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Hiring in Georgia

Hiring employees compliantly in Georgia means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Georgia so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Georgia; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in Georgia? Contact us about our International EOR  Service

Labor Laws in Georgia

Employment laws in Georgia are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Georgia employment laws and Georgia policies here.

Employee Probation Period

  • Probationary period can not exceed 6 months

Annual Leave in Georgia

  • Employees are entitled to paid leave of 24 business days per year and unpaid leave of 15 calendar days per year.
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Holidays in Georgia

Workers are entitled to paid holidays during Festival (public and religious) holidays. These include memorial holidays and religious holidays (Christian origin).

Here is the full list of public holidays in Georgia:

New Year’s Day 1st January
Orthodox Christmas Day  7th January
Epiphany (Eastern) 19th January
Mother's Day 3rd March
International Women's Day 8th March
Day of National Unity 9th April
Good Friday (Eastern) 17th April
Orthodox Holy Saturday 18th April
Orthodox Easter 19th April
Orthodox Easter Monday  20th April
Victory Day 9th May
Saint Andrew the First Called Day 12th May
Independence Day 26th May
Dormition of the Mother of God  28th August
Day of Svetitskhoveli Cathedral 14th October
St. George's Day 23rd Novembe

 

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Maternity Leave Georgia

  • At employees’ request, they shall be granted maternity leave of absence in the amount of 730 calendar days.
  • 183 calendar days of maternity leave of absence shall be paid.
  • 200 calendar days shall be paid in the event of pregnancy complications or multiple births.

Paternity Leave Georgia

  • Eligible Georgia employees are entitled to 3 weeks of paternity leave for every qualifying event.

Work Hours in Georgia

  • The standard workweek in Georgia is 40 hours.

Overtime in Georgia

  • An employee shall fulfill overtime:
  • in order to prevent and/or liquidate results of natural disasters -- without any remuneration;
  • in order to prevent and/or liquidate results of industrial accident -- with consequent remuneration.
  • If working time is not determined by the contract, the working time exceeding 41 hours per week is considered to be overtime.

Termination of Employment in Georgia

  • Employers may terminate employment for the following reasons:
    • performance of obligations envisaged by the employment agreement;
    • expiration of the effective term of the employment agreement;
    • infringement of the employment agreement terms by either party;
    • invalidation of the employment agreement;
    • agreement of parties;
    • enforcement of the court judgment or decision which makes performance of labor impossible;
    • unless otherwise envisaged by the employment agreement, long term disability – if such term exceeds thirty calendar days in succession, or over six months’ total term exceeds fifty calendar days, thereby, employee is entitled to take a leave envisaged by Article 21 of the present Code;
    • death of the employer being a physical person or of an employee;
    • commencement of liquidation of the employer being a legal entity.
  • Employees generally must provide 30 days’ notice to employers in writing if they wish to terminate employment.
  • If the employee is terminated by the employer, s/he is owed a severance of at least one month’s wages.

Notice Period in Georgia

  • Employees generally must provide 30 days’ notice to their employer in writing if they wish to terminate employment.

Severance in Georgia

  • If the employee is terminated by the employer, s/he is owed a severance of at least one month’s wages.

Georgia Salary and Wages

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13 / 14th Month Salary in Georgia

  • No
  • There is no statutory requirement to pay the 13th or 14th month salary.
  • There is a generous paid annual leave of 24 days.
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Income Tax in Georgia

  • Resident individuals and nonresident individuals are subject to income tax on income received from Georgian sources.
  • Personal income is subject to a flat tax rate of 20%.

