition allowance, higher duties allowance, additional duties allowance, public holiday pay, night shift allowance, overtime payment, annual leave salary and all other allowances and pay of employees. This means that while overall pay may change, hourly rate will remain the same.
We believe these changes drive fairness as well as prioritise the safety and well-being of our employees.
-ENDS
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