What should I know about hiring in Georgia?
If you’re planning to hire employees in Georgia, there are several things you should be aware of to ensure that you comply with Georgian employment laws. At the outset, it’s critical to be familiar with the Georgia Labor Code, which spells out the legal standing of both employers and employees in the state.
Employment contracts, salaries and benefits, working conditions, and termination are only a few areas of the law addressed by the labor code. The employment contract, which all employees are compelled to sign by law, is another crucial component of Georgian employment law.
The contract should outline the employee’s responsibilities, compensation, and working conditions, as well as any additional compensation or benefits to which they may be entitled. In addition, businesses in Georgia must pay into a social security fund on their employees’ behalf.
Why is Georgia a good choice for finding remote employees?
The state of Georgia places a heavy focus on STEM education, resulting in a highly educated and talented labor force. In light of this fact, it’s safe to assume that many Georgians who work remotely hold advanced degrees in subjects like engineering, technology, and the sciences.
Georgia has made significant investments in its information technology infrastructure, as evidenced by its increasingly accessible high-speed internet and thriving IT sector. In this way, remote workers can more easily connect with others from all around the world, whether they are clients or colleagues.
Policies such as tax breaks for IT firms and expansions of high-speed internet connection to rural areas are only two examples of the Georgian government’s efforts to foster the growth of the tech industry and remote employment.
How can Native Teams help you hire in Georgia
It might be challenging to know where to begin when it comes to hiring the right people for your company. This is why we at Native Teams are eager to lend a hand. To ensure the long-term success of your company, we offer onboarding services to aid in the smooth transition of new workers into their positions. Having Native Teams on your side could help guarantee that your business complies with all Georgian laws, from the hiring process to the distribution of benefits.
Hire your first Georgian employee with Native Teams.
Legal requirements for hiring in Georgia
To calculate the salary and taxes in Georgia please click here.
The minimum pay in the public sector is GEL 115 per month, whereas, in the private sector, it is GEL 20 per month. There has been no update to these numbers for the past 30 years.
Contributions & taxes
How much are the contributions & taxes?
Employer contributions to the pension program are often approximated at 2% of employee compensation, with the accrued pension amounting to 2% of salary.
The corporate tax rate is a flat 15%.
Total Employee Cost is 2.00%.
The rate for personal income tax is a flat 20%.
What is the payroll cycle?
In Georgia, salaries are typically paid once a month.
Is there a 13th salary in Georgia?
The 13th salary is not required; however, incentives may be paid at the employer’s option.
What are the main labor rules?
In Georgia, the length of an employee’s probationary period is outlined in their employment contract and varies by position. Probationary periods often don’t go beyond the 6-month mark.
In Georgia, a termination comes with a 30-day notice period for both the employer and the employee.
When an employee’s employment is terminated, they are usually given a severance package equal to at least one month’s income. The employer must make the severance payout within 30 days after the termination date.
The maximum weekly working time in Georgia is 48 hours, while the average workweek is 40. For night workers who conduct difficult, damaging, or hazardous labor, the maximum working time per 24-hour period is 8 hours.
Leave and benefits
Leave and benefits rules
There are 17 official holidays in Georgia.
- 1. New Year’s Day (2 days)
- 2. Orthodox Christmas Day
- 3. Orthodox Epiphany
- 4. Mother’s Day
- 5. International Women’s Day
- 6. Independence Restoration Day
- 7. Orthodox Good Friday
- 8. Orthodox Easter Saturday
- 9. Orthodox Easter Sunday
- 10. Orthodox Easter Monday
- 11. Victory Day
- 12. Saint Andrew the First-Called Day
- 13. Independence Day
- 14. Saint Mary’s Day
- 15. Svetitskhovloba
- 16. Saint George’s Day
Workers are eligible for up to 30 days of paid sick leave annually. A valid medical doctor’s note certifying the employee’s illness is required before any sick pay will be issued.
Maternity leave & paternity leave
During pregnancy, mothers are eligible for 126 paid days off from work, increasing to 143 in case of difficulties or twin delivery. The maximum daily wage an employee can receive is 1,000 GEL, which is paid out in whole. Also, they get an extra 604 days off during the pregnancy.
An employee’s maternity leave can be converted into childcare leave for 57 days. Either the mother or the father can use this.
A worker who cares for a child younger than 5 years old may be eligible for up to 2 weeks of paid leave per year from their employer.
Parents with a disabled kid are entitled to one extra paid day off every month until the child turns 18 for caregiving purposes. Workers receive minimum wage during this time off.
Adoptive parents of children younger than 10 are eligible for leave compensation equal to their average annual pay.
What are the minimum vacation days?
A Georgian worker’s minimum annual leave entitlement is 24 working days, with an additional 15 days of unpaid leave.
Health security & private insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
To apply for a visa/work permit in Georgia, upload the documents from our onboarding list (relocation to log in/pricing).
Why use Native Teams for hiring in Georgia?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
*Note: The provided information was accurate at the time of writing.