Employer of Record (EOR) in Georgia

Employment Laws and Regulations in Georgia

Georgia’s employment framework is codified in the Organic Law of Georgia on Labour (Labour Code), last comprehensively consolidated in 2023. Understanding statutory rights, obligations, and recent reforms is essential for compliant hiring. This section covers core labour law provisions, recent regulatory updates including the March 2026 Special Labour Activity Permit system, and practical compliance guidance.

Employment Contracts

Georgian labour law requires a written employment contract for all employment relationships. The contract must be in Georgian, though bilingual contracts (Georgian and English) are common practice and acceptable to the tax and labour authorities. The contract must specify mandatory elements including: identity of the employer and employee, employment start date, job title and description, workplace location(s), working hours, remuneration amount and payment schedule, and leave entitlements.

Fixed-term contracts are permitted under the Labour Code but are limited to a maximum duration of 30 months (Article 18). After 30 months, employment automatically converts to an indefinite contract unless both parties formally renew under a new fixed-term agreement. Employment contracts take effect from the date of signing and should be signed before the employee’s first day of work.

Any modifications to the contract require written agreement from both parties and should be documented as an amendment. Unilateral contract changes are not valid. The Labour Code does not prescribe a specific form template, but EOR providers typically use templates vetted by Georgian labour counsel to ensure compliance.

Working Hours and Overtime

The standard working week in Georgia is 40 hours, typically distributed as 8 hours per day over 5 days. Article 24 of the Labour Code permits overtime work, but the combined total (regular plus overtime) cannot exceed 48 hours per week. For shifts exceeding 6 hours, employees are entitled to a 60-minute rest period. Employees under 18 years old are limited to 36 hours per week and cannot work overtime without special exemptions.

Overtime requires the employee’s written consent. When parties agree to overtime, the compensation rate must be set in the employment contract or collective agreement. If the parties cannot agree on the rate, Article 27 of the Labour Code permits either party to seek court determination. In practice, overtime rates typically range from 1.25x to 2.0x the regular hourly wage depending on the industry and timing (night work, weekend work, public holidays).

Night work (between 10 PM and 6 AM) entitles the employee to an increased rate and is limited to 40 hours per week. Work on weekly rest days and public holidays requires employee consent and a substitute rest day or additional compensation as per Article 24. Georgia recognizes 18 public holidays per year; work on these days must be compensated or offset with paid leave.

Overtime and Premium Pay Rates

The Labour Code of Georgia (Articles 24 and 27) establishes overtime pay requirements and caps. Standard working hours are 40 per week, with overtime requiring mutual consent and premium compensation.

Exemptions to overtime caps apply to certain sectors (e.g., healthcare, emergency services, agriculture) with special authorization. Managerial and supervisory staff may have different overtime rules if documented in the employment contract.

Minimum Wage

Georgia’s statutory minimum wage is GEL 20 per month for the private sector and GEL 115 per month for public sector employees (Labour Code of Georgia). This rate has remained unchanged since 1999 and is effectively unenforced by the labour inspectorate. Market wages for skilled positions in Georgia substantially exceed the statutory minimum, and most employers pay competitive salaries reflecting local market conditions.

The minimum wage does not serve as a practical baseline for hiring decisions. Instead, organisations should conduct local market research or consult an EOR partner to determine competitive compensation ranges by role and experience level.

Probation Period

Employers may establish a probation period of up to 6 months (Article 19 of the Labour Code). The probation period must be specified in the employment contract before the employee’s first day. During probation, either party may terminate employment with 3 days’ written notice (or up to 7 days if specified in the contract). No severance payment is required if termination occurs during the probation period.

After the probation period expires, employment automatically converts to an indefinite contract unless the parties have agreed otherwise in writing. Only one probation period is permitted per employer–employee relationship; if a probation agreement expires, it cannot be renewed with the same employer.

Leave Entitlements

Georgia’s statutory leave framework balances employer flexibility with employee protections. The Labour Code provides for annual paid leave, sick leave, maternity leave, and various other leave types. Understanding each category’s eligibility, duration, and compensation rules is essential for compliance and employee satisfaction.

