Georgia is one of the easiest places in the world to start a business. But what happens when you want to grow beyond solo operation? Whether you need a part-time assistant, a full dev team, or local sales staff, hiring employees comes with a different set of rules than registering your IE.
The good news: Georgian labour law is employer-friendly by European standards. No complex collective bargaining, no works councils, no rigid dismissal procedures. The basics — employment contracts, tax withholding, leave entitlements — are straightforward once you understand them. The bad news: most expat business owners don't understand them, and the mistakes are expensive.
This guide covers everything: who can hire, what the employment contract must include, how to run payroll, what leave you must provide, how to terminate someone legally, where to find good talent, and the common missteps that cost expats money and relationships. If you're ready to build a team in Georgia, this is your playbook.
Key Takeaways
- • Both IEs and LLCs can hire employees — there's no minimum company size
- • No meaningful minimum wage — the 20 GEL/month statutory minimum is symbolic; market rates prevail
- • 20% income tax withheld by employer, plus 2% pension contribution (employer) + 2% (employee) for Georgian residents
- • 24 days paid leave + 15 days unpaid leave per year (minimum)
- • 126 days maternity leave — paid through state allowance
- • 6-month probation allowed, with 3-day termination notice during probation
- • 30-day notice period for termination after probation; 1-month severance if terminated without cause
- • Labour permit required for foreign employees (employer applies, 200-400 GEL fee)
- • 18 public holidays per year — paid days off
Who Can Hire Employees in Georgia
Both Individual Entrepreneurs (IEs) and LLCs can hire employees. There's no minimum revenue requirement, no waiting period, and no special license needed. If you have a registered business, you can hire.
That said, the structure you choose affects how hiring works:
IE with Small Business Status
Can hire employees while maintaining the 1% tax rate. Revenue must stay under 500,000 GEL/year. Special tax exemption available for small IEs hiring low-wage workers (see below).
Best for: solo operators adding their first hire or two
LLC
No revenue limits. Full accounting required. 0% tax on reinvested profits, 15% on distributed. More paperwork but more flexibility for growth.
Best for: growing teams, multiple founders, or planning to scale
IE Small Employer Tax Break
If you're an IE with Small Business Status, your annual turnover was below 50,000 GEL in the previous tax year, and you pay an employee less than 6,000 GEL per year (~500 GEL/month), you don't need to withhold the 20% income tax from their salary. This makes hiring a part-time cleaner, assistant, or contractor extremely affordable for small businesses.
Micro Business Status: No Employees Allowed
If you're operating under Micro Business Status (0% tax on revenue under 30,000 GEL), you cannot hire anyone. The moment you bring on an employee, you lose Micro status and move to Small Business Status (1% tax). Plan accordingly.
Georgian Labour Code: The Basics
Georgia's Labour Code (საქართველოს შრომის კოდექსი) has governed employment relationships since 2010. It integrates constitutional protections, international labour standards, and practical employer flexibility. Compared to Western Europe, it's notably employer-friendly — but that doesn't mean you can ignore it.
The key principles:
- Freedom of contract — Parties can agree on most terms as long as they meet statutory minimums
- Written contracts required — For any employment lasting more than one month
- Equal treatment — Discrimination based on gender, ethnicity, religion, disability, or political views is prohibited
- At-will termination — Within limits, employers can terminate with notice and severance
- Limited collective bargaining — Unions exist but have little power; no works councils
Employment Contracts
Georgian law requires a written employment contract for any employment lasting more than one month. Oral contracts are valid but unenforceable in disputes — don't rely on them.
Types of Employment Contracts
| Contract Type | Description | When to Use |
|---|---|---|
| Indefinite-term | No end date specified; continues until terminated | Permanent staff, ongoing roles |
| Fixed-term | Set duration or until specific task completed | Project work, maternity cover, seasonal roles |
| Part-time | Fewer hours than full-time (under 40 hours/week) | Flexible arrangements, assistants |
What the Contract Must Include
Every employment contract in Georgia must specify:
| Element | Details |
|---|---|
| Job title and duties | Clear description of role and responsibilities |
| Start date | When employment begins |
| Duration | Indefinite or fixed-term (with end date/condition) |
| Salary | Amount, currency, payment frequency (usually monthly) |
| Working hours | Hours per day/week, schedule |
| Work location | Office address or remote arrangement |
| Leave entitlements | Annual leave, sick leave, other leave types |
| Probation period | If applicable, up to 6 months maximum |
| Termination terms | Notice period, grounds for dismissal |
The contract can be in any language both parties understand — English is fine. Many expat employers use bilingual contracts (English and Georgian) to avoid disputes. Electronic contracts with digital signatures are legally valid.
