1990’s social revolution made many changes in today’s Mongolia. From one political party governance into multiparty structure; from communist ideology into liberal democracy; from planned economic approach into market oriented economic system; these changes brought both positive and negative influences to Mongolian society.During communism, government was responsible for all kinds of social welfare issues which aggravated poor state budget and also influenced to weaken the individual’s self responsibility turning everybody into passive participants. This situation enormously pressured the government at that time, as well as it commonly exists in today’s Mongolian society. Mongolian Government aims its policy of social welfare to help the vulnerable groups who can’t take care of themselves and really need state assistance, maintain their everyday life level. The Government is responsible for funding all state social welfare functions.Since 1990’s, Mongolian government has tried many initiative measures to ensure normal living for the vulnerable group, provide a legal environment for its implementation, restructure social welfare system and review again and again. The Government is trying to build a social welfare system that provides the public needs in accordance with new socio-economic relation. The Social Policy adopted by the Mongolian Government aims to achieve this purpose.Social security sector’s long term purpose is to determine the current problems, of social welfare, social insurance and employment, find ways to solve them, ensure sufficient state budget and evaluate risks that may face. Mongolian government hopes that there will be lots positive changes during this action.For the first time, in 1995 Mongolian State Great Committee made some changes in Social Welfare Law in accordance with free democratic society structure. Those changes include social welfare fund’s benefit, assistance, government welfare services for the vulnerable group and this updated law became effective on January 1st 1996. Again in 2008, Government initiated an update for Social welfare law and it became effective on January 1st of 2010.State Social welfare fund noted that in 2009, a total of 1.3 million Mongolian citizen joined in Social Welfare Service. This means almost 47 percent of people joined state social welfare service and they are under protection of government. Even though each year government budget for social welfare is increasing dramatically, but there is still no increase for one individual’s income.Mongolian governmental social welfare service covers a massive amount of people. It didn’t define the standard to determine who will receive how much benefit making everybody available to get assistance.Mongolian government analyzed that this mass attendance in social welfare benefit is giving high pressure to government’s budget and also slowing the progress to reach its National Millennium Challenge goals. But it’s still difficult to provide proper structure.