Employer of Record in Georgia

Businesses can only operate smoothly in Georgia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Georgia below, to avoid any compliance issues.

Employment Contract Requirements

When hiring in Georgia, according to Georgian employment law, the mandatory employment contract holds significant importance. It's a legal requirement for all employees to sign this document. The contract should outline:

• Employee's duties & responsibilities
• Employee compensation & any extra benefits
• Working conditions

Onboarding Process

We can help you get a new employee started in Georgia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Georgia

In Georgia, the regular workweek is 40 hours, usually 8 hours a day for five days. Some sectors permit a 48-hour workweek with government approval.

Overtime in Georgia

Overtime work is work performed by an employee by agreement between the parties for a period of time longer than the standard working time. The total overtime work performed by minors shall not exceed 2 hours per working day, and 4 hours per working week. Overtime work shall be paid for at an increased hourly rate of remuneration. The amount of the said payment shall be determined by agreement between the parties.

Probation Period in Georgia

The employment agreement should clearly state the probationary period, and must not be more than six months.

Fiscal Year in Georgia

January 1st - December 31st is the 12-month accounting period that businesses in Georgia use for financial and tax reporting purposes.

Payroll Cycle in Georgia

The payroll cycle in Georgia is usually Monthly, with employees being paid Last working day of the month.

Minimum Wage in Georgia

For the past 30 years, the minimum wage has remained unchanged at 115 GEL per month in the public sector and 20 GEL per month in the private sector in Georgia. Due to this being outdated, there has been discussions that the liveable minimum wage is 1,770 GEL per month.

Bonus Payments in Georgia

In Georgia, there's no legal obligation for a 13th-month salary, but employers can provide bonuses at their discretion.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 2% on top of the employee salary in Georgia.

Employee Payroll Tax Contributions

In Georgia , the typical estimation for employee payroll contributions cost is around 2%.

Individual Income Tax Contributions

In Georgia, individual income tax is levied at a flat rate of 20% for residents. For non residents, this is usually also levied at 20% unless employees are from countries that have a Double Taxation Avoidance (DTA) Treaty with Georgia, and if the treaty so specifies, then withholding tax can be as low as 0%.

Pension in Georgia

In Georgia, the pension system consists of both state-funded and private pension schemes. The state pension system provides benefits to retirees based on their contributions during their working years. Additionally, individuals can opt for private pension plans offered by insurance companies or pension funds, which supplement the state pension. These private plans allow individuals to contribute voluntarily to build additional retirement savings.

Mandatory Leave Entitlement in Georgia

The annual leave entitlement in Georgia is 24 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Georgia

There are 14 nationally recognised holidays in Georgia, as specified by The Labor Code.

Paid Time Off in Georgia

Full-time and part-time employees in this company are granted 24 days of paid time off (PTO) per year (workers in hazardous roles shall be granted an additional 10 paid calendar days off per year). Employees are entitled to 15 calendar days of unpaid leave, commonly used for sick days.

Maternity Leave In Georgia

Eligible employees can take up to 126 days (and in the case of complications during childbirth or the birth of twins, maternity leave of 143 calendar day) of paid leave, with social security covering 100% of the average salary from the preceding 3 months, capped at GEL 1,000 per month.

Paternity Leave In Georgia

There is no mandatory paternity leave, fathers can choose to take parental leave or utilise any remaining maternity leave not used by the mother.

Sick Leave In Georgia

In this jurisdiction, there is no legally mandated sick leave. However, employees can take advantage of up to 15 calendar days of unpaid leave for illness. Additionally, employment contracts can be suspended for up to 40 days, after which the employer has the discretion to terminate the contract.

Parental Leave In Georgia

An employee is entitled to parental leave of 604 calendar days, and in the case of complications during childbirth or the birth of twins, parental leave of 587 calendar days. 57 calendar days of the leave shall be paid. An employee is required to use the paid part of maternity leave and parental leave in sequence, for 183 or 200 calendar days, respectively. An employee may, upon his/her request, be granted, in whole or in parts, but not less than 2 weeks a year, additional unpaidparental leave of 12 weeks until the child turns 5.

Termination Process in Georgia

Employee contracts in Georgia may be terminated based on justifiable reasons, such as:

• Economic circumstances, and/or technological or organisational changes requiring downsizing;
• The incompatibility of an employees qualifications or professional skills with the position held/work to be performed by theemployee
• The gross violation by an employee of his/her obligations under an individual employment agreement or a collective agreement and/or of internal labour regulations
• The violation by an employee of his/her obligations under an individual employment agreement or a collective agreement
• Long-term incapacity for work, unless otherwise determined by an employment agreement, if the incapacity period exceeds 40 consecutive calendar days, or the total incapacity period exceeds 60 calendar days within a period of 6 months, and - at the same time -the employee has already used his/her leave under Article 31 of this Law

Notice Period in Georgia

Both the employer and employee adhere to a 30-calendar day notice period, the notice must be provided in written form. No notice is necessary during the probation period.

Severance in Georgia

In Georgia, terminated employees typically receive one month's basic salary as severance pay.