Moldova
[Updated 4/16/24] Mandatory employee benefits in Moldova include social pension schemes, workers’ compensation, and health care. Common supplementary employee benefits in Moldova include healthcare and life insurance. There are several options of perks the companies may make available to their employees in Moldova.
Country Insight
Average Cost
The average monthly cost for a typical benefits package is between €300 and €500.
Mandatory and Supplementary Employee Benefits in Moldova
The available products on Moldova’s insurance market designed for personal protection are:
- Personal Accident insurance
- Travel Health insurance
- Group Life insurance
- Healthcare insurance
The products designed for both protection and savings are:
- Long-term life insurance with an investment component (Life Endowment)
- Critical illness insurance
Regarding the scope of cover, the available employee benefits products can be divided into three categories:
- Products designed for protection
- Products designed for personal savings
- Mixed products, which include both components
Employee Benefits Overview
Work accidents / Professional Diseases/ Workmen’s compensation
In Moldova, the State still handles the whole system through funds collected monthly from the employers and employees.
According to Law Nr. 756 of 24.12.1999, the Public System grants the following compensations in case of work accidents and/or professional diseases:
- a) Medical rehabilitation benefits
- b) Benefits for the recovery of work capacity
- c) Benefits for professional rehabilitation
- d) Indemnity for temporary incapacity of work
- e) Allowance for a temporary transfer to another job
- f) Permanent disability indemnity
- g) Death indemnity
- For Personal Accidents and professional diseases, facultative insurance products are available in addition to the benefits offered by the state system.
- The expenses of companies with insurance premiums related to personal accident insurance are tax-free, and the indemnities received following personal accident claims are also exempt from revenue taxation.
Employers’ Liability
- Law No. 186 din 10.07.2008 on Security and Health at Work has provisions regarding employers’ liability to pay indemnities in case of professional diseases, death, and permanent disability of the employees due to accidents at work when the employers are liable for accidents.
- Death and permanent disability indemnities are a burden. According to the law, liable employers must pay a lump sum indemnity equal to one annual salary for a deceased employee for each year remaining until 62, but not less than 10 annual salaries. In cases of disability, the payment will be one average salary for each percentage of capacity loss but not less than one annual salary of the injured employee.
- The employer’s liability risks may be included in facultative insurance coverage. In case of a claim, the insurer will pay the claimed amount regardless of any other payment from Social Security Fund or other insurance schemes.
- The facultative insurance indemnities are subject to the policy limits.
Healthcare – Public and Private
There are available two Medical Insurance coverages:
- Compulsory health insurance
- Private health insurance
The insurance premium for compulsory health insurance is paid monthly, with 9% of the employee contribution. Employers pay the National Health Insurer on behalf of the employee.
Private insurance companies provide facultative health insurance. Following the Fiscal code, only 50% of the employer’s expenses with private health insurance are tax-free.
Private Health Insurance Coverage
In Moldova, healthcare is the number one preferred benefit, as employees are interested in easy and no delays in accessing private health institutions, including private clinics. However, only 5 of the 9 insurance companies in Moldova supply health insurance coverage.
- Outpatient coverage, including visits to GP or specialists, lab tests or investigations, high-tech imaging, etc.
- Inpatient coverage includes:
- Room & board
- Medication/treatment during a stay in hospital
- Surgery + consumables and accessories used in the surgery room
- Road ambulance / Emergency Room
- Dentistry
Private health insurance offers many advantages in addition to obligatory state health insurance programs:
- Free access to private health care institutions (hospital and outpatient)
- Free medicines and drugs
- Dentistry
- No need for prior approval on behalf of the family doctor.
Travel Health Insurance
- Medical expenses occurred during trips abroad following accidents
- Medical expenses occurred during trips abroad following sudden illness and emergency
- Additional costs with the repatriation of a dead body
Life Insurance
- The primary coverage available is death by any cause (illness, accidents) and survival benefits.
- Available additional riders are:
- Permanent total disability due to accidents
- Permanent partial disability due to accidents
- Critical illness insurance
Private Pension Funds
For the time being, no private pension funds are operating in Moldova.
The law governing the private pension system: Law No. 198 of 20.11.2020 on Private Pension Funds. There is an opportunity for foreign investors to set up private pension funds.
Currently, the pension system functions only on Pillar 1, based on the pay-as-you-go system.
Suggested Employee Benefits Package
Based on our previous experience in this market, the most popular combination now is a package which includes:
- Group Life, Accidental Death & Dismemberment (this one settles the major risks which might affect the individual/employee)
- Private Health Insurance (this one takes care of the day-to-day problems they might experience during or out of the working program hours)
The advantages of having such schemes in place are well-known to all employers:
- Line-up/differentiate as to concurrence conditions
- Higher degree of fidelity/commitment
- High people retention ratio: a real plus when you have qualified people
- Lower fluctuation of personnel, which means stability and lower costs
Perks
- Company car used for personal needs
- Gym membership reimbursement
- Required breaks (nap rooms, tea stations, etc.)
- Wellness activities
- Ergonomic desk accessories (like chairs and keyboards)
- Free healthy snacks
- Company fun runs
- Incentives for participation in wellness programs
- Flexible hours
- Remote or work-from-home options
- Company picnic for employees
- Time off for volunteering
- Charity donation matching
- Company-sponsored charity events
- Casual dress code
- Company retreats
- Employee of the Month recognition
- Tuition reimbursement
- Office library
- Stipends for certifications and employee development
- Paid memberships to professional organizations
- Professional recognition events
- Sponsored travel to industry conferences
Related Government Websites
- Ministry of Health
- National Office of Social Insurance
- National Health Insurance Company (administers the medical benefits)
This information about mandatory and supplemental employee benefits in Moldova comes from Asinta’s Central and Eastern European Partner, the GrECo Group. If you need support with your benefits in the country, please contact Asinta, and we will put you in touch with the local experts at GrECo.