Income Tax Rate

Flat Rate

20%

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Social Security in Georgia

  • There are no social security contributions in Georgia.
  • However, from 1 January 2019, joining a pension scheme is mandatory for all employees, except for:
    • Individuals who have been 60 years of age (55 years of age in case of women) before the enactment of the law.
    • Self-employed individuals.
  • The pension scheme is financed by employer, employee, and government.
  • Particularly:
    • Each employer will transfer 2% of the employee’s salary income to one's private pension account while paying the salary.
    • Each employer will transfer 2% of the employee’s salary income to one's private pension account on behalf of its employee.
    • Each self-employed individual will transfer 4% of one's annual income to the individual pension account.
    • The government will transfer
      • 2% of the income of the participant to one's private pension account when the annual salary of the participant/income of the self-employed individual is less than GEL 24,000 and
      • 1% of the income of the participant when the annual salary of the participant/income of the self-employed individual is between GEL 24,000 and GEL 60,000. In case the annual salary of an employee/income of the self-employed individual is greater than GEL 60,000, the government will only contribute to the extent of GEL 60,000.

Contribution

Group 1083

Pension Contribution

Employer Group 1083 2%
Employee Group 1083 2%
Self-Employed Group 1083 4%
 Government Group 1083  1%/2%

Immigration Georgia

  • The legal basis for a foreign citizen’s stay in Georgia is a visa, residence permit (permanent or temporary) or refugee status.
  • The nationals of European Union (EU) member states can enter Georgia with a travel document, as well as with an identity card issued by an EU member state.
  • The identity card must contain the name, surname, date of birth and a photo of the person.
  • The Law on Legal Status of Foreigners and Stateless Persons provides for the following residence permits:
    • A work residence permit
      • which is issued for the carrying out of entrepreneurial or labor activities in Georgia to a foreign person who provides documentation proving the carrying out of such activities, as well as a certificate proving that income from such activities is not less than five times the amount of the substance minimum (approximately GEL200) and that the employer or established company (except for educational or medical establishments) of such person has a turnover of more than GEL50,000.
      • For medical establishments, the abovementioned threshold is GEL35,000.
  • A study residence permit, which is issued for the purpose of study at an authorized educational institution in Georgia.
  • A residence permit for the purpose of family reunification, which is issued to family members of an alien holding a residence permit.
  • A residence permit of a former citizen of Georgia, which is issued to an alien whose citizenship of Georgia has been terminated.
  • A residence permit of a stateless person, which is issued to an individual whose status of statelessness has been determined in Georgia.
  • A special residence permit, which is issued to an alien who is reasonably assumed to be a victim of or affected by human trafficking.
  • A permanent residence permit
    • which is issued to a spouse, parent and child of a Georgian citizen.
    • This period does not include the period of residence in Georgia for study or medical treatment, and the period of work at diplomatic missions and equivalent missions.
  • An investment residence permit,
    • which is issued to an alien who has made an investment worth at least USD300,000 in Georgia, in accordance with the Law of Georgia on Investment Activity Promotion and Guarantees, or owns an immovable property in Georgia, the market value of which is at least USD300,000, and to his or her family members.
    • For the purposes of this permit, family members are a spouse, minor children and the alien’s legally incompetent or disabled dependents.
    • This permit may be issued for a period of five years.
    • A temporary residence permit, which is issued to persons holding the status of victims. Temporary residence permits are issued for no more than six years.
    • A short-term residence permit
      • which is issued to persons having ownership in real property located in Georgia.
      • The market price of this property should be at least the equivalent in Georgian lari of USD100,000.
      • The short-term residence permit is issued for one year.
  • Persons arriving in Georgia for working purposes from visa-free countries are not required to obtain a work residence permit for up to a year.
  • If they intend to work in Georgia for more than a year, they must apply for the work residence permit 40 days before the expiration of the visa-free period.
Need assistance hiring in Georgia? Contact us about our International EOR  Service

Type of Visa/Permit

Documentation

Validity

Eligibility

 

 

 

 

A Work Residence Permit

  • Extract of the legal entity from the business registry
  • Notice from the Revenue Service that company has minimum of 50,000 GEL (17,000 USD) turnover per year.
  • Bank account statement that the director has minimum of 11,000 GEL (3750 USD) net on the account.
  • Notice which states the total number of foreign employees in the company.

