The default and most common form of employment in Georgia. Open-ended with no fixed end date and can only be terminated on statutory grounds set out in the Labour Code (redundancy/economic reasons, misconduct, long-term incapacity, or qualification mismatch), with notice and, where applicable, severance pay.
Permitted where objective grounds exist (seasonal work, a defined project, or covering a temporarily absent employee). A single fixed-term contract, or successive fixed-term contracts for the same role, exceeding 30 months total is automatically converted to indefinite unless a genuine fixed-term justification continues.
Standard working time is 40 hours/week, typically 8 hours/day over a 5-day week (some sectors allow up to 48 hrs/week on average). Overtime requires the employee's agreement and is paid at an increased rate (commonly at least 125% of regular rate) or compensated with time off. Minimum daily rest 12 hours, minimum weekly rest 24 hours.
Employers may set a single probationary period of up to 6 months, documented in the written contract before work begins; it cannot be extended or repeated. Probationary employees must be paid the agreed salary in full. Unless the contract states otherwise, either party may end the relationship during probation without a statutory notice period, though terminations still cannot be discriminatory.
There is no statutory requirement for a 13th or 14th month salary in Georgia. Any additional bonus payments are discretionary and governed solely by the employment contract or company policy.
None
Employers must make a 2% pension co-contribution (of gross salary) into Georgia's mandatory funded (accumulative) pension scheme for enrolled employees (Georgian citizens and holders of permanent residence). The scheme is built from three sources: employee 2%, employer 2%, and a state top-up (2% for annual salary under GEL 24,000, tapering to 1% up to GEL 60,000, 0% above, for citizens). No separate social security or payroll tax beyond this pension contribution.
Employees (Georgian citizens and permanent residents) contribute 2% of gross salary to the funded pension scheme, withheld and remitted by the employer. Separately, a flat 20% personal income tax is withheld and paid to the Revenue Service — this is an income tax, not a social contribution, and applies regardless of pension enrollment.
In addition to statutory leave, employees are entitled to the following statutory benefits:
Georgia does not operate a traditional Soviet-style payroll social security tax. Its main mandatory scheme is the funded (accumulative) pension introduced in 2019, compulsory for Georgian citizens and permanent residents, with an optional opt-out for foreign employees without permanent residence.
Georgia does not run a state-administered workers' compensation insurance fund of the type common in the US or EU. Employer obligations for workplace health and safety are governed by the Labour Safety Law and Labour Code, requiring safe working conditions, occupational risk assessment, and protective measures.
Liability for a workplace injury or occupational illness is generally established through employer fault under general civil liability principles, with compensation pursued via labor inspection findings or civil claims rather than an automatic no-fault insurance payout. Many employers voluntarily purchase private accident/health insurance, common in EOR arrangements.
Statutory severance is tied to the type of termination notice given: an employee terminated on economic, organizational, technological, or incapacity/qualification grounds is entitled to at least one month's salary if given 30 calendar days' notice, or two months' salary if given only 3 calendar days' notice.
In addition, the employer must pay out accrued but unused annual leave and wages for all days actually worked through the termination date. There is no additional length-of-service severance scale beyond these amounts under the Labour Code.
A 13th (or 14th) month salary is not a legal requirement in Georgia. Any year-end or holiday bonus is entirely at the employer's discretion and, if offered, should be defined clearly in the employment contract or internal company policy.
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.