Guide to employment, payroll and benefits in

Moldova (Republic of)

Rivermate offers complete payroll, benefits and compliance services for

Moldova (Republic of)

01. Overview

Last updated: 

August 19, 2021

Currency
Moldovan Leu
Capital
Chisinau
Ease of doing business
Language
Romanian
Population
4033963
GDP growth

02. Grow your team in

Moldova (Republic of)

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Moldova (Republic of)

, particularly if you don't have established local relationships. You can hire employees in

Moldova (Republic of)

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Moldova is a landlocked country in Eastern Europe, officially known as the Republic of Moldova. It is bordered on the west by Romania, and on the north, east, and south by Ukraine. Chișinău is the country's capital. From the 14th century until 1812, the majority of Moldovan territory was part of the Principality of Moldavia, which was ceded to the Russian Empire by the Ottoman Empire and became known as Bessarabia. Southern Bessarabia was returned to Moldavia in 1856, and three years later it merged with Wallachia to form Romania, but Russian control over the entire region was restored in 1878. Bessarabia briefly became an independent state within the Russian Republic, known as the Moldavian Democratic Republic, during the 1917 Russian Revolution. The Moldavian Democratic Republic declared independence in February 1918, and was subsequently incorporated into Romania by a vote of its assembly later that year. Soviet Russia contested the decision, establishing a Moldavian autonomous republic within the Ukrainian SSR in 1924 on partly Moldovan-populated territory to the east of Bessarabia. The Molotov–Ribbentrop Pact forced Romania to hand over Bessarabia and Northern Bukovina to the Soviet Union in 1940, resulting in the creation of the Moldavian Soviet Socialist Republic, which included the majority of Bessarabia and the westernmost strip of the former MASSR. The Moldavian SSR proclaimed independence and adopted the name Moldova on August 27, 1991, as the Soviet Union was dissolving. Moldova's constitution was adopted in 1994. Since 1990, the breakaway government of Transnistria has had de facto control of a strip of Moldovan territory on the Dniester's east bank. The service sector has risen to dominate Moldova's economy, accounting for over 60% of the country's GDP, as a result of a drop in industrial and agricultural production following the breakup of the Soviet Union. In terms of GDP per capita, it is the second poorest nation in Europe. Despite having a relatively high Human Development Index, Moldova is the continent's poorest country, ranking 90th in the world. Moldova is a parliamentary republic with a president who serves as both the head of state and the head of government. It belongs to the UN, the Council of Europe, the World Trade Organization, the Organization for Security and Cooperation in Europe, the GUAM Organization for Democracy and Economic Development, the Commonwealth of Independent States, and the Organization for Economic Cooperation in the Black Sea.

04. Public holidays

05. Types of leave

Paid time off

Employees typically receive 28 days of paid vacation each year.

Public holidays

New Year’s DayOrthodox ChristmasInternational Women’s DayOrthodox Easter MondayEaster of the BlajiniLabor DayVictory and Commemoration DayChildren’s DayIndependence DayNational Language DayRoman Catholic Christmas

Sick days

In Moldova, employees are not entitled to a specific amount of sick days. A proper medical certificate must be provided to the employer by the employee. During the first five days of sick leave, the company compensates the employee, and from the sixth day on, a social security payment is provided.

Maternity leave

An expectant mother is entitled to 70 days of leave before her due date (112 days if she is expecting three or more children) and 56 days following the birth of her kid (70 days if she gives birth to two or more children). Following maternity leave, any parent or another relative caring for the kid is eligible to a partially paid childcare leave until the kid reaches the age of three. The adult who is caring for the kid must fill out a formal application for this leave and is usually qualified for a social security reimbursement. Upon written request to the employer, another year of unpaid leave is permitted until the kid becomes four years old.

Paternity leave

When his child is born, the father is entitled to 14 days of paternity leave. Within 56 days of the birth, he can request leave and produce a copy of the birth certificate. The father may be eligible for a social security payment while on paternity leave, which must be at least as high as his average earnings for the period he is on leave. Employers must encourage dads to take paternity leave, and they must not penalize or make it difficult for them to do so.

