How to Hire Employees in Georgia

Hiring employees in Georgia, the South Caucasus country, requires a written employment contract and registration of the employment relationship before work begins, with compliance governed primarily by the Georgian Labour Code.

From March 2026, a new Special Labour Permit system introduces a mandatory additional step for foreign nationals, making early preparation a critical operational consideration for international employers entering the Georgian market.

Job Market and Hiring Trends in Georgia

Georgia's labour market showed rising demand in early 2026, with job vacancies increasing 8.6% month-on-month in January 2026, concentrated in IT, business services, and construction, according to Geostat.

Tbilisi accounts for the majority of active vacancies, with 55 or more tech roles listed at any given time, while regional markets remain thinner.

• Unemployment held at 13.3% in Q4 2025, with youth unemployment exceeding 20%, creating a large available talent pool for entry-level and mid-level roles. (Geostat)

• IT and business services roles attract the most competitive candidates. Top candidates in Tbilisi's tech market move within days of applying. (Geostat, industry hiring data)

• The State Employment Support Agency (worknet.gov.ge) runs active vocational retraining programmes, giving employers a structured pipeline for upskilling candidates before hire.

• Average gross monthly salaries range from GEL 1,800 to GEL 2,200 across most sectors in 2026, with IT specialists earning GEL 4,000 or more. (Geostat)

• Construction and logistics sectors report persistent shortages of qualified mid-level workers, while administrative and entry-level roles see surplus applicants. (worknet.gov.ge)

Employers targeting Georgia's IT and services sectors should expect competitive candidate timelines and plan offer processes accordingly. The worknet.gov.ge retraining pipeline is a practical sourcing channel for roles where ready-made talent is scarce.

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Your Options for Hiring in Georgia: Entity vs. EOR vs. Contractor

Foreign companies hiring in Georgia choose between three models: establishing a local entity, working with an Employer of Record, or engaging independent contractors. Each carries distinct compliance obligations, cost structures, and timelines.

Entity setup means registering a Georgian legal entity and taking on full employer liability. You control everything and bear every obligation directly.

Contractor engagement treats individuals as independent service providers. It works for genuine project-based work, but misclassification risk is high when the relationship resembles employment.

An Employer of Record becomes the legal employer in Georgia while you direct day-to-day work. The EOR manages contracts, payroll, tax withholding, and statutory filings. You retain operational control without owning a local entity. If you are evaluating this model, see how does EOR work for a full breakdown, and review the best employer of record criteria before selecting a provider.

Employees vs. Contractors in Georgia

Misclassifying an employee as a contractor in Georgia triggers back taxes, Social Security penalties, and reclassification claims that compound with each additional hire.

Georgian law determines classification based on the actual working relationship, not the contract label. The key factors are control over how work is performed, exclusivity of the engagement, and economic dependence on a single employer. A worker who follows set hours, uses employer-provided equipment, and works exclusively for one company is an employee regardless of what the contract states.

Georgia's Labour Inspectorate actively investigates disguised employment relationships. Where the facts indicate employment, inspectors will reclassify the arrangement regardless of how the contract is written.

Cost to Hire an Employee in Georgia

Total employment cost in Georgia is not salary alone. Employers must account for mandatory pension contributions on top of gross pay.

Georgia's pension scheme, introduced in 2019, requires employers to contribute 2% of an employee's gross salary. This applies only to employees born after 1974. There is no separate employer-side social security contribution beyond this pension obligation.

Two worked examples illustrate the real employer cost. An employee earning GEL 2,000 gross triggers a GEL 40 employer pension contribution, bringing total employer cost to GEL 2,040. An IT specialist on GEL 4,000 gross generates a GEL 80 employer pension contribution, for a total employer cost of GEL 4,080.

Georgia's cost structure is predictable. For employers comparing models, reviewing employer of record cost alongside direct-hire costs helps build an accurate budget before committing to a hiring model.

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Compliance Risks While Hiring in Georgia

Compliance failures in Georgia carry concrete financial and legal consequences. Three risk areas catch foreign employers most often.