1 year (maximum 6 years)

  • Issued for the carrying out of entrepreneurial or labor activities in Georgia to a foreign person who provides documentation proving the carrying out of such activities, as well as a certificate proving that income from such activities is not less than five times the amount of the substance minimum (approximately GEL200) and that the employer or established company (except for educational or medical establishments) of such person has a turnover of more than GEL50,000. 
  • For medical establishments, the abovementioned threshold is GEL35,000. 

An Investment Residence Permit

  • Application of an established form;
  • Copy of a travel document of foreigner;
  • Copy of a document certifying the legal stay in Georgia;
  • Document evidencing the investment of at least GEL 300 000 in Georgia (auditor’s opinion);
  • Written recommendation of a member of government of Georgia or three citizens of Georgia equipped with the power of representation of an entrepreneurial subject operating in Georgia;
  • Photo 3×4 in size;
  • Receipt certifying the payment of service fee.

5 years

  • Is issued to an alien who has made an investment worth at least USD300,000 in Georgia, in accordance with the Law of Georgia on Investment Activity Promotion and Guarantees, or owns an immovable property in Georgia, the market value of which is at least USD300,000, and to his or her family members.

A Short-Term Residence Permit

  • Completed Application form
  • Proof of property in Georgia
  • Passport

1 year

  • It is issued to persons having ownership in real property located in Georgia.
  • The market price of this property should be at least the equivalent in Georgian lari of USD100,000. 
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Value Added Tax (VAT) in Georgia

  • The standard VAT rate is 18% and applies to the sale of all goods and services supplied in Georgia carried out as an economic activity.

VAT

Standard Rate

Group 1083

18%

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Mandatory Benefits in Georgia

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, severance pay and 13th month pay
  • Mandatory benefits also include social security benefits.
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Mandatory Benefits overview

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Overtime Pay

  • Notice period

  • Severance Pay

  • Pensions

Payments And Invoicing

  • The tax year in Georgia is the calendar year.
  • The following individuals are required to submit individual income tax declarations to the tax authorities at their place of registration before 1 April (for income received in the previous calendar year):
    • Resident individuals, including foreign individuals with Georgian tax residency, for whom income is not taxed at the source of payment in Georgia.
    • Non-resident individuals with Georgian-source income not subject to taxation at the source of payment.
  • An entrepreneur individual has to make estimated payments of PIT amounts proportionally in four instalments (by 15 May, 15 July, 15 September, and 15 December)

Payroll Accrual in Georgia

Country Accruals Additional Information

Pension 2.00%
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Description

There are no social security contributions in Georgia.

Payroll Accruals Additional Information

      Employment
Accruals
Annual Leave Employees are entitled to paid leave of 24 business days per year and unpaid leave of 15 calendar days per year.   This equals 6.5% (24/365 days) of annual income
Maternity Leave An employee, upon request, is entitled to a total maternity leave of 477 calendar days to cover pregnancy, delivery and child care.
Of pregnancy, maternity and child care leave, 126 calendar days will be paid, while in case of a complicated delivery or if mother gives a birth to two or more infants – 140 calendar days of paid leave will be granted.
  This equals 34.5% (126/365 days) of annual income
Severance If the employee is terminated by the employer, s/he is owed a severance of at least one month’s wages.   This equals 8.33% of annual income
Social Security Employers must contribute 2% of an employee's annual salay to a mandatory pension scheme.   This equals 2% of annual income

Accrued Benefits in Georgia

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

Employees are entitled to severance pay that equals 20% of monthly salary after one year of service (1.66% of annual salary)

1.66%
Vacations %

Employees are entitled to 25 days of annual leave (6.86% of annual salary)

6.86%
Of annual
salary
Notice %

Employees are entitled to 30 days of notice period for one year of service or more (8.24%)

8.24%
Christmas Bonus Over Notifications % 0%
Vacations Plus % 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per anum 

16.88%

Why use Global Expansion to hire in Georgia

Establishing a branch office or subsidiary in Georgia can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Georgia labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Georgia law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Georgia. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Georgia Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

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