The bilateral social security agreement between Austria and Mongolia entered into force on 1 August 2026. The Austrian Federal Ministry of Labour, Social Affairs, Health, Care and Consumer Protection confirmed the effective date once both countries had completed their internal procedures.
The agreement determines which country’s social security legislation applies to cross-border work, helps prevent double contributions, and coordinates statutory pension rights.
How Does the Posting Rule Work?
The general rule is that employees and self-employed people are covered by the legislation of the country where they work. An exception applies when an employee is temporarily posted (assigned to work) between Austria and Mongolia.
Eligible employees may remain covered exclusively by the sending country’s social security system for up to 60 calendar months (i.e., 5 years). The employer must have an establishment in that country, the employee must have worked there for at least one month before the posting, and the work must be performed on the employer’s behalf. For assignments already active when the agreement entered into force, the 60-month period begins on 1 August 2026.
Austrian employers must request certificate A/MNG 1 from the relevant Austrian health insurance institution. Official Austrian guidance confirms that this certificate demonstrates that Austrian legislation continues to apply. Employers receiving an employee from Mongolia should retain the certificate issued by the Mongolian institution.
What Happens to Pension Rights?
Insurance periods completed in Austria and Mongolia may be combined to determine whether someone qualifies for a statutory pension. Each country calculates and pays its own portion based on the periods completed under its legislation.
Qualifying pensions can generally continue to be paid even when the recipient lives in the other country. However, the agreement does not provide the same broad health care coordination available within the European Union, so employers should assess medical and assignment insurance separately.
What Employers Should Do
Employers with workers moving between Austria and Mongolia should:
- Identify current and planned assignments affected by the agreement
- Confirm whether the conditions of the 60-month posting rule are met
- Obtain and retain the correct social security certificate
- Align payroll deductions and employer contributions with the confirmed legislation
- Review medical coverage separately from the social security assessment
The agreement provides a clearer framework for cross-border employment, but protection is not automatic. Employers must document the applicable legislation and ensure that payroll complies with it.
In general, these social security agreements, together with bilateral tax treaties, govern how to process global mobility workers, depending on local rules and regulations for operationalising it. Staying current with developments in this area when you have a mobile and distributed workforce is essential to ensuring compliance.
Join The Payroll Community to connect with more than 30,000 of your payroll peers worldwide. Gain access to the Global Forum, where you can network with payroll professionals, ask follow-up questions about this article, and more.
Become a PayrollOrg Global Subscriber for access to additional global payroll resources, including Global Payroll eMagazine, news alerts, and more.
Max van der Klis-Busink, MCIPP, RPP, is the Founder and Global Payroll Consultancy Lead of Passion For Payroll.
