Hiring in Georgia: EOR Guide & Compliance Overview

Overview

If you plan to hire in Georgia in the next 30 days, start with an EOR for your first 1-5 employees and revisit entity setup once you reach 15+ local staff.

Georgia is the most employer-friendly labor market in the broader European region — and it’s not close. The Labor Code of Georgia, overhauled in 2006 and updated in 2020, is deliberately lean. Termination requires notice but not cause (with some restrictions added in 2020), there’s no mandatory severance beyond 1 month’s salary for termination without cause, and employer social security contributions are zero. You read that correctly. Georgia has no mandatory employer-side social contributions. The employee pays a flat 20% income tax, and the employer pays 2% pension contribution — that’s it. Total employer cost above gross salary: 2%.

Tbilisi has become a hub for remote workers and tech companies drawn by low costs, excellent internet infrastructure, and a government actively courting foreign business. Senior developers earn GEL 4,000–8,000/month (roughly $1,500–$3,000 USD), making Georgia one of the cheapest places to hire skilled tech talent with European time zone overlap. The country’s Free Industrial Zones offer additional tax incentives for certain business activities, including IT exports.

The catch? Limited EOR provider coverage. Georgia isn’t a priority market for most EOR providers — the local labor pool is small (population 3.7 million), the legal framework doesn’t generate the compliance complexity that justifies premium EOR pricing, and the GEL (Georgian Lari) adds currency conversion friction. You’ll find Deel and Remote cover Georgia, but expect partner-entity models rather than owned entities, and onboarding may take longer than in their core markets. Entity setup is remarkably simple: a Georgian LLC requires no minimum share capital, registers online in 1 business day for GEL 100 (about $35), and a physical office isn’t required for most business types. For teams of 3+ employees, own-entity economics often beat EOR from month one.

Key Employment Facts

Employer Cost

Georgia has the lowest employer contribution rate in any part of Europe: 2% of gross salary for the mandatory funded pension scheme introduced in 2019. There is no employer-side health insurance, unemployment insurance, workers’ compensation, or social security tax. The employee pays flat 20% income tax and 2% pension contribution from their gross — the employer withholds and remits both.

For a developer at GEL 6,000/month gross: employer pension contribution = GEL 120 (2%). Total monthly employer cost: GEL 6,120 before EOR fees. At approximately GEL 2.70/USD, that’s roughly $2,270/month. With a $499/month EOR fee, total monthly cost is approximately $2,770 — making Georgia one of the lowest total employer cost destinations in the region. Azerbaijan runs 22%, Armenia 5%, Bulgaria 19%.

Private health insurance is not legally required but is expected for professional roles. A comprehensive private plan costs GEL 1,500–4,000/year ($555–$1,480) — this is the primary benefit cost to budget beyond the statutory pension contribution. Many companies also provide supplementary salary guarantees in USD or EUR, pegging compensation to a hard currency given GEL volatility.

Statutory Benefits

Pension Contributions. Georgia introduced a mandatory funded pension system in 2019. Employer contributes 2% of gross salary, employee contributes 2%, and the government matches 2% (for salaries up to GEL 24,000/year; 1% government match for salaries between GEL 24,000–60,000/year). Employees born before 1975 can opt out. This is the only mandatory employer contribution — there are no health insurance, unemployment insurance, or social security contributions levied on the employer.

Annual Leave. 24 working days of paid leave per year. Employees also receive 15 calendar days of unpaid leave that the employer must grant upon request. Leave accrues proportionally during the first year of employment.

Sick Leave. Georgian law requires employers to pay for the first 30 days of sick leave. The payment amount is typically at the employer’s discretion unless the employment contract specifies otherwise. There is no state-funded sick pay scheme — this is a gap compared to EU countries. Most employers pay 100% for the first 2 weeks and reduce thereafter, but the specific terms should be in the employment contract.

Maternity Leave. 126 calendar days (183 days for complicated or multiple births). Maternity benefit is paid by the state and funded from the state budget, not employer contributions. The benefit is capped at GEL 1,000/month, which means high-earning employees see a significant income drop — most employers top up voluntarily to retain talent.

Healthcare. Georgia has a Universal Healthcare Programme (UHC) funded by the state budget, not employer contributions. It covers basic hospital care and outpatient services for all citizens. Coverage is limited compared to European standards — most professional employees expect supplementary private health insurance as a benefit. Annual cost for private health insurance: GEL 1,500–4,000/employee depending on coverage level.

Termination Rules

Georgia’s 2020 Labor Code amendments added some restrictions to what was previously near-total employer discretion on termination. The current framework:

Termination with cause (misconduct, breach of contract, incapability) requires documented grounds and doesn’t trigger severance. The employer must provide written notice and an opportunity for the employee to respond.