Working Hours and Overtime
Georgia follows a standard 40-hour work week, typically 8 hours per day for 5 days. Some sectors (manufacturing, continuous operations) can extend to 48 hours with government approval.
| Aspect | Standard | Notes |
|---|---|---|
| Standard hours | 40 hours/week | 5 days × 8 hours typical |
| Maximum hours | 48 hours/week average | Including overtime |
| Daily rest | 12 hours minimum | Between shifts |
| Weekly rest | 24 hours minimum | Uninterrupted |
| Breaks | Required if working 6+ hours | Duration agreed between parties |
| Night work | 10 PM – 6 AM | Extra protections, medical checks |
Overtime Pay
Overtime must be compensated at an increased hourly rate — the exact premium is negotiated between employer and employee. There's no statutory minimum multiplier (like "time and a half" in some countries). Most employers pay 1.25x to 1.5x the regular rate. Overtime requires employee agreement and must be documented.
For minors (under 18), overtime is limited to 2 hours per day and 4 hours per week.
Compensation and Payroll Taxes
The Minimum Wage Myth
Georgia's official minimum wage is 20 GEL per month — approximately $7. Yes, per month. This rate hasn't changed since 1999 and is essentially a legal formality. No one actually pays it. The living wage in Tbilisi is estimated around 2,375 GEL/month.
In practice, market rates determine salaries. Here's what you'll actually pay:
| Position | Monthly (GEL) | Monthly (USD) |
|---|---|---|
| Cleaner / helper | 600 – 900 | $220 – $330 |
| Office assistant | 1,000 – 1,500 | $360 – $540 |
| Junior developer | 2,000 – 3,500 | $720 – $1,260 |
| Senior developer | 4,000 – 8,000 | $1,440 – $2,880 |
| Marketing manager | 2,000 – 4,000 | $720 – $1,440 |
| Accountant | 1,500 – 3,000 | $540 – $1,080 |
| Sales representative | 1,200 – 2,500 | $430 – $900 |
| Driver | 1,000 – 1,800 | $360 – $650 |
Salaries in Tbilisi tend toward the higher end; outside the capital, expect 10-30% lower.
Tax Withholding and Payroll
As an employer, you're responsible for withholding taxes from employee salaries and remitting them to the Revenue Service. Georgia's system is simpler than most countries — no complex social insurance contributions, no health insurance mandate for employers.
| Tax/Contribution | Rate | Who Pays | Notes |
|---|---|---|---|
| Personal Income Tax | 20% | Employee (via withholding) | Flat rate, withheld from gross salary |
| Pension – Employer | 2% | Employer | Only for Georgian citizens/residents |
| Pension – Employee | 2% | Employee (via withholding) | Only for Georgian citizens/residents |
Pension Contributions: Who Qualifies?
The 2% + 2% pension contribution only applies to employees who are Georgian citizens or have permanent residence in Georgia. If you hire a foreign national without permanent residence, you don't make pension contributions — just the 20% income tax withholding. This makes hiring foreigners marginally cheaper.
Calculating Total Employer Cost
Let's say you want your employee to take home 2,000 GEL/month net. Here's the math for a Georgian citizen:
Payroll Calculation Example
Your total cost is roughly 22-25% above the net salary for Georgian employees, or about 25% above net for the gross-to-net conversion. For foreign employees without pension contributions, it's closer to 20% above net.
Payment Requirements
Salaries must be paid at least monthly, in the currency specified in the contract (GEL is standard; USD/EUR possible by agreement). Payment delays must be compensated. Most employers pay via bank transfer on the 1st or 5th of the month for the previous month's work.
Leave Entitlements
Annual Leave
Every employee in Georgia is entitled to:
- 24 working days paid annual leave per year (minimum)
- 15 working days unpaid leave per year
- +10 calendar days additional paid leave for hazardous/arduous work
Employees can begin using leave after 11 months of employment, though you can agree to earlier use. From the second year, leave can be taken at any time. Unused leave generally doesn't carry over — but if business needs prevented an employee from taking leave, it can carry over with their consent, for up to 2 consecutive years.
Sick Leave
Employees are entitled to paid sick leave with proper medical documentation. The employer pays the regular salary for:
- Up to 40 consecutive calendar days, or
- Up to 60 calendar days within a six-month period
Beyond these limits, the employer may choose not to compensate additional sick days or may terminate employment (with proper procedure). A medical certificate is required from the first day of absence.
Maternity and Parental Leave
| Leave Type | Duration | Paid? | Notes |
|---|---|---|---|
| Maternity leave | 126 days | Yes (state allowance) | 143 days for complications/twins |
| Parental leave | 604 days total | 57 days paid | Either parent; state allowance up to 1,000 GEL |
| Additional parental | 12 weeks | Unpaid | Until child is 5; min 2 weeks at a time |
| Adoption leave | 550 days | 90 days paid | For infants under 12 months |
Maternity leave pay comes from the state social security system, not the employer. The allowance is up to 1,000 GEL for the paid portion. Employees must give at least 2 weeks' notice before taking parental leave.
