Hiring in Moldova

The contract sets out role, salary in MDL, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Contracts are normally drafted in Romanian, often with an English version alongside, and the job title must match a code in the national occupations classifier.

Fixed-term contracts are allowed only in the cases the Labour Code lists and are capped at five years, so most EORs default to indefinite terms.

Set probation from day one, because it cannot be bolted on later. Sick leave and other absences do not count towards it, so a long absence pushes the end date out.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

The first two overtime hours are paid at 150% of the hourly rate and later hours at 200%. Weekend and public holiday work is paid at double time unless time off is given instead, and the annual cap can rise to 240 hours with employee representatives' agreement.

There is no salary threshold that takes professional hires out of the overtime rules, so hours need to be set in the contract and tracked. Put the position in writing either way.

Public holidays falling within a leave period do not count against it, and leave can be split as long as one block is at least 14 days. Budget from the 28 days, which already equals about four working weeks.

The employer pays the first five days of each sick leave, up to 15 days a year, and social insurance covers the rest. Maternity leave runs 126 days and paternity leave 14 days, both paid by social insurance, so confirm the EOR is not billing the benefit on top of the contributions.

Redundancy and liquidation need two months' notice, while grounds such as unsatisfactory performance need one. Statutory severance is due only on redundancy or liquidation, at one week's average pay per year of service with a minimum of one month's pay.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any trade union consultation. Courts can order reinstatement with pay for the time out, so keep a documented reason.

Private medical cover is common for professional roles even though it is not mandatory, and there is no statutory 13th month salary.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 24% on top of gross salary. That is before the EOR fee.

IT Park status is the swing factor. Since February 2024, export-only staffing providers may qualify for the Moldova IT Park single 7% tax on sales, which replaces income tax and contributions, so ask whether the EOR's local entity is a resident. Two quotes for the same salary can differ sharply.

Ask whether the EOR applies through its own Moldovan entity or refers to a partner. The application rests on the contract with the Moldovan employer, so a partner-model EOR depends entirely on its partner, and the highly qualified route needs a salary of at least five times the average.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need a lawful basis.

Fines are phased in over the first two years, but the obligations already apply in full. Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick and inexpensive, but the running cost is the point: an administrator, accounting, monthly tax and payroll filings, audit thresholds and payroll software set an annual floor. For tech teams, an entity registered in Moldova IT Park pays a single 7% tax on sales in place of payroll taxes and contributions, which can bring the trigger forward.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.