Moldova is a landlocked country in Eastern Europe with borders by Romania and Ukraine. It’s a great place for companies looking to expand and build relationships. Setting up your payroll is one of the first things you have to do when you expand to Moldova. However, it can be challenging to choose a payroll option while you’re trying to hire employees, deal with compensation and benefits, and run your company.
Fortunately, we can act as the Employer of Record to manage compliance, handle payroll, and more, so you can begin hiring in minutes, not months.
Taxation rules in Moldova
Moldova’s taxation rules govern social security contributions, health insurance, and more. Employers contribute to social security at a rate of 24% of the gross salary to the Social Security Fund. Both employers and employees have to give 4.5% of wages to health insurance. However, this is 0% for professionals that work within Moldova IT Park due to the unique taxation rate. In these cases, health insurance is paid only by the employer.
Moldova payroll options for companies
Every company operates differently and needs a payroll option that works aligns with day-to-day operations, which is why you can choose from multiple Moldova payroll options, including:
- Internal: Larger subsidiaries can use an internal payroll to pay employees. Make sure you have the right infrastructure to run this type of payroll, including a full HR team, a subsidiary, and compliance experts.
- Local payroll processing company: A Moldova payroll processing company will handle payroll but not compliance. With this option, you’ll still be responsible for learning all of the country’s employment compliance laws.
- Global EOR: Working with a global EOR such as G-P is the only option that will allow you to streamline payroll compliantly. G-P handles the time-consuming complexities of payroll management so you can focus on building your teams.
How to set up a payroll in Moldova
The biggest requirement for setting up your Moldova payroll is also the most time-consuming. You have to establish a subsidiary before you can choose a Moldova payroll option and compensate employees — unless you work with a global EOR. We’ll use our existing subsidiary to help you start working faster. When you work with us, you can run your company without worrying about meeting Moldova’s different laws and regulations.
Entitlement/termination terms
Terminating an employee in a new country isn’t the same as in your home country. Adding entitlement and termination terms to an employment contract before you set up your Moldova payroll will help protect you and your team members. Termination of an employee is allowed with just cause, but it could be subject to the agreement of the trade union.
Employees typically get 1 month’s notice — or 2 months if the business is getting liquidated or for redundancy. Usually, employees are eligible for severance pay equal to 2 week’s wages for every year worked, but the termination process can also result in additional salaries.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading global employment platform. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.