Payroll and HR
Administration in Moldova

Moldova – Payroll and HR administration services

Global Expansion Plus provides payroll and HR administration services in Moldova. Use our solutions to take care of your people in Moldova. We make sure that your people are being taken care of, and your entity is safe from violating local legislation. The Labor Code governs the Moldovaian labor relationship.

Hiring and onboarding employees in Moldova

If you are hiring a foreign employee, you need to consider obtaining the work permit first. Please see below. Once you agreed on the job offer with your future employee, you need to start the onboarding process.

Onboarding Process

In Moldova, you can have infinite and fixed contracts. The term of a fixed contract can not be more than five years. The contract can be collective or with each person separately. Labor contracts cannot breach labor legislation of the Republic of Moldova.

Probation Period

The trial period is not mandatory, and if not stipulated in the labor agreement, it is considered to be not applied. There are limits that are set by the Labor Code:
  • 15 days for the wage worker;
  • Three months for skilled employees;
  • Six months for directors and executives;
If an employee is on a fixed contract, there are also limits set by the Labor Code:
  • 15 days for the fixed-term contracts between three and six months;
  • 30 days for the fixed-term contracts over six months;

Health and Safety

A medical checkup is performed for the employees that occupy professions that can affect public health and be dangerous in nature. Moldavian health and safety regulations are based on post-soviet union norms but were mainly harmonized with EU norms and rules.

Work permits and Visas in Moldova

Visa Types

Visas to Moldova are provided by consular missions and embassies of the Republic of Moldova in foreign countries. Also, an electronic visa (type C) is provided by the Directorate for the consular affairs of the Ministry of Foreign Affairs and European Integration of the Republic of Moldova.
The types of visas granted by the Republic of Moldova are the following:
  • Visa Type A - The airport transit visa, that allows staying in the airport area before the flight to the next destination;
  • Visa Type B - The transit visa, that allows us to stay in Moldova for a maximum of 5 days and then transit to another country;
  • Visa Type C - The short-stay Visa that enables the multiply to entry to Moldova and stays for 90 days. The Visa is granted from 180 days during which period a person can enter and exit Moldova. The total amount of days in Moldova should not exceed 90 days;
  • Visa Type D – The long-stay Visa, which also allows 90 days stay in 180 days span, but in addition allows to submit for the work permit;
The following is a sample of the list of documents that need to be submitted to the consulate to obtain Visa:
  • Filled in the visa application form;
  • One photo 3x4 sm;
  • International passport or any other form of travel document;
  • An invitation letter is needed;
  • Supporting documents, that provides evidence for application form;
  • Insurance policy;
  • Receipt from the payment of the consular fee.

Work Permit

National Agency for Employment issues work permits. The company that is an employer or legal representative needs to submit the following documents to the Agency:
  • Information about the applicant company;
  • The application form on the foreign employee;
  • Copy of the approval of the Agency to employ foreigner;
  • Copy of article of association of the company;
  • Documents proving the activity of the company, financial reports, tax returns;
  • Employment contract;
  • International Passport with border crossing marks;
  • The copy of Diplomas and other prove of educational records;
  • The copy of Diplomas and other prove of educational records;
  • Health certification about the absence of HIV;
  • A document that proves the rent of place for living;
  • Photo 5x6 sm.
  • Criminal record extract from the country of origin;

Working hours and leaves in Moldova

Working hours and overtime

Moldavian Labor Code sets the workweek of 40 hours. Under a special circumstance the workweek can be reduced:
  • Up to 24 hours for employees at the age of fifteen and sixteen;
  • Up to 35 hours for employees between the age of sixteen to eighteen;
  • Up to 35 hours for employees working under harsh conditions;
  • Up to 30 hours for employees with group I ad II disability;
An employee can work overtime only by providing written consent to an employer. Overtime can not exceed 120 hours in a calendar year. The daily work can not exceed 12 hours in total. The compensation of overtime should be at least 1,5 of regular pay. A settlement for overtime with day offs is not permitted.

Vacation leave

Moldavian legislation secures the right for employees for 28 paid annual vacation leave. One of the vacations during the year can not be less than 14 days in a row. People with disabilities have their vacation right increase by four days. An employee needs to provide an employer with an annual vacation plan; the vacation pay needs to be prepaid before the vacation days.

Sick leave

Moldova operates an electronic system for sick leave. Once a disability to perform at work is established, the sick leave certificate is sent to the National Social Security office.
The employer pays the first five days of sick leave. The National Social Security Fund reimburses the rest. The employer shall not pay more than 15 days of sick leave of a given employee for the calendar year.
The employer pays the first five days unconditionally, while National Social Security funds pay the sick leave compensation if the total work experience is over three years.
An employer pays 75% of the average salary of an employee for the first five days. The National Social Security Funds reimburse the average salary of an employee based on the previous 12 months. However, the amount cannot exceed five of the average wages set by the government.
The amount of reimbursement also depends on the work experience of the employee:
  • 60% of five years of work experience;
  • 70% before five and eight years of work experience;
  • 90% of the work experience over nine years;

Maternity and paternity leave

Maternity leave is divided into before and after a birth period:
  • 70 days before the birth of a child;
  • Fifty-six days after baby delivery.
The second maternity leave can be prolonged to 70 days if the pregnancy is with difficulty, or it is a twine. The National Social Security Fund pays maternity leave. After the end of maternity leave, the mother can get on childcare leave, and the National Social Security Fund will pay it.

Moldavian Holidays in 2020

  • 01-02 January 2020 - New Year
  • 07-08 January 2020 - Orthodox Christmas
  • 08 March 2020 - Women's Day
  • 12 April 2020 - Catholic Easter
  • 19-20 April 2020 - Memorial Easter
  • 29 April 2020 - Commemoration day
  • 01 May 2020 - Labor Day
  • 09 May 2020 - Victory Day
  • 01 June 2020 - International Children's Day
  • 27-28 August 2020 - Independence Day
  • 31 August 2020 - National Language Day
  • 07 November 2020 - October Revolution day
  • 25 December 2020 - Christmas

Remuneration & Benefits in Moldova

Minimal wage salary is set one per year and equal to MDL 2185 (USD 122,36) in gross. The net pay will be equal to MDL 1 819 (USD 102), and the total cost of employment will be equal to MDL 2676,63 (USD 149,89).

Employee termination and severance in Moldova

There is many reasons to terminate employment in Moldova, including company termination and employee inability to perform his/her duties. Terminations cannot take place durion vacation leave, sick, and maternity leave.

Notice period

An employer needs to inform an employee in advance:
  • two months period, in case of company liquidation;
  • one month period, in case of an employee, cannot fulfill its duties;
The employee notification period is 14 days.

Severance payment

An employer should provide a severance payment in the amount of the average weekly payment for every worked year, and the payment shall not be less than one average monthly salary.

Payroll related taxes in Moldova

Employee taxes

Employees are paying Personal Income Tax of 7 % under MDL 29,640 (USD ), the amount over is taxed at 18%. The tax base is calculated as a gross salary minus payment of social contributions. Besides, the are two payments to the Social Security Funds:

  • Social Security Funds - 6%;
  • Medical Insurence Fund – 4.5%;

Employer taxes

Employers are paying to two funds:
  • Social Security Funds - 18%;
  • Medical Insurence Fund – 4.5%;
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