Employer of Record in Moldova

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in another country. If you want to hire someone in Moldova but don't have a legal entity there, an EOR is a straightforward solution. The EOR handles all the legal and HR tasks, like payroll, taxes, benefits, and compliance with Moldovan labor laws. This lets you focus on managing your employee's day to day work. For companies looking to hire in Moldova, Rivermate provides EOR services to simplify the process.

How an Employer of Record (EOR) Works in Moldova

Using an EOR in Moldova follows a simple process. Here is how it generally works:

1. You Find the Candidate: You recruit and select the person you want to hire in Moldova.
2. The EOR Hires Them: The EOR legally hires the employee on your behalf under a compliant local employment contract.
3. Onboarding is Handled: The EOR manages all the necessary onboarding paperwork and procedures.
4. Payroll and Benefits are Managed: The EOR takes care of paying your employee, withholding taxes, and managing all legally required benefits.
5. You Manage the Work: Your new team member works for your company, and you manage their daily tasks and projects.
6. Ongoing Compliance: The EOR ensures that your employment practices remain compliant with Moldova's labor laws.

Benefits of Using an EOR for Hiring in Moldova

Using an EOR to hire in Moldova gives your business a significant advantage. It allows you to enter the Moldovan market and access a skilled workforce quickly and without the high costs and complexities of setting up a local company. This approach is ideal for testing the market or for companies that need to hire for specific projects.

• Faster Market Entry: You can hire employees and start operations in Moldova much faster than if you had to establish a legal entity.
• Reduced Costs: Avoid the significant expenses associated with setting up and maintaining a foreign subsidiary.
• Guaranteed Compliance: EORs are experts in local labor laws, so you don't have to worry about navigating complex Moldovan employment regulations.
• Less Administrative Work: The EOR handles all HR and administrative tasks, freeing you to focus on your core business activities.
• Access to Local Talent: You can easily tap into Moldova's workforce and find the right people for your team.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Moldova includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Moldova.

Hiring in Moldova offers access to a skilled workforce, but it's important to understand the local labor laws. Navigating the legal requirements for employment contracts, working hours, and holidays is key to a successful partnership with your Moldovan team. This guide breaks down what you need to know.

Employment contracts & must-have clauses

Written employment contracts are mandatory for all employees in Moldova. The contract must be in Romanian (Moldovan), though a bilingual version is also acceptable. You can hire employees on either an indefinite or a fixed-term contract. Fixed-term contracts are for temporary work and cannot exceed five years.

Your employment contracts must include these essential clauses:

• Party Details: Full legal names and details for both you (the employer) and the employee.
• Job Description: A clear definition of the employee's role, duties, and responsibilities.
• Start Date: The official first day of employment.
• Work Location: The primary place where the employee will work.
• Salary: The salary must be stated in Moldovan Leu (MDL).
• Working Hours: The agreed-upon daily and weekly work schedule.
• Leave Entitlements: Details on annual leave and other types of leave.
• Probation Period: If applicable, the length of the probation period must be stated.

Probation periods

You can include a probation period in your employment contract to assess a new hire's suitability for the role. The maximum length of a probation period depends on the type of role and contract:

Working hours & overtime

The standard workweek in Moldova is 40 hours, typically structured as eight hours per day over five days.

• Overtime: Any work beyond the standard 40 hours is considered overtime.
• Overtime Limits: Overtime is generally limited to 120 hours per year.
• Overtime Pay: Overtime work must be compensated at a higher rate. For the first two hours of overtime, the pay rate is 1.5 times the regular salary, and any additional hours are paid at double the rate.

Public & regional holidays

Employees in Moldova are entitled to paid time off for public holidays. The country observes a number of national and religious holidays throughout the year.

Here are the public holidays in Moldova:

• New Year's Day: January 1
• Orthodox Christmas: January 7 & 8
• International Women's Day: March 8
• Orthodox Easter Monday: Date varies
• Day of Remembrance: Date varies (the second Monday after Orthodox Easter)
• International Day of Solidarity of Workers: May 1
• Victory Day: May 9
• Children's Day: June 1
• Independence Day: August 27
• Our Language Day: August 31
• Christmas Day: December 25

Hiring contractors in Moldova

Hiring independent contractors can be a flexible option for project-based work. Unlike employees, independent contractors are not covered by Moldova's Labor Code. This means they are not entitled to benefits like paid leave or minimum wage. The relationship is governed by a civil or commercial service agreement, not an employment contract.

However, you must be careful to avoid misclassification. If a contractor is deemed to be working as an employee, your company could face serious penalties. This can include back payments of taxes, social security contributions, and employee benefits.

An Employer of Record (EOR) can help you mitigate this risk. An EOR acts as the legal employer for your workers in Moldova, ensuring that they are classified correctly and that all local labor laws are followed. This allows you to work with talent in Moldova without the risk of misclassification and the complexities of navigating local employment regulations.

Understanding compensation and payroll in Moldova is straightforward. The system is designed to be clear for both you and your employees. You pay your employees monthly, and the country has a set minimum wage. Both you and your employees contribute to social security and health insurance. This ensures everyone is covered. The personal income tax is a flat rate, which simplifies calculations.

Payroll cycles & wage structure

In Moldova, you pay employees once a month. Most companies pay salaries around the 25th of the month. It is important to pay on time, as late payments can lead to penalties.

While not required, bonuses are a common way to reward employees and are usually detailed in the employment contract.

Overtime & minimums

The standard work week in Moldova is 40 hours, based on an 8-hour day. Any work beyond this is overtime. You must pay employees for this extra time.

