Hiring in Georgia: Complete Guide 2027
Everything you need to know about hiring and managing employees in Georgia
Overview
Georgia is the cheapest payroll in its region to run. Income tax is a flat 20% withheld at source, and the only employer contribution is 2% of salary into the funded pension scheme introduced in 2019; there is no social security fund, no health levy and no unemployment insurance. The Labour Code, rewritten in 2020, added what a European HR team expects: written contracts, 24 days of leave, notice and severance on economic dismissals. Since 1 March 2026 a foreign hire needs a work-based residence permit held by the employer. An EOR adds USD 300 to 600 a month.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Georgia
Georgian payroll is monthly and runs through two registrations: the Revenue Service (rs.ge), where the employer files a withholding declaration by the 15th of the following month, and the Pension Agency, where every employee born after 1 August 1963 is enrolled in the funded scheme. Income tax is 20% flat on gross salary, no personal allowance. The pension takes 2% from the employer, 2% from the employee and 2% from the state; the state share falls to 1% between GEL 24,000 and 60,000 of annual salary and stops above that. Skipping it costs a GEL 300 fine under the 2026 amendment. There is no statutory minimum wage in practice: the 1999 decree still says GEL 20 a month, so pay is whatever the contract says, and Tbilisi tech employers often index GEL salaries to the dollar. Working-time records became mandatory with the 2026 Labour Code amendments. An EOR files the declaration, pays both pension shares and keeps those records.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract mandatory from 1 month of work
- Probation up to 6 months, paid
- Working-time records mandatory since 2026
Leave & Time Off
- 24 working days paid, plus 15 unpaid
- Maternity 126 calendar days with a state benefit
- About 15 public holidays
Termination Rules
- 30 days' notice + 1 month severance, or 3 days + 2 months
- Reasons in writing on request within 30 days
- Termination at any time during probation
COMPLIANCE
Work Authorisation and Termination Compliance in Georgia
Two rules decide whether a Georgian hire is clean. The first is new: since 1 March 2026 a foreign national working in Georgia beyond the visa-free period needs a work-based residence permit tied to the employer. An EOR that employs a foreigner must hold it in its own name; an answer of "the employee can stay on the visa-free year" describes the old regime. The second is the Labour Code as amended in 2020. A dismissal on economic or organisational grounds needs 30 days' written notice and at least one month's severance, or 3 days' notice and at least two months'. A dismissal for cause needs the reasons in writing, and the employee may ask for them within 30 days. Probation of up to 6 months is paid and can be ended at any time.
Key Challenges
- Work authorisation for foreign hires since 1 March 2026
- No social security fund: health cover is private and negotiated
- Written contract mandatory from one month of work
- Severance of one to two months on an economic dismissal
- GEL volatility: tech salaries are often indexed to the dollar
Country Highlights
Advantages
- 20% flat income tax, no bands, no personal allowance
- Employer on-cost of 2%, the funded pension and nothing else
- Probation up to 6 months, terminable at any time
- Company registration in one day at the NAPR
- Tbilisi is UTC+4: a full working-day overlap with Europe
Popular Industries & Roles
Technology
Avg. Salary: GEL 36k-GEL 90k
Tbilisi software teams work for European and US clients on dollar-indexed GEL salaries; the Virtual Zone and International Company tax statuses keep the IT sector dense.
Financial Services
Avg. Salary: GEL 24k-GEL 60k
Two London-listed banks, Bank of Georgia and TBC, anchor a banking and fintech job market concentrated in Tbilisi.
Shared Services & Support
Avg. Salary: GEL 15k-GEL 30k
Multilingual support and back-office teams serve European companies from Tbilisi and Batumi at a fraction of EU payroll cost.
Top 3 Providers in Georgia
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Gegidze
- Georgia EOR from €199/month
- Crypto payroll at 1.2-1.5% conversion
- 7 countries across Caucasus + Central Asia
- Telia, Payoneer, Wizz Air clients
Pebl
- AI + crypto-ready enterprise EOR
- $599 list, $399 promotional rate
- 185+ countries through 65 owned entities
- Equity and token administration
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Frequently asked questions
Hiring in Georgia through an EOR, in short.
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How much does an employer pay on top of salary in Georgia?
Employer contributions in Georgia come to 2%; the largest mandatory line is Pension 2%. With the other statutory benefits and a typical EOR fee, budget ~10–30% on top of gross salary.
What does an EOR charge per employee in Georgia?
Published EOR fees in Georgia run $300–600/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Georgia pay in tax and contributions?
Income tax is 20% flat and employee social contributions are 2% (2% pension), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Georgia?
3-7 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Georgia?
Gegidze, Pebl and Deel hold the first three places in our ranking for hiring in Georgia. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Georgia.
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