How to hire and pay employees in Moldova

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Moldova Facts and Stats

Currency

Moldovan Leu is the official currency of Mexico. Its currency symbol is MDL

Employer Costs

Estimated at 30% of employees salary

Languages

Romanian and Russian are the official languages of Moldova.

Population

The population of Moldova is 3.3 Million

Payroll frequency

Employees are paid monthly

Hiring

Grow your team in Moldova

No entity, no problem

To start growing your team in Moldova, you must establish a local entity – including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months. Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Moldova

Hiring in Moldova offers several advantages and challenges. On the positive side, Moldova provides a relatively low-cost labour market compared to Western Europe, with competitive salaries and lower overheads. The country has a young, educated workforce, with proficiency in multiple languages, including Romanian and Russian, which can be beneficial for international businesses. However, there are also drawbacks. The Moldovan legal and regulatory environment can be complex and less developed compared to other European countries, which may pose challenges in compliance and administrative tasks. Additionally, while the workforce is skilled, there can be variability in the quality of education and training, potentially affecting the overall calibre of employees.

Why Moldova is good for remote workers

Employers should consider hiring remotely in Moldova due to its cost-effective labour market and a skilled, multilingual workforce. Moldova offers competitive wages compared to Western Europe, making it an attractive option for cost-conscious businesses. The country has a strong emphasis on education, producing a growing number of professionals proficient in languages like English, French, and German. Furthermore, Moldova’s time zone is favourable for coordinating with both Eastern and Western European operations. While the local infrastructure may be developing, the trend towards digital connectivity and remote work capabilities in Moldova is rapidly advancing, enabling employers to tap into a talented pool of remote workers without the need for physical office space.

Start growing your remote workforce now

Employer Costs
Social Insurance Contributions (includes pension, health insurance, and other social benefits) 23%
Employment Insurance1%
Additional contributions to the National Health Insurance Fund6%
Benefits

Mandatory Benefits

Health and life insurance

Food/canteen meal allowance

Professional studies/trainings

Transportation allowance

Company cars allowance

Employment

Probation

Probation Period: Typically, 1 to 3 months.

Emerald Technology can onboard employees in Moldova within 48 hours.

Restrictive Covenants

In Moldova, restrictive covenants in employment contracts often include non-compete clauses, non-solicitation clauses, and confidentiality agreements. These covenants aim to protect the employer’s business interests by preventing former employees from working with competitors, soliciting clients or employees, and disclosing sensitive company information. The enforceability of these covenants depends on their reasonableness in terms of duration, geographic scope, and the specific interests they protect.

Insurance
01.

Health Insurance

In Moldova, a mandatory public health insurance system is managed by the National Health Insurance Company and it offers many medical services such as specialist treatments and hospital care. This system covers both local employees and foreign employees, if they have residence permits and employment contracts. Contributions towards health insurance are calculated using salaries, employers contribute 4.5% of employee’s gross salary and employees also contribute 4.5% of their gross salary.

02.

Social Security Contributions

Social security contributions are mandatory in Moldova for both employers and employees, and this covers health insurance, social insurance, unemployment insurance, work accidents and occupational diseases insurance. It is compulsory for Employers to contribute to multiple social security programs and this adds up to approximately 22.5% of the employee’s gross salary. Employees contribute 10.5% of their gross salary to social security.

Leave Policy
01.

Maternity Leave

Employees are entitled to 126 days of maternity leave, with 70 days allocated before the expected birth date and 56 days after delivery. The leave can be extended in cases of multiple births or complications.

02.

Paternity Leave

Fathers are entitled to 14 days of paid paternity leave within the first 56 days after the birth of the child.

03.

Parental Leave (if applicable)

In Moldova, either parent can take parental leave to care for a child until the child reaches the age of three. During this period, the parent on leave receives partial compensation. The leave can be taken by either the mother or the father.

04.

Sickness Leave

In Moldova, employees are entitled to sick leave if they are unable to work due to illness. The first five days of sick leave are usually covered by the employer, during which the employee receives 75-100% of their average salary, depending on the employer’s policy. From the sixth day onwards, the state social insurance system covers the sick leave, providing compensation typically at 75% of the employee’s average salary. Employees must present a medical certificate to qualify for these benefits.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Moldova within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Between 2 weeks and 2 months dependent on the employee’s length of service.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

In Moldova, employees are entitled to severance pay if their employment is terminated due to organizational changes or staff reductions. Severance pay is generally calculated based on the employee’s length of service. Employees are typically entitled to one month’s salary for each year of service, up to a maximum of six months’ salary.

Time off

Statutory Time off

Full time employees in Moldova are entitled to 28 days paid annual leave.

Public Holidays

  • New Year’s Day
  • Orthodox Christmas
  • International Women’s Day
  • Orthodox Easter (two days)
  • Memorial Easter (Radonitsa)
  • Labour Day
  • Victory Day
  • International Children’s Day
  • Independence Day
  • National Language Day
  • Limba Noastră (Our Language Day)
Emerald Technology can onboard employees in Moldova within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage

4,000 MDL (Moldovan Leu) per month.

02.

Working time and Overtime

Working Hours: 40 hours (5 days of 8 hours) is the standard working week in Moldova.
Overtime: Employees must not complete more than 120 hours of overtime per year. It is paid at 150% of the salary for the first 2 hours, then 200% beyond that.

03.

Salary Payments

Monthly

04.

Bonus or 14th month salary (if applicable)

Not mandatory by law.

05.

Income Tax

Income Bracket (MDL)                     Tax Rate
Up to 10,200 MDL                                  0%
10,201 – 30,000 MDL                            12%
Above 30,000 MDL                               18%

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