Payroll Georgia: 2026 Guide to Payroll Compliance and Pension Fund Outsourcing

Global Deployments is a payroll outsourcing provider that manages compliant payroll for companies with employees in Georgia, whether through a local entity, Employer of Record, or PEO arrangement. As a payroll Georgia partner, Global Deployments handles Revenue Service income tax registration, flat-rate PAYE withholding, mandatory pension savings contributions, and all statutory payroll reporting, so international companies can operate compliantly in this Caucasus market with one of the simplest flat-tax payroll structures in the region.

Quick facts: Payroll Georgia at a glance

• Income tax: flat 20% on all employment income, withheld monthly by the employer
• Mandatory pension savings (from 2019): 2% employer + 2% employee + 2% state subsidy = 6% total on gross salary
• No unified mandatory social insurance fund (no national health or unemployment contribution system for private employers)
• Minimum wage: GEL 20 per month (set 1999, largely symbolic; market wages significantly higher)
• Annual leave: minimum 24 working days per year under the Labour Code of Georgia
• Maternity leave: 183 days fully paid from the state budget

What Is Payroll Outsourcing in Georgia?

Payroll outsourcing in Georgia means engaging a local specialist to manage the calculation, filing, and remittance of all statutory payroll obligations on behalf of the employer. Global Deployments’payroll Georgia service covers Revenue Service income tax registration, flat 20% PAYE withholding, mandatory pension savings contribution management, and payslip generation in GEL, for both local entity employers and companies using an EOR or PEO structure.

Beyond payroll outsourcing, Global Deployments also supports companies that want a full Employer of Record Georgia arrangement, or a PEO co-employment structure for those already registered in Georgia but seeking to outsource the HR employer function.

Georgia Employment Law at a Glance

Income Tax and Pension Compliance in Georgia

Georgia’s payroll framework is one of the most straightforward in the region. Employers must register with the Revenue Service of Georgia and withhold income tax at a flat rate of 20% on all employment income. There is no separate employer social security contribution, no mandatory health insurance contribution, and no unemployment insurance levy, making total employer statutory payroll costs significantly lower than in most European or Middle Eastern markets. The mandatory pension savings scheme, introduced in 2019 under the Law on Accumulative Pension, requires employers to contribute 2% of gross salary, matched by a 2% employee contribution and a 2% state subsidy, for a combined 6% directed to the employee’s individual pension account. The Labour Code of Georgia, significantly amended in 2013 and 2020, provides a flexible employment framework with strong protections against discriminatory dismissal and a minimum of 24 working days annual leave.

Because Georgia’s statutory minimum wage of GEL 20/month is purely symbolic and market wage benchmarking therefore requires sector-specific research, and because the mandatory pension savings scheme imposes contribution and reporting obligations that newer market entrants frequently overlook, businesses running Georgia payroll for the first time benefit from specialist local support. This is the compliance gap Global Deployments’ payroll Georgia services are built to close.

Why Companies Choose Global Deployments for Payroll Services in Georgia

Global Deployments manages payroll across 160+ countries through its vetted in-country partner network, giving companies a single provider for Caucasus, Black Sea, and global payroll. For Georgia specifically, Global Deployments handles:

• Revenue Service income tax registration and flat 20% PAYE withholding
• Mandatory pension savings contribution management (2% employer, 2% employee, state subsidy coordination)
• Labour Code-compliant employment contract drafting and annual leave management
• Payslip generation in GEL and monthly tax return filing

Frequently Asked Questions

What does payroll outsourcing in Georgia actually cover?

Global Deployments manages Revenue Service PAYE withholding, mandatory pension savings contributions, payslip generation in GEL, and monthly return filing, for both local entity employers and EOR or PEO arrangements.

How much do employers contribute in Georgia?

Employers pay a flat 20% income tax withheld from the employee’s gross salary, plus 2% of gross salary for mandatory pension savings. There are no additional employer social security, health, or unemployment contributions.

What is Georgia’s minimum wage?

The statutory minimum wage is GEL 20 per month, set in 1999 and not revised since. It is effectively symbolic. Actual market salaries are set by supply and demand and sector benchmarks, with no sector collective agreement system comparable to Western Europe.

Can Global Deployments handle payroll if we already have a Georgian entity?

Yes. Global Deployments provides payroll outsourcing for companies that already hold a local entity in Georgia but want Revenue Service PAYE and pension savings compliance managed externally.

About Global Deployments

Registered Company Name: Global Deployments | Part of Africa Deployments Ltd.

Address: The Strand, Beau Plan Business Park, Mauritius

BRN: C19167158 | VAT: 27738392

Phone: +230 5713 8629

Website: global-deployments.com

Georgia’s flat 20% income tax, absence of employer social insurance contributions, and the 2019 mandatory pension savings scheme make it one of the lowest total-cost and most administratively simple payroll environments in Eurasia. Global Deployments’ payroll Georgia service provides the Revenue Service PAYE infrastructure, pension savings management, and Labour Code compliance needed to run payroll in Georgia whether or not you hold a local entity.

Reviewed by: Global Deployments Compliance Team