Other Leave Types
- Bereavement leave: Not legally mandated, but most employers grant 2-3 days for immediate family
- Study leave: Often granted by agreement for professional development
- Military/civic duty: Job-protected leave for required service; generally unpaid
Public Holidays
Georgia has 18 public holidays per year — among the most in Europe. These are paid days off. If an employee works on a public holiday, they're entitled to overtime compensation (typically double pay or compensatory time off).
| Date | Holiday |
|---|---|
| January 1-2 | New Year's Days |
| January 7 | Orthodox Christmas |
| January 19 | Orthodox Epiphany |
| March 3 | Mother's Day |
| March 8 | International Women's Day |
| April 9 | Independence Restoration Day |
| April (varies) | Orthodox Easter (Fri-Mon, 4 days) |
| May 9 | Victory Day |
| May 12 | St. Andrew's Day |
| May 26 | Independence Day |
| August 28 | Mariamoba (Assumption of Mary) |
| October 14 | Svetitskhovloba |
| November 23 | St. George's Day (Giorgoba) |
When a holiday falls on a weekend, there's no automatic substitute day off — check if your contract or company policy provides one.
Probation Period
Georgia allows probation periods of up to 6 months. During this period:
- Either party can terminate with just 3 days' notice
- No severance is required
- All other employment terms (salary, leave, etc.) apply normally
The probation period must be explicitly stated in the employment contract. If not specified, there is no probation — standard termination rules apply from day one.
Terminating Employment
Georgian labour law is relatively employer-friendly when it comes to termination, but you still need to follow proper procedures.
Grounds for Termination
By Mutual Agreement
Both parties agree to end the relationship. Document it in writing. Cleanest option.
Employee Resignation
Employee gives 30 days' notice (or as specified in contract). No severance owed.
Performance/Incompetence
Skills don't match job requirements. Document the issue. Give improvement opportunity first.
Serious Misconduct
Gross violations, theft, violence. Can be immediate termination with evidence.
Economic Reasons
Redundancy, restructuring, business closure. Requires proper notice and severance.
Prolonged Incapacity
Unable to work for 40+ consecutive days or 60 days in 6 months due to health.
Notice Period and Severance
| Situation | Notice Required | Severance |
|---|---|---|
| During probation | 3 days | None |
| After probation (with cause) | 30 days | None |
| After probation (without cause) | 30 days | 1 month salary |
| Serious misconduct | Immediate possible | None |
| Redundancy/restructuring | 30 days | 1 month salary |
During the notice period, the employee continues working and receives normal pay. You can pay in lieu of notice (give them the month's salary and have them leave immediately).
Challenging Dismissal
Employees can challenge unfair dismissal through the courts. If the court finds the termination unlawful, the employee may be reinstated or awarded compensation. Document everything — performance issues, warnings, the reason for termination. Having proper records is your best protection.
Hiring Foreign Employees
As of March 2026, Georgia requires a "Right to Work" labour permit for all foreign employees. The employer, not the employee, is responsible for applying.
Need the Employer-Side Workflow?
This guide covers Georgia employment law broadly. If your actual problem is getting a foreign hire approved under the 2026 system, read Hiring Foreign Employees in Georgia for the Worknet labour market test, permit application sequence, refusal logic, fees, and onboarding timeline.
| Item | Details |
|---|---|
| Where to apply | labourmigration.moh.gov.ge (Ministry of Health portal) |
| Fee (standard) | 200 GEL — 30 calendar days processing |
| Fee (expedited) | 400 GEL — 10 business days processing |
| Duration | Tied to employment contract duration |
| Exempt | Permanent residents, investment residence holders |
The application requires the employment contract, employee's passport details, and employer's business registration. Plan for the processing time when hiring foreign nationals — they cannot legally start work until the permit is issued.
For full details on the labour permit system, see our Labour Permit Guide.
Where to Find Talent
Georgia has a well-educated workforce, particularly in tech, engineering, and languages. Finding good people isn't hard if you know where to look.
Job Boards and Platforms
| Platform | Best For | Notes |
|---|---|---|
| Jobs.ge | All positions | Main Georgian job board; has English version |
| HR.ge | All positions | Second-largest Georgian board |
| Professionals, tech, international | Strong for English-speaking roles | |
| Facebook Groups | Various | "Jobs in Georgia for Foreigners", industry-specific groups |
| SS.ge | Blue collar, service | Marketplace site with job listings section |
Recruitment Agencies
For professional roles, recruitment agencies can save time. Expect to pay 1-2 months' salary as a placement fee. Some options:
- HR Solutions Georgia — General recruitment, strong in corporate roles
- Hire.ge — Tech-focused, IT recruitment
- Antal Georgia — International recruiter with Tbilisi office
- ExpatHub — Can help expat businesses with local hiring
Universities
Georgia has several strong universities producing skilled graduates:
- Free University of Tbilisi — Business, law, tech
- Tbilisi State University (TSU) — Broad programs, largest university
- Georgian Technical University — Engineering, IT
- Ilia State University — Sciences, humanities
Many universities have career centres that can connect you with graduating students or recent graduates for entry-level positions.