• SLP non-compliance for foreign national hires. Employers hiring foreign nationals must comply with the Special Labour Permit (SLP) framework. Non-compliance exposes both the employer and the worker to fines starting at GEL 2,000. These rules take effect March 1, 2026. Failing to obtain or maintain the correct permit before that date creates immediate financial liability on both sides of the employment relationship.

• Fixed-term contract cumulative cap. Fixed-term contracts with the same employer for the same or equivalent work cannot exceed 30 months in total. Once that threshold is crossed, the contract converts automatically to an indefinite employment arrangement. Employers who use rolling fixed-term contracts to avoid statutory protections will find those contracts reclassified, triggering full indefinite-employment obligations retroactively.

• Termination payment settlement deadline. When employment ends, all outstanding payments owed to the employee must be settled within 7 calendar days of the termination date. Missing this window exposes the employer to claims for late payment, potential Labour Inspectorate action, and reputational risk in a market where Tbilisi's professional community is closely networked.

Each of these risks is avoidable with correct contract structuring, permit management, and payroll controls in place before the first hire.

Key Labor Laws in Georgia

Employment contracts

Written contracts are mandatory for any engagement lasting one month or longer. Oral contracts are valid only for engagements under one month. Fixed-term contracts carry a cumulative cap of 30 months across renewals. Exceeding that cap without converting to an indefinite arrangement creates legal exposure.

Working hours and overtime

The standard workweek is 40 hours. The maximum is 48 hours per week under permitted conditions. Employees are entitled to a minimum 12-hour uninterrupted rest period between shifts. Night work is defined as hours between 10pm and 6am, and employers must fund mandatory medical examinations for night workers. Any employee working more than six hours in a day is entitled to a rest break.

Minimum wage

Georgia has no national minimum wage as of 2026. Salary is set entirely by contract. Average gross monthly benchmarks vary by sector, with IT roles in Tbilisi typically commanding the highest rates. Because there is no statutory floor, specifying the agreed salary clearly in the contract is not optional. Disputes over pay default to whatever the contract states, and courts interpret ambiguities in favour of employees. Employers who leave salary terms vague carry the full risk of that ambiguity.

Leave entitlements

Employees are entitled to 24 paid calendar days of annual leave plus 15 additional unpaid days per year. Leave eligibility begins after 11 months of continuous employment. Full details on maternity leave, sick leave, and public holidays are covered in the Employment Benefits section of this guide.

What to Include in an Employment Contract or Offer Letter in Georgia

Georgian courts interpret ambiguous contract terms in favour of employees. Every unclear clause becomes a liability the employer carries alone.

• Written vs. oral form: Written contracts are mandatory for engagements of one month or longer. Oral contracts are only valid for shorter engagements.

• Contract duration and fixed-term cap: If using a fixed-term contract, state the end date and confirm cumulative fixed-term duration does not exceed 30 months.

• Job title, duties, and place of work: Define the role, responsibilities, and primary work location.

• Salary and working hours: Specify gross monthly salary in GEL. State standard hours and overtime policy. No statutory minimum applies, so the contract figure is the only reference point.

• Non-compete terms: Post-employment non-compete clauses are recognised under Georgian law. Employees in education, science, or culture are exempt. Compensation must be paid to the employee during any restriction period to support enforceability.

• Governing law and language: State that the contract is governed by the Georgian Labour Code. Draft in Georgian for enforceability in disputes. Bilingual contracts are permitted.

• IP ownership: Confirm that intellectual property created during employment belongs to the employer.

• Data privacy acknowledgement: Include a reference to Georgia's Personal Data Protection Law and confirm the employee's consent to lawful data processing.

Payroll and Taxes in Georgia

Georgian employers pay salaries in Georgian Lari (GEL) on a monthly cycle. There is no national minimum wage; contracts specify the agreed amount.

Foreign companies without a Georgian entity cannot run payroll directly. You must either establish a local legal entity or engage an EOR services provider to employ staff compliantly.

Income tax is charged at a flat 20% on gross salary. Employers withhold the full amount at source and remit it to the Georgian Revenue Service by the 15th of the following month.

