---
title: "Georgia Employer Cost Breakdown 2026 | Pension, Tax, Leave"
description: "Georgia employer cost 2026. The only employer add-on is 2% funded pension. Flat 20% income tax is withheld. Full Georgia hire breakdown."
canonical: https://www.teamed.global/country-hiring-guides/georgia/cost-breakdown
---

Georgia · Cost breakdown child

Served by Teamed vetted partner-entity network in Georgia

# How much does it really cost to *hire in Georgia* in 2026?

One number defines a Georgia hire. The employer pays 2% of gross salary into the funded pension, and that is the whole statutory employer add-on. There is no separate social-security payroll tax. Income tax sits at a flat 20%, but the employee carries that. Few markets keep the employer cost this thin.

Last reviewed 13 June 2026 · Georgia guide

![Tbilisi old town at golden hour with the Narikala fortress and cable car above terracotta rooftops, warm light over the Mtkvari river.](/images/country-guides/georgia-cost-breakdown.webp)

Illustration · Tbilisi, Georgia

Answer.cite this

Hiring in Georgia adds very little on top of gross salary. The employer pays 2% into the funded pension. That is the only mandatory employer contribution. There is no separate social-security payroll tax.

The employee also pays 2% into the same pension. The state adds its own 1% to 2% co-contribution by income band. Income tax is a flat 20%. The employer withholds it from pay. It is the employee's cost, not yours.

Every employee gets 24 days of paid annual leave a year. The standard week is 40 hours. There is no statutory paid sick pay and no required 13th-month salary in Georgia.

## The headline: what a Georgia hire actually costs

Start with gross salary. Add the employer funded-pension contribution of 2%. That is the only statutory employer add-on in Georgia.

The table below shows illustrative totals at a GEL 60,000 annual salary. These are computed from verified rates and labelled illustrative. They are not statutory figures.

Georgia's employer cost is among the lightest you'll model anywhere. The only mandatory employer contribution is the funded pension at 2% of gross salary. There is no separate social-security or payroll tax layered on top. The flat 20% income tax is withheld from the employee's pay, so it lands on the worker, not on you.

| Line | Illustrative cost on GEL 60,000 annual salary | Source |
| --- | --- | --- |
| Gross salary | GEL 60,000 | Contract |
| Employer funded pension at 2% of gross | GEL 1,200 (illustrative) | [Law of Georgia on Funded Pension, Article 3](https://www.matsne.gov.ge/en/document/view/4280127) |
| Separate social-security payroll tax | None | No general social-security contribution in Georgia |
| Income tax at flat 20% (withheld from the employee, not an employer cost) | Employee cost | [Tax Code of Georgia, Article 81(1)](https://www.matsne.gov.ge/en/document/view/1043717) |
| Annual leave: 24 days per year (paid, cost built into salary) | Included in salary | [Labour Code of Georgia, Article 31(1)](https://matsne.gov.ge/en/document/view/1155567) |
| Statutory paid sick pay | None required | Labour Code of Georgia, Article 46 |
| 13th-month salary | None required | Labour Code of Georgia, Article 41(2) |
| **Total illustrative employer cost** | **~GEL 61,200 before the Teamed fee** | **~102% of gross (illustrative)** |

These figures are illustrative. They are computed from the 2% employer funded-pension rate applied to gross salary. They are not statutory figures. Because there is no social-security payroll tax on top, the statutory employer add-on stays at 2% whatever the salary level.

Add Teamed from $599 per employee per month and the total rises by a known, flat amount. Use the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to run your own salary figures.

1. Start with gross salary Confirm the agreed gross salary in Georgian lari. This is the base every other line builds on, including the funded-pension calculation.
2. Add the funded pension Apply the employer funded-pension rate to gross salary. This is the only mandatory employer contribution. There is no separate social-security payroll tax to add.
3. Withhold income tax and the employee pension Deduct the flat income tax and the employee pension share from the worker's gross pay. These are employee costs, but the employer must remit them correctly each month.
4. Model leave as part of salary Paid annual leave is funded through salary, so it already sits inside your gross-pay budget. Treat parental-leave cover as a variable cost when it arises.
5. Plan for termination from day one Severance and unfair-dismissal exposure are the real cost risk in Georgia. Build fair-process documentation and a severance reserve into your headcount planning from the start.

## The funded pension: the one employer contribution

The employer pays 2% of gross salary into the funded pension. The employee pays the same 2%. Enrolment is mandatory for most employees.

The state adds a co-contribution on top, 2% on lower income and 1% on the middle band. Georgia has no general social-security payroll tax beyond this scheme.

### Funded pension

Georgia's mandatory funded pension launched in 2019. The employer contributes 2% of the employee's taxable salary, and the employee contributes a matching 2%. The state tops this up with its own co-contribution: 2% of salary on annual income up to GEL 24,000, then 1% on income between GEL 24,001 and GEL 60,000, and nothing above GEL 60,000. The 2% employer share is the figure to budget. It applies whatever the salary, with no cap on the employer side at typical professional pay.