Contractors vs. Employees
Many expat business owners try to avoid employment complexity by hiring "contractors" — paying people as IEs rather than putting them on payroll. This is legal if the relationship is genuinely a contractor arrangement. It's illegal (and risky) if it's disguised employment.
Genuine Contractor
- • Works for multiple clients
- • Sets own hours and methods
- • Uses own equipment
- • Delivers specific projects/outcomes
- • Invoices for services
- • Responsible for own taxes
Disguised Employee
- • Works exclusively for you
- • Fixed schedule you control
- • Uses your equipment/office
- • Ongoing, indefinite relationship
- • Paid regularly regardless of output
- • Integrated into your team structure
If authorities determine your "contractor" is really an employee, you'll owe back taxes, penalties, and possibly compensation to the worker. If you need someone working regular hours, integrated into your team, for an ongoing period — hire them properly.
Common Mistakes
| Mistake | Why It's a Problem | How to Avoid |
|---|---|---|
| No written contract | Unenforceable terms, disputes | Always use written contracts from day one |
| Skipping probation clause | 30-day notice from start | Include 3-6 month probation in contract |
| Late tax remittance | Penalties, interest | File and pay by the 15th of following month |
| Misclassifying employees | Back taxes, penalties | Use contractors only for genuine contractor relationships |
| Ignoring leave accrual | Large payout when employee leaves | Track leave; encourage employees to use it |
| Firing without documentation | Wrongful dismissal claim | Document performance issues, give warnings |
| Forgetting labour permits | Illegal employment, fines | Apply for permit before foreign employee starts |
Getting Help
Most expat employers use an accountant for payroll and tax filing. Monthly costs range from 150-400 GEL depending on complexity. Some services that can help:
- ExpatHub (expathub.ge) — Full-service accounting, payroll, HR support for expats
- Gegidze (gegidze.com) — Business registration, accounting, legal
- PB Services (pbservices.ge) — IE/LLC services, payroll
- Local accountants — 100-200 GEL/month for basic payroll; find through Jobs.ge or referrals
If you have more than a few employees or complex arrangements, investing in professional support pays for itself in avoided mistakes.
Frequently Asked Questions
Can a foreign IE hire employees in Georgia?
Yes. Both Individual Entrepreneurs (IEs) and LLCs can hire employees in Georgia. IEs with Small Business Status cannot exceed 500,000 GEL turnover while employing staff. There's also a special tax exemption: if your IE turnover was under 50,000 GEL last year and you pay an employee less than 6,000 GEL/year (~500 GEL/month), you don't need to withhold the 20% income tax on their salary.
What is the minimum wage in Georgia?
Georgia's official minimum wage is just 20 GEL per month for the private sector — essentially no minimum. This rate hasn't changed since 1999 and is purely symbolic. In practice, market rates prevail: an office assistant earns 1,000-1,500 GEL/month, a junior developer 2,000-3,500 GEL, and a senior developer 4,000-8,000 GEL.
What taxes do I pay as an employer in Georgia?
You must withhold 20% income tax from each employee's gross salary and remit it monthly to the Revenue Service. For Georgian citizens and permanent residents, you also contribute 2% to their pension (employee pays another 2%). There's no social security or health insurance contribution — your total employer cost is roughly 22% above net salary.
How much annual leave must I give employees?
By law, employees are entitled to 24 working days of paid annual leave plus 15 working days of unpaid leave per year. Those in hazardous jobs get an extra 10 days paid. Employees can start using leave after 11 months of employment, though you can agree to earlier use.
What is the notice period for terminating an employee?
The standard notice period is 30 calendar days. During probation (up to 6 months), it's only 3 days. If you terminate without cause after probation, you owe one month's salary as severance.
Do I need a labour permit to hire a foreign employee?
Yes. As of March 2026, employers must apply for a labour permit on behalf of foreign employees at the Ministry of Health portal (labourmigration.moh.gov.ge). The fee is 200 GEL (30-day processing) or 400 GEL (expedited). The employer, not the employee, is responsible for this application.
Written by The Georgia Expats Team
We've built teams in Georgia, navigated payroll, dealt with the Revenue Service, and seen the mistakes that cost expat business owners time and money. This guide is based on years of practical experience running companies in Tbilisi.
Last updated: March 2026.