Moldova to establish wage guarantee fund for insolvent companies in alignment with EU standards
The Republic of Moldova is advancing a critical legal framework to establish a Wage Guarantee Fund, ensuring employees remain protected if their employers face insolvency.
This initiative is a key component of Moldova’s alignment with European Union social protection and labor market legislation.
European expertise and implementation
Following consultation missions with European Commission experts, a preliminary draft defining the fund's operational structure has been finalized.
State Secretary of the Ministry of Labor and Social Protection (MMPS), Mihai-Gabriel Ciobanu, confirmed the fund will be managed by the National Social Insurance House (CNAS).
The proposal is currently undergoing informal vetting among government ministers to finalize technical details, including the funding rate and the overall size of the guarantee pool.
Legislative timeline and EU integration
"We must now consolidate the draft and consult with government decision-makers regarding the fund’s architecture," stated the State Secretary during a Parliamentary Committee for European Integration meeting on April 21.
Marcel Spatari, Chair of the Committee, highlighted the complexity of the initiative, noting it will require new contributions from the business sector to remain sustainable.
The government aims to submit the document for executive approval by July and for European Commission review by August, with final adoption expected by the end of 2026.
No transition period requested
In a strategic move to accelerate integration, Moldovan authorities decided not to request a transition period for this specific EU directive.
"A transition period would have pushed implementation to the date of actual EU accession. We decided to move forward immediately," Ciobanu explained.
The Ministry of Labor aims to have the final project ready for a parliamentary vote by November, marking a significant step in safeguarding the Moldovan workforce.
Translation by Iurie Tataru
