COUNTRIES, Europe
Posted on by

HRsolution » COUNTRIES » Moldova, Republic of

  1. Population:

Moldova has a population of approximately 2.6 million people (2023), though this number has decreased over recent years due to emigration. A significant number of Moldovans work abroad, primarily in Europe and Russia.

  1. Capital:

The capital city of Moldova is Chișinău, which has a population of around 530,000. Chișinău is the largest city and the administrative, economic, and cultural center of the country.

  1. Economic Strength:

Moldova is one of the poorest countries in Europe, with a GDP of around $13 billion USD (2023). Its economy relies heavily on:

  • Agriculture: Moldova has a strong agricultural base, producing wine, fruits, vegetables, and tobacco. Wine is one of the country’s major exports.
  • Remittances: A large portion of Moldova’s economy is sustained by remittances from Moldovans working abroad, contributing up to 15% to 20% of the GDP.
  • Manufacturing and Textiles: There is also some industry in textiles and light manufacturing, often for export to the EU and other neighboring markets.

Moldova faces challenges with infrastructure, economic diversification, and political instability, which limit its economic growth potential.

  1. Culture:

Moldova has a rich cultural heritage influenced by Romanian, Slavic, and Turkish traditions due to its historical ties with neighboring countries. Moldovan and Romanian are the official languages, and Russian is also widely spoken. Eastern Orthodox Christianity is the dominant religion, and religious festivals are important cultural events. Moldova is known for its folk music, dance, and wine culture.

  1. Currency:

The official currency of Moldova is the Moldovan Leu (MDL).

  1. Health Insurance and Social Security System:

Moldova has a public healthcare system that is funded through mandatory health insurance contributions from both employers and employees. However, the system faces challenges such as underfunding, lack of modern equipment, and limited rural healthcare access. Private healthcare is also available for those who can afford it.

The social security system covers pensions, unemployment benefits, maternity leave, and disability benefits. It is funded through a combination of employer and employee contributions.

  1. Costs for the Employer:

Employers in Moldova are required to contribute to several social funds. The major contributions include:

  • Social Security Contributions: Employers contribute 18% of an employee’s salary to the social security system.
  • Health Insurance: Employers contribute 4.5% to health insurance on behalf of their employees.

These contributions are part of the country’s broader social protection system.

  1. Salary and Bonuses in Moldova:

In Moldova, wages are relatively low compared to other European countries. However, performance-based bonuses are sometimes offered, particularly in foreign-owned companies operating in Moldova.

  1. Payslip:

A typical payslip in Moldova includes:

  • Gross Salary
  • Deductions:
    • Income Tax: Moldova has a flat tax rate of 12% on income.
    • Social Security Contributions: Employee contributions amount to 6%.
    • Health Insurance Contributions: Employee contributions amount to 4.5%.
  • Net Salary
  • Additional details on any bonuses or overtime payments.

  1. Public Holidays:

Moldova observes 14 public holidays throughout the year, including:

  • New Year’s Day (1 January)
  • Orthodox Christmas (7 January)
  • International Women’s Day (8 March)
  • Orthodox Easter (varies)
  • Labour Day (1 May)
  • Victory and Commemoration Day (9 May)
  • Independence Day (27 August)
  • National Language Day (31 August)
  • Orthodox Christmas (Old Calendar) (25 December)

In addition, there are several religious holidays based on the Eastern Orthodox calendar.

  1. Working Hours:

The standard working week in Moldova is 40 hours, typically 8 hours per day from Monday to Friday. Overtime work is regulated and usually compensated at a higher rate (typically 150% of normal pay). The maximum legal working hours including overtime cannot exceed 48 hours per week.

  1. Vacation:

Employees in Moldova are entitled to a minimum of 20 days of paid annual leave. Some employment contracts may offer additional days based on seniority or the industry.

  1. Sick Leave:

In case of illness:

  • Sick Pay: Employers are required to provide sick pay for the first 5 days of illness. After that, the National Social Insurance House covers the payment for the remainder of the sick leave. Sick leave compensation is typically 75-100% of the salary, depending on the duration of employment and illness severity.
  • Employees must present a medical certificate to qualify for sick leave benefits.

  1. Termination/Severance:

Termination and severance in Moldova are regulated by the Labour Code:

  • Notice Period: For dismissal, employers must provide a notice period of at least 30 days.
  • Severance Pay: Employees are entitled to severance pay if they are terminated for certain reasons, such as redundancy. The typical severance pay is equal to 1 month’s salary but can be higher depending on the collective agreement or specific circumstances.

Employees can challenge dismissals they deem unfair, and compensation may be awarded if the dismissal is ruled unlawful.

Moldova is a country with a developing economy, heavily reliant on agriculture and remittances. While wages are low compared to other European nations, Moldova offers a unique cultural blend and has a growing service sector, especially in areas like IT outsourcing. The social security and healthcare systems are basic but improving with efforts toward modernization.

Our services:

Haben Sie Fragen? Wir helfen Ihnen gerne weiter!