Law of Georgia on Funded Pension · Article 3

Employer funded-pension contribution: **2%** of the employee's taxable salary. The employee contributes a matching **2%**. The state adds 2% on annual income up to GEL 24,000 and 1% from GEL 24,001 to GEL 60,000.

Source: [Law of Georgia on Funded Pension, Article 3](https://www.matsne.gov.ge/en/document/view/4280127)

### No general social-security payroll tax

Georgia abolished its old social tax years ago. Outside the funded pension, there is no separate employer social-security or payroll contribution to budget. This is the single biggest reason Georgia's employer cost reads so low against most European or Asian markets, where social charges often add 20% or more to gross.

### What the employer withholds

The employer is responsible for deducting the employee's 2% pension share and the flat 20% income tax from each pay run, then remitting both. Remuneration must be paid at least once a month under the Labour Code, and late payment carries a 0.07% per-day charge on the delayed sum. Getting the monthly remittance right matters more here than the contribution rate itself.

## Income tax and payroll: what the employer withholds

Georgia taxes personal income at a single flat rate of 20%. There are no progressive bands. The employer withholds it from every pay run.

Income tax is the employee's cost, not yours. Your job is to deduct it correctly and remit it on time alongside the pension.

Georgia runs a flat personal income tax. A natural person's taxable income is taxed at 20%, with no progressive bands or higher rates above any threshold. This is current for the 2026 tax year. For an employer modelling cost, the headline is simple: income tax does not change your employer add-on. It is withheld from the employee's gross and paid to the Revenue Service.

### The flat-rate model in practice

Most salaried workers pay the flat 20% on employment income with the tax withheld at source. There is no separate annual reconciliation for a standard salaried hire in most cases. The employer handles the deduction and remittance each month.

| Personal income | Rate |
| --- | --- |
| All employment income (flat, no bands) | 20% |

Source: [Tax Code of Georgia, Article 81(1)](https://www.matsne.gov.ge/en/document/view/1043717)

### Pay cycle and late-payment charge

The Labour Code requires remuneration to be paid at least once a month. If payment is late, the employer owes 0.07% of the delayed amount for each day of delay. The employer withholds the flat 20% income tax and the 2% employee pension share on the same cycle and remits them. Income tax is not an employer cost in cash terms. It becomes a liability only when the employer makes errors or misses a deadline.

## Leave and time off: what the law requires

Every Georgian employee gets 24 days of paid annual leave a year, plus up to 15 calendar days of unpaid leave. The standard working week is 40 hours.

Paid leave is funded through salary, so it is already inside your gross-pay budget. There is no separate insurance charge for it.

Georgia's leave rules sit in the Labour Code. They are employer-funded through ordinary salary, not insurance-backed.

### Annual leave

The statutory minimum is 24 days of paid annual leave each year. On top of that, an employee may take up to 15 calendar days of unpaid leave. Paid leave is part of the salary cost you already carry, so it does not add a separate line to the employer total.

### Working time

The standard working week is 40 hours. Hours worked beyond the agreed schedule are treated as overtime under the Labour Code and are typically paid at a premium set in the employment agreement. Confirm the overtime rate in the contract, as the exact statutory premium is not fixed in a single clear figure in the code.

### Sick pay

Georgia has no statutory employer-paid sick pay. Time off for illness suspends the working relationship and is unpaid unless the employment agreement or other law provides for pay. The employer may end the relationship only if incapacity runs beyond 40 consecutive days, or beyond 60 days in total across any six-month period. Many employers choose to offer paid sick leave by contract to stay competitive, but the law does not require it.

### Maternity, childcare and paternity leave

Georgia provides combined maternity and childcare leave, with a paid portion funded primarily through the state budget rather than as a direct employer charge. Reported paternity leave exists but is not confirmed from the primary statute here, so treat any specific day count as provisional and verify against the current Labour Code before relying on it. Build parental leave into workforce planning as a cover cost, not as a fixed monthly contribution.

## The costs that do not appear on a salary sheet

Georgia's headline employer cost is low. The real budget risk sits in termination and in getting the monthly remittance right.

Severance, the trial-period rules, and unfair-dismissal exposure can each cost far more than the 2% pension line if they are not planned for.

### A minimum wage frozen since 1999

Georgia's private-sector statutory minimum wage is GEL 20/month, set by Presidential Decree in 1999 and never updated. It sits far below any real market wage and is effectively symbolic. In practice, you pay the market rate for the role, so the minimum wage almost never binds. Source: [Labour Code of Georgia](https://www.matsne.gov.ge/en/document/view/1155567).

