1. Home
  2. »
  3. Global-hiring-guide
  4. »
  5. Hire Employees in Georgia

Hire Employees in Georgia

The USA, blessed with technological advancements and economically strong and powerful resources, is also a target destination for remote jobs. With all the benefits, global employers prefer to hire employees in the USA for remote jobs from multiple industries.

In this guide, we will discuss every nook and corner about hire employees in the USA and demonstrate how professionals add value to your workforce.

Let’s begin with the basic information about the USA. 

  • About Georgia – Key facts
  • Why should you hire remotely
    in Georgia?
  • Remote talent you can hire
    in the country of Georgia
  • What are the employment laws
    in Georgia?
  • Important salary-related
    information
  • Types of leaves according to the
    law in Georgia
  • What are the employee
    onboarding rules in Georgia?
  • What is the payroll policy in
    Georgia?
  • Hire Employees in Georgia –
    salary and benefits
  • Onboarding best practices when
    you Hire Employees in Georgia
Hire Employees in Georgia

About Georgia – Key facts

Capital: Tbilisi

Population: Approximately 3.7 million

Language: Georgian

Currency: Georgian Lari (GEL)

Payroll frequency: Typically monthly

Timezone: Georgia Standard Time (GET) – UTC/GMT +4:00

Cost of living index: 37.2 

GDP: $30.5 billion

Why should you hire remotely in Georgia?

Skilled workforce: Georgia has an educated, noticeably skilled workforce, mainly in engineering and hospitality, which contributes to its robust pipeline of skilled graduates from top universities across the country.

Cost-effective labor: Labor expenses in Georgia have notably decreased compared to many Western nations, making it an appealing option for companies looking to enlarge their personnel affordably.

Favorable business climate: The nation presents various tax incentives and enterprise assist applications, which include a ‘process tax credit score’ to reduce company tax legal responsibility.

Excellent infrastructure: Georgia boasts an international-class logistics hub and a reliable strength grid catering to enterprise desires.

Time zone alignment: The Georgia Standard Time (GET) region in Georgia presents a manageable overlap with commercial enterprise hours in the UK and Europe, making it best for worldwide operations.

Remote talent you can hire in the country of Georgia

Remote talent you can hire in the country of Georgia

What are the employment laws in Georgia?

Some of the employment laws observed in Georgia include those regulating the rights of the employees and the legal framework that applies to the employers.

Minimum wage

  • The minimum gross wage in Georgia is 2,045 GEL (Georgian Lari) per month

Work hours

  • The standard work week in Georgia is 40 hours, excluding breaks and rest time.
  • Businesses with specific operating conditions can have a maximum of 48 hours per week but must belong to a special list of industries covered by this exception.
  • Employers must provide ten days’ notice before changing employee shift schedules unless it is an urgent business matter.
  • Minors under 16, postpartum women, breastfeeding women, and those with disabilities cannot be employed for night shifts (10 pm-6 am).

Overtime

  • In the event of a natural disaster or industrial accident, employees may be asked to work overtime hours to assist with emergency response and recovery efforts.
  • Overtime pay for these hours worked should be provided in accordance with labor laws and employment contracts.
  • Overtime pay must be higher than regular pay, as agreed in the employment contract. Employers can also compensate with time off instead.
  • Employers must get consent from pregnant women, postpartum women, and those with disabilities before assigning overtime.

Termination

  • Employers can terminate employment contracts for reasons like completing the contract term, mutual agreement, court order, long-term disability, or death of the employee/employer.

Health and safety

  • Employers must ensure a safe and healthy work environment, provide safety information, and implement accident prevention systems.
  • Employees have the right to refuse unsafe work that violates laws or endangers life, health, or property.
  • Employers must cover medical treatment and rehabilitation for employees who suffer health issues due to their work duties.

Other key provisions

  • Georgia has no social security deductions for employees but has a 20% flat personal income tax.
  • The Georgian Labor Code provides extensive employee protections and regulates individual and collective labor relations.

Important salary-related information

What is the average salary and median salary?

  • Monthly salary: Ranges from 20 GEL (minimum average) to 30,100 GEL (maximum average)
  • Average salary: 6,190 GEL
  • Median wage: 2470 GEL where 75% earn more while 25% earn less

Note: The lowest paying positions include Nursery School Teacher Assistant, Social Counselor, Tailor, Medical Records Clerk, and Porter, with average salaries under 1,000 GEL. So, while the minimum wage is quite low, the average salary in Georgia is around 6,190 GEL per month, with significant variation based on industry, position, and experience level.

Types of leaves according to the law in Georgia

Georgia’s laws provide for various leave types:
1. Vacation leave (Annual leave): Employees are entitled to a minimum of 24 working days of paid vacation leave per year.
2. Sick leave: There is no legal requirement for employers to provide paid sick leave.
3. Maternity leave: Employees are entitled to 730 calendar days of total maternity leave. However, only 183 of those 730 days are fully paid. The remaining leave period is unpaid. In the event of pregnancy complications or multiple births, 200 calendar days shall be paid.
4. Other leaves: Bereavement leave for the death of a close family member can be provided.

The specific details and duration of various leave types can vary based on individual employer policies and agreements in Georgia. Employers must ensure that employees refer to their company’s documented leave policies for the most accurate information.

What are the employee onboarding rules in Georgia?

When hiring remotely in Georgia, inform candidates of the following before they join:

Probation period

  • The probationary period in Georgia must be stipulated within the employment agreement and cannot exceed six months.

Notice period

  • The notice period is 30 calendar days.
  • No notice is required during the probation period.
  • Notice must be given in writing.

