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 with other Eastern European countries, but it’s not without its difficulties. Luckily, Globalization Partners can make a difference with Moldova payroll outsourcing.
Setting up your payroll is one of the first things you have to do when you expand. However, it can be challenging to choose a Moldova 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 take on all matters of compliance, handle payroll, and more.
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 their gross salary to the Social Security Fund. Both employers and employees have to give 4.5% of wages to health insurance.
Moldova Payroll Options for Companies
Every company operates differently and needs a payroll option that works with their day-to-day operations, which is why you can choose from multiple Moldova payroll options, including:
- Remote: You can pay employees remotely if your parent company already has its own payroll. However, your Moldova employees will have separate labor laws from your parent company’s employees.
- Internal: Larger subsidiaries can use an internal payroll to pay employees. You can do the same as long as you have a staff that will help you keep up with employment compliance laws and regulations.
- Local payroll processing company: A Moldova payroll processing company will handle your payroll but not the compliance. You’ll still be responsible for learning all of the country’s employment compliance laws.
- Global PEO: Working with a global PEO such as Globalization Partners is the only option that will allow you to outsource everything. We’ll add your employees to our existing payroll and also take on compliance as the Employer of Record.
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 PEO. Globalization Partners will 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.
Terminating an employee in a new country isn’t the same as in your native country. Adding entitlement and termination terms to an employment contract before you set up your Moldova payroll will help protect you and your employees. Termination of an employee is allowed with just cause, but it could be subject to the agreement of the trade union. Employees typically get one month’s notice — two months if the business is getting liquidated or for redundancy. Usually, employees are eligible for severance pay equal to one week’s wages for every year worked.
Payroll Processing Company in Moldova
Globalization Partners will help you expand without all the hassle. Contact us today to learn more about Moldova payroll outsourcing.