Engage In Georgia

Table of Contents

About Georgia

Capital City

Tbilisi

Population

As of March 2024, the estimated population of Georgia is 3.7 million.

Currency

The currency in Georgia is the Georgian Lari (GEL). The currency symbol is ლ.

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Overview

Georgia, officially known as the Republic of Georgia, is a country situated at the crossroads of Eastern Europe and Western Asia. Bordered by Armenia, Azerbaijan, Russia, Turkey, and the Black Sea, Georgia holds a strategic location east of the Black Sea and is largely mountainous, with the famous Caucasus Mountains running through its territory. The country has a rich and diverse history, with evidence of human habitation dating back thousands of years. Throughout its history, Georgia has been influenced by various civilizations and empires, including the ancient Greeks, Romans, Persians, and Mongols. Today, Georgia is a unitary semi-presidential republic, with a president as the chief of state and a prime minister as the head of government. The country has a mixed economic system that combines elements of private freedom with centralized economic planning and government regulation. With a population of over 3.6 million, Georgia is known for its welcoming hospitality, unique cultural heritage, picturesque landscapes, and delicious cuisine. It is also famous for its ancient traditions, including polyphonic music, vibrant folk dances, and the art of winemaking, which claims to be one of the oldest in the world.

Employment Relationship

Permanent Employment

Employment contracts made for indefinite terms are considered permanent in Georgia. If the duration of the employment relationship exceeds 1 month, it is necessary to conclude the employment contract in writing.

Fixed-Term or Specific-Purpose Contracts

Fixed-term employment contracts can be concluded in Georgia, provided it is specified in the contract. These contracts can only be concluded for specific reasons, such as a temporary increase in work, absence of permanent employees, seasonal work, extraordinary work, etc.  If the term of the contract is more than 30 months, or if the labor relationship continues as a result of concluding a fixed-term labor contract 2 or more times and its duration exceeds 30 months, it is considered that a permanent labor contract has been concluded.  Employers are obliged to inform fixed-term employees about the available vacancies so that they, like other employees, have an equal opportunity to occupy the positions within the framework of a permanent employment contract. 

Temporary Employment Contratcs

Probationary Period

It is possible to conclude an employment contract for a trial period of no more than 6 months. An employment contract with a trial period is concluded only in written form. Employees can be subject to probation only once.  The work performed during probation is compensated. The parties' agreement determines the amount of this compensation and the payment method. Employers have the right to conclude a temporary or permanent employment contract with the employee at any time during the probationary period or terminate the probationary employment contract. In case of termination of the labor contract concluded during the trial period, the employee will be paid according to the time worked.

Working Hours

Standard working hours are 40 hours per week in Georgia. Working time does not include break time and rest time. In an enterprise with a specific work mode, where there is a continuous mode of production/work process lasting more than 8 hours, the duration of the normal working time must not exceed 48 hours per week. The duration of the employee's continuous rest between working days/shifts must not be less than 12 hours.  The length of working time of a minor from 16 to 18 years of age must not exceed 36 hours per week and 6 hours per working day. A minor's working time from 14 to 16 years of age must not exceed 24 hours per week and 4 hours per working day.

Holidays / PTO

Statutory Holidays

Paid Annual Leave

Employees in Georgia are entitled to 24 days paid and 15 days unpaid annual leave after working for 11 months with the same employer. Employees working in hard, harmful, or dangerous work are given an additional paid leave of 10 calendar days a year.  Employees are paid their average wage during annual leave. When taking an unpaid leave, the employee is obliged to notify the employer 2 weeks in advance about taking the said leave, except when, due to urgent medical needs or family circumstances, the notice is not possible. Employees can use their leave in parts. If giving paid leave to an employee in the current year may harm the normal operation of the work process, it is allowed to transfer the leave to the next year with the employee's consent. It is prohibited to transfer the paid leave of a minor to the following year. Transferring paid leave to the following year for 2 consecutive years is prohibited. Upon termination of the employment contract at the employer's initiative, they are obliged to compensate the employee for unused leave in proportion to the duration of the employment relationship.    

Sick Leave

In Georgia, employment contracts are suspended in case of temporary incapacity of the employee if its duration does not exceed 40 consecutive calendar days or the total duration within 6 months does not exceed 60 calendar days. These days are unpaid.

Maternity Leave

In Georgia, maternity leave is not mandatory and is granted at the employee's request. The Labor Code provides 126 days of paid maternity leave and 143 days in case of childbirth complications or multiple births. Employees can decide for themselves how to allocate the leave before and after childbirth. In addition, employees get 604 days of childcare leave that can be taken after maternity leave, out of which 57 days are paid. When taking leave for child care, the employee is obliged to notify the employer 2 weeks in advance about taking the said leave. The childcare leave can be used in whole or in part by the child's mother or father, per their agreement. Based on their request, employees who adopt a child under 1 year of age are given an adoption leave for 550 calendar days after the child's birth. 90 calendar days of this leave are paid. Leave due to pregnancy and childbirth, leave due to child care, and leave due to the adoption of a newborn are compensated by the state budget of Georgia. The employer and the employee may agree on additional compensation for said vacations. The benefit amount is GEL 2,000 (Georgian Lari) in 2023 for the total duration of leave, whether it is shared between parents or only the mother utilizes it. 

