Looking for an Employer of Record in Georgia? Here’s what you need to know

Organizations looking to engage and pay employees in Georgia must comply with the country’s labor and employment laws. These laws can be complex to comply with and are reviewed regularly. 

Typically, for support with global hiring needs, companies choose an Employer of Record; In Georgia, it may not be permitted. 

So, businesses may use Payoneer Workforce Management for assistance with onboarding, payroll, localized benefits, and more.

Learn more about Payoneer Workforce Management, or keep reading to learn more about what engaging talent in Georgia involves.

How to hire employees in Georgia

Organizations have three primary routes to engage and pay employees in Georgia:

1. Set up a legal entity: With a legal presence in the country, companies can hire teams directly via their local entity. Take this route, and you can expect to operate as normal — complete with reporting obligations and other legal requirements. This route is also the most time-consuming and may not suit companies that want to hire fast.
   
2. Hire independent contractors and freelancers: Independent workers can be hired without a legal entity. If you have short-term or project-based contracts to fill, this could be an option. Bear in mind that it is illegal to treat independent workers as employees.
   
3. Workforce management platform: Since an EOR in Georgia may not be permitted, businesses may use a solution like Payoneer Workforce Management for support with engaging employees in the country. This is often a flexible and cost-effective route to engage and pay employees in Georgia.

Payoneer Workforce Management enables compliant onboarding and engagement of talent in 160+ countries without having to set up a legal entity.

How to onboard employees in Georgia

Onboarding employees in Georgia involves meeting several administrative and compliance requirements. 

This includes preparing employment contracts that comply with Georgian labor legislation, registering employees with the relevant government authorities, and configuring all necessary payroll and benefits arrangements.

A well‑structured onboarding workflow is essential when bringing international talent into the organization. An effective onboarding process typically includes the following key stages:

• Payroll and benefits setup: Register the new candidate in the appropriate payroll system and complete all mandatory benefit and tax registrations in accordance with Georgian employment and social security regulations.
• Technology provisioning and workspace readiness: Ensure the employee receives all required equipment, software access, and system permissions before their first day so they can begin working productively right away.
• Structured first‑week orientation: Provide a thorough and engaging orientation during the employee’s first week to cover company policies, operational processes, organizational culture, and specific responsibilities related to their role.
• Introductions to teams and key stakeholders: Arrange introductions with the employee’s immediate team and important cross‑functional partners to support collaboration and help them integrate smoothly into the broader organization.

Payoneer Workforce Management enables companies to compliantly engage talent across borders through its technology platform.

Pay employees in Georgia

Here are the key details of running Georgia payroll.

Georgia payroll essentials

Organizations must pay employees in Georgia using Georgian Lari (GEL). In Georgia, payroll runs monthly, and employees are paid on the last working day of the month.

There is no legal minimum wage in Georgia, and annual bonuses are not required by law, but may be provided as per the employer’s policy.

Taxes and contributions

Individuals in Georgia pay a 25% income tax rate.

Georgia doesn’t have a traditional social security system funded by payroll taxes. Instead, a mandatory funded pension scheme is implemented, with the following contributions:

Contributor	Contribution amount
Emloyee	2%
Employer	2%
Government	2%

Employee benefits

There is no universal state-provided health insurance system in Georgia. 

However, the government operates a Universal Health Care (UHC) program to provide basic medical coverage to citizens. All Georgian citizens are automatically enrolled in the UHC program.

Payoneer Workforce Management’s unified, all-in-one platform gives you a single dashboard to manage a global workforce.

Employment law in Georgia

Here are some of the key employment laws in Georgia. 

Employment law	Description
Working hours	40 hours per week
Overtime hours	Employees receive overtime pay if they exceed 40 working hours in a single week. Overtime pay is paid at 125% of gross salary.
Probation period	Between 1 and 6 months.
Notice period	1 day’s notice is required during probation. 1 month’s notice is required after probation.

Get support to stay compliant with local labor laws by using Payoneer Workforce Management’s infrastructure.

Minimum wage in Georgia

There is no legal minimum wage in Georgia. 

Employers may refer to local regulations to set pay rates based on industry standards and the current labor market.

Employment contracts in Georgia

Georgia’s Labor Code governs and regulates how employers contract and manage employees. 

Written labor agreements should be produced in a language that’s understandable to both parties. 

If a written employment agreement is produced in several languages (i.e., Georgian and English), it should contain a clause specifying the language of the employment agreement to prevail in the case of a discrepancy between the provisions of the employment agreements.

