Georgia’s on your radar, and for good reason. You’ve heard about the talent pool in Tbilisi—developers who speak four languages, designers trained in European schools, and project managers who understand both Eastern and Western business culture. The pay rates make sense for your budget. The time zone works with your team.
But then you start digging into the details of actually hiring someone there, and it gets complicated fast. Employment contracts need specific clauses you’ve never heard of. Payroll has rules that don’t match anything you’re used to. And everyone keeps mentioning paperwork requirements that sound important, but nobody explains clearly.
Here’s what you need to know to hire in Georgia without the expensive surprises. We’ll walk through the real process—from making that first offer to getting paychecks flowing. No legal theory, just the practical steps that get your Georgian team member working. Finding great talent is only half the battle. The other half is getting them on board legally and keeping them happy once they’re there.
Understanding the hiring environment in Georgia
Georgia has become an attractive destination for international employers thanks to its low corporate tax rates, simplified business registration, and economic liberalization policies. But even with a favorable investment climate, hiring here requires close attention to employment laws and workplace expectations.
The legal framework and employment culture in Georgia
Georgia’s main labor law is the Labor Code of Georgia, which applies to both domestic and foreign employers. The law is relatively employer-friendly compared to other European jurisdictions, offering flexibility in contract terms, working hours, and termination procedures.
Here’s what you need to know:
- Employment contracts: Must be in writing and clearly state the terms of work, including position, salary, working hours, and duration (if fixed-term).
- Working hours: The standard workweek is 40 hours, and overtime is permitted with employee consent. Overtime pay isn’t required by law unless agreed upon in the contract.
- Termination: Employers can terminate contracts with notice or severance depending on the cause, but dismissal must follow due process as outlined in the Labor Code.
The business culture in Georgia tends to be formal and hierarchical, especially in traditional sectors. Professionalism and punctuality are valued, but local hiring is still deeply relationship-driven—referrals and word of mouth play a major role in talent sourcing.
Picture this: Your U.S. fintech startup finds the perfect compliance analyst in Tbilisi. You make the offer, they accept, everyone’s excited. Three months later, things aren’t working out, and you need to part ways. In the U.S., that’s a tough conversation but a straightforward process.
Not in Georgia. Even during those first “trial” months, your new hire has legal protections you didn’t know existed. That casual “let’s see how it goes” approach? Georgian law requires specific trial period language in writing. Skip that step, and what should have been a clean break turns into a legal headache—complete with required notices, potential severance, and maybe even a lawsuit.
This isn’t about Georgia being difficult. It’s about employment laws that evolved differently from what you’re accustomed to. The fix is simple: get the contract right from day one. Include those trial period terms. Spell out the termination process. Follow local rules instead of assuming yours apply. Do that, and you can focus on building your team instead of untangling legal problems.
Step-by-step guide to hiring employees in Georgia
Once you understand the employment landscape, it’s time to navigate the actual hiring process. Georgia’s streamlined systems make it relatively straightforward—but missing even one step can create compliance risks.
Classifying and recruiting workers in Georgia
Georgia recognizes three primary types of work arrangements:
- Full-time employees: Receive regular salaries and legal protections under the Labor Code.
- Part-time employees: Receive proportional benefits and protections.
- Independent contractors: Do not fall under the Labor Code, but misclassification carries legal risks if the working relationship reflects employment characteristics.
Most foreign employers should avoid relying too heavily on contractor arrangements unless it’s truly a short-term or project-based role. Misclassification can trigger fines or back payments for taxes and benefits.
For recruitment, the top channels include:
- Georgian job platforms like Jobs.ge
- University career centers
- LinkedIn, which is growing in popularity in Tbilisi’s startup scene
- Research-backed strategies from this global hiring research guide
Avoid informal or undocumented hiring. All employment contracts must be registered with the Revenue Service of Georgia.
Required documentation and registration
To hire employees in Georgia, employers must prepare and submit the following:
- Written employment contract
- Employee’s personal identification documents
- Taxpayer registration with the Revenue Service
- Notification of employment within one day of contract start
Common missteps include:
- Omitting key terms in the contract (e.g., duration, job responsibilities)
- Failing to register new hires within the required one-day window
- Not issuing payslips or maintaining payroll records
Checklist for onboarding:
✅ Draft a compliant written contract (with local legal review)
✅ Collect tax ID and identification documents
✅ Register employee with the Revenue Service
✅ Submit employment notification within one day of start
✅ Set up payroll tracking and payslip system
Structuring employee compensation and payroll in Georgia
Georgia’s payroll system is straightforward but requires compliance with specific tax and reporting rules. Employers must pay salaries in Georgian Lari (GEL) and make proper deductions for taxes and social contributions.