Termination without cause (at-will) remains possible — an unusual feature for the region. The employer must give 30 calendar days’ written notice and pay 1 month’s salary as severance. This is the total separation cost for a no-cause termination in Georgia: 1 month’s notice plus 1 month’s severance. Compare that to 6–24 months of total separation costs in France or Germany.

Redundancy follows the same notice and severance rules as termination without cause unless the employment contract provides more generous terms.

Fixed-term contracts can be used for up to 30 months. After 30 months, the contract converts to indefinite automatically. There’s no limit on the number of renewals within that 30-month window.

Discrimination-based claims are enforceable, and the 2020 amendments strengthened protections for pregnant employees, employees on parental leave, and trade union members. Termination of a pregnant employee without cause is prohibited.

Work Visas and Immigration

Georgia has one of the world’s most open immigration policies. Citizens of 95+ countries — including all EU/EEA, US, UK, and most CIS states — can live and work in Georgia for up to 1 year without a visa or work permit. For these nationalities, there is no immigration process to manage for EOR purposes.

For nationals of countries not on Georgia’s visa-free list, the EOR applies for a temporary residence permit through the Public Service Hall (or online). Georgia imposes no nationality quotas, no labor market tests, and no minimum salary thresholds for work authorization. Most EOR hires in Georgia require zero immigration administration — which is one of the country’s genuine practical advantages for international teams.

EOR Georgia: Cost and Entity Trade-Off (2026)

If you are evaluating EOR Georgia options, focus on this trade-off:

• Employer mandatory burden is exceptionally low (2% pension contribution).
• EOR can accelerate first hires, but own-entity setup is also fast and low-cost.
• At very small headcount, EOR speed often wins; at sustained headcount, own entity can become cheaper quickly.

Compare this with Best EOR for Georgia and EOR vs Global Payroll before finalizing your model.

Frequently Asked Questions

Is Georgia really a zero-employer-contribution country?

Almost. The only mandatory employer contribution is 2% for the funded pension scheme introduced in 2019. There’s no employer-side health insurance, unemployment insurance, workers’ compensation, or social security tax. Income tax (20% flat rate) and the employee’s 2% pension contribution are deducted from the employee’s gross salary. Your total employer cost above gross salary is 2%, which makes Georgia the lowest-cost employer jurisdiction in the broader European region by a wide margin.

Which EOR providers actually cover Georgia?

Deel and Remote both list Georgia as a covered country, operating through local partner entities. Multiplier and Remofirst have added Georgia more recently. Coverage quality varies — “we cover Georgia” can mean anything from a mature local partner with established payroll to a newly onboarded partner who has handled a handful of employees. Before signing, ask your EOR provider: how many employees do you currently have on your Georgian entity? How long has your local partner operated? Can you handle GEL-denominated contracts with USD or EUR salary pegging? Currency pegging is common in Georgia because the GEL fluctuates — most international companies quote salaries in USD and convert at each payroll run.

How fast can I set up my own entity in Georgia instead of using EOR?

Same day. A Georgian LLC (შეზღუდული პასუხისმგებლობის საზოგადოება, or შპს) registers at the Public Service Hall or online through the National Agency of Public Registry. Standard processing: 1 business day for GEL 100. Express processing: same day for GEL 200. No minimum share capital. No local director requirement. No physical office required for most business types. You need a Georgian bank account, which takes 1–3 days and can be opened in person at any major bank (TBC Bank, Bank of Georgia). Total setup cost including bank account: under $500. For comparison, EOR fees of $400–$600/month per employee exceed the entire entity formation cost within the first month.

What about intellectual property protection?

Georgia is a member of WIPO and has signed the Paris Convention and the Patent Cooperation Treaty. IP assignment clauses in employment contracts are enforceable under Georgian law, and the Labor Code explicitly addresses work-for-hire — inventions created within the scope of employment belong to the employer unless otherwise agreed. However, enforcement of IP rights can be slower than in EU jurisdictions. Make sure your employment contract (whether through EOR or direct hire) includes explicit IP assignment, confidentiality obligations, and a non-compete clause (enforceable in Georgia for up to 3 years post-employment if reasonable in scope and compensated).

To connect this guidance with live hiring demand, see hiring your first international employee and remote jobs by country.

Further Reading

• Best EOR for Georgia — Provider comparison for Georgia hiring
• Hiring in Europe Guide — Regional compliance patterns and market comparisons
• EOR vs PEO — When EOR is the better fit
• Top EOR reviews
• Hiring your first international employee

Anchal Katyal · Founder, eorHQ

Anchal has spent over a decade in product strategy and market expansion across Asia and the Middle East. She evaluates EOR providers on compliance depth, entity ownership, payroll accuracy, and in-country support quality.

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