Establish your presence globally with Neeyamo as we help you go beyond borders to manage your
your international payroll services and hire new talent in Georgia.
Overview
Georgia, one of the pioneers in the ancient craft of winemaking, proudly holds the title of the world's oldest winemaking region. With 8000-year-old methods, the country crafts wine using over 500 grape varieties. The wine-making technique of Qvevri is a part of the UNESCO Intangible Cultural Heritage list, and Georgia also prides itself on its proficient workforce, contributing to its tangible assets.
Do your organization’s expansion plans require you to hire employees in Georgia? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo assists organizations worldwide with onboarding and managing employees in Georgia-processing payroll and accounting payroll services, managing local compliance requirements, benefits, and more.
Facts And Stats
Capital
Tbilisi
Currency
Georgian Lari (GEL)
Official Language
Georgian
Fiscal Year
1 January - 31 December
Date Format
DD/MM/YYYY
Country Calling Code
+995
Other Languages
English, Russian
Time Zone
Georgia Standard Time UTC+04:00
Global Payroll
Overview
What is Global Payroll?
Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity. The solution to this is to outsource your payroll service, using payroll service providers such as Neeyamo.
What is a global payroll system?
Over the years, Neeyamo – an International Payroll Provider, has observed these complexities and strived to provide global payroll solutions through a single technology platform – Neeyamo Payroll. Neeyamos global payroll system eases the process for companies looking to outsource their global payroll requirements and aids them in maneuvering the tricky payroll system in Georgia. Neeyamos payroll software solutions provide the perfect solution for all your global payroll needs – for employees working in primary geographies, the long-tail region, remote or internationally located.
How is payroll calculated?
Neeyamo acts as your personalized Payroll Calculator. Ensuring adherence to local regulatory requirements using multi-level controls. Providing timely and accurate payroll, courtesy of our experts worldwide and using a tech-based integrated smart helpdesk solution with seamless support experience manned by payroll experts - Neeyamo’s Global Payroll Software has all your payroll needs covered.
Payroll Taxes
Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.
Employee Taxes
Employees make the following contributions:
- Pension - 2%
- Income tax (flat rate) - 2%
Employer Taxes
Employer payroll contributions:
- Pension - 2%
- Total employer contribution - 2%
Payroll Cycle
Overview
Undoubtedly, payroll is a critical process for any organization. Pay cycle refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.
Frequency
The payroll cycle in Georgia is generally monthly, and payments must be made on the same day of the month and no later than the last working day of the month.
13th Month Cycle
In Georgia, a 13th-month salary is not mandatory. However, the employer can pay bonuses at their discretion.
Global Work
Overview
An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a local registered entity and a local bank account, prior to making a job offer to an international hire.
An EOR service provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits ensuring compliance with local tax laws and regulations.
This allows organizations to focus on collaborating with the employee in Georgia for operational tasks, with the knowledge that they have a cost-effective solution support their global payroll & HR requirements, as they continue their global expansion.
A company that provides EOR for Georgia would be the best fit for companies looking to expand their global workforce. Neeyamos International payroll services has your go-to solution with our Global Payroll Technology stack, providing both managed payroll services with an automated payroll system as well as EOR services under one umbrella.
HR Mandates and Practices
Minimum Wage
Georgia's minimum wage is 115 Georgian lari a month for public employees, and 20 lari a month for private sector workers.
Overtime
All work more than the standard hours a week is to be paid as overtime and regulated by employment contract/collective agreements. When an employee is requested to work overtime or on holidays, there is a limit (48 hours a week) concerning the number of hours allowed. There are also different maximum working hours for minors.
Overtime hours above 48 hours a week are paid at 150.00% of the employee's basic salary rate.
Data Retention Policy
Effective starting Oct. 1, 2019, employers must keep tax-related records for seven years.
The period for holding documents is directly regulated, with specific requirements for every possible document that may be created in the work process. Depending on the document type, periods will vary from one year to several decades. Personal data must be kept for as long as required by the duration and nature of the employment relationship.
Hiring and Onboarding Requirements
Hiring
An employer may not distribute an advertisement or notice for an open position that indicates any preference, limitation, specification, or discrimination based on disability, except that such notice or advertisement may indicate a limitation or specification based upon disability if the [criterion] is job-related. (O.C.G.A. § 34-6A-4.)
Georgia law contains no other express provisions regarding advertising open positions in private employment.
Onboarding
The following onboarding details are required:
- Name
- Address
- Employment Certificates
- Job Application form
- Candidate's CV
- Certificate of Education
- Identification Documents
- Work Visa and Work Permit (for expats)
Probation
Georgia's probationary period depends on the type of role and is stipulated within the employment agreement. In general, probation periods must not exceed six months.
Leave
Public Holidays
The following holidays are recognized in Georgia:
- January 1: New Year's Day
- January 2: New Year's Day
- January 16: Martin Luther King Jr. Day
- February 20: Presidents' Day
- May 29: Memorial Day
- June 19: Juneteenth
- July 4: Independence Day
- September 4: Labor Day
- October 9: Columbus Day
- November 10: Veterans Day (substitute)
- November 11: Veterans Day
- November 23: Thanksgiving Day
- December 25: Christmas Day
Sick Leave
Employees receive full paid leave for up to 30 days. The employee must provide a sickness certificate from an authorized medical physician confirming the sickness to receive payment.
Maternity Leave
Mothers are entitled to 126 days of pregnancy and childbirth leave or 143 days in case of complications or the birth of twins. Employees receive 100% of their daily wage (up to a total of 1,000 GEL).
Termination
Notice Period
In Georgia, an employer and employee's notice period is 30 days in the case of termination.
Severance Pay
An employee is entitled to at least one month's salary of severance pay following the termination of the employment contract. The employer must make the severance payment within 30 calendar days of the termination.
Visa
Overview
Individuals from 98 countries can enter Georgia without a visa for one year; however, those who want to remain longer, and work must obtain an immigration visa.
For work purposes, people need to obtain a Type D visa for Immigration. There are also options for short-term or long-term visas; the most requested visa includes the C and D type visa.
Foreign nationals traveling to Georgia on business typically use the C Visa unless they are visa-exempt. Business visitors are generally permitted to stay in Georgia for up to 90 days in any 180 days, depending on their nationality.
The C3 or D1 visa categories are suitable for short-term work, depending on the nature and duration of the planned activities in Georgia.
For broader/longer-term work activities, the D1 visa can be combined with a Work/Residence permit and secured in the country. The permit is generally issued for one year initially. However, exceptions are made based on employment contracts or assignment letters with longer validity at the discretion of the State Service Development Agency. The permit can be extended for up to six years, after which the foreign national may qualify for permanent residence.
Employee Background Checks
Legal and Background Checks
Employers can perform background verification, and it depends on the employment requirement.
Last updated on October 4, 2023
If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com