When you think about all the things you loved about your first real job, compensation and benefits probably rank high. Your employees care about the same thing, which is why you need a competitive Moldova benefits management plan that sets your company apart from others in the industry. Plus, meeting or exceeding Moldova’s compensation laws will ensure that you stay compliant.
Globalization Partners can help you source the right compensation and benefits and make sure you stay compliant. Our suite of global expansion services is designed to manage the risk so that you can manage your business. Through Moldova compensation and benefits outsourcing, we can ensure your employees get the best.
Moldova Compensation Laws
On September 1st, 2022, Moldova unified its minimum wage across all institutions. Previously set at different rates for private and public sector employees, the monthly minimum wage is now 3,500 Moldovan lei per month.
Guaranteed Benefits in Moldova
You need to make sure all employees receive guaranteed benefits required by law if you want to stay compliant. Your Moldova benefits management should include time off for the country’s 11 holidays as well as 28 calendar days of paid annual leave. Moldova also has a generous maternity leave policy that includes 70 calendar days before the birth and 56 calendar days after. Fathers receive 14 calendar days of paternity leave within the 56 calendar days of the birth. Employees also receive:
- Partially paid holidays until the child turns three
- Four additional days of paid annual leave for female employees with two or more children under 14
- Unpaid vacation of 14 calendar days for female employees with two or more children under 14 and single parents with at least one child under 14
- Partially paid holidays for fathers, grandparents, and other relatives who help with care until a child turns three
Moldova Benefits Management
Giving out more than just statutory benefits can help you encourage higher retention rates and bring in a higher level of talent. For example, employees typically get a holiday allowance corresponding to the wages they would get paid for the duration of their time off. This pay is due at least three days before the employee takes their vacation. Annual and performance-based bonuses aren’t required by law, but they are common.
Restrictions for Benefits and Compensation
Employers can run into trouble if they try to provide benefits and compensation before establishing a subsidiary in the country. The incorporation process can take a significant amount of time, money, and effort. However, you won’t have this restriction when you work with Globalization Partners. We’ll use our existing subsidiary to help you start working faster, so you can hire employees, onboard them, and pay them in just a day or two. Our Moldova benefits and compensation outsourcing services will ensure you stay compliant and give employees what they deserve.
Moldova Competitive Benefits Planning
Employee benefits planning in Moldova requires an understanding of employment laws and the labor market. With an informed approach, you can make a benefits plan that will stand out and keep your company compliant.
About your Moldova employee benefits plan
Your benefits packages will play a significant role in your company’s success, so it’s essential to plan wisely. During the recruitment process, your benefits will attract job seekers, encouraging candidates to apply and making it easier to fill your vacancies.
Once you’ve developed a team, your employee provisions can boost morale in the workplace and keep your business structure running smoothly. Well-planned provisions may even improve retention rates, helping you build an experienced workforce and limit your onboarding expenses.
Possible fringe benefits include:
- Annual bonuses
- Supplemental health insurance
- Transportation allowances
- Telecommuting facilities
- Meal vouchers
Benefits requirements in Moldova
While competing in the labor market is important, compliance is essential for keeping your company afloat. Before you think about optional benefits, you need to consider the provisions required by labor laws. These include:
- Public holidays off
- Paid annual leave
- Maternity leave
- Social security contributions
- Mandatory health insurance
Designing Moldova employee benefits plans
The design process can seem challenging in a new country, but you can create a strong plan with the right approach. You can follow the same basic steps anywhere in the world.
1. Set a budget
Benefits require funding, so you need to understand how much you’re willing to spend. Assess your revenue and existing expenses to determine an amount that works for you.
2. Evaluate the market
You need to understand the market and its standards to become competitive. Research companies in the area to identify commonly offered provisions. These benefits will inform employees’ expectations.
3. Build your benefits scheme
With your budget and research, you can choose provisions that fit your financial abilities. Make sure to consider the costs associated with the required benefits first.
Average cost of benefits
Characteristics such as scale, industry, and location can affect how much a company pays for benefits. Instead of using a national average to gauge your spending, you should create a budget unique to your revenue. You might do so by setting a percentage of your earnings for benefits. When your company grows, your employee provisions can grow along with it.
How to calculate benefits
Calculations will vary based on the benefit and any laws surrounding it. Many provisions come with straightforward calculations, such as allowances and bonuses. In these instances, employers can set an amount and distribute it among the team evenly.
Other calculations involve percentages. Employees must pay 9 percent of their wages to the public health insurance scheme, and employers must pay 24 percent of employees’ salaries to the social security fund. You can find more guidance for calculating required benefits in the country’s labor laws.
How are employee benefits taxed in Moldova?
The tax laws identify gross income as:
- Overtime pay
- Awards and bonuses
- Compensation from unused leave
- Benefits in kind
All income is taxed on a cash basis, so benefits in kind must have a determined cash value. Employees are entitled to specific deductions from their taxable income, but these are not the employer’s responsibility.
Employee health benefits
Mandatory health insurance funds the public healthcare system in Moldova, giving citizens free and low-cost care. Employers are responsible for making these health insurance deductions from employees’ paychecks. Many employers opt to provide a supplemental health insurance scheme as well, but it’s not required.
Work with Globalization Partners to build your global team
Globalization Partners’ global employment platform helps you build and scale an international team quickly and easily, ensuring all benefits offered to candidates are compliant and in line with local regulations. Learn more about our platform and request a proposal today.