Annual Leave

Employees are entitled to a minimum of 24 working days of paid annual leave per year. Employees may also take up to 15 working days of unpaid leave annually. The right to annual leave accrues after 11 months of continuous service. Employees in hazardous working conditions (as defined by the Ministry of Labour) receive an additional 10 calendar days of paid leave per year.

Accrued annual leave may be carried forward into the following year with employee consent, though carry-over cannot occur across two consecutive years. If leave is not used, the employer may pay out the value at the regular daily rate, or the employee may carry it forward with written agreement. Leave must be scheduled in advance and communicated to the employee with reasonable notice.

Sick Leave

Employees receive paid sick leave up to 40 calendar days per year, covered by the employer (Article 36 of the Labour Code). Beyond 40 calendar days in a single year, the state social insurance system covers additional sick leave. A medical certificate from a licensed healthcare provider is required for absences exceeding 3 consecutive calendar days. The employer must maintain confidentiality of medical information and cannot dismiss an employee solely because of a medical condition without statutory justification.

Maternity Leave

Female employees receive 126 calendar days of maternity leave. If there are complications during pregnancy or childbirth, or in the case of multiple births, the entitlement increases to 143 calendar days (Article 37 of the Labour Code). The employee may split the leave between pre-natal and post-natal periods as she chooses. Maternity leave is paid from the state budget at a flat rate up to GEL 1,000 total, regardless of the employee’s salary.

After the initial maternity leave period, employees may take additional childcare leave of up to 604 calendar days (paid at up to GEL 1,000 for the first 57 days). This leave is at the employee’s choice and is typically unpaid after the first 57 days. Job protection is fully guaranteed; the employer cannot dismiss an employee during maternity or childcare leave without statutory grounds unrelated to the pregnancy or leave status.

Paternity Leave

Georgia does not provide a specific statutory paternity leave entitlement. However, fathers may use any unused portion of maternity leave by mutual agreement with the employer. Alternatively, if the mother has passed away or is otherwise unavailable, the father may use the full maternity leave entitlement. For employees who adopt a child, adoption leave is 550 calendar days, with the first 57 days paid at up to GEL 1,000.

Other Statutory Leave

Employees may be entitled to marriage leave, bereavement leave for immediate family members, and study leave (for education purposes) as per individual or collective agreements. Georgia’s Labour Code does not mandate a statutory entitlement for voting leave, but many employers grant it as a matter of practice. Additionally, all employees have a right to 15 days of unpaid leave per year for personal reasons, to be taken by mutual agreement with the employer.

Statutory Employee Benefits

Georgia’s mandatory employee benefits are simpler than EU employment standards. These benefits are either mandatory or commonly provided:

Georgia does not mandate employer-provided health insurance; the state funds universal healthcare through the State Fund of Georgia. Many employers offer supplementary private health insurance as a competitive benefit to attract talent.

The accumulated pension system is the sole mandatory contribution, with the employer paying 2% and the employee contributing a matching 2%. The government adds 1% (or 2% for employees earning under GEL 24,000 annually). Life insurance, disability insurance, meal and transport allowances, and housing or education fund contributions are all voluntary and not required by law.

Recent Regulatory Updates (2026)

Georgia’s employment and immigration frameworks have undergone significant updates in 2025–2026. These changes affect work permits, residence eligibility, and tax administration. The key updates for organisations hiring foreign nationals or expanding operations are:

Effective 1 March 2026, Government Decree No. 70 introduced a mandatory Special Labour Activity Permit for all foreign nationals working in Georgia, replacing the previous work permit framework. Employers or their EOR must submit applications to the Public Service Development Agency before the employee begins work.

The Labour Code was amended in late 2025 to strengthen anti-discrimination protections, adding explicit safeguards for age, disability, and gender identity. Separately, the 2018 Accumulated Pension Fund reached full enforcement in January 2026, with penalties now applied for late or missed contributions. Georgia’s Revenue Service also updated its electronic payroll filing portal in early 2026, requiring all employers to use the new digital submission format for monthly tax declarations.

