Expand your organization into Moldova with or without a Moldovan entity
While Moldova is among the poorer countries in the region, many foreign businesses are recognizing its potential for growth and choosing to invest in the small Eastern European nation.
However, as with any country, Moldova can present some difficulties for foreign businesses. The language barrier is an obvious factor, but businesses should also consider the complex and many inefficiencies that exist in the Moldovan system and can lead to significant delays to expansion efforts.
At New Horizons, we provide a full range of outsourcing services to assist businesses with their Moldova expansion. Our employer of record, professional employer organization (PEO), and payroll services give you everything you need to build and expand your business in Moldova, even if you don’t have an in-country entity. Our in-house recruitment team can even find, recruit, and onboard your local workforce, as well as handling all ongoing HR administration.
New Horizons provides everything you need to expand into Moldova quickly and effectively while potentially saving you thousands in setup costs.
Our Moldova PEO simplifies your expansion
New Horizons enables your business to expand operations into Moldova – without setting up a legal subsidiary.
Hiring in Moldova: Employment law overview
Employment contracts in Moldova
Employers in Moldova must provide written contracts of employment for every employee they hire. These contracts should cover any details of employment such as compensation, entitlements, vacations leave, and so on. They should also be written in the local language of Romanian and reference the national currency of the Moldovan leu.
Working hours in Moldova
The standard working week in Moldova is 40 hours over five days of eight hours.
Public holidays in Moldova
There are several annual public holidays celebrated in Moldova. Most employees in the country receive the following days as leave from work:
- New Year’s Day
- Orthodox Christmas
- International Women’s Day
- Parents’ Day
- International Children’s Day
- International Solidarity of Workers Day
- Orthodox Easter Monday
- Independence Day
- National Language Day
- Western Christmas
- Victory Day
Moldova vacation leave
Employees in Moldova’ are usually entitled to 28 days of paid vacation leave annually, with one continuous period of at least 14 days.
Moldova sick leave
Employees in Moldova can take paid sick leave when they present a medical note as proof. The compensation is covered by the government.
Parental leave in Moldova
Female employees in Moldova can take 70 days of paid maternal leave prior to giving birth and 56 days after, for a total of 126 days. Additionally, employees can generally take extra leave for childcare until their child turns three, but the specific entitlements vary. Mothers of more than two children under 14 are also able to take four extra days of paid annual vacation leave.
Other relatives (such as fathers) who have childcare responsibilities for young children can generally take an allowance of extra leave with partial compensation.
Terminations and severance 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.
Taxation 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.
Health coverage in Moldova
Health coverage in Moldova is provided by the government. However, private medical care is also used fairly commonly and some employers choose to offer private insurance as a benefit to employees.
Moldova compensations & benefits
Compensation laws in Moldova
The minimum wage in Moldova is 2,775 leu per month for full-time private-sector employees.
Benefit management in Moldova
Setting up your Moldovan benefits system can be a confusing process if you are not familiar with the complex labor laws, language, and cultural differences. Be prepared for a time-consuming process and potential delays.
At New Horizons, we specialize in building and running Moldovan employee benefits systems. We’ll handle everything, using our experience to ensure you are ready to commence your Moldova operation as quickly as possible.
New Horizons will help you expand your business into Moldova faster
New Horizons’ Moldovan employer of record, PEO, and payroll outsourcing services can give your business everything necessary to begin trading in Moldova quickly and compliantly. Our experienced team will ensure that you are set up and trading in Moldova in as little as 48 hours, and could save you more than 80% in expenditure, even if you haven’t established an entity in Moldova.
Our team can take care of your organization’s benefits, expenses, payroll, and compliance work in Moldova, as well as all ongoing HR administration. And as the only global PEO with an in-house recruitment team, New Horizons can also find and recruit your local employees, using our Moldovan subsidiary as employer of record so you don’t have to establish an entity.
Contact us today to learn how our services can help you expand into Moldova more effectively.