Georgia Employment Guide

Georgia is located in the South Caucasus region, bordering Azerbaijan to the east, Russia to the north, and the Black Sea to the west, holding an important strategic geographical position. It has a population of approximately 3.7 million, and its economy is dominated by agriculture, tourism, energy, mining, and services. Tbilisi, the capital, serves as the political, economic, and cultural center. Georgia’s labor laws require employment contracts to be in writing, with a standard 40-hour workweek. Employers are obligated to provide a minimum wage, social insurance, and paid leave. Dismissals must comply with legal procedures and include compensation for employees. Its labor relations system is gradually improving, it is friendly to foreign-funded enterprises, and the overall employment environment is stable.

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Currency

Georgian Lari (GEL)

Capital

Tbilisi

Official language

Georgian

Salary Cycle

Monthly

Our Employment Guide in Georgia

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Understanding Georgia's Minimum Wage Structure

Georgia's statutory minimum wage has remained unchanged at 20 Georgian Lari per month for three decades, creating a significant gap between legal requirements and actual compensation practices. The market-driven average minimum wage currently stands at approximately 1,300 GEL monthly, reflecting economic realities rather than statutory mandates.

Personal Income Tax Framework

Georgia employs a flat-rate income tax system where all employees are subject to a consistent 20% tax rate on their earnings, regardless of income level. This simplified approach streamlines payroll processing while ensuring predictable tax obligations for both employers and employees.

Employer Cost Considerations

Beyond direct compensation, employers should anticipate additional payroll expenses averaging approximately 2% of gross salary. The primary component is:

Accumulative Pension Plan Contribution - 2.0%

For comprehensive cost analysis tailored to your specific hiring scenario in Georgia, SailGlobal's HR specialists provide detailed breakdowns covering all statutory requirements and hidden expenses.

Working Hours and Overtime Regulations

The standard workweek consists of 40 hours distributed across five days, typically Monday through Friday. Any hours worked beyond this threshold qualify as overtime and mandate premium compensation at 125% of the regular hourly rate. This applies to all employment agreements unless specifically exempted by collective bargaining arrangements.

Practical Implementation Example

Consider a technology company establishing operations in Tbilisi: An employee earning 1,500 GEL monthly would receive 375 GEL for 10 overtime hours (calculated at 125% of their standard hourly rate). SailGlobal's payroll management system automatically tracks these requirements, ensuring compliance while optimizing workforce costs.

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