With the autumn session of Parliament due to open on Monday, 15 September, the Government has submitted the draft law on the 2026 budget. On September 12, senior officials from the Ministry of Finance, led by State Secretary J.Ganbat, briefed journalists on the draft by sector, and addressed demands by pensioners to raise the minimum pension to MNT 1.5 million. 
The draft 2026 budget includes MNT 378 billion to raise pensions by 6% in line with inflation. As of today, the minimum full pension stands at MNT 689,000, and the minimum proportional pension at MNT 570,000. 
State Secretary J.Ganbat stressed that the Ministry of Finance does not set social policy, that is the remit of the Ministry of Family, Labour and Social Protection, but outlined the budgetary implications of the pension proposal. According to the Ministry’s estimate, about 480,000 pensioners currently receive less than MNT 1 million. Raising the minimum pension to MNT 1.5 million would require roughly MNT 4.3 trillion in additional funding.
Officials said there are only three broad ways to finance such an increase: raise revenue (for example by increasing the social insurance contribution from 10% to 15%, or by raising VAT and personal income tax), which would place a heavier burden on workers and taxpayers; cut other expenditures in the proposed budget; or a large-scale restructuring of public spending, officials noted that, under current calculations, finding MNT 4.3 trillion by cutting would imply drastic measures such as reducing the number of civil servants by around 54% or eliminating large portions of other sector budgets.
The Ministry concluded that it is not possible to raise the minimum pension to MNT 1.5 million in the near term without major fiscal changes. Which combination of revenue increases or spending cuts (if any) will be pursued will be decided at government level and discussed in Parliament.
The draft 2026 budget includes MNT 378 billion to raise pensions by 6% in line with inflation. As of today, the minimum full pension stands at MNT 689,000, and the minimum proportional pension at MNT 570,000.

Published Date:2025-09-14