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Europe - Georgia
Employer of Record Georgia

Last updated: Jul 19, 2024
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Country Description

Georgia is in eastern Europe and southwestern Asia between Turkey and Russia and considers itself part of Europe. It has a small economy that includes cultivation of agricultural products, such as grapes, citrus fruits, and hazelnuts and mining of manganese, copper, and gold. Georgia’s labor force is around 1.8 million.

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Employment contracts in Georgia must be written and include the nature of the work, job description, salary, overtime, work hours, annual leave, other types of leave and clauses such as termination, notice and probation periods. Both parties must sign the contract. Employers can request a candidate’s basic personal information, criminal record background, driving record, credit check, previous employment details and a reference.

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.

The standard working week in Georgia consists of 40 hours a week, typically 8 hours per day for a five-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.

Overtime

A limit of 2 hours per day, 4 hours overtime per week, paid at a rate of 125% salary, or compensated with additional time off.

The employer is obligated to pay regular salary for temporary incapacity up to a period of 40 consecutive calendar days or a total incapacity period not exceeding 60 calendar days per 6-month period.

A sickness certificate is required from day 1 from an authorized medical physician in order to receive payment during leave.

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).

They also receive 604 days of additional maternity leave.

Starting in 2023, a one-time assistance of 1,000 GEL is provided to every third and subsequent newborn.

Paternity Leave

In Georgia, paternity leave is the same as parental leave.

Parental Leave

Fifty-seven days can be taken from an employee’s maternity leave and be put towards childcare leave. This can be used by either the mother or father.

Upon the employee’s request, the employer may grant an employee an additional two weeks’ leave per year to care for a child under 5 years old.

The annual leave entitlement for a full-time employee is 24 working days per year.

Workers in hazardous roles might be eligible for an additional 10 paid calendar days off per year.

Upon the completion of 11 months of service within a single organization, workers are eligible to take a further 15 days of unpaid vacation leave.

Carryover of unused days is permitted into the next year (but not longer than 2 consecutive years) if it is deemed that allowing workers to use the full leave entitlement within the current year will have a negative impact on the business. Worker’s consent must be given before proceeding with this.

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types upon approval of the employer and employee for the following:

  • Adopter’s leave: a person who adopts a child under the age of 10 is entitled to paid leave based on the employee’s average salary

  • Childcare leave: a mother or father can take paid leave (pay is equal to the minimum wage) and varies based on the age of the child: up to two children under the age of 14 – three days of leave, three or more children under the age of 14- six days of leave

  • Care Leave: For parents with a disabled child- the mother or father can take off an additional day of work each month until the child reaches the age of 18. This leave is also compensated based on the minimum wage

Public holidays that fall on the weekend are usually lost.

Date Day Holiday
1 Jan 2024 - Monday - New Year’s Day
2 Jan 2024 - Tuesday - New Year’s Holiday
7 Jan 2024 - Sunday - Orthodox Christmas Day
19 Jan 2024 - Friday - Orthodox Epiphany
3 Mar 2024 - Sunday - Mother`s Day
8 Mar 2024 - Friday - International Women’s Day
9 Apr 2024 - Tuesday - Independence Restoration Day
3 May 2024 - Friday - Orthodox Good Friday
6 May 2024 - Monday - Orthodox Easter Monday
9 May 2024 - Thursday - Victory Day
12 May 2024 - Sunday - St Andrew’s Day
26 May 2024 - Sunday - Independence Day
28 Aug 2024 - Wednesday - Day of the Assumption of Mary
14 Oct 2024 - Monday - Svetitskhovloba
23 Nov 2024 - Saturday - St George’s Day

Georgia has universal healthcare. Although the system is mainly funded by the state, most health care is delivered by private providers.

Employment agreements can be terminated for a number of reasons including change in economic circumstances, organizational changes requiring downsizing, role incompatibility of an employee’s qualifications or professional skills, long-term incapacity for work, other objective circumstances justifying the termination of an employment agreement.

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 one or two month’s salary as severance pay upon dismissal; the exact rate of pay will depend on the termination reasoning.

Probation Period

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

Employer Payroll Contributions
2.00% Pension (not applicable for workers whose permanent residence is not in Georgia)

2.00% Total Employment Cost

Employee Payroll Contributions
2.00% Pension

2.00% Total Employee Cost

Employee Income Tax
20.00% Flat Rate

Payroll Cycle

The payroll cycle in Georgia is generally monthly and payments must be made on the same day of the month and no later than the last working day of the month.

13th Salary

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

Individuals from 98 countries can enter Georgia without a visa for one year, however, those who want to remain longer, and work must obtain an immigration visa.

For work purposes, people need to obtain a Type D visa for immigration. There are also options for short-term or long-term visas. The most requested visa includes the C and D type visa.

Foreign nationals traveling to Georgia on business typically use the C Visa unless they are visa exempt. Business visitors are generally per

mitted to stay in Georgia for up to 90 days in any 180 days, depending on their nationality.

The C3 or D1 visa categories are suitable for short-term work, depending on the nature and duration of the planned activities in Georgia.

For broader/longer-term work activities, the D1 visa can be combined with a work/residence permit and secured in the country. The permit is generally issued for one year initially. However, exceptions are made based on employment contracts or assignment letters with longer validity at the discretion of the State Service Development Agency. The permit can be extended for up to six years after which the foreign national may qualify for permanent residence.

The standard rate of VAT in Georgia is 18%.

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