Payroll is one of the clearest tests of whether an employer of record can actually operate in Georgia. A provider can say it supports Georgia, but the buyer still needs to see how the employee moves from offer to written contract, gross salary, local payroll, tax withholding, funded pension review, payslip, and corrections.
HR, finance, and founders hiring employees in Georgia through an employer of record need payroll answers before the offer is signed. If provider selection is still open, start with the main guide to the best EOR in Georgia, then use this payroll checklist during procurement.
Quick Answer
Georgia payroll planning usually starts with gross salary, Georgian lari payroll, income-tax withholding, funded pension eligibility, monthly pay timing, and a clear payslip process. Georgia's Tax Code taxes a natural person's taxable income at a 20% rate, unless the Code provides otherwise. Georgia's funded pension system follows a 2% + 2% + 2% model involving employee, employer, and state contributions, subject to the scheme's rules and limits. The lari is Georgia's legal tender, subject to statutory exceptions.
For a Georgia EOR hire, ask the provider to show:
- gross-to-net payroll logic;
- payroll currency;
- tax withholding treatment;
- pension eligibility and contribution handling;
- pay frequency;
- payslip format;
- payroll correction process;
- employee support path; and
- final-pay process if employment ends.
Georgia Payroll Facts
Personal Income Tax
Georgia's Tax Code states that a natural person's taxable income is taxed at a 20% rate, unless the Code provides otherwise. For an employee hired through an EOR, the practical buyer question is how the provider turns the offer into a compliant payroll result.
Ask the EOR to show:
- gross salary;
- employee tax treatment;
- pension contribution treatment;
- net pay;
- payroll cutoff dates;
- expected pay date;
- payslip fields; and
- who owns payroll corrections.
Avoid building offers around a casual "net USD" promise. If the candidate wants a foreign-currency benchmark, document the offer logic clearly, then confirm the employment agreement and payroll treatment with the EOR.
Funded Pension Contributions
Georgia's funded pension system is administered through a model the National Bank describes as 2% + 2% + 2%. The employer transfers 2% of the employee's untaxed salary amount to the employee's individual pension account on the employee's behalf, contributes the same amount as employer, and the state contributes under the scheme's rules and limits.
For EOR hiring, do not let pension sit as a vague "statutory benefits" item. Ask:
- Is the employee covered?
- What employee and employer contributions apply?
- How are pension contributions shown in payroll records?
- What happens if eligibility changes?
- Who answers employee pension questions?
- How are pension amounts handled in final payroll?
This is a strong place for Borderless AI to show execution. Borderless AI's EOR service includes payroll, taxes, benefits, compliance, local payroll experts, and country-specific employment agreements on the pricing page. For Georgia, ask Borderless AI to show how that translates into pension handling for the specific hire.
Payroll Currency and Salary Planning
The Organic Law on the National Bank of Georgia states that the lari is the currency unit of Georgia and the only legal tender in Georgia, subject to stated exceptions. That does not mean candidates will never discuss compensation in USD or EUR. It means HR and finance should be careful about what the employment agreement says and how payroll is actually processed.
For senior or internationally mobile candidates, use a clear compensation note:
- benchmark currency, if any;
- contract currency;
- payroll currency;
- salary review cadence;
- FX review policy, if relevant;
- bonus currency and payment timing;
- expense reimbursement currency; and
- equipment or remote-work allowance treatment.
The EOR should be able to explain this before the offer is signed. Borderless AI supports payroll in local currencies, and buyers should still request the Georgia-specific payroll workflow.
Pay Timing, Delayed Pay, and Final Settlement
The Labour Code says remuneration must be paid at least monthly. It also says an employer must pay 0.07% of the delayed sum for each day of delayed payment or settlement. When employment ends, final settlement must generally be made within seven calendar days, unless the employment agreement or law provides otherwise. For the offboarding workflow behind that final pay calculation, see termination in Georgia.
For a Georgia EOR hire, that means payroll is not just a monthly calculation. It is an operating process with consequences if delayed or corrected poorly.
Ask the provider:
- What are the monthly payroll cutoffs?
- When does the employee receive salary?
- What happens if a manager approves a late bonus or allowance?
- How are corrections made?
- What is the employee communication path?
- Who calculates final pay, unused leave, severance, and expenses?
Employer Cost Planning
Georgia may look simpler than many European payroll systems because it does not have the same broad employer social-security structure as some EU markets. That does not mean employer cost is just base salary.
Model at least:
- gross salary;
- employer pension contribution, if applicable;
- EOR fee;
- benefits;
- allowances;
- equipment;
- FX or payment fees;
- payroll correction fees, if any;
- termination or offboarding fees; and
- final-pay exposure.
Use the broader EOR costs guide for global pricing context, then ask the EOR for Georgia-specific numbers.
Payroll Questions to Ask a Georgia EOR
Before approving a Georgia offer, ask:
- Will payroll run in Georgian lari?
- How is gross salary converted to net pay?
- How is the 20% income-tax rate handled?
- How do you assess funded pension eligibility?
- What employee and employer pension contributions apply?
- What does the payslip show?
- What are payroll cutoffs and pay dates?
- How are bonuses, allowances, and expenses processed?
- How do payroll corrections work?
- Who answers employee payroll questions?
- What happens if pay is delayed?
- How is final settlement calculated?
The strongest provider is the one that can answer these questions in writing.
How Borderless AI Helps
Borderless AI helps companies hire, onboard, pay, and support employees without opening local entities. Borderless AI's EOR service supports 170+ countries, runs payroll in local currencies, provides local payroll experts through a dedicated app and Slack channel, requires no pre-funding, and supports 5-day payroll.
For Georgia, the proof point is practical: ask Borderless AI to show the payroll workflow, pension handling, salary-currency treatment, employee support path, and offboarding payroll process before the employee starts.
FAQs
What payroll tax applies to employees in Georgia?
Georgia's Tax Code generally taxes a natural person's taxable income at 20%, unless the Code provides otherwise. An EOR should explain how this is reflected in gross-to-net payroll.
Are pension contributions required in Georgia?
Georgia has a funded pension scheme based on employee, employer, and state contributions, subject to system rules and limits. The EOR should confirm whether the employee is covered before payroll begins.
Can employees in Georgia be paid in USD?
Compensation discussions may reference USD or EUR, but payroll and the employment agreement should be reviewed locally because the lari is Georgia's legal tender, subject to statutory exceptions.
How often must employees be paid in Georgia?
The Labour Code says remuneration must be paid at least once a month. EOR buyers should confirm payroll cutoff dates and pay dates before the start date.
What happens if payroll is delayed?
The Labour Code requires 0.07% of the delayed sum for each day of delayed payment or settlement. This makes payroll timing and correction workflows important diligence topics.
