Payroll & Employment Guide Moldova

Employment contracts in Moldova are regulated by the national Labour Code and are preferably concluded in written form. At a minimum, the contract must include full identification details of both parties, job title and responsibilities, employment starting date, and the duration of employment.

Notice periods: From 2 weeks to 2 months.

Termination of employment: Due to unsatisfactory performance during probation, business liquidation, staff reduction, health issues, insufficient qualifications, refusal to adapt to changes, or serious misconduct.

Employers in Moldova must provide mandatory employment benefits in line with the country’s labour law. Many of them also offer extra perks to stay competitive in the job market. Understanding both of them is essential to attracting and retaining talent.

• Mandatory benefits: Pension, health insurance, and unemployment benefits.
• Common perks: Meal vouchers, transport reimbursements.
• Leave policies: Paid annual leave, sick leave, maternity leave, parental leave.
• Disability benefits: Disability and work-related injury benefits are available through the national social insurance system. These include temporary incapacity benefits and long-term disability pensions, depending on medical assessments and contribution history. This forms part of a broader social security framework aimed at supporting employees and citizens.

Moldova has a defined tax system, where employers are responsible for withholding personal income tax and mandatory social security and health insurance contributions from employees’ salaries.

An individual is considered a tax resident of Moldova if they have a permanent domicile in the country, even if they are temporarily abroad for reasons such as study, medical treatment, or business (with certain exceptions). They are also considered tax residents if they are physically present in Moldova for more than 183 days during a fiscal year, which follows the calendar year.

Personal income tax: A flat tax rate of 12% applies to most types of personal income for residents (e.g., employment, professional, entrepreneurial activities, capital gains after adjustments).

Withholding and contributions: In Moldova, the standard withholding rates are:

• Dividends: 6%
• Interest: 6% for residents; 12% for non-residents
• Capital gains: No general WHT applies to residents; non-residents pay 12% withholding tax on 50% of capital gains from Moldovan-source assets (effectively 6%), unless a DTT applies or the gains come from exempt state securities.

Tax allowances and non-taxable benefits:

• Health & life insurance: Deductible up to MDL 17,400 (the average monthly salary).
• Meal tickets: Tax-exempt up to MDL 55 per day.
• Gifts in kind: Tax-free up to 10% of the average salary (MDL 1,740 per employee per year).

Deductions and tax reliefs:

• Personal allowance: MDL 29,700 (This is the standard basic allowance for an individual taxpayer.)
• Major personal allowance: MDL 34,620 (This is a higher allowance, typically for individuals who fall into specific categories)
• Spouse’s major allowance: MDL 21,780 (This allowance is likely available if a taxpayer's spouse qualifies for a "major personal allowance" but perhaps doesn't use their own personal allowance, or it's an additional allowance for the taxpayer if their spouse falls into a special category.)
• Allowances for dependants: MDL 9,900 (This amount is applicable for each person who qualifies as a dependant of the taxpayer, such as children or other supported family members.)
• New education credit: Up to MDL 20,000 deductible from the tax base for schooling fees.
• New mortgage interest: Up to MDL 17,400 deductible for interest on a first home mortgage.

Employers in Moldova must pay salaries according to the terms set in individual employment contracts or applicable collective agreements. Wages must not be lower than the national minimum wage, as established by the government.

Salary payment deadline: Defined by contract - typically before the 10th of the following month.

Taxes and contributions payment deadline: 21st of the following month.

Payroll currency: MDL

Moldova’s labour relations are governed by the national Labour Code, which outlines key elements such as employment types, minimum wages, probation periods, working hours, salary payments, and employer responsibilities. Employers must understand and follow these laws to ensure legal compliance.

Total employment cost:

• Employer’s contributions: 7%

Minimum wage: 5,500 MDL gross per month.

Probation period: Up to 6 months.

EOR services in Moldova enable you to legally employ individuals in the country without opening legal entities. The EOR takes over all the legal responsibilities as an official employer, including:

• Legal employment and contracts
• Payroll processing
• Tax withholding
• Benefits administration
• Onboarding/offboarding employees

With PEO services in Moldova, you can access HR and administrative support while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Moldova but need support to manage:

• HR and workforce administration
• Payroll and benefits management
• Compliance and local labour law guidance
• Employment contracts assistance

Native Teams provides a payroll calculator adapted to Moldova’s local labour laws. With our calculator, you can easily estimate net and gross salaries, employer and employee contributions, and other mandatory deductions in the country.

Here is a list of public holidays in Moldova: