Labor

16 August 2012

Labor force

During 2010, the economically active population was of around 1,235 million persons. The population is well educated with nearly 40% having completed higher education or technical studies. Over 40% of the population lives in urban areas, including Chisinau City with 786.3 thousand people and Balti, the second largest city, with 148 thousand people.

Language
The main language spoken in Moldova is Romanian, although Russian is also commonly spoken and business is often conducted in one of these two languages. In addition, many Moldovans speak English, French, and/or Italian.

Wages
Any employer should ensure its employees at least the national minimum gross salary. This is currently MDL 1300 (about EUR 85) per month for privately-owned companies.
The average monthly wage amounts to MDL 3,550 (about EUR 230) for 2012, having increased by 7.5% from the previous year. Currency regulations demand that salary payments be made in local currency (MDL), which makes export-based manufacturers sensitive to exchange rate fluctuations.

Average wages in Moldova

2010

2011

2012 (forecasted)

The National Bureau of Statistics

MDL 2,972 (EUR 190)

MDL 3,193 (EUR 205)

MDL 3,550 (EUR 230)

PayWell Moldova by PriceWaterhouseCoopers

MDL 5,976 (EUR 385)

MDL 5,578 (EUR 360)

N/A

Trade Unions
Trade unions, historically, were very tough and strong in negotiations on labor relations. They are currently effective in obtaining minimum wage legislation, as well as other basic rights for employees. They also conclude annual collective labor agreements at different branch and company levels.

Union membership for employees is not compulsory, but still has a high influence in large and state-owned enterprises. In small private companies they tend to be less active.

Working Hours and Holidays
The standard working week stated in the Labor Code is 40 hours, over five or six working days a week. Working hours on weekends or holidays can be either compensated with free time or paid. Overtime is generally paid as 150% of the hourly rate for up to a specified number of hours and 200% beyond that.
Annual paid vacations are established at a minimum of 28 calendar days a year. Sick and maternity leaves are paid from the Social Insurance Budget.

Moldova public holidays as of 2012

New Year's Day

Jan 1

New Year Holidaty

Jan 2

Orthodox Christmas

Jan 7

Orthodox Christmas Holiday

Jan 8

International Womens Day

March 8

Orthodox Easter

Varies annually

Orthodox Easter Monday

Varies annually

Memorial Easter

Varies annually ; Monday following Orthodox Easter Monday

International Solidarity Day of Workers

May 1

Victory Day

May 9

Independence Day

Aug 27

National Language Day

Aug 31

Chisinau City Day

Varies annually; second Saturday of October

Western Christmas

December 25

Information in this section was compiled based on Investing Guide Moldova 2012. View full report here.