Establishing and running payroll in Moldova
If you are planning a Moldovan expansion, one of your first steps will probably be hiring a local workforce. To do this you will generally need a legal entity in the country and will need to establish an in-country payroll and employment infrastructure. This can be a long and difficult process in many cases, taking several months to complete and causing delays.
A popular way to bypass the complexity of Moldovan employment is to outsource your payroll setup and management. At Horizons, we will work with you to build and run a compliant, fully functional Moldovan payroll to help you kickstart your expansion, whether or not you already have a registered entity in the country.
If you have an entity
If your organization has already registered an official entity in Moldova, then you can outsource your payroll setup and management to us to get expert support and to fast-track your operations.
This level of outsourcing is perfect for larger organizations that are looking to expand into Moldova long term.
If you don’t have an entity
If you have not registered a legal entity in Moldova, then our comprehensive outsourcing services can cover your payroll setup and management, making use of our established Moldovan subsidiary to act as employer of record.
This option is ideal for any organization aiming for a rapid, low-risk, and scalable route into Moldovan hiring and expansion.
How we can help you expand in Moldova
Moldova payroll guide
Taxation and withholdings requirements in Moldova
Employers and employees in Moldova both need to contribute toward social security funds. Employees must pay 6% of salary and employers must pay around 23%. Additionally, both parties must pay 4.5% toward health insurance.
Income tax for employees in Moldova is 12% salary.
Entitlements and terminations in Moldova
Employees in Moldova are generally entitled to between one and two months of notice prior to termination and can take one day per week to search for new employment.
Employees are usually entitled to a severance payment of one week of pay per year of service with an employer. When terminated for proper cause, they are usually entitled to a reduced severance payment of two weeks of pay.
How to establish a Moldovan payroll
In most cases, a foreign organization looking to establish a payroll in Moldova will need to register an official entity within the country. This can take longer than expected, and you will need you to closely adhere to the country’s complex employment regulations.
Alternatively, Horizons’ outsourcing can streamline your entire hiring and payroll process, facilitating your Moldovan expansion and ensuring you are fully prepared to grow your business successfully. Our employer or record service means that you can even benefit from our solutions if you have not registered a legal entity in Moldova, utilizing our Moldovan subsidiary to act as employer of record for your employees.
Your all-in-one solution for Moldova payroll outsourcing and global expansion
Horizons’ Moldova payroll services help your business to quickly and compliantly begin trading in Moldova, without the complex process of establishing a local entity and navigating local regulations. This can help your business to commence its Moldova operations in as little as 48 hours and has the potential to cut your expansion costs by more than 80%, whether or not you already have a registered entity in the country.
Our Moldova experts can also manage your organization’s payroll, expenses, and benefits in Moldova, along with HR duties and employment and tax compliance. As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, recruitment, and onboarding of your Moldovan workforce.