Parental leave

Other leave

06. Employment termination

Termination process

Employers are only permitted to fire employees for legally authorized grounds. Acceptable reasons are typically related to the employer's economic condition or to the employee's failure to execute their job or their behavior. A probationary employee may be terminated at any moment and is not entitled to severance pay.


In other circumstances, the employer must offer two months' notice if the employee is being terminated due to the liquidation or reduction of the business's workforce, and one month's notice if the employee is being terminated for the majority of performance reasons. If the employee is being terminated for grave misconduct, no notice is necessary. If an employer wishes to terminate an employee who is a member of a union, the business must first negotiate with the union. Within ten days of the consultation, the union must indicate its agreement or disagreement.


Employees may resign from their jobs by providing their employer with 14 days written notice. Employees who retire on pension, take childcare leave, enroll in an educational institution, relocate, or resign for other legally recognized reasons may resign with a shorter notice time.


Contracts with a fixed period typically expire at the end of the term. If the work relationship persists beyond the contract's expiration date without either the employer or the employee ending the relationship, the contract is automatically transformed to an indefinite-term contract.


Employees receive severance pay equal to one average week's wage for each year worked if the firm liquidates or closes.

Notice period

A notice period of two months is only applicable in certain circumstances.

Severance pay

The severance payment is tantamount to one average week's worth of wages for every year of service by the terminated employee.

Probation period

Probationary periods of up to 3 months, and six months for officials, are allowed and may not be renewed according to Labor Laws in Moldova.

07. Working hours

General

The workweek is normally 40 hours long and consists of five days, although an employer may opt for a six-day workweek if it is more appropriate for the employer's business.


Younger workers have fewer hours available to them. Employees aged 15 or 16 may work a maximum of 24 hours per week, while those aged 16 to 18 may work a maximum of 35 hours per week. Additionally, workers who work in hazardous conditions recognized by the government are limited to 35 hours per week.


The typical workday is eight hours for adults, seven hours for employees aged sixteen to eighteen or who work in hazardous conditions, and five hours for employees under the age of sixteen. A workday may not exceed ten hours, but collective bargaining agreements may establish 12-hour days that must be followed by a minimum of twenty-four hours of rest. Workers with disabilities may work a limited number of hours if their doctor recommends it.


Shifts at night (from 10 p.m. to 6 a.m.) are one hour shorter than daytime shifts for employees who normally work full time during the day. This is not required of employees who work fewer hours during the day or who work exclusively at night. Employees who work 120 or more hours at night in a six-month period must undergo an employer-paid medical examination. Certain employees are prohibited from working at night.

Overtime

Overtime work is limited to 120 hours per year, though this limit may be increased to 240 hours in certain circumstances by a collective bargaining agreement. Employers may require overtime without the employee's consent in certain emergency situations, but the employee must consent to overtime in other urgent situations, and both the employee and employee representatives must consent in non-urgent situations. Employees under the age of 18, pregnant women, and those deemed unfit to work overtime by their doctors are not permitted to work overtime.


Workers with severe disabilities who are the parent or guardian of a child under the age of four or a disabled child, are on childcare leave, or are caring for a sick family member may work overtime only with the employer's written consent after being advised of their right to refuse overtime work. Overtime is compensated at 150 percent of the employee's standard hourly rate for the first two hours, and at 200 percent for additional hours. Work performed on holidays or on an employee's day off is compensated at double the employee's regular rate, or the employee may elect to receive their regular rate of pay and an unpaid day off on a day they would normally work.

08. Minimum wage

General

The minimum salary in Moldova varies depending on the kind of employment. Employees in the private sector get 1,900 Moldovan lei a month, while those in the public sector should earn at least 1,000 lei.

09. Employee benefits

General

Although the state health insurance covers basic care and emergency care, many treatments must be paid for out of cash.

Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Moldova (Republic of)

to hire a team takes time, money, and effort. The labor law in

Moldova (Republic of)

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Moldova (Republic of)

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Moldova (Republic of)

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Moldova (Republic of)

via our Employer of Record / PEO solution.

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