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Overview
Moldovan leu (MDL)
CURRENCY
Kishinev
CAPITAL
monthly
PAYROLL FRECUENCY
13
PUBLIC HOLIDAYS
22.5 to 36.50
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Moldova
Employer
Company Payroll Contributions
**
0% - 32%
Public Social Security System (Casa Națională de Asigurări Sociale – CNAS): Employers for employees who work in special conditions.
18% - 0%
Public Social Security System (Casa Națională de Asigurări Sociale – CNAS): Employers in agriculture, 24%, with 18% (the employer and 6% by the state budget).
4.50% - 4.50%
Health Insurance
22.5% - 36.5%
Total Employment Cost
Employee
Worker Payroll Contributions
4.50%- 0%
Health Insurance
4.5% - 0%
Total Employee Cost
Employee Income Tax in Moldova
Employment Income Taxes
- Personal Allowance: 27,000 MDL
- Major Personal Allowance: 31,500 MDL
- Spouse’s Major Allowance: 19,800 MDL
- Dependent Allowances: 9,000 MDL
12%
Flat Rate
Payroll Contributions in Moldova
Payroll Cycle
With an Employer of record in Moldova you can meet the monthly payroll cycle and pay on the 25th of every month. Besides, the authorities can penalize employers who pay wages late.
13th Salary
In Moldova, there is no legal requirement for the payment of the 13th month. However, an employer may establish in the employment contract some common bonuses.
Employee Benefit in Moldova
Visa and work permit in Moldova
A person can enter and stay in the country with an extended stay visa for 90 days. However, if you want to extend it, you must apply for a residence permit at the Bureau for Migration and Asylum of the Ministry of Internal Affairs. In this case, your company can count on contractor management services for the process for foreign employees.
Additionally, foreigners who have lived in the country with a residence permit for a certain time may apply for citizenship. In addition, a foreign-born citizen may obtain Moldovan citizenship by naturalization under the following conditions:
- A foreigner who has lived in Moldova with a residence permit for at least 10 years.
- The person has been married to a Moldovan citizen for at least 3 years.
- You have lived in the country with a residence permit for at least 5 years before the age of 18.
- For stateless citizens or recognized refugee living legally in the country for at least 8 years.
Similarly, a foreigner can obtain Moldovan citizenship by investing. Thus, in November 2018, the government launched the Moldova program Citizenship-by-Investment (MCBI) so that wealthy people can obtain citizenship. In this case, they must invest a substantial amount of money in the Moldovan Public Investment Fund.
VAT in Moldova
The standard rate is 20%.
Working Hours in Moldova
General
Manage the working hours of your workers with the Employer of Record in Moldova, which is 40 hours per week and 8 per day. In addition, the employment contract/collective agreement establishes reductions in working hours for hazardous work.
Overtime
Hours worked more than the standard hours per week must be paid by the employer as overtime. Also, there is an annual limit for such overtime, which is 120 hours. However, through a collective bargaining agreement, these hours can be extended to 240 for certain industries or jobs.
However, Moldovan employees under the age of 18, pregnant women, and medically unfit must not work overtime. Also, for employees who work 120 or more hours at night for 6 months, the employer must have them assessed by a doctor. In addition, certain workers cannot work at night.
Working Week
Monday to Friday.
Employee Termination in Moldova
Termination Process
With a PEO, you will be able to hire and onboard workers in Moldova and also go through the termination process. Thus, an employer can terminate a fixed-term contract for the business, personal, or employee misconduct. In addition, the employer must notify and provide a written explanation for the termination.
Also, an employer may terminate an employee for just cause, which may be subject to a union agreement.
Notice Period
In the country, the notification period is generally 30 days and begins the day after the application is registered.
Severance Pay
The Employer of Record in Moldova manages the severance pay, linked to the length of service. However, only employees with at least 1 year of continuous service with the employer can receive it. In addition, the employment contract/collective agreement establishes the amount of said compensation, commonly 1 week of salary per year of service.
However, if the reason given is economic reasons, the payment will be at least 1 month of salary
Probation Period
In Moldova the probation period before the employee onboarding consists of between 3 and 6 months. However, the employer cannot extend or renew this period.
Employee Leaves in Moldova
Paid Time Offs
International PEO services do an efficient job of handling annual leave, which consists of 28 days, plus holidays. In this case, employees can take vacations in parts, one of which must be at least 14 days. Besides, the employee receives prorated vacation for the first year of service after 6 months of constant work.
In general, vacation pay consists of an amount at least equal to the normal salary of the worker. Likewise, the employer must pay this grant at least 3 days before the start of this leave.
Public Holidays
There are 13 national holidays throughout the year.
Vacation Holidays
There are 28 vacation holidays throughout the year.
Sick Days
Employees are entitled to receive 5 days of paid sick leave at 100%. In this case, you can contact an Employer of Record in Moldova to pay them, held by a medical certificate. However, from the 6th day onwards, Social security pays sick leave.
Paternity Leave
The father can share the maternity benefit and the leave of the employee under the employment contract/collective agreement. Similarly, the father can enjoy 14 days of leave after the birth of his child. In this case, you can apply for the said license within 56 days of the birth, in addition to providing a copy of the birth certificate.
Paternal Leave
The employment contract and the collective agreement may contain clauses to grant parental leave.
Other Leave
If an employee has served at least 6 months on the job, they are entitled to receive 3 days of leave for the death of an immediate family member.
Maternity Leave in Moldova
Employees are entitled to receive maternity leave of 70 calendar days before birth and 56 calendar days after. Also, employees may receive partly paid vacations until the child turns 3 years old. In addition, the vacation depends on the seniority of the employee, position, and insurance plan.
In any of these cases, the worker receives payments from the social security fund. Also, a worker must provide a maternity confirmation certificate before she can receive the leave.
In contrast, an employee with at least one child under the age of 14, is entitled to 4 additional days of paid annual vacation. Also, mothers can receive additional unpaid vacations to care for their children between the ages of three and six. In addition, during this leave, the employee will be able to keep her job, which you will be able to manage with global employment outsourcing.
There are 126 leave throughout the year.