Employer of Record (EOR) in Georgia

An EOR in Georgia allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration, including assistance with work permits and visa processes.

Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Georgia.

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Quick Overview of EOR in Georgia

Expanding into Georgia doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Georgia's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like social security contributions, so you can focus on growing your business without the need to set up a costly local entity.

The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Georgia can cost anywhere from USD 2,000 to USD 5,000 plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.

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What You'll Learn

  • Looking to hire in Georgia without the hassle and administrative burden of setting up a local entity? An EOR helps you onboard employees while maintaining compliance with payroll and local labor laws.

  • With a Direct EOR, you gain control, faster onboarding, and stronger compliance. It is ideal for businesses aiming to scale quickly.

  • On the other hand, an Indirect EOR may be more cost-effective but comes with slower processes and added complexity.

  • EOR service fees typically range from USD 300 to USD 800 per employee per month.

  • Atlas HXM offers a robust Direct EOR solution, providing smooth market entry, compliance, and seamless employee management: all in one platform.

How an EOR Works

Atlas HXM provide EOR services that ensure your business remains compliant with Georgia's labor laws while you focus on growing your operations, free from administrative and legal burdens.

Candidate Selection

Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Georgian rules, and configuring payroll and statutory obligations correctly.

Employment Contracts

Atlas HXM drafts and administers employment contracts in compliance with the Georgian Labor Code. In the contract, we clearly outline employment terms to reduce the risk of future disputes, such as:

  • Job title and responsibilities

  • Salary, benefits, and working hours

  • Leave entitlements and notice periods

Payroll & Benefits Management

Payroll is processed in Georgian Lari (GEL), including:

  • Accurate tax withholdings and social security contributions

  • Statutory benefits such as health insurance and pension contributions

The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Georgia's laws.

Ongoing HR Support

Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.

Costs & Pricing

EOR services in Georgia are typically billed as a platform/service fee in the range of USD 300–800 per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration.

This service fee is separate from the employee's salary, benefits, taxes, and visa-related costs, which vary by role and jurisdiction.

By using an EOR, companies avoid the cost and overhead of setting up a Georgian entity, which can require USD 2,000–5,000 upfront before any operational spend.

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What to choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your talent in a country where you do not have an entity. The EOR handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee's work. This model suits companies expanding into Georgia without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. Suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

  • Choose an EOR when you want to hire in Georgia without setting up an entity and want a partner who can take on contracts, payroll and compliance.

  • Choose a PEO when you already operate locally and just want HR support.

Work Life in Georgia

Georgia's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:

Employment Types:

  • Indefinite-term: Ongoing employment with full statutory benefits and job security.

  • Fixed-Term: Hired for a specific project or defined duration with automatic termination at contract end.

  • Part-time: Reduced hours with proportional benefits and compensation.

Probation Periods: Georgian law allows probationary periods up to 6 months, which must be clearly specified in employment contracts. These periods allow employers to assess employee suitability before committing to permanent employment. During probation, either party can terminate the employment contract at any time without notice period, and the EOR ensures that all terms comply with the Georgian Labor Code.

Working Hours & Overtime: In Georgia, the standard workweek is 40 hours, typically distributed over 5 days (8 hours per day). Employees must receive daily rest breaks and weekly rest periods of at least 24 consecutive hours. Overtime work exceeding the standard hours must be compensated at an increased hourly rate agreed upon by the parties, or by providing proportional paid time, and the EOR ensures that all overtime is calculated correctly and complies with local regulations.

Leave Entitlements

Leave Type

Eligibility / Duration

Payment / Notes

Annual Leave

Minimum 24 working days per year

Paid by employer; accrues monthly throughout employment

Maternity Leave

Paid leave before and after childbirth

Compensation as per Georgian social security system of up to 1,000 GEL

Paternity Leave

Available for male employees

Paid leave following birth of child

Sick Leave

Paid sick leave for certified illnesses

Medical certification required

Public Holidays

All national and regional holidays

Paid; premium compensation for holiday work

Vacation Leave

As per employment contract terms

Paid; advance planning and approval required

Payroll & Benefits: Wages are paid in Georgian Lari (GEL) with competitive rates varying by industry. Atlas HXM manages payroll processing, social security contributions (employer and employee), statutory benefits including health insurance and pension contributions, and any additional benefits. Supplemental benefits can include private health insurance, meal allowances, transportation benefits, and professional development options.

Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Georgia's labor laws while businesses can focus on operations without administrative burdens.

More Reading

10 Best Employers of Record in Georgia in 2026

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What to choose: Indirect vs Direct EOR

Direct EOR

The EOR owns the legal entities in the target country, coordinating all employment-related tasks directly. It offers faster onboarding, better compliance, and more control.

Best for: Businesses looking to scale quickly, expand long-term, or enter Georgia with compliance.

Indirect EOR

The EOR provider acts as an intermediary between the business and a third-party local entity. While it can be cheaper, it may result in delays and compliance complexity.

Best for: Small teams or short-term hires with less urgent compliance needs.

What’s Best for You?

  • For Small Teams or Contractors: Indirect EOR could work, especially for temporary hires or testing a market.

  • For Scaling and Compliance: Direct EOR is the best choice. With Atlas HXM, you'll have control, faster entry, and streamlined compliance.

Taxes & Compliance

Georgia operates on a calendar-year tax system with specific deadlines for various obligations. Employers must submit monthly income tax withholdings and mandatory pension contributions by the 15th of the following month, with annual tax returns typically due by March 31st of the following year. Electronic filing through government portals is standard practice for most tax submissions.

Category

Details

Employer Payroll Tax

Personal Income Tax : 0% (20% flat rate withheld from the employee's gross salary) Pension contributions: mandatory employer portion - 2 % Health insurance: employer portion of premiums — only if a private insurance plan is chosen as a benefit (provided as a voluntary benefit, not a statutory payroll tax).

Employee Payroll Tax

Income Tax: 20% flat rate based on gross monthly income (not progressive). Employee social security: ~2% of gross salary Health insurance: Optional employee portion of premiums (only if a private insurance plan is chosen as a benefit).

Pension System

Mandatory state pension with employer/employee contributions Optional private pension plans available Contribution rates and vesting periods applied Portability rules for job changes Official retirement ages for benefit eligibility

VAT & EOR Costs: Georgia applies Value Added Tax (VAT) to various services, including EOR services depending on service structure. Standard VAT rates apply to taxable EOR services, with potential input credits available for businesses. Proper VAT documentation and compliance requirements must be maintained.

Atlas HXM handles tax compliance, including progressive income tax calculations, social security contributions, annual filings, and expatriate tax considerations, ensuring businesses remain compliant with local laws while minimizing administrative burden.

Termination

Employees must give written notice for termination, with notice periods 30 days for regular employees. Severance pay requirements depend on termination circumstances, with redundancy situations typically requiring severance based on tenure and final salary. The EOR helps ensure proper handling of terminations, including legal compliance, documentation, final wage calculations, and risk management.

5 Things to Look for in an EOR Provider in Georgia

  1. Local expertise and knowledge of Georgian labor laws, social security requirements, and tax regulations.

  2. Advanced technology for payroll processing, reporting, and HR system integration.

  3. Experience in your industry and handling work permit management and visa processes.

  4. Strong compliance track record and relationships with Georgian government agencies and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

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Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Atlas HXM's unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2025, Atlas HXM combines compliance, technology, and global expertise.

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FAQs

How quickly can I hire employees in Georgia through an EOR?

With an EOR, you can typically hire employees in Georgia within 1-2 weeks, compared to several months required for establishing a local entity.

What are the mandatory benefits for employees in Georgia?

Mandatory benefits include health insurance, social security contributions, pension contributions, and statutory leave entitlements.

Can I terminate employees easily in Georgia?

Georgia provides reasonable flexibility for employee termination with proper procedures, notice periods, and severance payments as required by law.

What is the minimum wage in Georgia?

Georgia has established minimum wage rates that are regularly updated. Contact your EOR provider for current minimum wage information.

Do I need a Georgian entity to use an EOR?

No, the primary advantage of an EOR is that you can hire employees in Georgia without establishing a local legal entity.

How are taxes handled for employees hired through an EOR?

The EOR handles all tax calculations, withholdings, and payments to Georgian tax authorities, ensuring full compliance.

         

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