Employment Law in Moldova

Contracts

In Moldova, employment contracts can be fixed-term or indefinite, depending on the nature of the job and the agreement between the employer and employee. Indefinite employment contracts must include benefits such as social security contributions (29% employer-paid), paid annual leave (28 days), and health insurance (9% employee contribution). Fixed-term employees are entitled to the same benefits as indefinite employees from the first day of work. 

Moldova also has traineeship contracts, primarily for skill development, governed by the Labour Code (Article 5). Employers hiring graduates under 29 with no prior work experience must provide a 6–12- month traineeship. These contracts require employers to: 

• Assign a mentor with at least three years of experience
• Pay at least the minimum wage
• Limit traineeship duration to 12 months
• Convert to indefinite contracts upon completion

Termination and notice periods

In Moldova, labor law requires employers to provide written notice of termination, with a minimum of one month for employees dismissed without fault, and up to two months in cases of company liquidation or staff reduction. In most cases, terminated employees are entitled to a fair process, and just cause for dismissal includes the following: 

• Theft
• Disorderly behavior
• Bribery
• Insubordination
• Habitual negligence of duty
• Lack of capability
• Financial irregularities 

Employees with at least one year of continuous employment are entitled to severance pay equivalent to one week’s wages for each completed year of service, with a minimum of one month’s wages. There is no statutory gratuity payment in Moldova; however, additional compensation may be provided based on employment contracts or collective agreements. As your employer of record (EOR) in Moldova, we can assist you in managing employee terminations by providing legal guidance and a personalized process to ensure compliance with national labor standards and minimize legal risks.

Probation periods

In Moldova, probation periods are explicitly addressed in local law, generally set at three months in the private sector, with similar durations applicable in government employment, as specified in employment contracts. For managerial positions, the probation period may extend up to six months, while for unqualified workers, it is limited to 15 calendar days.

Working hours and overtime

In Moldova, the standard workweek is typically Monday through Friday, with eight hours per day, totaling 40 hours per week. Employees are prohibited from working for more than eight hours a day without appropriate compensation. 

Any work beyond eight hours a day is considered overtime, and employees are entitled to an additional compensation of at least 50% over their regular hourly rate for the first two hours, and 100% for subsequent hours. For work performed on rest days or public holidays, the overtime pay rate is higher, as specified by the Labour Code.

Taxes

In Moldova, withholding tax is known as income tax and is deducted by employers before paying salaries to employees. Employers must deduct income tax from employee salaries based on applicable income tax rates and submit it to the State Tax Service.

Employer payroll contributions

Moldova’s social security system requires employer contributions that are dependent on the total number of employees, and these contributions cover pensions, medical care, disability insurance, and gratuity payments. In addition, workers’ compensation is financed by contributions from state governments, employers, and employees.