Mongolian Teachers’ Strike Spurs Public-Sector Wage Hikes in 2026 Budget

Classrooms fall silent as teachers demand recognition and reform

Following a strike by Mongolian school teachers demanding higher wages and improved working conditions, the ruling Mongolian People’s Party (MPP) held a group meeting on November 3, 2025, and agreed on measures to raise public-sector salaries while cutting other expenditures to free up resources for the 2026 state budget.

MPP group leader J.Batjargal said the party has allocated funds to raise the basic teacher salary to MNT 2.8 million starting December 1, 2025, and to increase doctors’ and healthcare workers’ pay by 15% from January 1, 2026. He added that the group also discussed pension and social welfare increases, estimating that the 6% budget could rise by 8.6%, which has also been incorporated into the 2026 draft budget. J.Batjargal emphasized that these measures aim to address urgent social needs while remaining within fiscal constraints.

Kh.Gankhuyag, head of the working group tasked with identifying the necessary funds, said total expenditures tied to salaries and pensions amount to MNT 1.1 trillion, and that matching the planned increases requires offsetting cuts elsewhere. He assured that core social funds—including the Social Insurance Fund, Social Welfare Fund, Health Insurance Fund, and performance financing for education and health institutions—as well as disaster prevention, search-and-rescue operations, interest on government loans, foreign-aid financed current expenses, and child support—will remain untouched.

To generate the required savings, most other budget items will be reduced by 10–13%, with discretionary expenses such as domestic hospitality for MPs, Cabinet Secretariat costs, and subsidies for the Minister of Culture eliminated or cut. Investment spending on equipment and devices outside the health and education sectors will be halved, and transitional investments trimmed by 15%, freeing MNT 150 billion to support the wage and pension increases.

The wage adjustments follow the teachers’ strike, which highlighted long-standing concerns over low salaries and challenging working conditions, prompting the government to prioritize public-sector pay and social welfare improvements in the 2026 budget.