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Hire In Moldova

Introduction

Spread on about 34000 km2, Moldova is a landlocked country in eastern Europe. Ukraine borders it in the North, South, and the East, while Romania borders it in the West. The official language of the region is Romanian, broadly called “Moldovan.”

With the fact that Europe is on the path of development, Moldova is witnessing a rise in development. Also, ways of doing business are getting better with regional development, changing laws, investors’ interests, and growing need for change. It is backed by vast agricultural land, widespread vineyards, and an ethical workforce waiting and wanting to be efficient and effective.

Overview

Population- 2.5 million

GDP- USD 11.998 billion (FY-21)

Economic Overview

As per the noting of the World Bank Organisation, Moldova’s economy has seen a drastic change in the past years. A notable drop in the poverty of the economy has had a significant role in the employability in Moldova. On average, the economy has broadened by 4.6% annually in the past 20 years. This is a sign of progress and a way to a developed economy. In the 2000s, Moldova’s national income per person was 14%, which now, in 2020, has reached 30%.

Workforce

On the development path, Moldova’s youth, which is the workforce, is skilled and talented. With vastness in the opportunities, the youth have embedded technical skills and have an entrepreneurial mindset, looking for connections, betterment, and the right opportunity to put their skills to use. The workforce in Moldova is also multi-lingual, adding to their talents and character that they are looking forward to connecting with people from all regions and religions. The locals are proficient in Romanian, French, German, Russian, and even English, making Moldova a land where everyone is welcomed and language barriers are a little-known problem. The dominant language, however, remains the native language which is Romanian.

Ethnic Groups

The attributes of the distinguished population in Moldova make it a prominent destination for migrants and people wanting to settle in. With a shift in the progress scale, Moldova’s population is constantly learning and unlearning traditions and customs to stay updated with the doings of the modern world.

Group Name Percentage Share
Moldovan 75.1%
Romanian 7%
Ukrainian 6.6%
Gagauz 4.6%
Russian 4.1%
Bulgarian 1.9%
Romani 0.36%
Poles 0.7%

Industries in Moldova

  • Dominantly, the agricultural industry is the most loved and nurtured trade practice popular in Moldova. The climate because of the Black Sea gives it ideal sunlight to carry on the agricultural practices. With that, cattle farming and beekeeping are prospective businesses surviving in Moldova.
  • Moldova produced 2 million tons of maize, 1.1 million tons of wheat, 730 thousand tons of grapes, 174 thousand tons of potato, and 132 thousand tons of plum in the year 2018.  
  • Foreign investments in Moldova are tariff-free, meaning foreign investors may wish to make any investment on the lands of Moldova, so long as the national interests aren’t suffered. This makes it ideal and prosperous for expanding businesses, establishing multinationals, and gradually improving life quality.
  • The Banking and Financial sector is also a developing aspect here. Currently, only 13-14 locally-owned banks operate and occupy the market share; however, no official barriers are there for the foreign banks to establish and operate branches on the land of Moldova.
  • Government is encouraging industries to hire people, build networks, and establish policies to better the economy.

Cost of Living

Like most small cities, living and surviving in Moldova isn’t a major problem. The average cost of living including all the basic things like food, shelter, travel, and other utilities:

The cost of renting in Moldova depends on the apartment’s space/ land size and other expenses associated with lifestyle. The cost of living alone will be higher when compared to sharing an apartment with others.

