Payroll and Benefits Guide - Georgia

Georgia
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Currency

Georgian Lari (GEL)
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Capital

Tbilisi
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Employer Taxes

2.00%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Georgia is located at the crossroads of Europe and Asia and is known as the “Balcony of Europe” due to its position on the eastern coast of the Black Sea.

Georgian hospitality is renowned. It is customary for Georgians to warmly welcome guests with traditional food, wine, and music.

Georgia is considered one of the oldest wine-producing regions in the world, with a history of winemaking dating back over 8,000 years.

The Georgian alphabet is one of the 14 existing alphabets. It consists of 33 unique letters.

Georgia is home to the Caucasus Mountains, which offer breathtaking landscapes.

The Georgian Orthodox Church has a strong presence in the country.

Georgia

Contributions

Employee Payroll Tax

Pension2.00%

Employer Payroll Tax

Pension2.00%

Payroll

Payroll Cycle

Payments must be made on the same day of the month and no later than the final working day of the month in Georgia, where the payroll cycle is typically monthly.

13th Salary

A 13th-month pay is not required in Georgia. However, the employer is free to decide whether to give bonuses.

Work Hours and Week

Georgia’s typical work week is 40 hours long, or roughly 8 hours per day for a five-day workweek. In some industries, the workweek can be extended to 48 hours per week.

Overtime

The employment contract and collective agreements govern all labor that is performed in excess of the required number of hours per week and must be compensated as overtime. There are limits on the amount of hours an employee may work when requested to work overtime or on a holiday. These quotas are for 48 hours every week. For minors, there are further differing maximum working hours.

More than 48 hours of overtime per week are paid at a rate equal to 150.00% of the employee’s base pay.

Georgia

Leave

Paid Time Off

A full-time employee is entitled to 24 working days of yearly leave every year.

Those who perform risky jobs may be entitled to an additional ten paid vacation days per year.

A further 15 days of unpaid vacation leave are available to employees after they have worked for 11 months for the same company.

If it is determined that permitting employees to take their entire allotted amount of leave during the current year will have a negative effect on the firm, unused days may be carried over into the following year (but not for more than two consecutive years). This cannot be done without the worker’s permission.

Public Holidays

In Georgia, there are 15 public holidays.

Sick Days

When an employee is temporarily incapacitated for no more than 40 days in a row, or for a total of no more than 60 days in a 6-month period, the company is required to pay the employee’s regular compensation.

For payment to be made while on leave, a doctor’s certificate of sickness from an authorized facility is needed starting on the first day.

Maternity Leave

In the event of problems or the birth of twins, mothers are entitled to 143 days of pregnancy and childbirth leave instead of the standard 126 days. Up to 2,000 GEL, all daily wages are paid to employees in full.

They also get an additional 604 days of maternity leave.

Every third and subsequent newborn will receive a one-time assistance of 1,000 GEL beginning in 2023.

Paternity Leave

In Georgia, parental leave and paternity leave are similar.

Parental Leave

An employee’s maternity leave may be reduced by up to 57% to make room for childcare leave. Both the mother and the father have the option to use this.

An employee may request an additional two weeks of leave each year from the employer to care for a child under the age of five.

Termination

Termination Process

Employment contracts may be terminated for a variety of reasons, such as a change in the economy, organizational changes that necessitate downsizing, a role that is incompatible with an employee’s qualifications or professional skills, a long-term disability that prevents them from working, or other objective circumstances that warrant the termination of a contract.

Notice Period

Both the employer and the employee have a 30-day calendar notice period. During the probation period, there is no need to give notice. Written notice must be provided.

Severance Pay

After the employment contract is terminated, the employee is entitled to severance pay of at least one month’s wages.

Probation Period

Probation Period

Georgia law requires that the probationary term be specified in the employment contract and cannot last longer than six months.

Immigration

For one year, citizens of 98 countries can enter Georgia without a visa; however, if they want to stay longer or work, they must get an immigration visa.

A Type D visa for immigration is required in order to enter the country for employment. There are choices for both short- and long-term visas. The C and D type visas are among the most often requested visas.

Unless they are visa free, foreign nationals visiting Georgia for business normally use the C Visa. Depending on their nationality, business travellers can typically stay in Georgia for up to 90 days in a 180-day period.

Depending on the kind of job being done and how long it will take, either the C3 or D1 visa categories are appropriate for short-term employment in Georgia.

The D1 visa can be coupled with a work/residence permit and obtained in the country for more extensive or long-term work activity. The initial period of the permission is typically one year. The State Service Development Agency may, in its discretion, make exceptions based on employment contracts or assignment letters with extended validity. The foreign citizen may be eligible for permanent residence after the permit has been extended for up to six years.

VAT

Georgia’s regular VAT rate is 18.00%.