Economic Overview, Digital Nomad Magnet & IT Virtual Zones
Georgia offers an ultra-competitive business environment with 1% small business tax regimes and 5% international IT company incentives.
Key Economic Sectors
- IT Outsourcing & FinTech: Fast-growing custom software, mobile app, and blockchain development in Tbilisi.
- Transit & Middle Corridor Logistics: Strategic Black Sea ports (Poti, Batumi) linking Europe and Central Asia.
- Tourism & Wine Agro-Industry: World's oldest continuous winemaking tradition and mountain/coastal tourism.
Employment Contracts, Labour Code & Probation
Governed by the Labour Code of Georgia.
- Written Contracts: Mandatory in Georgian (or bilingual) for contracts exceeding 1 month.
- Probation Period: Maximum statutory probation is 6 months.
Working Hours, Overtime & Rest Periods
- Standard Hours: 40 hours per week (48 hours for non-standard enterprises).
- Overtime: Must be compensated with a statutory hourly premium agreed in contract.
Annual Leave, Public Holidays & Maternity Protections
- Annual Paid Vacation: Minimum 24 working days per year.
- Public Holidays: 17 official public holidays.
- Maternity Leave: Up to 730 calendar days of pregnancy, childbirth, and childcare leave (with 183 days paid through state social assistance and employer top-ups).
Pension Agency (2% + 2%), Flat 20% Tax & IT Incentives
| Statutory Scheme | Employer Share | Employee Share | Description |
|---|---|---|---|
| Accumulative Pension Scheme | 2.0% | 2.0% | Pension Agency funded individual account (+ 2% State match) |
Personal Income Tax: Flat 20.0%, withheld monthly and remitted to Revenue Service (RS.ge).
Termination, Notice & Severance Indemnity
- Notice Periods: 30 days written notice (or 3 days notice with 1 month severance pay).
- Severance Pay: Minimum 1 month's salary for termination initiated by employer.
Why Use an Employer of Record (EOR) in Georgia
- Rapid Talent Deployment: Onboard software engineers in Tbilisi in days.
- Pension & Tax Compliance: Seamless management of Pension Agency contributions and Revenue Service filings.
- Work Permit & Residence Support: EOR facilitates residence permit documentation for foreign specialists.
Hiring in Georgia? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks: