From January 1, 2021, in Moldova, employers will pay only contributions to the social fund in the amount of 24%, and employees will only be withheld contributions to the compulsory health insurance fund (9%).
The new procedure for the application of taxes paid by the employer and the employee from the accrued salary, previously approved in the legislation, is provided for in the draft laws on the state social insurance budget and on compulsory health insurance funds for 2021. In particular, the employer will deduct contributions only to the social fund in the amount of 24% ( instead of the current social contributions of 18% and health insurance contributions of 4.5%). Employees will be withheld contributions to the compulsory health insurance fund in the amount of 9% (instead of the current social contributions in the amount of 6% and contributions to the compulsory health insurance fund in the amount of 4.5%). The new approach will simplify the procedure for calculating and paying the employer contributions to social insurance and the compulsory health insurance fund, which will have a positive impact on Moldova's indicators in the World Bank's Doing Business rating. This optimization will reduce the administrative burden: instead of 4 payments there will be 2. At the same time, the workload for employees will be reduced: instead of the current deductions of 10.5%, they will pay by 1.5 percentage points less. // 02.12.2020 — InfoMarket.
