Payroll Administration in Georgia
Structure your financial compliance correctly. From domestic GEL currency disbursements to navigating the Revenue Service portal, our Tbilisi-based finance team manages the administrative execution of your Georgian payroll.
Structuring Local Payroll Processing
Foreign companies employing formal staff in tech hubs like Tbilisi or Batumi generally cannot execute payroll by simply wiring gross USD or EUR salaries directly to employees from abroad without establishing a local withholding mechanism.
Standard Georgian operating practice and financial regulations dictate that domestic salary payments be settled in the national currency, the Georgian Lari (GEL). Furthermore, under the Tax Code of Georgia, the employer is legally obligated to act as a tax withholding agent, calculating and remitting taxes to the state before the net salary reaches the employee's bank account.
- Domestic GEL currency disbursement
- Tax withholding at the source (Employer liability)
- Monthly reporting to the Revenue Service of Georgia
What Our Payroll Service Covers
- Gross-to-Net Calculations
Calculation of net pay, factoring in standard withholding, overtime, sick leave, and PTO deductions.
- Treasury Remittances
Administration and payment of withheld income taxes and statutory pension contributions to the State Treasury.
- Compliant Payslips
Generation and secure distribution of localized payslips to employees, ensuring transparent compensation records.
Georgian Payroll Taxation Explained
Compared to many European jurisdictions, the Tax Code of Georgia offers a streamlined, flat-rate taxation model with no complex progressive brackets.
Flat Personal Income Tax
Georgia applies a flat 20% personal income tax to formal employment compensation. There are no local municipal income taxes, no progressive tax brackets, and no separate broad social security taxes beyond the specific pension scheme. The 20% is deducted from the employee's negotiated gross pay.
Mandatory Pension Scheme
Participation in the accumulative pension scheme is generally mandatory for formally employed Georgian citizens and qualifying permanent residents. It is funded through a tripartite model based on the employee's gross salary.
- Deducted from Employee's Gross Pay: 2%
- Additional Cost to Employer: 2%
- Contributed by the State: 1% or 2%
* Note: The state contribution percentage varies based on the employee's total annual income threshold.
Seamless Global Integration
Whether you utilize our Employer of Record service or have established your own localized entity in Tbilisi, our payroll team provides structured administrative execution.
Data Sync & Review
You provide your global payroll cycle data (including approved bonuses or unpaid leaves). We consolidate this into the local GEL payroll structure.
Funding & Conversion
We issue one consolidated USD or EUR invoice. Upon receipt, funds are converted to GEL based on prevailing banking or FinTech exchange rates at the time of execution.
Disbursement & Filing
We distribute net salaries to your team, administer declarations via the RS portal, and remit applicable taxes and pension contributions.
Need a reliable local payroll partner?
Reduce administrative complexity. Let our Tbilisi-based accounting team handle the execution of your Georgian payroll operations.