• Overtime Pay: The first two hours of overtime are paid at 150% of the regular salary. Any additional hours are paid at 200%.
• Annual Overtime Limit: Overtime is generally limited to 120 hours per year. This can be increased to 240 hours with a collective agreement.
• Minimum Wage: The government sets a national minimum wage. As of 2025, the minimum wage in Moldova is 5,000 MDL per month.

Employer taxes and contributions

As an employer in Moldova, you are responsible for making social security contributions on behalf of your employees. These contributions fund pensions and social benefits.

Employee taxes and deductions

Your employees also contribute to social programs from their gross salary. You will withhold these amounts and remit them to the government. The personal income tax is a flat rate applied after deductions.

In Moldova, providing competitive benefits and understanding leave policies is key to attracting and retaining top talent. It's not just about what's required by law, but also about creating a supportive work environment. This guide breaks down the essential benefits and leave entitlements to help you navigate the requirements.

Statutory leave

Moldovan law provides employees with several types of leave.

• Annual Leave: Employees are entitled to 28 calendar days of paid vacation each year. At least 14 of these days must be taken consecutively.
• Maternity Leave: Pregnant employees receive 126 calendar days of maternity leave. This is typically split into 70 days before the birth and 56 days after.
• Paternity Leave: Fathers are entitled to 14 calendar days of paternity leave, which must be taken within 56 days of the child's birth.
• Sick Leave: Employees can take paid sick leave when ill. The first five days are typically paid by the employer, with subsequent days covered by social insurance.
• Parental Leave: After maternity leave, a parent can take partially paid leave until the child turns three.
• Additional Leave for Mothers: Mothers with two or more children under 14 get an extra four days of paid annual leave.

Public holidays & regional holidays

Moldova observes a number of public holidays. If you require an employee to work on a public holiday, they are entitled to double pay or a compensatory day off.

Typical supplemental benefits

To stay competitive, many companies offer benefits that go beyond the legal requirements.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you. An EOR handles the administrative tasks of managing payroll, social contributions, and employee benefits. This ensures you comply with all local labor laws. Using an EOR allows you to enter the market faster without needing to establish a legal entity in the country. This frees you up to focus on your core business goals.

Letting an employee go in Moldova requires careful steps. You must follow a specific process to stay compliant with local labor laws. This involves providing written notice, respecting notice periods, and paying severance when required. The process ensures fairness and transparency for both you and your employee.

Notice periods

When you terminate an employment contract, you must provide the employee with a notice period. The length of this period can vary depending on the reason for termination.

• General Notice: For permanent employees, a notice period of one month is typical.
• Financial Reasons: If the termination is due to economic reasons, like company liquidation or staff reduction, you must provide at least two months' notice.
• Unsatisfactory Performance: A one month notice is required if the termination is due to the employee's performance.
• Employee Resignation: If an employee decides to leave, they need to give you 14 days' notice.
• Probation Period: During a probation period, termination is possible with a three day notice.

Employees are not entitled to a notice period if they are dismissed for misconduct.

Severance pay

In Moldova, severance pay is mandatory in many termination scenarios. It is not required if the employee is terminated for misconduct.

• Standard Severance: An employee is typically entitled to severance pay equal to one week's wages for each year they have worked for you.
• Economic Reasons: If the termination is for economic reasons, the severance pay increases to at least one month's salary.

How Rivermate handles compliant exits

Navigating employee terminations in a different country can be complex. We make sure the process is smooth and fully compliant with Moldovan law.

We handle all the necessary steps for a compliant offboarding. This includes:

• Ensuring employment contracts meet Moldovan Labor Code standards.
• Managing the termination process according to regulations.
• Calculating and processing correct notice periods and severance pay.
• Handling all required documentation and final payroll.

We take care of the details so you can focus on your business.

Navigating visas and work permits in Moldova requires a clear understanding of the process. For anyone who is not a Moldovan citizen, a work permit is necessary to be employed legally in the country. The primary route for employment is through a long-stay visa, which then allows you to obtain a residence and work permit upon arrival. The employer plays a key role in this process, initiating the application on your behalf.

Employment visas & sponsorship realities

To work in Moldova, you will generally need a Type D long-stay visa. This visa allows you to travel to Moldova for long-term purposes like employment. Once in the country, you must obtain a residence permit and a work permit. The work permit is issued by the National Agency for Employment.

Your employer is responsible for starting the work permit application process. They must be a registered legal entity in Moldova to sponsor foreign workers. The employer needs to provide several documents, including:

• The original copy of your employment contract.
• Proof that you have accommodation in Moldova.
• A copy of the favorable opinion issued to them by the National Agency for Employment.
• Copies of their company's registration documents.

As the employee, you will need to provide documents such as:

• A passport-sized photo.
• A police background check from your country of residence.
• Proof of your qualifications for the job.
• A medical certificate showing you are negative for HIV/AIDS.

An Employer of Record (EOR) can act as your legal employer in Moldova and sponsor your work permit. This is a practical route if your company does not have a registered entity in the country. The EOR handles the necessary paperwork and ensures compliance with local immigration and employment laws.

It's important to note that citizens of the European Union, European Economic Area, and Switzerland do not need a work permit but still need to register with the authorities for extended stays.

Business travel compliance

For short-term business trips, you will likely need a Type C visa, also known as a short-stay visa. This visa is valid for up to 90 days within a 180-day period and covers activities like:

• Business meetings
• Cultural visits
• Tourist trips

Citizens of many countries, including those in the European Union, can enter Moldova for short stays without a visa. However, it is crucial to check the specific requirements for your nationality before you travel. You should not perform work activities on a short-stay visa. If you plan to engage in employment, you must obtain the proper work permit and long-stay visa.