Salary Calculator
Moldova

The salary calculator in Moldova gives you insights into the net and gross salary. It takes into account the baseline or gross salary, bonuses, or other compensation. Then, the flat tax rate is applied along with the social security contributions regarding health and pension insurance. 

Once these deductions are calculated, what’s left is called net salary, which is the actual amount that the employee takes home.

In Moldova, social security contributions are divided between employers and employees, with specific rates for each. For employers, the total social security contribution rate is 24% and for employees is 9% of their gross salary. The combined total for social security contributions (employer plus employee) amounts to 33% of the gross salary.

In addition, there is a mandatory health insurance contribution of 9%, which employees fully bear. This structure is intended to fund various social programs, including pensions, unemployment benefits, and health care services. 

The personal income tax (PIT) in Moldova is set at a flat rate of 12% for most types of income, including salaries, capital gains, and income from entrepreneurial activities. However, there are some special rates — for instance, income from farming enterprises is taxed at 7%. Plus, dividends are taxed at a reduced rate of 6%, while certain other incomes, such as gambling winnings, can be taxed at 18%. 

The standard corporate income tax rate is 12% on taxable profits. Companies operating in the IT sector can benefit from a reduced tax rate of 7%, which consolidates various taxes into a single payment.

*Please note that these tax rates can vary based on legislative changes.

One of the primary benefits is paid annual leave, which consists of 28 calendar days per year. Additionally, employees in Moldova enjoy public holidays, with a total of 11 official holidays recognised throughout the year. 

Maternity leave is another significant benefit, where female employees are entitled to 126 calendar days of leave, divided into 70 days before childbirth and 56 days after. This policy supports mothers during a crucial time in their lives. Similarly, fathers are granted 14 calendar days of paternity leave within the first 56 days following the birth of their child, allowing them to support their partners and bond with their newborn.

Employees also have access to sick leave, which is typically compensated for the first 5 days by the employer. For longer periods of illness, compensation is provided by the social security agency upon presentation of a medical certificate. Furthermore, there are provisions for parental leave, allowing parents to take unpaid leave until their child reaches 3 years of age.

In Moldova, it’s fairly common for employees to provide supplemental health insurance. These health insurance plans cover a broader range of medical services and reduce out-of-pocket expenses for employees.

Another popular benefit is annual bonuses, which are typically performance-based and serve as an incentive for employees to meet or exceed their targets. In addition, transportation allowances are often offered to help employees cover commuting costs.

Employers may also provide meal vouchers as part of their benefits package. These vouchers allow employees to purchase meals during work hours.

Gross salary is an employee's total amount before any deductions are made. This figure includes the base salary and any bonuses, allowances, or other forms of compensation. It represents an employer's full financial commitment to an employee for their work and is often used as a basis for salary negotiations.

On the other hand, net salary is the amount that employees take home after all mandatory deductions have been applied to their gross salary. These deductions typically include taxes such as personal income tax, health insurance contributions, and social security contributions. The net salary is what employees receive in their bank accounts and is essential for personal budgeting and financial planning.