Income tax

Employer and employee contributions

There is no separate employer-side social security contribution beyond the pension scheme. The pension applies only to employees born after 1974. For a worked cost example, see the payroll cost section earlier in this guide.

Employment Benefits in Georgia

Georgian law sets a floor of statutory benefits. Employers commonly add supplemental benefits to compete for talent, particularly in Tbilisi's IT and services market.

Paid time off and public holidays

Employees are entitled to a minimum of 24 paid calendar days of annual leave per year. An additional 15 days of unpaid leave are available on request.

The right to paid annual leave accrues after 11 months of continuous employment. Employers and employees may agree to grant leave earlier. Georgia observes approximately 15 public holidays per year.

Sick leave

Sick leave is unpaid under Georgian law unless the employer provides contractual sick pay. An employer may terminate employment on grounds of incapacity after 40 consecutive days of absence, or after 60 days of incapacity within any 6-month period.

Maternity and paternity leave

Maternity leave in Georgia totals 126 calendar days, all of which are paid. In cases of complicated birth or multiple births, the paid period extends to 143 calendar days.

Parental leave of 604 calendar days is available following maternity leave, including 57 paid days. Either parent may take the paid portion. The remainder is unpaid but job-protected.

Public health insurance

Georgia has no mandatory employer-provided health insurance. Supplemental private health insurance is not required by law but is widely offered as a competitive benefit, particularly for professional and technical roles.

Leave entitlements summary

Work Permits and Visas in Georgia

Georgia offers several visa categories for foreign nationals. The type required depends on nationality, employment status, and intended duration of stay.

Employers sponsoring foreign hires carry direct compliance obligations. Sponsorship means verifying that the employee holds valid authorisation to work for a Georgian-registered entity before the employment relationship begins.

Georgia is introducing a Special Labour Permit (SLP) system for foreign nationals, effective March 1, 2026. Self-employed foreign nationals must comply by May 1, 2026. Salaried employees have until January 1, 2027. Non-compliance carries fines starting at GEL 2,000.

Visa-free entry to Georgia does not automatically authorise a foreign national to work for a Georgian-registered entity. Employers must confirm work authorisation separately before onboarding any foreign hire.

Onboarding New Hires in Georgia

Onboarding in Georgia is a compliance sequence, not just an administrative formality. Each phase carries specific legal obligations that must be completed in order.

Before Day One

• Register the employment relationship on worknet.gov.ge

• Obtain a signed written employment contract

• Set up payroll and withholding in line with the 20% flat income tax rate

• Enrol the employee in the mandatory pension scheme if born after 1974

• Verify Special Labour Permit (SLP) status for any foreign national hire

Day One

• Collect identity documentation as required under Georgian law

• Conduct health and safety orientation

• Obtain signed policy acknowledgements covering workplace conduct and confidentiality

First Week

• Complete role-specific training and introduce the direct manager

• Brief the employee on annual leave accrual (minimum 24 calendar days per year)

• Confirm probation terms in writing, including the 3-day notice right during probation

Beyond the First Week

• Schedule performance check-ins throughout the probation period (up to 6 months)

• Monitor ongoing compliance with Labour Code obligations

For remote workers, Georgian employer obligations do not stop at the office door. Employers must conduct a home-office risk assessment, provide necessary equipment, and maintain incident reporting procedures for home-based employees. These obligations apply regardless of where the employee physically works.

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NDAs, Confidentiality and IP Protection in Georgia

NDAs and confidentiality clauses are enforceable under Georgian law and protect trade secrets, client data, and proprietary processes when drafted with clear scope.

Intellectual property created during employment belongs to the employer unless the contract states otherwise. Non-compete clauses are recognised but carry specific restrictions: the maximum post-termination restriction period is 6 months, and the employer must compensate the employee at no less than their last salary throughout that period. Non-compete clauses cannot be applied to employees working in education, science, or culture fields.

Georgia's Personal Data Protection Law governs how employers collect and process employee data. Employers must establish a legal basis for processing, maintain data security obligations, and respect employee rights to access, correct, and delete their personal data. Contracts should document data processing terms explicitly to reduce compliance exposure.