Category Expense Average Monthly cost (USD)
Stay/ rentals Hostels/ independent apartments/ hotel rooms/ One bed room flat/ 2 bed room flat $65 - $425
Food and Beverage Milk/ Bread/ Vegetables/ Chicken/ Restaurant costs $30- $100
Transportation Costs Public transport ticket $ 9.15
Other Utilities Leisure activities $5- $15

Average Salaries of various Occupations

The table below shows multiple roles and their approximate salaries in USD. A recruiter may wish to consider them before hiring an employee:

Profession Estimated Monthly Salary (IN USD) Estimated Annual Salary (IN USD)
Software Engineer $ 493 $ 5912
Account Manager $ 424 $ 5078
Architect $ 570 $ 6838
Business Analyst $ 444 $ 5323
Chef $ 310 $ 3709
Customer Support $ 271 $ 3257

Data Scientist

Dentist

$ 723

$ 832

$ 8673

$ 9989

Graphic Designer $ 274 $ 3286
Human Resource Manager $ 462 $ 5536
Marketing Manager $ 457 $ 5484
Project Manager $ 500 $ 5978

Moldova is a promising place for architecture professionals. The pay scale for the employees in this sector is higher, has more scope, and is also growing. Professionals willing to hire candidates for various roles may also consider that the other costs associated with hiring are minimal. Like other locations, licenses and other formalities are not consuming.

Scope of Hiring in Moldova

With fewer restrictions and complications, setting up MNC specializing in Finances, Business, and Management are the primary responsive industries to be established in Moldova. Hiring for employees in this sector will require the following skill sets:

Skill Set required

Management skills in Accounts, Economics, and Manpower, Emerging careers in Sales and Marketing, Communications and Networking, Engineering, and Consultancy are prime post opportunities for the employees.

For start-ups, setting R&D teams will be cost-effective and feasible. Less expensive rentals, cheap transportation, and low spending capacity lead HR professionals to find that settling employees can be cost-effective.

Attitude

Employees with an adaptive attitude can help them be productive in Moldova. Knowing the language will make it easier to adjust. CEOs prefer employees who like a dynamic environment, which is ideal for growth.

People who like contributing their skills to a developing economy will find it joyous to work here.

Employees tend to be more satisfied, goal-oriented, and better at delivering tasks when their pockets are full. They have stability followed by job security and encouragement at the workplace.

Lifestyle

Less busy lifestyles, crowded places, and easy availability of things make Moldovan land ideal for living in.

Employees feel safe and secure where the environment isn't loud and noisy.

Cost of Hiring

The cost of hiring an employee in eastern Europe is undoubtedly lower as compared to the other parts. An employer/ recruiter will have to ensure the various costs associated with the hiring process. The lower they are, the better. In Moldova, the following costs will have to be considered while deploying an employee. In some cases, pertaining to the post and depending on the company, the heads may vary a little.

  • Onboarding costs
  • Training costs
  • Accommodation Costs
  • During Covid- Hotel Quarantine costs (in some cases)
  • Uniform Costs
  • Meals
  • Travel expenses
  • Spouse travel/ family travel expenses
  • Notice Period costs

Fiscal System

The fiscal system in Moldova is considered friendly and easy to understand. The taxation policies are also made keeping in mind the average spending capacity and future developments.

  • There is a corporate income tax of 12%, and for farmers, it is 7%.
  • There is VAT to be considered of about 20%. The breakup of the same is 6% for natural gases and just 8% for agri-food.
  • Social insurance contributions of up to 23%.

Laws to Recruit in Moldova

While the laws aren’t stringent, however, a few considerations are required to be met. Anyone who is to be hired to work on the lands of Moldova must be chosen regardless of their Nationality, Political affiliation, Race, Age, Sex, Language, Religion, Disability

Any recruiter must abide by these legislations to avoid any legal conflict. Employees must be hired based on their contact system, which can either be of a specified time or basis project.

Working hours are specified to be 40 hours a week. Overtime needs to be paid at 150% for the first two hours and 200% for every consecutive hour. Overtime is limited to 120 hours per year.

How Can Skuad Help You With Hiring in Moldova?

Hiring in Moldova is a multi-faceted task requiring in-depth knowledge of the laws, trends, hiring costs, living costs city-wise, and more. Skuad comes onboard as a one-stop solution handling every minute aspect of recruitment. It gives you the freedom and time to focus on your project and expansion plans without any hiring stress. Connect with Skuad today!


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