What should I know about hiring in Moldova?
When hiring employees in Moldova, it is essential to follow all applicable labor laws. These laws set the standards for how long employees can work, how much they can be paid when they can take time off, and what other perks they can receive.
In addition, large penalties may be imposed for non-compliance with these laws. Employers in Moldova are bound by the LCRM and any sector-specific regulations that may apply to their hiring practices, such as foreign workers or workers with disabilities.
Companies in Moldova need to be aware of their responsibilities under anti-discrimination laws that forbid bias based on factors like a person’s race, ethnicity, gender, religion, or disability.
Employers must ensure their workers’ safety on the job in accordance with health and safety laws. Workers should be provided with safety training and not be forced to perform dangerous tasks.
Why is Moldova a good choice for finding remote employees?
Moldova should be on your list of potential locations if you’re looking to hire remote workers. The country has a highly educated workforce, with over half of the population completing tertiary education.
An outcome of this is a labor force that is not only technically proficient but also very open to learning new skills and ways of doing things. Businesses in Moldova benefit greatly from the country’s low tax rates; since this is the case, it’s a great place to start a company or take an existing one to the next level.
Moldova is an excellent option for companies exploring Eastern European locations. A highly educated and flexible labor force, favorable tax policies, a low cost of living, a convenient location, and first-rate infrastructure are just a few advantages this country offers.
How can Native Teams help you hire in Moldova
The hiring process in Moldova can be complicated and time-consuming. That’s where the assistance of Native Teams comes in handy. Native Teams deeply understand the Moldovan culture and know what candidates would be a good fit for your company. Moreover, with our employer of record services, we can assist you in the recruitment, onboarding, and maintenance of new staff members, as well as the maintenance of compliance with Moldovan labor regulations.
Hire your first Moldovian employee with Native Teams.
Legal requirements for hiring in Moldova
The legal minimum salary in Moldova is MDL 1,900 ($96) per month for private sector employees and MDL 1,000 ($50) for government workers. The current minimum wage in Moldova went into effect on May 1, 2015.
Contributions & taxes
Beginning on January 1, 2021, only employers will be responsible for contributing Social Security Tax (SSC) of 24% (subject to certain restrictions) of their employees’ gross wage, meal tickets, and other remunerations to the Social Security Fund. For all different types of taxpayers, the law sets up an annual fixed SSC in an amount that is approved annually (e.g. MDL 12,838 applicable in 2022).
Employers are obligated to withhold 12% of an employee’s taxable income as income tax, but there is no other payroll tax. In addition, there is no capital tax. Moldovan citizens and foreigners who own land or buildings must pay Real estate tax.
There is a 12% CIT fee. An additional CIT rate of 15% may be levied on any amount of income found to be in excess of the stated gross income by the Moldovan Tax Authority (MTA) through indirect means.
Employers are obligated to withhold 12% of an employee’s taxable income as income tax, but no separate payroll tax exists.
An individual’s tax liability is often calculated by considering both their tax domicile and the origin of their taxable income. An individual’s taxable income in Moldova is calculated using a single tax rate of 12%.
To calculate the salary and taxes in Moldova please click here.
Regular payroll is distributed on the 25th of every month to all employees.
Is there a 13th salary in Moldova?
In Moldova, there is no mandate to pay a 13th salary.
If an employee is being let go because of a company-wide downsizing or liquidation, the employer is required to give two months’ notice; if the termination is due to poor performance, the employer is only required to provide one month’s notice.
Moldova has a 3-month probationary term, with officials subject to 6 months. Each employment contract must include a probationary period. There is a 15 days trial period for ineligible employees.
Severance pay is typically calculated as 1 week’s salary for each year of service, with a minimum of 1 month’s salary paid out to employees who lose their jobs due to economic reasons. In most cases, a 2-week pay period is owed to terminated employees for reasonable cause.
Leave and benefits
Most employers must provide their staff with a minimum of 28 calendar days of paid annual leave per year without including paid holidays. The time off can be split up into multiple 14-day chunks if necessary.
Moldova celebrates 11 national holidays:
- New Year’s Day
- Orthodox Christmas
- International Women’s Day
- International Solidarity Day of Workers
- Orthodox Easter Monday
- Victory Day
- Memorial/Parents’ Day
- International Children’s Day
- Independence Day
- National Language Day
- Western Christmas
Workers can get paid sick days if they provide a doctor’s note verifying their illness. Sick days are covered under the government’s social security system.
Maternity leave & paternity leave
How long an employee gets to go on vacation depends on their job title, their length of service, and their health coverage. A standard maternity leave policy in place allows working mothers to take off work for a total of 56 days after giving birth and 70 days before.
Employees are usually eligible for a partially compensated holiday until their child becomes three years old. The social insurance budget covers both paid parental leave and reduced-rate holidays.
If a female employee for the company has two or more children under the age of 14, she will receive four extra days of paid vacation.
Employees who are mothers of two or more children under the age of 14 or single parents of at least one kid under the age of 14 are eligible for 14 calendar days of unpaid leave, which can be utilized in addition to or of the year’s paid holiday. Vacation time with a child under six can be taken without pay beginning when the youngster is three. The leave period may be shorter or longer depending on the employee’s job and tenure.
If you are a father, grandmother, or other relative caring for a child under three, you may be entitled to paid time off.
Other leave (marriage, bereavement, exam leave)
Not specified by law.
Health security & private insurance
*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
Why use Native Teams for hiring in Moldova?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.