Accurate salary and tax calculation is not only the employer’s responsibility but also a guarantee of business stability. Errors in payroll can lead to fines, employee disputes, and issues with tax authorities.
In this article, we will cover:
- how employee salaries are calculated in Moldova;
- what taxes and contributions are deducted;
- how to avoid mistakes and who to trust with payroll calculations.
Intelcont offers professional payroll calculation services so you can focus on growing your business.
Key Concepts and Types of Salary Components
Before calculating payroll, it's essential to understand what makes up an employee’s salary:
Main salary components:
- Base salary — fixed amount per month or hour;
- Bonuses and incentives — payments for meeting KPIs, plans, and initiatives;
- Allowances — for experience, qualifications, night shifts, etc.;
- Compensations — for personal vehicle use, meals, business trips;
- Paid leave and sick pay — calculated by specific rules, but included in total payroll.
Gross and net salary:
- Gross salary — the amount before taxes and contributions are deducted;
- Net salary — the actual amount received by the employee.
Example:
If an employee earns 10,000 MDL gross, they may receive around 8,000–8,300 MDL net, depending on tax rates and deductions.
Personal Income Tax (PIT)
In Moldova, individuals' income is subject to tax, which is withheld by the employer at each salary payment. This is the primary direct tax on employee income.
PIT rate:
As of 2025, Moldova applies a flat income tax rate of:
- 12% — on total taxable income.
Taxable base:
Includes base salary, bonuses, allowances, compensations, paid leave, and other income — minus applicable exemptions (if any).
Personal deductions:
- Standard personal deduction: 11,700 MDL per year (approximately 975 MDL per month);
- Additional deductions — for dependents, disabilities, and other cases.
Example:
If an employee earns 10,000 MDL and the standard deduction applies, the taxable base is 9,025 MDL (10,000 - 975), and the PIT will be 1,083 MDL.
Payment deadline:
The employer withholds PIT at the time of salary payment and transfers it to the budget by the 25th of the following month at the latest.
Social and Health Insurance Contributions
In addition to income tax, mandatory contributions to social and health insurance funds are deducted from employees’ salaries. Employers are also responsible for part of these contributions.
Employee contributions:
- Social insurance (CNAS) — 6%
- Medical insurance (CNAM) — 9%
These amounts are deducted from the employee’s gross salary.
Employer contributions:
- Social insurance (CNAS) — 18%
- Medical insurance (CNAM) — 0%
Important: rates may change annually depending on the national budget and policies. Always check the latest updates.
Total tax burden:
- Employee: 15% (6% + 9%)
- Employer: 18%
Example:
If an employee earns 10,000 MDL gross:
- The employee pays 600 MDL to CNAS and 900 MDL to CNAM.
- The employer contributes an additional 1,800 MDL to CNAS.
Thus, the total cost of the employee for the company is 11,800 MDL.
Example of Net Salary Calculation
Let’s walk through the step-by-step salary calculation for an employee with a gross salary of 10,000 MDL in Moldova, based on 2025 tax rates.
Step 1. Initial data:
- Gross salary: 10,000 MDL
- Personal deduction: 975 MDL (monthly)
- Rates:
- PIT: 12%
- CNAS: 6%
- CNAM: 9%
Step 2. Contribution calculation:
- CNAS: 10,000 × 6% = 600 MDL
- CNAM: 10,000 × 9% = 900 MDL
Step 3. Taxable base:
- 10,000 - 975 (deduction) = 9,025 MDL
Step 4. PIT calculation:
- 9,025 × 12% = 1,083 MDL
Step 5. Net salary:
- 10,000 - (600 + 900 + 1,083) = 7,417 MDL
Step 6. Employer’s total cost:
- Additionally: 10,000 × 18% (CNAS) = 1,800 MDL
- Total employee cost: 10,000 + 1,800 = 11,800 MDL
This calculation helps assess both the net salary and the financial burden on the business.
Benefits and Specific Cases
In Moldova, there are situations where salary calculation deviates from the standard due to tax benefits, industry-specific rules, or special regimes.
Key specifics:
Personal Income Tax benefits:
- Additional tax deductions for employees with children, disabilities, or dependents.
- Some compensations may be tax-exempt (e.g., travel allowances within limits).
Special tax regimes:
- Residents of the Moldovan IT Park pay a flat 7% turnover tax instead of regular payroll taxes.
- Employees under this regime may receive a higher net salary due to reduced tax burden.
Temporary payments:
- Paid leave and sick leave are calculated based on the average salary over previous months and follow special rules.
- Bonuses may be fully taxed unless structured as one-time contract-based payments.
Multiple jobs and contracts:
- Employees with multiple jobs must self-report PIT if one employer does not withhold it.
- Under civil contracts (GPC), payroll rules differ based on the contract type.
These details are crucial to avoid penalties and overpayments — especially in cases of non-standard employment.
Step-by-Step Salary Calculation Algorithm
Using a structured approach ensures accurate payroll in Moldova while minimizing errors and saving time:
Step 1. Determine the employee’s gross salary
- Fixed amount or based on hours/performance.
Step 2. Calculate deductions:
- CNAS (6% of gross)
- CNAM (9% of gross)
- Personal deduction (if applicable) — e.g., 975 MDL
- Taxable base = Gross − deduction
- PIT = 12% of taxable base
Step 3. Calculate the net salary:
- Gross − CNAS − CNAM − PIT = Net
Step 4. Calculate employer’s obligations:
- Employer CNAS = 18% of gross
Step 5. Account for special conditions (if applicable):
- Additional payments
- Tax benefits
- Contractual specifics
Step 6. Record the data:
- In payroll sheets
- In payment orders
- In CNAS, CNAM, and FISC reports
Tip: If you have more than 5 employees, use specialized payroll software or outsource to professionals.
Why a Professional Payroll Partner is Worth It (Intelcont)
Many entrepreneurs try to calculate salaries themselves or assign the task to untrained staff. This often leads to mistakes, fines, and reduced employee trust.
Main risks of handling payroll internally:
- Errors in rates and deductions due to frequent legislative changes;
- Missed tax deadlines and reporting failures;
- Mistakes in paying leave, sick days, and bonuses;
- Issues during inspections from tax or social authorities.
What Intelcont offers:
- Full payroll outsourcing with accurate taxes and deductions;
- Up-to-date rates, personal deductions, and special regimes applied;
- On-time reporting to CNAS, CNAM, and FISC;
- Reduced tax risks and optimized payroll expenses.
Working with Intelcont means reliability, transparency, and time savings. You won’t need an in-house accountant or to monitor tax law — we handle it all.
Conclusion
Proper salary calculation is not just an accounting task — it's a key part of HR management and legal compliance. Accuracy affects employee loyalty, company reputation, and financial security.
We’ve covered:
- what a salary consists of;
- what taxes and contributions apply;
- how to avoid common mistakes;
- and why professionals are the best choice.
If you want accuracy, reduced tax load, and more time for growing your business — contact Intelcont. We provide a complete payroll, HR, and tax compliance service package in Moldova.
Request a consultation — and start processing salaries the right way this month.
