Employer of Record in Georgia

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Georgia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Georgia below, to avoid any compliance issues.

Employment Contract Requirements

When hiring in Georgia, according to Georgian employment law, the mandatory employment contract holds significant importance. It's a legal requirement for all employees to sign this document. The contract should outline:

• Employee's duties & responsibilities
• Employee compensation & any extra benefits
• Working conditions

Onboarding Process

We can help you get a new employee started in Georgia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Georgia

In Georgia, the regular workweek is 40 hours, usually 8 hours a day for five days. Some sectors permit a 48-hour workweek with government approval.

Overtime in Georgia

Overtime work is work performed by an employee by agreement between the parties for a period of time longer than the standard working time. The total overtime work performed by minors shall not exceed 2 hours per working day, and 4 hours per working week. Overtime work shall be paid for at an increased hourly rate of remuneration. The amount of the said payment shall be determined by agreement between the parties.

Probation Period in Georgia

The employment agreement should clearly state the probationary period, and must not be more than six months.

As of 2025, the minimum wage in the country of Georgia is as follows:

• Private sector employees: 20 GEL per month.
• Public sector employees: 115 GEL per month.

These rates have remained unchanged since 1999, making Georgia one of the few countries in Europe without a national minimum wage law. Consequently, many workers earn significantly below the living wage, which is estimated to be around 2,375 GEL per month. While there have been political discussions about raising the minimum wage, such as the 2024 proposal to increase it to 950 GEL per month, no such legislation has been enacted as of 2025.

Global expansion shouldn't mean losing time to paperwork or dealing with complicated, country-specific HR systems. An Employer of Record helps you keep your focus on talent by handling the operational side of employment in Georgia. That includes onboarding, contract management, payroll processing, and statutory compliance, all aligned with local laws and best practices. The EOR guarantees that employees are legally employed and properly supported from day one.

This streamlined setup allows you to prioritize recruiting the best people and integrating them into your company culture. Your team stays lean, and you avoid getting caught up in the details of local processes or shifting regulations. For founders, global hiring managers, or HR teams working across borders, an EOR multiplies your impact, reducing admin time, preventing errors, and helping ensure that new hires have a smooth experience from the get-go.

Employers in Georgia must navigate a straightforward payroll tax system. Employers are required to withhold a 20% flat personal income tax from employee salaries and contribute 2% to a private pension fund for employees with permanent residency. Employers must also ensure timely submission of payroll taxes and maintain accurate records.

Using payroll management software such as Playroll can help employers streamline payroll processes and maintain compliance with Georgian tax regulations.

Hiring in Georgia means taking on local payroll obligations, which often include unique tax rates, contribution rules, and strict documentation. If you're not familiar with the system, or don't have a local entity, it’s easy to make mistakes. That’s where an Employer of Record ccomes in. The EOR manages payroll for your team on your behalf, ensuring every process is accurate, timely, and legally compliant.

Key Ways an EOR Supports Payroll in Georgia:

• Full Legal Compliance: Ensures all payments, deductions, and filings meet country-specific requirements.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Statutory Benefit Contributions: Pays into required social programs and manages country-mandated benefits.
• Employee Documentation: Generates compliant contracts and manages hiring and termination paperwork.
• Local Currency Payouts: Delivers salaries in local currency, avoiding delays or exchange rate issues for employees.

In Georgia, work permits and visas are essential for employers hiring foreign workers or relocating employees. Employers must navigate various visa categories, such as the D1 Visa for employment and entrepreneurial activities, the D2 Visa for freelancing and cultural endeavors, and the "Remotely from Georgia" program for digital nomads.

The process involves submitting applications, meeting eligibility requirements, and adhering to Georgian labor regulations. Employers play a key role in visa sponsorship, ensuring compliance with immigration laws and providing the necessary documentation. With processing times typically ranging from 10 to 30 business days, understanding these steps helps ensure a smooth transition for international employees.

Mandatory Leave Entitlement in Georgia

The annual leave entitlement in Georgia is 24 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Georgia

There are 14 nationally recognised holidays in Georgia, as specified by The Labor Code.

Paid Time Off in Georgia

Full-time and part-time employees in this company are granted 24 days of paid time off (PTO) per year (workers in hazardous roles shall be granted an additional 10 paid calendar days off per year). Employees are entitled to 15 calendar days of unpaid leave, commonly used for sick days.

Maternity Leave In Georgia

Eligible employees can take up to 126 days (and in the case of complications during childbirth or the birth of twins, maternity leave of 143 calendar day) of paid leave, with social security covering 100% of the average salary from the preceding 3 months, capped at GEL 1,000 per month.

Paternity Leave In Georgia

There is no mandatory paternity leave, fathers can choose to take parental leave or utilise any remaining maternity leave not used by the mother.

Sick Leave In Georgia

In this jurisdiction, there is no legally mandated sick leave. However, employees can take advantage of up to 15 calendar days of unpaid leave for illness. Additionally, employment contracts can be suspended for up to 40 days, after which the employer has the discretion to terminate the contract.

Parental Leave In Georgia

An employee is entitled to parental leave of 604 calendar days, and in the case of complications during childbirth or the birth of twins, parental leave of 587 calendar days. 57 calendar days of the leave shall be paid. An employee is required to use the paid part of maternity leave and parental leave in sequence, for 183 or 200 calendar days, respectively. An employee may, upon his/her request, be granted, in whole or in parts, but not less than 2 weeks a year, additional unpaidparental leave of 12 weeks until the child turns 5.

When hiring across multiple countries, maintaining consistency in how you deliver employee benefits quickly gets tricky. Each country, including Georgia, has its own legal rules, cultural norms, and contribution systems. An Employer of Record helps you strike the right balance between global structure and local compliance. They take over the complexity of delivering benefits that are aligned with Georgia’s legal requirements and competitive with local market expectations.

From ensuring statutory benefits are in place to managing local onboarding timelines and enrollment systems, the EOR provides a seamless experience for both employer and employee. This makes it easier to grow your team across borders without reinventing your benefits process in each new location. You stay in control of your overall benefits strategy, while the EOR takes care of executing it in a way that works legally and culturally in Georgia. It’s a smarter way to scale benefits globally without losing local relevance.

Termination Process in Georgia

Employee contracts in Georgia may be terminated based on justifiable reasons, such as:

• Economic circumstances, and/or technological or organisational changes requiring downsizing;
• The incompatibility of an employees qualifications or professional skills with the position held/work to be performed by theemployee
• The gross violation by an employee of his/her obligations under an individual employment agreement or a collective agreement and/or of internal labour regulations
• The violation by an employee of his/her obligations under an individual employment agreement or a collective agreement
• Long-term incapacity for work, unless otherwise determined by an employment agreement, if the incapacity period exceeds 40 consecutive calendar days, or the total incapacity period exceeds 60 calendar days within a period of 6 months, and - at the same time -the employee has already used his/her leave under Article 31 of this Law

Notice Period in Georgia

Both the employer and employee adhere to a 30-calendar day notice period, the notice must be provided in written form. No notice is necessary during the probation period.

Severance in Georgia

In Georgia, terminated employees typically receive one month's basic salary as severance pay.