On March 19, 2026, the Republic of Moldova and Ukraine signed a new bilateral agreement on social security in Chisinau. The agreement replaces previous arrangements and establishes updated rights and mechanisms for pensions and social benefits for citizens residing in either country.1
WHY THIS MATTERS
The agreement may be relevant for global mobility programs, particularly for organizations employing individuals who move between Moldova and Ukraine, or who are permanently resident in the other country. The agreement includes provisions relating to the coordination of access to old‑age, disability, and survivors’ pensions, as well as benefits related to occupational accidents and diseases. The recognition of contribution periods across both jurisdictions may allow continuity of pension entitlements for mobile employees, which may reduce administrative complexity and the potential for gaps in benefit coverage.
Key Highlights
- Insured persons may aggregate contribution periods completed in Moldova and Ukraine when determining eligibility for pension benefits, allowing for portability and eligibility in accordance with the agreement.
- Pension amounts are calculated in proportion to contribution periods in each country and may be paid in the country of residence.
- Individuals permanently residing in the other country may be eligible for old‑age, disability, and survivors’ pensions, as well as benefits related to occupational accidents and diseases, subject to the agreement’s provisions.
- The 1995 agreement (Agreement on guaranteeing citizens' rights in the field of pension insurance) and 1998 agreement (Agreement between the Social Fund of the Republic of Moldova and the Pension Fund of Ukraine on the transfer and mutual payment of pensions) were repealed and replaced under the new single updated framework.
KPMG INSIGHTS
In light of the changes, the organisations, entities, and individuals might consider the following:
- Organisations could review their global mobility and payroll policies for employees moving between Moldova and Ukraine to assess alignment with the new agreement and to support pension planning considerations.
- Companies could consider communicating the updated provisions to affected employees and monitoring the implementation phase for any additional guidance or clarifications.
- HR leaders and payroll managers may note that the updated provisions have implications for payroll structuring, pension strategy, and compliance processes, which may warrant early review and coordination.
Assignees and/or their programme managers who have questions about the impact of these developments on their employment tax position may wish to consult with their qualified tax professional or a member of the GMS team with KPMG in Moldova (see the Contacts section).
ENDNOTE:
1 Republic of Moldova, National Office of Social Insurance, “On March 19, an agreement between the Republic of Moldova and Ukraine in the field of social security was signed in Chisinau,” published on 20 March 2026.
Contacts
Disclaimer
The information contained in this newsletter was submitted by the KPMG International member firm in Moldova.
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