Termination and Offboarding in Georgia

Georgian law requires employers to provide written notice and lawful grounds before terminating an employee. The standard notice period is 30 calendar days. If the employer gives fewer than 30 days' notice, severance increases to 2 months' salary. Employers must provide written grounds for dismissal within 7 days of an employee's request. Failure to follow proper notice procedure entitles the employee to challenge the dismissal in court.

All outstanding payments must be settled within 7 calendar days of the termination date. This includes final salary, accrued leave, and any other contractual entitlements.

Practical offboarding steps:

• Issue the final payslip with a full breakdown of payments and deductions

• Deregister the employment relationship on worknet.gov.ge

• Arrange return of company equipment and access credentials

• Revoke all data access and system permissions on the last working day

Keeping a written record of each offboarding step reduces the risk of post-termination disputes and supports compliance with Georgia's data protection obligations.

Business Culture in Georgia

Georgian business culture is relationship-oriented before it is transactional. Building personal trust with a counterpart typically precedes formal agreements, and this applies whether you are hiring locally or managing a team remotely.

Communication is direct but warm. Georgians value honesty in professional settings and expect the same in return. Hierarchy matters: seniority and titles are respected, and decisions often flow from senior leadership rather than through flat consensus structures.

• Decision-making: Top-down in most organisations. Consensus-building takes time, particularly in established companies.

• Meetings: Punctuality is expected in formal business settings. Social warmth and small talk before agenda items are normal and valued.

• Negotiation: Relationship comes before transaction. Rushing to close without building rapport can stall progress.

• Management norms: Loyalty and long-term working relationships are valued. High turnover is viewed negatively by local professionals.

• Work-life balance: Family and social commitments are respected. Flexibility on personal obligations is common.

Georgian hospitality, known locally as supra culture, extends into professional life. Business dinners and social gatherings are genuine relationship-building events, not formalities.

On language: Georgian is the official language. Russian remains widely spoken among older professionals. English proficiency is strong in Tbilisi's technology and startup sector, making it a practical working language for international teams.

Top Sectors to Hire From in Georgia

Georgia's hiring market is concentrated in a small number of high-growth sectors. Understanding where demand is rising helps international employers target the right talent pools and set realistic expectations on competition and compensation.

IT and Technology: Tbilisi's tech sector had 55 or more active roles listed in early 2026. In-demand roles include software engineers, DevOps engineers, and data analysts. Competition for senior technical talent is real, and top candidates move quickly.

Business Process Outsourcing and Shared Services: Georgia's BPO sector is growing on the back of low operating costs and rising English proficiency. In-demand roles include customer support specialists, finance operations staff, and HR coordinators. This sector suits companies looking to build cost-effective back-office functions.

Tourism and Hospitality: The sector is recovering post-pandemic with renewed investment in infrastructure. In-demand roles include hotel management professionals and tour operations coordinators.

Financial Services and Fintech: Tbilisi has a growing fintech startup ecosystem. In-demand roles include fintech developers and compliance officers. Regulatory familiarity with Georgian financial law is a valued differentiator for candidates in this space.

Agriculture and Food Processing: A traditional sector receiving modernisation investment. In-demand roles include agri-tech specialists and supply chain managers as producers upgrade operations and expand export capacity.

If you are comparing talent markets across the region, see our guide to hire employees in India for a parallel look at a high-volume technology and services hiring market.

Top Cities to Hire From in Georgia

Georgia's talent is concentrated in a handful of cities, each with distinct sector strengths. Knowing where to hire shapes both candidate quality and cost.

Tbilisi is the primary talent market. IT, fintech, BPO, and business services dominate. English proficiency is strong, and the city accounts for the largest share of active job vacancies. If you are hiring employees in the Philippines or other emerging markets, Tbilisi offers a comparable depth of mid-level technical talent at a lower cost base. See our guide to hire employees in Philippines for a useful comparison.

Batumi covers tourism, hospitality, and construction. Its Black Sea coast free economic zone is attracting a growing tech presence alongside traditional sectors.

Kutaisi offers manufacturing, logistics, and aerospace talent, supported by Kutaisi International Airport. Employer costs here run below Tbilisi rates.