Work Permits and Visas in Georgia

Georgia’s work permit framework underwent significant reform in early 2026 with new Labour Migration Law amendments, establishing a streamlined two-stage process for foreign workers. All foreign nationals wishing to work, freelance, or conduct business in Georgia must obtain a Special Labour Activity Permit under Government Decree No. 70, signed February 20, 2026, with exemptions for refugees, asylum seekers, diplomatic staff, foreign journalists, and holders of investment residence permits. The system balances Georgia’s goal to attract international talent with protections for local workers.

Work Permit Requirements

Who Needs a Work Permit

As of March 1, 2026, all foreign nationals who wish to work, freelance, or conduct business in Georgia must obtain a Special Labour Activity Permit under the Labour Migration Law amendments (Government Decree No. 70, signed February 20, 2026). Exemptions include refugees, asylum seekers, diplomatic staff, foreign journalists, and holders of investment residence permits. The permit requirement applies regardless of employment duration or contract type.

Eligibility and Required Documents

The work permit process follows a two-stage framework: obtain the Special Labour Activity Permit first, then either a Labour Residence Permit or D1 visa. Required documents include a valid passport, employment contract or business registration documentation, proof of professional qualifications, and a medical certificate confirming fitness to work. Employers must post the job vacancy on the government portal for 10 business days before submitting the permit application to comply with local hiring preferences.

Processing Time and Validity

The Special Labour Activity Permit costs $75–$150 (Government of Georgia) and requires approximately 30 days for processing. The Labour Residence Permit typically takes 1–2 months to issue. A transition period for existing workers extends until January 1, 2027, allowing those currently employed to complete the new registration without interruption.

Renewal Process

All permits are renewable without reapplication of the initial Special Labour Activity Permit. An employee may continue working during renewal provided the application is filed before the current permit expires, preventing employment gaps during administrative processing.

Common Visa Types for Foreign Workers

Georgia’s visa framework supports multiple employment scenarios through specialized residence permits for different professional profiles. Citizens of 95+ countries enjoy visa-free entry for up to 1 year and can transition directly to work permits without needing a tourist visa first. Georgia’s strategic location and business-friendly policies make it popular with remote workers, IT professionals, and multinational staff relocations.

Visa Types for Foreign Workers

Under the March 2026 immigration framework, foreign nationals working in Georgia must hold the appropriate visa or permit. The type required depends on the employment relationship, duration, and the applicant’s professional profile.

Several visa categories fall outside employment eligibility:

• Tourist visa – permits sightseeing and leisure only; no employment or business activity allowed
• Student visa – reserved for full-time academic study; part-time work permitted only under specific institutional approval
• Transit visa – valid for passage through Georgian territory only; no work authorization

How an EOR Handles Work Permits

An EOR takes full responsibility for navigating Georgia’s new permit system on behalf of the employee. The EOR posts the job vacancy on the government portal, applies for the Special Labour Activity Permit, and sponsors the D1 visa or Labour Residence Permit application. Georgia’s system requires a local legal entity to sponsor work permits. The EOR provides this infrastructure without requiring the hiring company to establish its own Georgian entity.

This arrangement extends onboarding timelines by 4–8 weeks for permit processing, but it avoids the complexity and cost of entity registration. The EOR stays current with regulatory changes to ensure compliance with the Labour Code, pension contributions, and work permit renewal deadlines.

Payroll, Taxes, and Social Security in Georgia

Georgia’s tax and payroll framework is straightforward, with a flat personal income tax rate, minimal employer contributions, and no complex social security tiers. The country built this system to attract foreign investment and international talent, resulting in one of Europe’s lowest total employment cost burdens. For employers, this simplicity means predictable payroll administration and much lower compliance overhead compared to most Western European destinations. See our Georgia payroll and tax guide for detailed calculations and compliance requirements.

Employer Contributions

Employer Social Security Contributions

Georgia maintains one of the lightest employer tax burdens globally, with the Accumulated Pension Fund as the sole mandatory contribution. This 2% obligation was introduced under the 2018 Pension Reform Act.

Georgia imposes only a 2% employer pension contribution on gross salary, making it one of the world’s most affordable employment jurisdictions. There is no employer social security tax, no health insurance levy, no unemployment insurance contribution, and no payroll tax beyond the accumulated pension mandate. This single-rate system keeps payroll simple. Employers track only one deduction against wages.