The essential contract terms typically include:

• Information on the parties to the employment agreement
• The contract/employment date and duration
• Working time and rest periods
• The place of work (or places of work if the employee’s regular or primary place(s) of work are not specified)
• The post (rank, grade, category, where applicable)
• The type and description of work to be performed
• Remuneration (with an indication of a salary and, where applicable, an increment), and how the employee will be paid
• How overtime will be compensated
• The paid and unpaid leave provided, and the procedure for granting said leave
• Termination procedures and agreements
• The provisions of a collective agreement, provided that the employment conditions of employees are regulated differently under said provisions.

Partner with Payoneer Workforce Management to onboard talent quickly and securely with localized contracts and payroll.

Leave policy in Georgia

Here are key details about the leave policy in Georgia.

Public holidays and vacation time

Georgia observes 12 public holidays each year.

In Georgia, employees are entitled to 24 days of paid leave and 15 days of unpaid leave.

Paid leave can be carried over to the next year with the employee’s consent if granting the leave would have an impact on normal work processes. Unused paid leave cannot be carried over for 2 consecutive years.

Maternity leave and parental leave

Maternity leave is 126 calendar days. Parental leave may be taken by either parent (mother or father), in full or in part, for up to 604 calendar days (approximately 1.6 years) for standard parental leave, and up to 587 calendar days if the children are twins or there are complications. 

The government pays 57 calendar days of parental leave.

For availing parental leave, the employee must give the employer a 2-week notice.

Sick leave

Standard sick leave is limited to 15 days of unpaid leave. A medical certificate is required if an employee exceeds 15 days of sick leave.

Employers may choose to offer paid sick leave depending on their internal policy.

Work permit in Georgia

The Ministry of Foreign Affairs in Georgia has information for employees who may require a work permit. Typically, any non-national must obtain a work permit to work in Georgia. The exact requirements vary depending on the employee’s country of origin.

Visit the website of the Ministry of Foreign Affairs in Georgia for more information.

Background check in Georgia

It may be a standard practice to conduct background checks in Georgia on candidates before extending an offer of employment. A background check may include gathering references from past employers, reviewing the employee’s social media presence, and inspecting their criminal record.

These checks may be common practice, but it is still essential for employers to get consent from a candidate before the check is performed. Employers should also make candidates aware of the information that will be processed.

Employers need to refer to the government’s official regulations before running any background checks in Georgia.

Employment termination in Georgia

Termination can be complex, so each termination should be handled on a case-by-case basis. Employers can terminate an employment contract based on valid grounds, and Georgia’s employment law should be followed for compliant terminations.  

Termination without valid grounds may be considered unfair dismissal and lead to legal consequences for the employer.

If an employee resigns in Georgia, they are owed that month’s salary.

For an employer to terminate the contract, 2 written notices of non-professionalism must be given before termination. Where possible, mutual agreement is a better way to end a contract in Georgia.

The notice period provided informs how much compensation is due:

Notice period	Severance
Less than 30 calendar days	2 months’ salary
30 calendar days	1 month’s salary

Employers must also pay terminated employees for unused vacation days. 

Company registration in Georgia

If you plan to engage and pay a large team of employees in Georgia, company registration might be something you wish to explore. Details on how to incorporate a company in Georgia can be found on government websites. 

To avoid the administrative effort and time required to register a company, you can work with a workforce management platform instead. They offer an easier, more flexible way to execute talent engagement plans.

Payoneer Workforce Management helps companies expand in 160+ countries without setting up a local entity.

PEO in Georgia

A Professional Employer Organization (PEO) in Georgia can support HR and payroll functions, but requires you to have a legal entity in-country. 

On the other hand, a workforce management platform does not require a legal entity and instead acts as the legal employer for the local team. This often makes it the better choice for companies new to the Georgia market.

Explore Payoneer Workforce Management services in Georgia

Payoneer Workforce Management helps growing companies onboard, pay, and manage employees in Georgia without setting up a local entity. 

We offer assistance with employment contracts, benefits administration, taxes, and payroll, while you retain control over daily operations.

Book a demo to learn more about Payoneer Workforce Management.

FAQs

Is an Employer of Record (EOR) legal in Georgia?

An EOR typically supports onboarding international talent. However, this model may not be permitted in Georgia. Businesses may partner with a workforce management platform, like Payoneer Workforce Management, for support with payroll, taxes, employment contracts, benefits, and more.

How much does it cost to hire Georgia?

Employers should expect to spend about 4% of an annual salary of USD 60,000. Final costs can vary depending on the employee’s salary and other local factors. Try our employee cost calculator to find a detailed breakdown of employment costs.

Why should you hire talent with a workforce management platform in Georgia?

A workforce management platform in Georgia, like Payoneer Workforce Management, can help you streamline the process of engaging talent. Payoneer Workforce Management enables you to engage and pay employees and independent contractors across the globe in 70+ currencies.