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LAW OF THE REPUBLIC OF MOLDOVA

of February 14, 2002 No. 847-XV

About compensation

(as amended on 23-11-2018)

The parliament adopts this organic law.

Chapter I. General provisions

Article 1. Subject of the law

This law determines the economic, legal and organizational principles of compensation of the workers who are in employment relationships on the basis of individual employment contracts with employers: by physical persons, the companies, the organizations and organizations (further - the companies), irrespective of type of property and form of business, it is also aimed at providing function of the salary as main source of the income for satisfaction of vital needs of workers and their families and as work incentives forms.

Article 2. Basic concepts

For the purposes of this law the following concepts are used in value:

- the salary - any remuneration or earnings estimated in terms of money, paid by the employer or the body authorized by him to the worker based on the individual employment contract for the executed work or for work which shall be executed;

- wage rate book - the collection of tariff and qualification characteristics of the professions or specialties and positions classified in groups on production units and occupations, intended for tariffing of works and award of qualification categories (classes) to workers and specialists;

- fork of official pay rates - the range of salaries/categories of payment within which specific basic salaries for separate positions or functional groups of heads, specialists or employees are established;

- the tariff charge - the basic element of tariff system determining the size of base pay of the worker in unit of time (hour, day);

- official pay rate - the monthly size of base pay established for leading employees, specialists and employees depending on post, qualification and features of industry;

- scale of charges - set of qualification categories (categories of compensation) and the tariff coefficients (forks of official pay rates) corresponding to them by means of which the base pay of workers is established;

- the category of payment - element of single scale of charges of compensation of workers of the budget sphere on the basis of which the fork of official pay rates established for workers depending on their differentiation by the criteria used in the corresponding fields of activity is determined;

- the qualification category - the element of scale of charges characterizing skill level of the worker. The lowest skill level is rated by the I category;

- tariff coefficients - the elements of scale of charges showing in how many time the tariff charges of the II category and the subsequent categories of scale of charges are higher than rate of the I category which tariff coefficient is always equal to unit;

- the real sector - set of the self-supporting companies including using the budget grants irrespective of industry accessory, type of property and form of business;

- the budget sphere - set of the companies financed from the government budget, the budget of the national social insurance, budgets of administrative and territorial units and special means irrespective of their industry accessory.

- the guaranteed minimum size of the salary in the real sector - the obligatory minimum size of payment guaranteed by the state for the work spent by workers in the real sector;

- labor productivity surplus at the national level - percentage of surplus of gross value added to surplus of average number of workers in the year preceding the accounting period;

- the worker - the physical person (the man or the woman) performing the work corresponding to certain specialty, qualification or position, and receiving the salary based on the individual employment contract.

Article 3. Conditions, forms and wages systems

(1) Compensation of the worker depends on labor demand and its offer in the labor market, quantities, qualities, complexity and working conditions, professional qualities of the worker, results of its work and/or economic activity of the company.

(2) Work is paid povremenno (for hour, day), by means of the fixed monthly salaries or sdelno within both tariff, and tariffless payment systems.

(3) Depending on specifics of activities and specific economic conditions of the company of the real sector apply to the organization of compensation tariff and/or tariffless payment systems.

(4) the Choice of wages system at the company is performed by the employer after consultations with employee representatives.

Article 3-1. Tariff wage system

(1) the Tariff wage system represents set of the standard rates determining differentiation of the salary depending on quantity, quality and working conditions and includes scales of charges, the tariff charges, tariff coefficients, forks of official pay rates and wage rate books.

(2) In the real sector the scale of charges is established by negotiations at the industry level in the collective agreement and at the enterprise level in the collective agreement.

(3) Voided.

(4) the Scale of charges at the industry level or at the enterprise level is established for workers or for all employee categories (workers, employees, experts and leading employees) on the basis of qualification categories or other criteria.

Article 3-2. Non-tariff wage systems

(1) Non-tariff wage systems represent methods of differentiation of compensation depending on individual and/or collective achievements and the position held by the worker.

(2) Criteria and regulations of assessment of individual professional achievements of the worker are established by the employer by negotiations with labor unions or employee representatives. Assessment of individual professional achievements of the worker is performed by the employer.

(3) the Non-tariff wage system is established in the collective agreement at the enterprise level.

(4) Establishment of the size of the salary to each worker within non-tariff wage systems is performed by the employer. At the same time as the minimum level of payment and the state guarantee serves the guaranteed minimum size of the salary in the real sector.

Article 3-3. Single system of compensation in the budget sphere

(1) In the budget sphere the single system of compensation representing hierarchization of base pays on positions and qualification categories is applied.

(2) the Single system of compensation in the budget sphere is based on the single system of ranging consisting of levels and classes of compensation.

Article 4. Salary structure

(1) In tariff and non-tariff wage systems the salary includes base pay (the tariff charge, official pay rate), the additional salary (surcharges and allowances to base pay) both other stimulating and compensation payments.

(2) the Base pay is established in the form of the tariff charges for working and official pay rates for employees, specialists and leading employees for the work executed according to the work regulations established according to qualification, the professional training level and competence of the worker, quality, responsibility and complexity of the performed works.

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