The absence of multiple social security tiers reflects Georgia’s policy to keep labour costs low and compete globally for talent and investment. Compared to EU countries where employer social contributions often exceed 30% of gross salary, Georgia’s 2% rate is a significant cost advantage for hiring.

Employee Contributions

Employee Payroll Deductions

Employees in Georgia face a flat 20% personal income tax plus a 2% pension contribution. The Revenue Service of Georgia administers collection through employer withholding at the source.

Employees in Georgia face a combined deduction of 22% from gross salary: 20% personal income tax plus 2% accumulated pension contribution. Both amounts are withheld by the employer at the time of payment, removing the need for employee filing at year-end. For lower-income workers, the government contributes a matching 2% to the pension account if annual salary falls below GEL 24,000.

Income Tax

Income Tax Brackets

Georgia applies a flat 20% personal income tax rate on all employment income, with no progressive brackets. Small and micro businesses benefit from reduced turnover-based rates under separate provisions of the Tax Code.

Georgia applies a single flat rate of 20% personal income tax to all employment income, with no progressive brackets. Self-employed individuals and business owners benefit from simplified regimes: micro businesses with turnover below GEL 30,000 and no employees pay zero tax on business income, while small businesses pay only 1–3% of turnover depending on revenue threshold. Georgia’s tax system is among the simplest in the region and avoids much of the administrative burden of progressive taxation.

Payroll Cycle

Payroll in Georgia is processed monthly, with payments made by bank transfer in Georgian Lari (GEL). Employers must provide itemized pay slips to each employee showing gross salary, tax withholding, pension contributions, and net pay. Employers are required to withhold 20% personal income tax and 2% pension contribution at the time of salary payment and remit these amounts to the Georgia Revenue Service (rs.ge) by the 15th of the following month. An annual tax return covering all employees must be filed by April 1 of the following calendar year.

13th Month Salary and Bonus Pay

Georgia does not mandate a 13th or 14th month salary payment, and no legal requirement exists for employers to offer discretionary bonuses. Some employers in banking, technology, and professional services sectors do offer annual bonuses or year-end payments as a retention and incentive tool. If a bonus or 13th month payment is specified in the employment contract, it becomes legally binding and must be paid as agreed.

Any bonus or additional salary payment is taxed identically to regular income: 20% personal income tax and 2% pension contribution are withheld at source. There are no special bonus tax rates or exemptions in Georgia’s system.

Cost of Hiring Through an EOR in Georgia

Using an EOR to hire in Georgia offers a transparent, all-in cost structure that bundles employment administration, payroll, compliance, and regulatory support into a single monthly fee. Georgia’s minimal employer contribution rate and streamlined tax system make it one of Europe’s most cost-effective EOR destinations. Companies can hire talent at significantly lower total cost than comparable roles in Western Europe or other Caucasus countries.

EOR Service Fees

EOR service fees in Georgia typically range from $300–$600 per employee per month, depending on the provider and service tier. This fee covers employment contract management, payroll processing and delivery, personal income tax withholding and monthly reporting to the Georgia Revenue Service, pension contribution registration and tracking, leave and statutory compliance monitoring, and ongoing regulatory updates. Georgia’s simple tax and contribution structure makes administration much less expensive than managing payroll in multi-tiered social security systems.

Total Employment Cost Breakdown

Total Employment Cost Example

The following example shows the total monthly cost of employing one worker through an EOR in Georgia, based on a $5,000 gross salary. Georgia’s minimal employer contributions make it one of the most cost-effective EOR destinations globally.

This example shows a monthly gross salary of GEL 5,000: the employer contributes only GEL 100 in pension (2%), and the EOR service fee of approximately $450 ($300/month at standard exchange rates) brings the total monthly employment cost to $5,550. The employee receives a net payment of GEL 3,900 after the 20% personal income tax and 2% pension deduction from their gross salary. This demonstrates why Georgia is substantially cheaper for hiring than Western European alternatives.

Ready to hire in Georgia without the complexity of local entity setup? Remote People handles employment contracts, payroll processing, tax withholding, pension registration, and full Georgian compliance. Get started today.