Paternity Leave

There are no provisions for paternity leave in Georgia.

Termination of Employment

Notice Period

As per the Labor Code of Georgia, if the termination is due to economic circumstances, technological or organizational changes that make it necessary to reduce the workforce, Incompatibility of the employee's qualification or professional skills, long-term incapacity, or other circumstances, the notice must be given at least 30 days in advance. In case of resignation, employees must also provide a notice of 30 days to their employer. Notice must be given in writing. No notice is required in case of termination during probation. Employees are also terminated without notice in case of gross violation, liquidation of the employer’s company, death, court order, etc.   Employers are entitled to notify the employee at least 3 calendar days in advance by sending a written notice. In this case, the employee will be compensated for at least 2 months' wages.

Severance Benefits

In Georgia, employees are entitled to severance pay if the employer terminates their contract due to economic circumstances, technological or organizational changes that make it necessary to reduce the workforce, incompatibility of the employee's qualification or professional skills, long-term incapacity, or other circumstances. The amount of severance pay is 1 month’s wages. If the employer does not follow the required notice period of 30 days and gives the employee only 3 days’ notice, they must give 2 months’ wages as severance pay.

Social Security

Pension

Georgia has a defined contribution pension scheme that is mandatory for all employees. Contributions to the pension scheme are made by employees, employers, and the state. The legal retirement age in Georgia is 65 years. Women have the right to a pension from the age of 60. Pension contributions are reflected in the participant's individual pension accounts. After reaching the retirement age, participants are entitled to receive the corresponding value of the total pension assets recorded in their individual pension account with a single payment or program withdrawal. They are also entitled to apply to the pension agency and request the purchase of an insurance annuity product with the pension assets recorded in their individual pension account in order to receive a pension. They receive the full amount of the value of pension assets from their individual pension account if they have reached retirement age no later than 5 years after the date of commencement of pension contributions.  Georgia also has a state-funded pension scheme for all citizens who have reached retirement age. The amount of pension depends on the annual state budget. 

Dependents/Survivors Benefit

In Georgia, the amount in an individual's pension account is transferred to their survivors after they die. Transfer of pension assets may be made by lump sum payment or by transfer of pension assets to the individual pension account of the heir of the participant, according to the choice of the heir. The state-funded social assistance scheme provides a social package to families in case of the death of their breadwinner. This package is given in the form of monetary and non-monetary monthly benefits.   

Invalidity Benefit

It is mandatory for all employees in Georgia to be registered with the pension agency. It is responsible for paying disability benefits and pensions to its beneficiaries if they become disabled before reaching retirement age.  After disability, participants are entitled to receive the corresponding value of the total pension assets recorded in their individual pension account with a single payment or request the purchase of an insurance annuity product with the pension assets recorded in their individual pension account to receive a pension.  Georgia also has a state-funded pension scheme for all disabled citizens. The pension amount depends on the annual state budget, increased in case of severe disability. A person in need of special care may be a recipient of non-monetary social assistance. In case of work accidents, employers are obliged to fully compensate employees for the damage caused by the deterioration of the health condition and necessary treatment costs related to the performance of the work.

Taxation of Compensation and Benefits

Personal Income Tax

In Georgia, both residents and non-residents are subject to income tax. Residents are taxed on their total income from sources within and outside Georgia, while non-residents are taxed only on income from sources in Georgia. A person is considered a resident in Georgia if they have stayed in the country for 183 days or more during any continuous 12 calendar month period ending in the tax year or if they are in a foreign country within the State of Georgia at a job. A tax year runs from January 1 to December 31.  Personal income is taxed at a flat rate of 20%. Income received from renting out residential property is taxed at 5%. Income received from online gambling by individuals is taxed at 10%. Income from interests and dividends is taxed at 5%.

Immigration

Types of Visas

There are the following visa categories issued according to the visit purpose: Diplomatic visa (A) – issued to heads of state, diplomats, government officials, consuls, etc. There are 5 types of diplomatic visas.  Special visa (B) – issued to members of the delegation of another state, those holding official passports, administrative-technical and service staff of the diplomatic mission of another state, and members of the peacekeeping forces. There are 4 types of special visas. Ordinary visa (C) – issued to tourists, persons visiting friends and families, business meetings, charitable activities, religious activities, etc. There are 4 types of ordinary visas. Immigration visa (D) – issued to people coming for work, business, education, research, cultural or sports, family reunification, etc. There are 4 types of immigration visas. Transit visa (T) – issued to a foreign national going to a third country who will transit through the territory of Georgia. The maximum duration of a transit visa is 10 days.          

Work Permit

Foreign employees in Georgia are required to obtain a D1 immigration visa and apply for a work residence permit to carry out entrepreneurial or labor activities in Georgia and professional activities. To obtain a residence permit, they must apply in person or through an authorized representative to any territorial office of the State Services Development Agency, a branch of the House of Justice, or a community center or fill out the application electronically. Residence permits of this type are issued for the first time for a period of up to 1 year and can be extended for a period of up to 5 years.

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