### Severance on termination

Severance depends on how much notice you give. Give at least 30 days of written notice and you owe severance of at least 1 month pay. Use the short route of 3 days notice and the severance rises to at least 2 months pay. Budget severance as a real termination cost from the first hire, not a year-five surprise (Labour Code Article 48).

### The trial period

A trial period can run for up to 6 months, once only, and must be agreed in writing. It gives you room to assess a hire, but it does not remove the duty to follow the notice and severance rules when the relationship ends.

### Unfair-dismissal exposure

If a court voids a dismissal, it can order reinstatement, an equal job, or compensation set by the court. There is no statutory cap on that compensation. A poorly documented termination can cost a multiple of the annual pension contribution. Good process from day one is the cheapest protection you can buy.

## How Teamed handles Georgia employment costs for you

Teamed becomes your legal [employer of record](/employer-of-record) in Georgia for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Pension, income-tax withholding, leave, and the full Georgia compliance stack run on **one platform**.

**Real HR and legal experts** handle your Georgia hires from the first offer letter through every Revenue Service remittance and pension filing. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Every employer cost **passes through at cost, itemised** on every invoice. You see the pension line and any leave liability. Nothing is buried inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Georgia contractor who converts to employment keeps their record. That same employee can **graduate** from EOR to your own Georgian entity without switching systems. EOR is the right structure for a first Georgia hire, **until it isn't**. Teamed plans that move with you. Start from [the Georgia hiring overview](/country-hiring-guides/georgia) or run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture.

## Frequently asked questions

What does it cost to hire an employee in Georgia in 2026?

The only mandatory employer contribution is the funded pension at 2% of gross salary. There is no separate social-security payroll tax in Georgia, so the statutory employer add-on stays at 2% whatever the salary level. The flat 20% income tax is withheld from the employee, not an employer cost. Add Teamed from $599 per employee per month for the full employer-of-record service.

How does the funded pension contribution work in Georgia?

The employer pays 2% of the employee's taxable salary into the funded pension, and the employee pays a matching 2%. The state adds its own co-contribution: 2% on annual income up to GEL 24,000 and 1% on income between GEL 24,001 and GEL 60,000. Enrolment is mandatory for most employees. The 2% employer share is the figure to budget.

What is the income tax rate in Georgia and who pays it?

Georgia taxes personal income at a single flat rate of 20%, with no progressive bands. The employer withholds it from the employee's gross pay each month and remits it to the Revenue Service. It is the employee's cost. The employer's duty is to deduct and remit it correctly and on time.

Is there statutory sick pay or a 13th-month salary in Georgia?

No. Georgia has no statutory employer-paid sick pay. Time off for illness suspends the working relationship and is unpaid unless the contract or other law provides for pay. There is also no required 13th-month salary. The form and amount of remuneration are set by the employment agreement, so any annual bonus is contractual, not mandatory.

How much annual leave does a Georgia employee get?

Every employee is entitled to 24 days of paid annual leave each year, plus up to 15 calendar days of unpaid leave. Paid leave is funded through ordinary salary, so it is already part of your gross-pay budget rather than a separate employer charge.

What does severance cost on termination in Georgia?

Severance depends on the notice route. Give at least 30 days of written notice and you owe severance of at least 1 month pay. Use the short route of 3 days notice and severance rises to at least 2 months pay. If a court voids a dismissal, it can order reinstatement, an equal job, or compensation with no statutory cap, so good process matters.

Teamed Legal Operations

Georgia is one of the cleanest employer-cost models we work with. The funded pension is the only mandatory employer contribution, and there is no social-security payroll tax stacked on top. That keeps the statutory add-on flat as salaries rise, which makes senior hires unusually easy to budget. The cost risk is not the monthly contribution. It is termination, where severance scales with the notice route and unfair-dismissal awards have no statutory cap.

A note from Tom Price-Daniel

In Georgia the employer's whole statutory add-on is 2%, the funded pension. No social-security tax sits on top of it.  
Income tax is a flat 20%, withheld from the employee. The cost you carry barely moves as salary climbs.  
Know the pension line. Know the severance route. Know what you owe before you sign the offer.

Tom Price-Daniel · Co-founder, Teamed

## Related Georgia guides

- [Hiring in Georgia, overview](/country-hiring-guides/georgia)parent
- [Georgia tax and payroll](/country-hiring-guides/georgia/tax-and-payroll)sibling
- [Georgia termination and severance](/country-hiring-guides/georgia/termination-and-severance)sibling
- [Employer of Record overview](/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Revenue Service of Georgia and the Pension Agency before relying on any specific figure. Worked examples here are illustrative only and computed from statutory rates. They are not statutory figures. The private-sector minimum wage of GEL 20 per month reflects a 1999 Presidential Decree that has never been updated and is functionally symbolic; pay the market rate for the role. Maternity and paternity day counts are reported but not fully confirmed from the primary statute, so confirm them against the current Labour Code before relying on a specific figure.