Benefits of Using an EOR in Georgia

Georgia is a strong destination for international hiring through an EOR model, combining low employment costs, regulatory simplicity, and strategic location. The country’s business-friendly environment and straightforward tax framework remove much of the administrative burden of direct entity establishment. An EOR unlocks these advantages without requiring a company to register, maintain, and manage a separate Georgian legal entity.

An EOR enables rapid market entry, allowing companies to hire in Georgia within 1 to 2 weeks without registering a local entity. The EOR assumes full legal compliance responsibility, managing employment contracts, payroll processing, and tax filings under Georgian law.

Cost efficiency improves because the EOR eliminates entity registration fees, local accounting overhead, and the need for in-house legal counsel. Companies also gain workforce flexibility, scaling their Georgia team up or down without the fixed costs of maintaining a subsidiary. The EOR’s established local infrastructure provides direct access to Georgia’s talent pool across all sectors and regions.

An EOR relationship gives you access to Georgia’s business advantages, low employment costs, and streamlined regulatory framework while maintaining complete operational independence. You retain full control over hiring, compensation, and role definitions. The EOR simply manages the administrative and compliance layer. Whether you are testing a Georgian team or scaling a permanent presence, an EOR removes friction from market entry and lets you focus on building your business rather than navigating employment law and tax deadlines.

Termination and Offboarding in Georgia

Termination in Georgia is governed by Article 38 of the Labour Code and requires strict adherence to notice periods and severance obligations. The country distinguishes between standard termination (30 calendar days’ notice and 1 month’s severance), expedited termination (3 days’ notice plus 2 months’ severance), and termination for cause where notice and severance are waived. Understanding these requirements matters for employers managing workforce reductions or performance-related exits.

Georgia’s termination framework favors employers compared to Western Europe, but it requires specific procedures. Failure to observe notice periods, calculate severance correctly, or follow proper grounds for dismissal can lead to wrongful termination claims, reinstatement orders, or back-pay liability. Pregnant employees and those on maternity leave receive additional protections and cannot be terminated except in cases of company liquidation.

A well-structured offboarding process including final pay calculations, pension account settlement, and documentation of the termination reason protects both employer and employee. Most EOR providers in Georgia manage the entire termination process to ensure full compliance with the Labour Code.

Notice Periods

Standard notice from an employer is 30 calendar days written notice under Article 38 of the Labour Code. Employers may also elect expedited termination with only 3 calendar days’ notice provided they pay at least 2 months’ severance. During the probation period, either party may terminate with 3 calendar days’ notice with no severance obligation. An employee must provide 30 calendar days’ written notice to resign, unless the employment contract specifies a shorter period.

Exceptions include just-cause dismissal (theft, violence, gross breach of trust, or intoxication at work) where no notice period applies and the employee may be terminated immediately. Mutual agreement can also waive notice requirements if both parties consent in writing.

Notice Periods by Position Level

The Labour Code of Georgia requires written notice before terminating an employment contract. Notice periods vary by the employee’s position level and length of service, as specified in Articles 37 and 38.

Severance Pay

Severance is mandatory when an employer terminates an employee without cause. The minimum severance is 1 month’s salary based on the employee’s last gross monthly compensation. If the employer chooses expedited termination with only 3 days’ notice instead of the standard 30, severance increases to at least 2 months’ salary. No severance is due if termination occurs during the probation period, if the employee is dismissed for just cause, or if a fixed-term contract expires on its stated date.

Georgia’s Labour Code sets a floor of 1 month’s salary but does not mandate a per-year-of-service multiplier as many EU countries do. Severance calculations are based on the employee’s last gross monthly salary, including regular bonuses if contractually guaranteed, but excluding discretionary bonuses or irregular compensation.

Severance Pay Schedule

Severance pay in Georgia is mandated under Article 38 of the Labour Code for employer-initiated terminations without cause. The amount depends on the employee’s tenure and the circumstances of dismissal.

Calculation Method

Georgia uses a flat minimum of 1 month’s salary rather than a per-year formula. The base is the employee’s last gross monthly salary, including regular bonuses if contractually guaranteed. The Labour Code does not count irregular bonuses or discretionary payments unless the contract explicitly includes them in the severance calculation.