Managing taxes, social security, and payroll delivery
- Income tax: A flat rate of 20% is withheld from employee salaries
- Pension contributions: 2% from the employee, 2% from the employer, 2% from the state (for eligible residents)
- Payroll frequency: Typically, monthly
Sample calculation (GEL):
Gross monthly salary: GEL 3,000
− GEL 600 income tax (20%)
− GEL 60 employee pension (2%)
= Net salary: GEL 2,340
Employer pays an additional GEL 60 toward the pension fund. All payments must be processed through a Georgian bank and reported to the Revenue Service.
Engaging and paying employees remotely
If you’re hiring talent in Georgia without establishing a local legal entity, you still have options—but they come with trade-offs.
Hiring through an Employer of Record (EOR)
An Employer of Record in Georgia is a third-party organization that hires employees on your behalf. They handle employment contracts, payroll, taxes, benefits, and compliance with local labor laws. You get to legally employ and pay Georgian workers—without needing to open a Georgian legal entity.
Using an EOR ensures compliance and speeds up onboarding. While the cost per employee may be higher, you’ll avoid legal exposure, administrative overhead, and delayed hiring timelines. Learn more about the Georgia work visa process if you’re relocating talent.
Direct contractor engagement
You can work with Georgian freelancers or contractors under independent agreements, but this is best for short-term or project-based work. Regular work resembling employment may lead to misclassification penalties.
Global payroll providers
If you already have an entity or plan to establish one, consider using a global payroll partner to manage in-country compliance and payments. These providers integrate with local systems but require more internal oversight than an EOR.
Tips and resources for a successful application and using support from EOR providers
Want to improve your chances of a smooth hiring and payroll experience in Georgia? These tips can help:
- Partner with an EOR early to avoid compliance pitfalls and accelerate hiring
- Use legal counsel familiar with Georgian labor law to draft and review contracts
- Set up local bank accounts for payroll if managing this in-house
- Track local holidays, leave entitlements, and public pension rules to align benefits
EORs are especially helpful for companies without existing infrastructure in Georgia. They handle:
- Local registration and employment documentation
- Timely payroll processing and payslips
- Income tax and pension deductions
- Employee support for benefits, time off, and HR administration
Explore the full scope of Employer of Record services to understand how they simplify international hiring.
Common mistakes to avoid when paying employees in Georgia
Even experienced companies can slip up when expanding into a new country. Here are some frequent errors to watch out for:
- Missing the one-day registration rule for new hires
- Paying in foreign currency instead of GEL
- Neglecting pension contributions or underreporting income
- Misclassifying employees as contractors
- Not providing compliant payslips or contracts
Any of these missteps can trigger penalties or put your employment relationships at risk. A good rule of thumb: if you’re unsure, check with a local legal or payroll expert.
From offer to onboarding: Getting it right in Georgia
Hiring in Georgia offers real advantages—competitive costs, a strong talent pool, and employer-friendly labor laws. But expanding into a new country means adjusting your playbook. The key is following a step-by-step process: understand the legal environment, structure employment contracts correctly, register your team properly, and pay them accurately and on time.
Ready to build your expansion checklist? Start with:
- Classifying the role correctly
- Drafting a compliant contract
- Registering your employee within the one-day window
- Setting up monthly payroll and tax payments in GEL
- Exploring global payroll or EOR options if you don’t have an entity
How Pebl can help
Georgia has the talent you need. We have the local know-how to get them on your team—legally, quickly, and without the headaches.
Here’s how Pebl changes the game: While you’re interviewing candidates in Tbilisi, we’re already preparing their contracts with all those required Georgian clauses. When you’re ready to make an offer, we know exactly which documents you need and when. Payroll? We’ve got the local bank relationships and tax filings figured out. Those employment protections that surprise other companies? We built them into your process from day one.
No more googling Georgian labor law at midnight. No more wondering if you missed a compliance deadline. Just hire the person you want, and we’ll handle the maze of regulations that come with it. You build your business. We’ll build the foundation that makes it possible.
Ready to tap into Georgia’s talent pool? Let’s talk about who you want to hire first.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
© 2025 Pebl, LLC. All rights reserved.
Topic:
Country Guides
