Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
An employer of record in Moldova assumes the responsibility of managing various essential aspects of employment, such as payroll management, compliance with minimum wage regulations, comprehensive hiring procedures, employee benefits provision, adherence to social security regulations, facilitation of healthcare and insurance coverage, implementation of leave policies, and compliance with tax obligations.
| Overview | |
| Continent | Europe |
| Country | Moldova |
| Capital | Chișinău |
| Time zone | UTC+02:00 (EET) |
| Total Time zones | 1 |
| Working hours per week | 40 |
| Personal Tax filing deadline | 30 April of the year following the tax year |
| Financial Year | Calendar year - 1st Jan to 31st Dec |
| Date format | dd/mm/yyyy |
| Currency | Moldovan Leu (MDL) |
| VAT | the standard rate is 20% |
Employer Payroll Contributions in Moldova
| Employers | % of Gross Salary |
| Social Security Contributions | 24% |
| Total Employment Cost | 24% |
Employee Payroll Contributions in Moldova
| Employees | % of Gross Salary |
| Health Insurance | 9% |
| Personal Income | 12% |
| Total Employee Cost | 21% |
Minimum Wages in Moldova
| Minimum Wage | |
| Minimum Wage | The minimum wage in Moldova is 2775 LEU per month. |
Payroll Cycle in Moldova
| Payroll | |
| Payroll Cycle | Monthly, Bi-Monthly |
| 13th Salary | NA |
Personal Income Tax in Moldova
| Income Tax | |
| Income Range | Tax Rate |
| Flat Rate - 12% |
Employment Visas in Moldova
| Employment Visas | |
| Moldova Airport Transit Visa (Type A) | |
| Moldova Transit Visa (Type B) | |
| Moldova Tourist Visa (Type C or Short-Stay Visa) | |
| Moldova Long-Stay Visa (Type D) |
Employee Benefits in Moldova
In Moldova, mandatory employee benefits encompass pension, workers' compensation, and healthcare, while common supplementary benefits include healthcare and life insurance. The insurance market in Moldova offers various products for personal protection, such as personal accidents insurance, travel health insurance, group life insurance, and healthcare insurance. Additionally, there are products that combine protection and savings, including long-term life insurance with an investment component (Life Endowment) and critical illness insurance. Employee benefits in Moldova can be categorized into protection-focused products, personal savings products, and mixed products that incorporate both elements.
In Moldova, the state manages the system for work accidents, professional diseases, and workmen's compensation. Funds are collected monthly from both employers and employees to support this system. As per Law Nr. 756 of 24.12.1999, the Public System provides various compensations for work accidents and professional diseases, including medical rehabilitation benefits, benefits for the recovery of work capacity, benefits for professional rehabilitation, indemnity for temporary incapacity for work, allowance for a temporary transfer to another job, permanent disability indemnity, and death indemnity. Additionally, there are optional insurance products available for personal accidents and professional diseases, which complement the benefits provided by the state system. Companies' expenses for insurance premiums related to personal accident insurance are tax-free, and any indemnities received from personal accident claims are also exempt from revenue taxation.
According to Law No. 186 dated 10.07.2008 on Security and Health at Work, employers in Moldova have specific liability provisions for paying indemnities in the event of professional diseases, death, and permanent disability resulting from work accidents where the employers are held responsible. The indemnities for death and permanent disability can be significant. As per the law, liable employers are required to pay a lump sum indemnity equal to one annual salary for each remaining year until the deceased employee's age of 62, but not less than 10 annual salaries. In cases of disability, the payment is calculated based on one average salary for each percentage of capacity loss, but not less than one annual salary for the injured employee. Employers can opt for facultative insurance coverage to mitigate their liability risks. In the event of a claim, the insurer will provide the claimed amount regardless of any payments made by the Social Security Fund or other insurance schemes. However, the indemnities provided by facultative insurance are subject to policy limits.
In Moldova, there are two types of medical insurance coverage available: compulsory health insurance and private health insurance.
Compulsory health insurance requires monthly payments, with both employers and employees contributing 4.5% of the employee's salary. The employer is responsible for making the payment to the National Health Insurer on behalf of the employee. This coverage is mandatory for all individuals.
Private health insurance, on the other hand, is provided by private insurance companies. Only 50% of the employer's expenses with private health insurance are tax-free.
Private health insurance offers comprehensive coverage, including outpatient services such as visits to general practitioners or specialists, laboratory tests, and high-tech imaging. Inpatient coverage includes room and board, medication and treatment during a hospital stay, surgery and related supplies, road ambulance services, emergency room care, and dentistry.
Private health insurance provides several advantages in addition to the obligatory state health insurance programs. These advantages include free access to private healthcare institutions for both hospital and outpatient care, coverage for medications and drugs, dental services, and the flexibility to seek treatment without prior approval from a family doctor.
In Moldova, there are additional insurance coverages available to individuals beyond healthcare:
- Travel Health Insurance: This coverage provides medical expenses coverage for accidents or sudden illnesses that occur during trips abroad. It also includes coverage for additional costs associated with the repatriation of a deceased person's body.
- Life Insurance: Life insurance offers coverage for death by any cause, including illness and accidents. It also provides survival benefits.
- Additional Riders: Additional riders can be added to life insurance policies to enhance coverage. These riders may include coverage for permanent total disability or permanent partial disability due to accidents, as well as critical illness insurance.
- Private Pension Funds: Currently, there are no active private pension funds in Moldova. However, there is legislation in place (Law No. 198 of 20.11.2020) that allows for the establishment of private pension funds. At present, the pension system in Moldova operates solely on Pillar 1, which is based on a pay-as-you-go system.
Please note that the availability and specific terms of these insurance products may vary depending on the insurance provider and policy.
Suggested Employee Benefits Package
Based on our expertise in the market, we recommend offering the following employee benefits package:
- Group Life, Accidental Death & Dismemberment Insurance: This coverage addresses major risks that can impact employees' lives, providing financial protection in the event of death or disability resulting from accidents or dismemberment.
- Private Health Insurance: This coverage takes care of employees' day-to-day healthcare needs, ensuring they have access to medical services and treatments both during and outside of working hours.
Implementing such schemes offers several advantages to employers:
- Increased job satisfaction and happiness among employees.
- Higher levels of loyalty and commitment from employees.
- Improved employee retention rates, especially among highly skilled individuals.
- Reduced turnover, leading to greater stability and lower recruitment costs.
By providing these comprehensive benefits, employers can create a positive work environment and demonstrate their commitment to the well-being and security of their workforce.