Expand your workforce in Georgia by determining which benefits are mandatory and which perks are sure to attract top talent.

If you’re searching for a compelling location to expand your business, Georgia offers a simple tax system, an open economy, and a very well-educated workforce. In only the last few years, Georgia has become an attractive investment destination for its ease of doing business. According to the World Bank, Georgia has significantly grown its income with a GNI of $5679 in 2023 compared to a figure of $3036 in 2010. 

The country has further reduced unemployment from 20.6% in early 2021 to 13.7% in 2024. Georgia’s FDI reached $197.7 million in 2024, which was 1.1% higher than the average over the last five years. 

In addition to its economic growth, it is easy to do business in Georgia. The country has few administrative challenges and a low corporate tax of 15%. It is considered strategically significant, providing trade routes between Europe and Asia. 

To operate your business and hire a workforce in Georgia, the first step is to familiarize yourself with the Organic Law of Georgia – Labour Code of Georgia. The Georgia labor law governs employee benefits such as leave, working hours, overtime, and social security that employers can use to attract the country’s most talented job candidates. Following these labor practices also protects your company against labor law violations that could lead to imprisonment or a fine of $1000 per violation. 

Fortunately, this guide covers statutory employee benefits in Georgia, common labor regulations, and how a Georgia Employer of Record, or EOR, can support more efficient and compliant hiring and expansion in the country.

Georgia Labor Law

Georgia’s Labor Code covers the employment laws, which stipulate and protect employee rights, govern the employer-employee relationship, and advise on safe working conditions. A few aspects of Georgia labor laws are discussed below:

Employment Contracts

Employment contracts in Georgia stipulate working hours, wages, benefits, and legalities that facilitate the employment relationship. Both oral and written employment contracts are accepted in Georgia; however, it is highly advised that written contracts be presented to employees documenting the terms of employment. 

Indefinite contracts are provided to full-time and permanent employees. Fixed-term contracts are available for short-term work and automatically become indefinite contracts after 30 months.

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Termination of Employment Law

When it comes to contract termination, both employers and employees can end the agreement at any stage based on the following terms: 

  • An employer must issue a 30-day written notice to employees and can dismiss workers for redundancy, misconduct, and other fair reasons. 
  • Employees must provide a two-week notice to the employer upon resignation.

Minimum Wage Law

While minimum wages in Georgia are not governed by labor law but by presidential decree, it is worth mentioning when hiring in the country. Georgia has one of the lowest minimum wage rates in the world. The country’s monthly minimum wage is 20 Georgian lari or $7.50.

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Social Security Regulations

Georgia’s social security consists of the following schemes: 

  • Old age or pension scheme
  • Social compensation
  • Social services 

These schemes are tax-financed.

Leave Schemes

Georgian workers receive annual leave, maternity leave, and sick leave.

How to maintain compliance with Georgian labor laws

Businesses hiring in Georgia are encouraged to follow the Georgia labor laws because of the harsh consequences of failing to uphold the country’s employment regulations. This means seeking professional legal counsel or partnering with a Georgian EOR to help you remain compliant. The EOR in Georgia guides employees through the local labor laws to protect the rights of employers and employees.

Mandatory Employee Benefits in Georgia

Employers must provide their workforce with the following mandatory employee benefits in Georgia:

Social Security Contributions

There are no social security contributions in Georgia, but the state, employers, and employees contribute to a pension fund. The employer contribution is 2% of an employee’s salary. Self-employed persons contribute 4%, and the state contributes 2%. 

Employees also pay a portion of their salary toward the mandatory personal accident insurance. Employees who perform high-risk work must purchase personal accident cover.

Annual Paid Leave

Georgian employees receive 24 days of annual paid leave but can only take it once the employee has completed 11 months of service.

Working Hours

Employees work 40 hours a week, which equates to eight hours a day for five days.

Overtime Pay

In Georgia, any working hours over 40 hours a week are considered overtime. Overtime pay is calculated at 1.5 times the regular hourly wage rate.

Paid Public Holidays

While Georgia has 15 public holidays, no law states employees must receive paid or unpaid leave for these particular holidays.

Paid Sick Leave

There is no legal requirement for sick leave for private sector employees, but workers in the public industry are permitted three weeks of sick leave per year.

Maternity Leave

Pregnant employees receive 126 days of maternity leave.

Paternity Leave

There is no paternity leave in Georgia, but paternal fathers can take parental leave.

Severance Pay

Upon the termination of an employment contract, the employee is entitled to severance pay. Georgian employees who receive a 30-day notice are issued a severance of one month’s salary.

Supplementary Employee Benefits in Georgia

Supplementary employee benefits are not required by Georgia labor law; however, hiring in the country is more advantageous if you can give workers competitive benefits.

Most employers in Georgia offer supplementary benefits to job candidates, such as additional private medical insurance, because they attract highly skilled employees and improve job satisfaction and employee retention.

The following supplementary benefits are provided to Georgian workers:

  • Medical and dental care: Georgian employees can access the Universal Healthcare program, which means that employers are not legally obligated to offer private medical coverage. But if you want to attract skilled and sought-after workers, then private medical care as a supplementary benefit can address the gaps in public healthcare.
  • Paid time off: Providing employees with paid time off to tend to family or take a much-needed break can significantly boost morale and support productivity.
  • Flexible work arrangements: You can assist your employees with work-life balance by introducing flexible working hours or permitting work from home.

Optimize Employee Benefits with Remote People

When you expand your business in Georgia, you can take advantage of the country’s affordable taxation, strategic location, and transparent employment framework. With fewer administrative hurdles, foreign companies can hire a professional workforce more efficiently, provided they adhere to the local labor laws and satisfy employee benefits. 

By offering new workers mandatory employee benefits in the employment contract, you’ll remain compliant while protecting the rights of new hires. Additional perks, including dental cover or flexible working arrangements, are bonuses that employers can use to attract the country’s most talented job candidates and create a motivated workforce. 

Hiring in Georgia is made easier with an EOR firm, but it can be challenging to find the right professional partner to establish your business compliantly. Why not reach out to Remote People’s EOR services? They simplify the process by helping you with payroll, compliance, and the necessary benefits solutions in Georgia. 

Don’t wait to hire your workforce in Georgia when Remote People is ready to support your business’s expansion.