Caps and Exceptions

There is no statutory cap on severance; parties can agree to higher amounts. Exceptions: no severance applies for just-cause termination (gross misconduct, theft, repeated violations after written warning). Probation-period terminations carry no severance entitlement. Fixed-term contracts ending on their stated date do not trigger severance.

Grounds for Termination

Just-cause grounds under Article 37 of the Labour Code include violation of employment duties, breach of trust, intoxication at work, and extended absence of more than 2 consecutive months due to incapacity. Termination without cause requires economic justification (redundancy, restructuring, business closure). The employer must observe the 30-day notice period and pay 1 month’s severance. Pregnant employees and those on maternity or childcare leave cannot be terminated except in the event of company liquidation, providing near-absolute protection for these groups.

Proper documentation of the termination reason is essential. For just-cause dismissals, the employer should keep written records of the misconduct or violation. For redundancies or restructuring, the employer should document the business rationale and ensure the decision was made in good faith and not targeted at a protected category.

EOR vs. Other Hiring Models in Georgia

Employers entering Georgia have several options: establishing a local entity, hiring independent contractors, or using an EOR. Each model carries different compliance obligations, costs, and timelines. The choice depends on team size, market-entry strategy, expected duration in Georgia, and whether the company plans to grow or test the market. An EOR works best for small teams or short-term market exploration. A local entity suits established operations or government contracting.

Georgia’s key advantage is the speed and low cost of entity formation combined with a straightforward tax system. However, the new work permit regime effective March 2026 adds administrative complexity that favors the EOR model for smaller teams. A careful cost-benefit analysis of each model, accounting for setup time, ongoing compliance burden, and team size, will guide the decision.

EOR vs. Setting Up a Local Entity

An EOR is the local employer and removes the need for the client company to register a Georgian entity. The EOR assumes all legal employment obligations, including compliance with the Labour Code, tax withholding, pension registration, and the new work permit requirements. By contrast, a local entity makes the client company the legal employer and requires the client to manage or outsource compliance directly. Georgia’s entity setup is fast–registration takes 1 day through the National Agency of Public Registry–but the ongoing administrative burden (monthly tax filings, annual reporting, work permit administration) still favors an EOR for small teams.

Cost analysis: EOR services run $300–$600 per employee per month. A local entity incurs $500–$3,000 in initial setup costs plus $3,000–$8,000 annually for accounting, tax, and HR management. For a single employee, an EOR is cheaper. At 15+ employees, a local entity becomes more economical. Georgia allows 100% foreign ownership of local entities, so no local partner is required, but the client must still manage compliance or hire professional services.

An EOR works best for 1–15 employees, rapid market entry, or testing demand before committing capital to a permanent entity. A local entity suits 15+ employees, long-term operations, or eligibility for government contracts (which often require a local legal entity registered for 12+ months).

EOR vs. Local Entity Comparison

Companies expanding into Georgia must choose between partnering with an EOR or establishing their own legal entity. Each model offers different levels of control, compliance responsibility, and cost structure.

EOR vs. Hiring Independent Contractors

Contractors are appropriate for short-term projects, specialized consulting, or work where the contractor controls their schedule and tools. An EOR employee is part of your team, subject to employment law protections and obligations. The distinction is important: misclassifying an employee as a contractor triggers back taxes, penalties, and mandatory benefit claims under Georgian law.

Georgia’s Labour Code provides clear tests for employment vs. contractor status. If the relationship shows hallmarks of employment–fixed hours, exclusive service, employer-provided tools or workspace, ongoing relationship, or direction by the employer–Georgian courts will reclassify it as employment. This reclassification exposes the employer to arrears, fines, and reinstatement claims. Georgia’s new work permit rules (effective March 2026) also require foreign contractors to obtain a Special Labour Activity Permit, adding a compliance layer to contractor engagements. See our Georgia contractor hiring guide for detailed compliance requirements.

For contractor engagements, Remote People’s contractor management solution helps ensure proper classification, clear contractual terms, and work permit compliance. Contractors handle their own tax obligations, but the hiring company must ensure invoicing, IP assignment clauses, and termination terms are documented in the contractor agreement.