Termination policies

  • Employment agreements can be terminated for reasons such as changes in economic circumstances. For example, if a company in Georgia experiences a severe economic downturn due to a global recession, it may need to reduce its workforce to align staffing levels with the reduced revenue projections. In this scenario, the company could terminate the employment agreements of certain employees due to changes in economic circumstances that impact the business.
  • Employers cannot terminate employment for illegal reasons like discrimination or retaliation, which are prohibited by law.

Severance pay

  • Employees are entitled to at least 1-2 months’ salary as severance pay upon dismissal, depending on the termination reasoning.

Probationary period extensions

  • Vacation leave carry-over: If allowing an employee to use their full vacation leave entitlement within the current year would negatively impact the business, the employer can carry-over the unused vacation days to the next year.
  • Employee consent required: Before proceeding with the vacation day carry-over, the employer must obtain the employee’s consent.

This policy provides employers with some flexibility to manage vacation leave usage, especially in situations where granting all the leave at once could disrupt business operations. At the same time, it protects the employee’s rights by requiring their consent before any carry-over occurs.

The two-year limit on the carry-over period also ensures that employees are not indefinitely denied the ability to use their full vacation entitlement, even if the employer faces challenges in accommodating it all in a single year.

Overall, Georgia has well-defined labor laws governing the probation period, notice period, and termination policies to protect both employers and employees.

What is the payroll policy in Georgia?

The payroll policy, when you hire employees in Georgia, covers wage calculations, deductions, and payment schedules:

Overtime pay

  • Employees must be paid 1.5 times their standard hourly rate for any overtime hours worked.
  • Overtime is required for work exceeding the standard 40-hour workweek unless the employee belongs to an industry with a 48-hour workweek exception.

Pay periods

  • The standard pay period in Georgia is monthly, with employees receiving their salary at the end of each month.

Deductions and taxes

  • Employers must withhold income taxes from employee paychecks.
  • There are no mandatory social security contributions in Georgia.
  • The country has a 20% flat personal income tax deduction.
  • Employers may also deduct amounts for voluntary retirement plans or health insurance premiums, as agreed with the employee.

Georgia has clear legislation regarding labor relations concerning minimum wages, overtime wages, pay frequency, and allowable deductions. These have become the standard regulations that any employer has to consider when designing pay structures and remuneration systems for employees in the country. Such aspects can depend on the sphere of business, geographical location, and actual employment contracts.

Learn more about: Georgia Payroll Costs and Calculations

Record-keeping

a) As an independent country, Georgia likely has its labor laws and regulations that govern employer responsibilities around payroll documentation.

b) It is common for countries to require employers to maintain accurate records of employee hours worked, wages paid, taxes withheld, and other payroll-related information.

c) These records may need to be kept for a certain period of time and potentially reported to government agencies for tax, social security, and labor compliance purposes.

d) Georgia, as a developing country, may have less robust or enforced payroll record-keeping requirements compared to more developed economies. The capacity of the government to monitor and enforce such regulations could vary.

e) Tax-related payroll records must be kept for at least seven years per Georgian law. Personal data must be kept for as long as required by the duration and nature of the employment relationship.

Hire Employees in Georgia – salary and benefits

Base salary

  • The base salary is the fixed annual amount paid to the employee, as per the employment contract.
  • Salaries in Georgia can range from around 1,710 GEL (Georgian Lari) per month for low-paying jobs to over 30,100 GEL per month for high-level executive positions.

Benefits

  • Health Insurance Coverage: While Georgia doesn’t mandate health insurance coverage, employers often offer it to attract and retain talent. Additionally, the Georgia State Continuation law provides three months of health coverage for small business workers who lost their jobs and were previously covered with a prepaid premium.
  • Jury Duty Leave: Employers must provide eligible employees with time off for jury duty.
  • Equal Employment Opportunity: Employers must follow equal employment opportunity guidelines to prevent discrimination.
  • Retirement and Health Benefits: While not mandatory, some employers offer retirement plans and health benefits to their employees.

Payroll taxes

  • Employers in Georgia are required to withhold a 20% flat personal income tax from employee paychecks.
  • There are no mandatory social security contributions in Georgia.

Onboarding best practices to follow when you Hire Employees in Georgia

A smooth onboarding process is crucial for integrating new hires effectively. Key practices include:

Pre-onboarding

  • Welcome kit: Provide new hires with essential information and company materials before their start date.
  • Training schedule: Outline a clear training plan to familiarize new employees with their roles.

Day one

  • Orientation: Conduct a comprehensive introduction to the company, including policies, culture, and organizational structure.
  • Role-specific training: Begin training specific to the new hire’s position.

First month

  • Regular check-ins: Schedule meetings to address questions and provide feedback.
  • Integration activities: Encourage participation in team-building activities to foster relationships.

Sign up with Global Squirrels and reap hiring and payroll benefits

Global Squirrels offers an AI-enabled platform to help you hire employees in Georgia and streamline their entire hiring process. It is a comprehensive platform for hiring contingent workers offshore, allowing you to recruit and pay contractors in Georgia without any employer risks. Acting as the legal employer of record, Global Squirrels provides automated HR, payroll, and benefits management for seamless operations. Our disruptive, transparent pricing model eliminates intermediaries like BPOs or staffing agencies, ensuring most of the bill rate goes directly to your hired workers.

Other top features of our hiring and payroll platform:

  • Cost-effective: No need to set up your entity in Georgia.
  • Range of hiring options: Explore and choose from our range of hiring plans. Check the pricing here.
  • Flat fee model: Pay only the one-time platform fee along with the payroll cost to hire employees in Georgia
    Compliance: Eliminates legal complications related to compliance with the local labor laws.

Global Squirrels’ hiring and payroll platform will help you simplify the whole process of sourcing skilled and experienced employees from Georgia to your teams. Click here to request a demo of our AI-enabled platform and start hiring in Georgia!