Rustavi supplies industrial and manufacturing skills, with easy access to Tbilisi's infrastructure.

Gori serves agriculture, food processing, and regional administrative functions, suited to roles that do not require a capital-city location.

Hire Compliantly in Georgia with Gloroots

Gloroots operates as the legal employer in Georgia, allowing foreign companies to hire employees without establishing their own local employing entity. Gloroots can manage Georgian employment contracts, payroll, applicable statutory registrations, tax withholding, pension administration, and employment-law requirements while your team continues to direct the employee’s day-to-day work.

This model can suit companies entering Georgia for the first time, testing the market, building a local team, or expanding across multiple markets without establishing a separate entity in every country.

• No local entity required: Employ Georgian workers through an EOR structure without establishing and maintaining your own Georgian employing entity.

• Streamlined onboarding: Employment contracts, payroll setup, registrations, and required employment administration are coordinated through the EOR.

• Local compliance and payroll: Support with applicable Labour Code requirements, income-tax withholding, funded-pension contributions, statutory leave, and other employment obligations.

• Foreign-worker support: Where applicable, support with Georgia's right-to-work and immigration procedures for foreign national hires, subject to the worker's eligibility and applicable requirements.

• Predictable pricing: Country-specific per-employee pricing with transparent visibility into applicable employment and statutory costs.

• Dedicated local support: A dedicated account team supports employment changes, payroll questions, contracts, termination procedures, and local compliance matters.

Companies planning a long-term operation in Georgia may eventually consider establishing their own local entity if they require greater operational control or a permanent commercial structure. The right approach depends on hiring plans, business activities, tax considerations, immigration requirements, and long-term market strategy.

Gloroots also supports employers expanding into other markets, including those who hire employees in Germany.

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Frequently Asked Questions About Hiring in Georgia

Does this guide cover Georgia the country or Georgia the US state?

This guide covers Georgia the country, located in the South Caucasus region, bordered by Russia, Turkey, Armenia, and Azerbaijan. It does not cover the US state of Georgia. If you are hiring in the United States, refer to resources specific to US employment law and state-level regulations.

What is the Special Labour Permit (SLP) and who needs it?

The Special Labour Permit (SLP) system takes effect in March 2026. Foreign nationals working in Georgia without an SLP after that date face fines and potential employment disruption. Certain categories are exempt, including citizens of countries with bilateral agreements with Georgia. Employers should audit their foreign workforce and confirm permit requirements before the deadline.

What are the notice and severance rules in Georgia?

Employers must provide 30 days' written notice before termination. If full notice is given, the employer pays one month's severance. If notice is shortened, severance increases to two months. All final payments, including outstanding salary and severance, must be settled within seven days of the termination date.

What employment contracts are required in Georgia?

Written contracts are mandatory for any employment lasting one month or longer. Fixed-term contracts are permitted but carry a cumulative cap of 30 months across renewals. Repeated renewal without genuine project justification risks reclassification as an indefinite contract. Oral contracts are only valid for engagements under one month.

What are the maternity and parental leave entitlements in Georgia?

Georgia provides 126 calendar days of paid maternity leave. In cases of complications during childbirth or the birth of twins, maternity leave extends to 143 calendar days. Employees may also take 604 calendar days of parental leave (or 587 days in cases of complications or twins), of which 57 calendar days are paid. Parental leave may be used by either parent, while maternity leave is primarily a right of the mother; the father may use unused maternity leave days in accordance with the Labour Code.

How does contractor classification work in Georgia?

Georgian law classifies workers based on control, exclusivity, and economic dependence, not on what the contract is labelled. If you set a worker's schedule, direct how work is done, or maintain an exclusive relationship, that worker may be reclassified as an employee. Misclassification triggers back taxes, pension contribution arrears, and statutory benefit liability.

What are the top industries and cities for hiring in Georgia?

Tbilisi concentrates the majority of active hiring, particularly in IT, business services, and construction. The city had 55 or more active tech roles listed in early 2026. Batumi is active in tourism and hospitality. Kutaisi supports manufacturing and logistics. IT, financial services, and business process outsourcing are the fastest-growing sectors for international employers.