EOR vs. Independent Contractors Comparison

The decision between hiring through an EOR and engaging independent contractors depends on the nature of the work, the required level of control, and the risk tolerance for misclassification. Each model suits different operational needs.

EOR vs. PEO

A PEO (Professional Employer Organization) differs from an EOR in a key way: you retain legal employer status in a co-employment arrangement, while the PEO handles HR administration and compliance. An EOR, by contrast, becomes the sole legal employer on your behalf. In most cases, a PEO requires you to already have a legal entity in Georgia; the PEO then manages payroll, tax, and benefits for that entity. An EOR removes the need for a local entity altogether.

Georgia has no formal PEO regulatory framework or licensing requirement. PEO arrangements exist informally, typically as HR outsourcing agreements for companies with established Georgian entities. The EOR model is standard for companies without a Georgian presence. If you already have a Georgian entity and simply need HR administration support, a PEO-style arrangement may work. If you are entering Georgia for the first time without an entity, an EOR is the clear choice.

EOR vs. PEO Comparison

A Professional Employer Organization shares employer responsibilities with the client, while an EOR assumes full legal employer status. The distinction matters for compliance liability and is especially relevant in Georgia where labour inspections have increased since 2024.

Public Holidays in Georgia

Georgia observes 18 public holidays in 2026, among Europe’s highest. These include national holidays (New Year’s Day, Independence Day, Victory Day) and religious holidays tied to the Georgian Orthodox calendar (Orthodox Christmas, Easter, Epiphany). Holidays are never transferred to another date if they fall on a weekend. Employers must pay employees for time off on the actual holiday date. If an employee is required to work on a public holiday, the employer must provide increased compensation, typically at a premium rate set by agreement or company policy.

Remote workers employed via an EOR in Georgia receive all 18 public holidays regardless of their location, provided they are contracted under Georgian law. The EOR ensures payroll reflects all holiday entitlements and that no work is expected on these dates without prior agreement and compensation adjustment.

Georgia Public Holidays

Georgia observes 18 public holidays per year, established by the Georgian Parliament. Employees are entitled to paid time off on these dates, and work performed on public holidays must be compensated at overtime rates under the Labour Code.

How to Get Started with an EOR in Georgia

Hiring your first employee in Georgia is straightforward with an EOR. Follow these five steps to move from planning to active employment:

• Define the role: Define the role, compensation package, benefits (such as private health insurance), and contract terms. Decide whether the employee will be based in Georgia or work remotely from another country while employed under Georgian law.
• Choose an EOR provider: Choose an EOR provider with in-country expertise, an active Georgian entity, and a track record of compliance with the March 2026 work permit changes. Confirm they handle pension registration, tax withholding, and contract drafting in line with the Labour Code. Review our Georgia probation period guide to understand trial employment terms.
• Draft the contract: The EOR drafts a compliant employment contract under Georgian law, including pension enrollment with the Pension Agency, leave entitlements (24 working days minimum), and termination provisions. The contract is signed by both the employee and the EOR as legal employer.
• Handle permits: If the employee is a foreign national, the EOR initiates the Special Labour Activity Permit and residence permit process. The EOR posts the job on the government portal, submits the permit application, and tracks approval. The entire process takes 4–8 weeks.
• Start payroll: Payroll begins on the agreed start date. The EOR processes monthly salary payments, withholds 20% personal income tax and 2% pension contribution, remits employer pension contributions (2%), files tax returns, and provides payroll reports and compliance documentation.

Ready to hire in Georgia? Remote People handles every aspect of employment compliance, from contracts and payroll to work permits and termination. Get in touch today to start building your Georgia team.

Where companies hiring in Georgia expand next

Teams building a presence in Georgia often extend across the Caucasus and Central Asia, where Russian-language coordination and cross-border trade corridors remain strong. After building a team in Georgia, employers often look to an EOR partner in Azerbaijan for shared Central Asian hiring dynamics, then Kazakhstan for overlapping Central Asian talent profiles. A team in Uzbekistan follows with Central Asian cost parity and tech talent, and operations in Armenia typically closes the regional footprint via aligned Central Asian labor frameworks.