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Georgia

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Employer of Record (EOR) in Georgia

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Georgia Introduction

Georgia is a country in eastern Europe bordered by Russia, Turkey, Armenia, Azerbaijan, and the Black Sea. The country’s landscape is diverse as it boasts hot springs, sulfur baths, and the Caucasus mountains, along with castles, cathedrals, and other relics from the medieval ages. Georgia has a growing economy with an increasing number of skilled professionals, making it a smart target for expansion.

Employment Terms

Types of Contracts

Employment can be established on a permanent or fixed-term basis.

Fixed Term Contracts

Fixed-term contracts are automatically turned into open-ended employment contracts if:

  • The duration of the employment agreement is more than 30 months, or
  • If the fixed term contract is concluded 2 or more consecutive times  for longer than 30 months.

Note:  Contracts are considered consecutive if they are renewed within 60 days of the previous contract expiring.

If the duration of an employment agreement is more than 30 months, or if employment has continued on the basis of concluding fixed-term employment agreements on 2 or more consecutive times and the duration of said labor relations exceeds 30 months, an open-ended contract shall be deemed to have been concluded.

Job Title Restrictions

There are no job title restrictions when hiring in Georgia under the EOR model.

Working Hours

The standard working week in Georgia consists of 40 hours a week, typically 8 hours per day for a 5-day working week. The working week can be increased to 48 hours per week in specific sectors. A record of working hours should be maintained unless it is impossible to do so due to the specific nature of the work.

Rest Breaks

Minimum Weekly Rest Period:

Employers must ensure that every employee has a minimum uninterrupted rest period of 24 hours within each 7-day period. By mutual agreement, an employee may have two consecutive 24-hour rest periods within a maximum of 14 days.

Breaks During Working Hours:
  • If the working day exceeds 6 hours:
    • Employees are entitled to a break, with the duration to be agreed upon by both parties.
  • If the working day is no longer than 6 hours:
    • Employees must have a break of at least 60 minutes.

Breastfeeding Breaks:

Employees breastfeeding infants under 12 months old may request an additional break of at least 1 hour per day. Breaks for breastfeeding are considered part of working time and are paid.

Overtime

Employees are limited to 2 hours of overtime per day and 4 hours per week. Overtime hours are compensated at a rate of 125% of the regular salary or can be offset with additional time off.

Minimum Wage

In Georgia, the national minimum wage is dependent on the employer contract/collective bargaining agreement in place. There is no statutory requirement for the federal minimum wage.

Bonuses and 13th Salary

In Georgia, a 13th-month salary is not mandatory, however, the employer can pay bonuses at their discretion.

Probation Period

The probationary period in Georgia should be stipulated within the employment agreement and must not exceed 6 months.

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Taxes & Local Employment Costs

Employee Taxes

Personal income is subject to a flat tax rate of 20%.

Employer Taxes & Contributions

Employers are mandated to contribute towards pension insurance, at a rate of 2%. However, the pension contribution is not applicable for workers whose permanent residence is not in Georgia.

Types of Leave

Annual Leave (Vacation)

Once an employee has completed 11 months of service with an employer, they are entitled to 24 days of paid leave annually, with a vacation benefit equivalent to 1 month’s salary paid 3 months before the annual leave. Employees are also entitled to take 15 unpaid days off work every year.

Sick Leave

Employers in Georgia must provide regular salary during temporary incapacity for up to 40 consecutive calendar days or a total incapacity period not exceeding 60 calendar days within a 6-month period. To receive payment during leave, employees must obtain a sickness certificate from an authorized medical physician startingfrom the first day.

Maternity Leave

Mothers are entitled to 126 days of pregnancy and childbirth leave or 143 days in case of complications or the birth of twins. Employees receive 100% of their daily wage (up to a total of 2,000 GEL). Post-pregnancy, mothers can take up to 604 days off work to care for newborns.

Paternity Leave

Paternity leave is covered in the parental leave policy.

Parental Leave

57 days can be taken from an employee’s maternity leave and put towards childcare/parental leave. This can be used by either the mother or father. Upon the employee’s request, the employer may grant an employee an additional 2 weeks’ leave per year to care for a child under 5 years old.

Other Types of Paid Leave

Care Leave: Parents with a disabled child can take an additional day off work each month until the child reaches the age of 18. This leave is compensated based on the minimum wage.

Childcare Leave: Both mothers and fathers have the opportunity to take paid leave, with payment equivalent to the minimum wage. The duration of this leave varies based on the age of the child:

  • For up to two children under the age of 14, 3 days of leave are granted.
  • For three or more children under the age of 14, 6 days of leave are provided.

Adopter’s Leave: Individuals who adopt a child under the age of 10 are entitled to paid leave, calculated based on the employee's average salary.

Public Holidays

There are 17 public holiday days in Georgia per year.

  • New Year’s Day - January 1
  • New Year's Holiday - January 2
  • Orthodox Christmas - January 7
  • Orthodox Epiphany - January 19
  • Mother's Day - March 3
  • International Women's Day - March 8
  • Independence Restoration Day - April 9
  • Orthodox Good Friday - Friday before Orthodox Easter Sunday
  • Orthodox Easter Monday - Day after Orthodox Easter Sunday
  • Victory Day - May 9
  • St. Andrew's Day - May 12
  • Independence Day - May 26
  • Day of the Assumption of Mary - August 28
  • Svetitskhovloba - October 14
  • St George's Day - November 23

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Benefits

Summary

Employers in Georgia can typically offer the following benefits:

  • Health Insurance
  • Gym Membership
  • Hardware Leasing

Termination Process

Notice Period

The notice period for both an employer and employee is 30 calendar days. No notice is required during the probation period. Notice must be given in writing.

Severance Pay

An employee is entitled to at least 1 or 2 months’ salary as severance pay upon dismissal; the exact rate of pay will depend on the termination reasoning. If employment is terminated by the employer, unused leave proportionate to employment duration should be paid out in the final salary payment.

Additional Information

N/A

OVERVIEW
Language(s):
Georgian
Currency:
Georgian Lari (GEL)
Capital City:
Tbilisi
Population:
3.7 Million
Cost of Living Rank:
91st
VAT (Valued Added Tax):
18%
Employer TaxES
2%
(estimated)

★  2% - Pension

Get Started in 3 Steps

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

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How Remofirst employs in Georgia

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Georgia get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Georgia are paid on time in Georgian Lari (GEL). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Georgia, they can speak with our customer support team to get answers from our team of experts.