Payroll and HR
Administration in Georgia

Georgia – Payroll and HR administration services

Global Expansion Plus provides payroll and HR administration services in Georgia. Use our solutions to take care of your people in Georgia. We make sure that your people are being taken care of, and your entity is safe from violating local legislation. The Labor Code governs the Georgian labor relationship.

Hiring and onboarding employees in Georgia

If you are hiring a foreign employee, you need to consider obtaining the residence permit first. Please see below. Once you agreed on the job offer with your future employee, you need to start the onboarding process.

Onboarding Process

If employment is going to take place for more than three months, a written contract is required. Labor agreement shall include but is not limited to the following sections:
  • Employment start-day and the term of the contract;
  • Position and job description;
  • Working hours;
  • Workplace description;
  • Gross amount of salary or wage;
  • Definition of overtime and compensation of overtime;
  • Paid and unpaid leave;
Compared to other post-soviet union countries, Georgia has massively simplified the labor legislation to attract foreign and companies and investors.

Probation Period

An employer can include a trial period in the labor agreement. The trial period cannot exceed six months. The remuneration for the trial period shall be agreed upon by the parties. An employee can be terminated at any time during the trial period.

Health and Safety

The employer must ensure for the workforce such working conditions that are comfortable and safe. Requirements for work conditions are contained in the Labor Protection Laws of Georgia. Following the requirements mitigates the risks of damage to the health and safety of the people.

Work permits and Visas in Georgia

Visa Types

There are different kinds of visas in Georgia. Ministry of Foreign Affairs of Georgia classifies them according to the purpose of the visit, the term of stay, and the number of entrances. Based on the migration laws, the following visa categories are applied according to the purpose of stay in Georgia:
  • Visa Type A – Diplomatic;
  • Visa Type B – Special;
  • Visa Type C – Ordinary;
  • Visa Type D – Immigration;
  • Visa Type T – Transit;
Ministry of foreign affairs also issues short-term and long-term visas, with a single entry and multiple entries. A short-term visa is granted for the period under 30 calendar days. An applicant shall indicate the period of stay in the application. Short term visas can be for a single and multiple entries, while long-term visas issued only for multiple entries. A foreigner that enters Georgia under the short-term visa can stay for a period of 90 calendar days in 180 days.
Visa application is made electronically through the E-Application System or e-Visa Portal, depending on this category of visa is applied.

Work Permit

Foreign employees that want to be employed in Georgia need to get a long-term visa first. This visa allows them to apply for the residence permit. Once a residence permit is granted, companies in Georgia can recruit foreign individuals.
Citizens of some states (like members of the European Union) are not required to get a residence permit to be employed in Georgia.

Foreigners, that want to be self-employed while living in Georgia can apply to the work residence permit. Georgia is a trendy destination for IT freelancer from around the world that seek a quiet and lovely environment to work. This work residence permit is also granted to investors that want to set up a company in Georgia.

Working hours and leaves in Gerogia

Working hours and overtime

The working hours are defined by the employer in the employment agreement and cannot exceed 40 hours per week. For some companies that have business processes that cannot be interrupted for 8 hours and need the attention of the employees, the workweek can be set up at 48 hours per workweek.
If work conditions require an employee a constant work for 24 hours, a shift system shall be applied. Under the shift-based contract should provide sufficient time for the recovery of the employee. The minimum rest hours between working days must be 12.
A workweek of minors:
  • Between 16 and 18 years old should not exceed 36 hours per week.
  • Between 14 and 16 years old should not exceed 24 hours per week.

Vacation leave

An employee has the right to have a paid vacation for 24 working days per year. Unpaid leaves are also limited to 15 days per year. Unused vacation days are accumulated and compensated for the termination of employment.

Sick leave

There is no requirement to compensate employees for sick leave. But as an internal policy, sick leaves can be paid by the employer at goodwill.

Maternity and paternity leave

The total maternity leave, as set by the Labor Code of Georgia, is 730 calendar days. The first 183 days of the maternity leave is paid, these days can be plonged to 200 days in case of pregnancy with two or more children or complicated pregnancy.

Holidays in Georgia 2020

  • 01- 02 January 2020 - New Year's Holiday
  • 07 January 2020 - Orthodox Christmas
  • 19 January 2020 - Orthodox Epiphany
  • 03 March 2020 - Mother's Day
  • 08 March 2020 - International Women's Day
  • 09 April 2020 - Day of National Unity
  • 17 April 2020 - Orthodox Good Friday
  • 18 April 2020 - Great Saturday
  • 19 April 2020 - Orthodox Easter Day
  • 20 April 2020 - Orthodox Easter Monday
  • 09 May 2020 - Day of Victory over Fascism
  • 12 May 2020 - Sant Andrew the First-Called Day
  • 26 May 2020 - Independence Day
  • 28 August 2020 - Saint Mary's Day
  • 14 October 2020 - Day of Svetitskovloba
  • 23 November 2020 - Saint George's Day

Remuneration & Benefits in Georgia

The Georgian government has set an official minimum wage in 2020 of GEL 20 (USD 7) for the private sector and GEL 350 (USD 125) for employees of government companies and agencies.

Employee termination and severance in Georgia

The reasons for termination are listed in the Labor Code of Georgia. Some of the reasons for termination are listed below:
  • end of the fixed-term agreement;
  • end of the project-based employment;
  • redundancy of an employee due to technological change;
  • reign of an employee;
  • the inability of an employee to perform the job;
  • violation of employers' internal policies and procedures;
  • sick leave the ended with a disability;

Notification period

An employer has to notify the employee at least 30 calendars days prior to the termination by sending him a written notice. At the same time, the employee is paid compensation in the amount of remuneration for at least one month, within 30 calendar days from the date of termination of the employment contract.

Payroll related taxes in Georgia

Employee taxes

Employees pay a personal income tax of 20%; the percentage is applied after deducting Pension contribution paid from gross salary. The pension contribution is equal to 2% of the gross salary.Self-employed individuals are paying 4% to the Pension Fund of Georgia.

Employer taxes

Employers are paying 2% of pension contributions from employee’s gross salary.
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