Navigating Georgia's Employee Compensation Regulations: An HR Expert's Guide

Minimum Wage Requirements

As of 2024, Georgia's national minimum wage stands at 20 Georgian Lari (GEL) per month. While this baseline applies across most sectors, multinational companies often establish higher compensation standards to attract skilled professionals in competitive industries.

Payroll Frequency and Legal Obligations

Georgian labor legislation mandates that employers disburse wages at least once monthly, with specific payment intervals typically outlined in employment contracts. Organizations failing to meet payment deadlines face financial penalties—specifically, 0.07% of the overdue amount per day of delay. Unlike many European markets, Georgia does not require thirteenth-month salary payments.

Payroll Documentation Best Practices

Although Georgian law doesn't explicitly require pay slips, employers must deduct income tax from wages and maintain transparent records. We strongly recommend providing detailed pay statements that include:

Gross earnings breakdown (base salary, shift differentials, statutory supplements, overtime, commissions, and bonuses)
All deductions (pension contributions, income tax withholdings, and other authorized deductions)

Payroll Management Solutions

Companies operating in Georgia typically choose between establishing local payroll infrastructure or partnering with specialized providers. Establishing a local entity requires significant investment in compliance expertise and administrative resources. Alternatively, global employment solutions like SailGlobal offer streamlined payroll management while ensuring full compliance with Georgian tax and labor regulations.

Common Compliance Risks and Penalties

International employers should be aware of several critical compliance areas:

Collective bargaining violations: Industry-specific agreements carry substantial financial consequences
Labor law infractions: Fines range from 200-1,000 GEL based on company revenue and VAT registration status
Workplace safety violations: Penalties include warnings, fines, and potential operational suspension
Discrimination claims: The Labor Inspection Service can impose corrective measures and financial penalties
Improper termination: Unlawful dismissal can result in significant compensation payments

Payment Methods and Bonus Structures

Georgian employers enjoy flexibility in payment methods, commonly using bank transfers, cash, or checks. Bonus schemes remain largely discretionary, though once established in employment contracts, they become legally enforceable. Performance bonuses typically incorporate:

Clearly defined evaluation criteria and payment timelines
Non-discriminatory allocation practices
Standard 20% personal income tax treatment

Industry Compensation Benchmarks

Industry Sector	National Sales Director	Sales Manager	Sales Representative
Energy	40,000-60,000 GEL	30,000-40,000 GEL	24,000-30,000 GEL
Automotive	35,000-55,000 GEL	27,000-36,000 GEL	22,000-28,000 GEL
Medical Devices	32,000-52,000 GEL	25,000-34,000 GEL	20,000-26,000 GEL
SaaS Technology	30,000-50,000 GEL	24,000-33,000 GEL	19,000-25,000 GEL
Internet Services	28,000-48,000 GEL	23,000-32,000 GEL	18,000-24,000 GEL
Traditional Manufacturing	25,000-45,000 GEL	20,000-30,000 GEL	16,000-22,000 GEL

*Market data sourced from Georgian recruitment platforms; ranges reflect total annual compensation

Georgia Employee Compensation Guide 2024: Payroll, Minimum Wage & Compliance