In Moldova, healthcare is the number one benefit people care about, as employees are interested in better and more comprehensive health cover than is offered by the state. Healthcare is considered to be better in private clinics. However, only 5 of the 15 insurance companies in Moldova supply health insurance coverage.
A surprising aspect of Moldavian health insurance is the low limits and the fact that there are some unexpected limitations and exclusions.
The average monthly cost for a typical benefits package is between €250 and €300.
Mandatory employee benefits in Moldova include pension, workers compensation, and health care. Common supplementary employee benefits in Moldova include healthcare and life insurance. Employee perks are not common in the country.
Mandatory and Supplementary Employee Benefits in Moldova
The available products on Moldova’s insurance market designed for personal protection are:
- Personal Accidents insurance
- Travel Health insurance
- Group Life insurance
- Healthcare insurance
The products designed for both protection and savings are:
- Long term life insurance with 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
- Pixed products which include both components
Employee Benefits Overview
Work accidents / Professional Diseases/ Workmen’s compensation
In Moldova, the whole system is still handled by the State through funds collected on monthly basis from the employers as well as from the employees.
According to the 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 for work
e) Allowance for temporary transfer to another job
f) Permanent disability indemnity
g) Death indemnity
- For Personal Accidents and professional diseases there are also facultative insurance products available, in addition of the benefits offered by the state system.
- The expenses of Companies with insurance premium related to Personal Accidents Insurance are tax free, as well as the indemnities received following Personal Accidents claims are also exempt from revenue taxation.
- Law No. 186 din 10.07.2008 on Security and Health at Work has the provisions regarding the liability of employers to pay indemnities in case of professional diseases, death and permanent disability of the employees due to accident at work, when the employers are liable for the accidents.
- Death and permanent disability indemnities are quite burdening: according to the law the liable Employers have to pay a lump sum indemnity equal to one annual salary for a deceased person at work for each year remaining till age of 62 years, but not less than 10 annual salaries. In case 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 risks of liability may be included in facultative insurance coverage. In case of 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 on monthly basis, 4.5% of the salary the employer contribution and 4.5% the employee contribution. The payment to the National Health Insurer is performed by the Employer (also on behalf of the employee).
Facultative health insurance is provided by private insurance companies. Only 50% the employer’s expenses with private health insurance are tax free.
Private Health Insurance Coverage
- Outpatient coverage, including visits to GP or specialists, lab tests or investigations, high-tech imagistic, etc.
- Inpatient coverage, which includes:
- Room & board
- Medication/treatment during stay in hospital
- Surgery + consumable and accessories used in the surgery room
- Road ambulance / Emergency Room
Private health insurance offers many advantages in addition to obligatory state health insurance program:
- Free access to private health care institutions (hospital and out-patient)
- Free medicines and drugs
- No need for prior approval on behalf family doctor.
Travel Health Insurance
- Medical expenses occurred during trips on abroad following accidents
- Medical expenses occurred during trips on abroad following sudden illness and emergency
- Additional costs with the repatriation of death body
- Main coverage available is death by any cause (illness, accidents)
- 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 there are no Private Pension Fund functioning in Moldova. There is a law No. 329 of 25.03.1999 on Private Pension Funds, and a couple of Private Pension Funds set up, but not functioning due to absence of subsequent legal acts. Currently the pension system is functioning only on Pillar 1, based on pay as-you-go system. The monthly Employee contribution is 6% of the salary, deducted and paid by the Employer to the Social Fund.
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:
- Happy labor force;
- High degree of fidelity / commitment;
- High people retention ratio; this is a real plus when you have qualified people;
- Lower fluctuation of personnel, which means stability and lower costs.
Related Government Websites
- Ministry of Health
- National Office of Social Insurance
- National Health Insurance Company (administers the medical benefits)