Georgia is a country where skilled software developers, agricultural experts, and hospitality professionals thrive without a government mandated minimum wage. Hence, market flexibility and employer negotiations are at the core of this economy. 

For international companies, Georgia’s approach offers both freedom and responsibility. Without formal wage floors, employers must create compensation packages by respecting employee value. 

We’ll help you understand the details of how minimum wages are set and what employers need to know when hiring in Georgia. This will help you avoid compliance problems and improve payroll management.

Here’s What to Know About the Minimum Wage in Georgia

GEL 20 per month (around $7.33) is the figure you’ll hear when discussing the minimum age in Georgia. It’s shockingly low and accurate. That’s because it was first set in 1999, and it has not been updated. 

In practice, public sector workers receive GEL 115 per month as a base floor, and many government employees receive significantly more. In fact, the average salary in Georgia is GEL 2,045 per month, which is around USD 727.

How the Minimum Wage in Georgia Compares to Surrounding Countries

To help you decide on the best country for business expansion, let’s compare monthly minimum wages with neighboring countries:

CountryLocal CurrencyUSD Equivalent (USD)
GeorgiaGEL 20 (private) / GEL 115 (public)$7 – $48
ArmeniaAMD 75,000$188
AzerbaijanAZN 400$235
TurkeyTRY 26,005.50$708
RussiaRUB 22,440$226

The above table tells us that Georgia’s minimum wage is symbolic when compared to actual guaranteed minimums with its neighbors. Also, Armenia, Azerbaijan, Turkey, and Russia all maintain meaningful wage floors. They are set above subsistence levels to offer stronger worker protection.

The Living Wage Reality Check

Even with a monthly salary of around GEL 1,040, many Georgians struggle. The living wage is estimated at GEL 1,858 per month. This money is required to pay for rent, groceries, healthcare, and education.

Therefore, the official minimum is just 1.1% of what people actually need to live. The low wages lead to worker turnover, poor morale, and difficulty attracting talent. Therefore, forward thinking employers are increasingly using the living wage benchmark to stay competitive in Georgia’s job market.

Extra Benefits You Can Provide

Hiring the best employees in any industry requires an attractive compensation package. Here are the extra benefits you can offer to stand out from competitors:

  • Private health and dental insurance: Cover premium plans from providers like Geo Hospitals or Evex Medical. Comprehensive coverage eases reliance on public healthcare and signals investment in employee well-being.
  • Remote or flexible work options: Leverage Georgia’s digital infrastructure for hybrid and remote roles. Ideally, offer reimbursements for home offices or coworking memberships at spaces like Terminal Tbilisi. This appeals to work-life balance seekers.
  • Commuter & transportation allowance: Covering transport costs or providing subsidies helps reduce daily expenses. Furthermore, it supports wider recruitment from urban and suburban areas.
  • Performance bonuses & signing gifts: Structured bonuses or signing incentives offer financial motivation. It reinforces commitment and loyalty during the onboarding process. It can often be as impactful as base pay for attracting employees.
  • Family support: You can offer childcare assistance or extended parental leave to help families manage responsibilities while maintaining work performance.

What Employers Need To Know About Hiring in Georgia

Working Hours & Overtime

The standard workweek in Georgia is 40 hours and 50 hours in certain industries. Note that overtime is legally capped at 2 hours per day or 4 hours per week. 

Furthermore, employers must pay 125–150 % of the base salary for overtime or grant equivalent time off. Also, employees working over six hours are entitled to a 60-minute break.

Leave and Breaks

Georgian workers receive a minimum of 24 calendar days of paid vacation per year. Then, there’s sick leave up to 40 days consecutively or 60 in six months. This allows employees to improve their work-life balance and come back to work with higher productivity levels. 

Additionally, maternity leave spans 126 to 143 days, with up to 2 weeks of unpaid parental leave available. Employers must also provide scheduled rest breaks and consider public holidays.

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Written Employment Contracts

Every new hire is required to sign a written employment contract. This must clearly state the:

  • Start date 
  • Job title
  • Responsibilities
  • Work schedule
  • Compensation
  • Overtime terms
  • Leave entitlements

This isn’t optional, but a legal requirement under Georgian labor law. Without it, employers may face labor disputes, penalties, or forced reconciliation in court. You’ll find that clear agreements protect both parties and align expectations from day one.

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Notice & Termination Rules

When terminating a contract, employers must give 30 days of written notice, or three days notice in certain cases. You must then provide one or two months worth of severance.

Employees then have 30 days to request a detailed termination explanation. These rules aim to balance employer flexibility with employee protection during transitions.

Employer of Record Solutions

Many foreign employers hire via Employer of Record services. They can manage recruitment, payroll, tax filings, employee benefits, and contracts. Furthermore, EORs ensure compliance with Georgian labor laws and eliminate the need to register a local entity. This will speed up business expansion in Georgia and help hire employees quickly.

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Why Companies Hire Employees in Georgia

To help you decide if Georgia is the best country for hiring employees, let’s look at some of the benefits:

  • Cost effective talent: Georgia’s labor market offers highly skilled professionals. That’s especially the case in IT, engineering, and hospitality. The big draw is that salaries are lower than in Western Europe or the United States. 
  • Tax friendly business climate: Employers benefit from attractive tax structures like a flat 20% income tax, low employer pension cost, and incentives like zero income tax for IT firms. This is more attractive than many European countries that use progressive tax models. 
  • Strategic time zone and location: Georgia is positioned between Europe and Asia  with a GMT+4 time zone. Hence, it offers an overlap for remote collaboration between Western Countries and Asia. Also, its proximity to key markets improves logistical efficiency, business travel, and regional market access.
  • Multilingual workforce: Employees in Georgia have widespread proficiency in Georgian, Russian, and English. This makes Georgia a trilingual talent pool. It’s ideal for global communication, cross border projects, and servicing diverse international clients. 
  • Ease of doing business: Georgia is ranked among the top countries for ease of business. That’s because it streamlines bureaucracy, offers rapid company registration, and has minimal red tape.

What the Future Holds

Despite pressure from activists and human rights groups to increase the minimum wage, there’s no firm timeline for policy reform. Meanwhile, the UN Committee on Economic Social and Cultural Rights reviewed Georgia’s labor standards in Geneva in March 2024. It did not result in a minimum wage change. 

Regardless, gradual wage growth from collective bargaining and private employers is expected. You’ll need to keep an eye on any changes to avoid unexpected payroll requirements.

Hire Employees in Georgia With Our Help

Georgia’s no minimum wage experiment reveals that compensation reflects value and not just compliance. Employers who master this balance will pair competitive pay with Georgian cultural priorities. This includes professional growth and schedule flexibility. 

You can simplify the hiring process with an Employer of Record service. They will handle compliance, payroll optimizations, and finding the best candidates for your roles. The investment in the service pays for itself by setting a solid foundation for your business. 

Start today by checking out our Employer of Record Service in Georgia. We have helped many businesses get started in Georgia, and yours could be the next one.